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Central Board of Indirect Taxes & Customs (CBIC)

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Tag: Central Board of Indirect Taxes & Customs (CBIC)

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Composition taxpayers cannot issue taxable invoice or collect GST from customers and claim ITC

Composition taxpayers cannot issue taxable invoice or collect GST from customers and claim ITC

As per the Goods and Services Tax (GST) law, a person registered as a composition taxpayer cannot issue a taxable invoice and can neither collect GST from his customers nor can claim the input tax credit on his purchases.

The fact as to whether a person is a regular taxpayer or a composition taxpayer can be verified on the GST portal under the “Search Taxpayer” -> “Search by GSTIN/PAN” tab under the heading “Taxpayer Type”.

The URL for the same is https://services.gst.gov.in/services/searchtp

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Remission of Duties and Taxes on Exported Products Scheme gets extended to other products

Remission of Duties and Taxes on Exported Products Scheme gets extended to other products

Taking a major step to boost exports, Centre today further expanded the scope of RoDTEP Scheme
(Remission of Duties and Taxes on Exported Products) by including the exports made from the Chemical
sector, Pharmaceuticals sector and exports of articles of iron & steel under chapters 28, 29, 30 and 73 of
ITC(HS) schedule of items.

The expanded list of items will be applicable for exports made from 15th December, 2022. This was a longstanding demand of the industry which has been accepted and will go a long way in boosting our exports and competitiveness in the global markets, generate employment and contribute to the overall economy. The expanded list of eligible export items under Appendix 4R will increase from current 8,731 export items (8 digit tariff lines) to 10,342 export items (8 digit tariff lines).

RoDTEP is based on the globally accepted principle that taxes and duties should not be exported, and taxes and levies borne on the exported products should be either exempted or remitted to exporters. The RoDTEP scheme rebates/refunds the embedded Central, State and local duties/taxes to the exporters that were so far not being rebated/refunded. The scheme is being implemented from 1st January 2021 and the rebate is issued as a transferable electronic scrip by the Central Board of Indirect Taxes & Customs (CBIC) in an end to end IT environment.

It may be noted that Government is leaving no stone unturned to support domestic industry and make it more competitive in the international markets. Export centric industries are being reformed and introduced to better mechanisms so as to increase their competitiveness, boost exports, generate employment and contribute to the overall economy. This will go a long way in achieving our vision of building an Aatmanirbhar Bharat.

In the present times, when exports are facing headwinds on account of signs of recession in so
of the developed markets & supply chain disruptions on account of Russia-Ukraine conflict,
extension of RoDTEP to uncovered sectors like Chemicals, Pharmaceuticals & Articles of Iron &
Steel is likely to enhance the export competitiveness of these sectors.

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Restricted entry of food items in under specific ports

Restricted entry of food items in under specific ports

Subject: Restricted entry of food items in under specific ports – reg.

Reference is invited to F. No. TIC-B02/5/2022-Imports-FSSAI dated 17th October, 2022 both issued by Food Safety and Standards Authority of India, New Delhi on the above-mentioned subject (copy enclosed).

  1. Vide order dated 17.10.2022 FSSAI has decided that with effect from 1st February, 2023, import of below specified high-risk products shall be permitted only through 61 ports (copy attached), which are directly manned and managed by FSSAI office/officials. The list of such high-risk food products is as specified below:- (i) Milk and Milk Products; (ii) Egg powder. (iii) Meat and Meat Products including Poultry, Fish and their products (iv) Food for Infant nutrition / Infant Foods. (v) Nutraceuticals. Health supplements, Food for Dietary uses. Probiotic and prebiotic foods. Foods for Special Medical Purpose.
  2. In this regard, FSSAI has also sought comments/suggestions to facilitate ease of doing business while ensuring the mandate of safe food import in India within 30 days from the date of publication of that order at email id – dramit.sharma@fssai.gov.in and import@fssai.gov.in
  3. It is also requested to sensitize the officers and trade under your jurisdiction on the above orders of FSSAI by way of issue of suitable public notice/ standing order .
  4. The difficulties, if any, in the implementation of this Instruction may be brought to the notice of the Board
cs-ins-31-2022

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CBDT signs MoU with CBIC and MoMSME What it means and Know 10 impact on Business and Tax payers

CBDT signs MoU with CBIC and MoMSME What it means and Know 10 impact on Business and Tax payers

A Memorandum of Understanding (MoU) was signed between the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC) on 21st July, 2020, for data exchange between the two organisations. The MoU was signed by Shri Pramod Chandra Mody, Chairman, CBDT, and Shri M. Ajit Kumar, Chairman, CBIC, in the presence of senior officers from both the organizations.

