0Central Tax Notifications:
Composition Scheme- Notification 3 & 8/2017:
Composition scheme threshold has been notified to be 75 lakhs (earlier recommended only). This will be beneficial to small businesses.
Notification 3 contains the composition scheme rules which had been issued ealrier on 17th May.
Reverse Charge- Notification 5/2017:
The persons who only supply goods/services on which reverse charge applies, are exempted from registering under GST registration.
For example, For example, Ola Cabs enlist drivers to ply their cars. Drivers are providing chauffeur/driving services to Ola and Ola is the service receiver.
Ola pays GST on the drivers’ services on reverse charge basis. Drivers are not required to register under GST thus removing the burden of tax compliance from individuals with limited resources (drivers) to large companies (Ola) with enough resources.
Sections coming into force-Notification 1 & 9/2017:
With the Notification of 19th June and 28th June, most of the CGST Act is now in force. Only sections 51 & 52 (TDS & TCS respectively) are not applicable as the government has relaxed TDS & TCS provisions for the time being to give more time to the e-commerce sellers.
Sections 42(9) & 43(9) are not applicable.
These clauses say that if the output tax liability is reduced (or input tax credit is increased) due to a debit note (or a credit note) [mismatch of invoices reconciliation] then such amount shall be refunded by crediting electronic ledger. This is not applicable right now as there will not be any reconciliation for 2 months.
Rules-Notification 10/2017:
CBEC has issued the rules on valutation, transisition, refunds etc. in a 247 page document.
HSN Codes-Notification 12/2017:
Every registered person with turnover more than 1.5 crores must mention the HSN Codes in each and every invoice.
However, the numbers of digits to be mentioned in the Invoice depends on the annual turnover in the preceding financial year.
| Turnover in previous FY | No. of digits |
| Upto Rs. 1.50 Cr | NIL |
| More than Rs. 1.50 Cr. & upto Rs. 5 Cr | 2 digits |
| More than Rs. 5 Cr | 4 digits |
This is effective from 1st July, i.e., all invoices from 1st July must be GST compliant and have details of HSN codes.
The same notifications have also been made under IGST (notification 5).
Rates of interest-Notification 13/2017:
The rates of interest are same as mentioned in the Act. The notification ratifies the rates.
This notification shall come into force from the 1st day of July, 2017
| ections | Interest p.a. |
| Sec 50(1)- Failure to pay tax | 18% |
| Sec 50(3)- Less tax paid/ excess ITC availed | 24% |
| Sec 54(12)- Interest on refunds withheld in an appeal later given | 6% |
| Sec 56- Interest on delayed refunds | 6% |
| Proviso to 56- Interest on refunds ordered in an appeal | 9% |
The same notification has also been made under IGST (notification 6).
Common Portal- Notification 4 /2017:
It is notified that the website of the Common Portal is www.gst.gov.in managed by Goods and Services Tax Network.