Effect on the earlier MoU signed between CBDT and CBEC

This MoU will supersede the MoU signed between CBDT and the erstwhile Central Board of Excise and Customs (CBEC) in the year 2015. Significant developments have taken place since the signing of earlier MoU in 2015, including introduction of GST, incorporation of GSTN and change in the nomenclature of CBEC to CBIC.

What does the CBDT do?

The Central Board of Direct Taxes is a statutory authority functioning under the Central Board of Revenue Act, 1963 who deals with matters relating to levy and collection of direct taxes. It provides inputs for policy making and planning of direct taxes. It is also responsible for administration and implementation of direct tax laws.

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What does the CBIC do?

Central Board of Indirect Taxes and Customs is a part of the Department of Revenue under the Ministry of Finance which deals with the tasks of formulation of policy concerning levy and collection of Customs, Central Excise duties, Central Goods & Services Tax and IGST, prevention of smuggling and administration of matters relating to Customs, Central Excise, Central Goods & Services Tax, IGST and Narcotics to the extent under CBIC’s purview.

What does the MoU between CBDT and CBIC signify?

  • The MoU will facilitate the sharing of data and information between CBDT and CBIC on an automatic and regular basis. This will lead to more transparency as there will be no scope of hiding data.
  • In addition to regular exchange of data, CBDT and CBIC will also exchange with each other, on request and spontaneous basis, any information available in their respective databases which may have utility for the other organisation.
  • A Data Exchange Steering Group has also been constituted for the initiative, which will meet periodically to review the data exchange status and take steps to further improve the effectiveness of the data sharing mechanism.

Another MoU signed by CBDT and MoMSME

A Memorandum of Understanding (MOU) was signed on 20th July, 2020 between the Central Board of Direct Taxes (CBDT) and the Ministry of Micro, Small and Medium Enterprises, Government of India (MoMSME) for sharing of data by CBDT to MoMSME. The MoU was signed by Smt. Anu J. Singh, Principal Director General of Income Tax (Systems), CBDT and Shri. Devendra Kumar Singh, Additional Secretary & Development Commissioner, MoMSME.

What does the MoU between CBDT and MoMSME signify?

  • The MoU will facilitate seamless sharing of certain Income-tax Return (ITR) related information by the Income Tax Department to MoMSME.
  • This will lead to more transparency as there will be no scope of hiding data
  • The CBDT data will enable MoMSME to check and classify enterprises in Micro, Small and Medium categories as per the criteria notified in the Notification No. S.O. 2119(E) dated 26/06/2020 of MoMSME. Tax authorities have tightened the screws on companies that continue to enjoy MSME status despite having surpassed the earlier parameter based on investment limit in plant and machinery.
  • Both the organisations will appoint Nodal Officer and Alternate Nodal Officers to facilitate the process of data exchange.

What does the MoMSME do?

The role of the Ministry of Micro, Small and Medium Enterprises is to supplement the efforts of the States/Union Territories aimed at promoting growth and development of MSMEs, for enhancing their competitiveness in the changed scenario. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth

Revised Definition of MSME:

The following enterprises will be classified as MSME

EnterpriseInvestment in plant and machineryTurnover
MicroDoes not exceed Rs 1 croreDoes not exceed Rs 5 crore
SmallDoes not exceed Rs 10 croreDoes not exceed Rs 50 crore
MediumDoes not exceed Rs 50 croreDoes not exceed Rs 250 crore

Both these MoU’s will mark the beginning of a new era of cooperation and synergy between the CBDT and CBIC and CBDT and MoMSME.

How it will Impact Business and Taxpayers?

  1. Business will get Loans Easily as data will be available soon with Banks
  2. Taxpayers data of GST will be shared to Income Tax Department to cross check turnover and other details automatically
  3. Tax Department will have AI to check data mis match and notices can be easily send to tax payers for explanations
  4. GST Turnover details and Income Tax Assets details will be automatically populated for classification as per new definition of MSMEs
  5. If Assessee is at default at one place example in income tax, automatically data and information will be shared with other departments like GST, etc
  6. Big data will help identify potential of tax evasion done by business and others
  7. Export data will be captured at multiple places and any deviation will be asked to explain
  8. All new MSMEs register in Udyam will be given priority in government contracts
  9. Udyam Registration will be very important for business to get subsidy and any apply to government scheme
  10. With E Faceless Assessment in place for Income Tax, simialr will be available for assessment in GST very soon

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CBIC introduces Electronic Communication of PDF based copies of Shipping Bills & E- Gate Pass for Exports

CBIC introduces Electronic Communication of PDF based copies of Shipping Bills & E- Gate Pass for Exports

Introduction

The information that Customs and other agencies require to process import and export declarations can be obtained from several documents. These documents can be divided into the following categories:-

  1. transport documents, such as bills of lading, air waybills, consignment notes, rail/road manifests, etc
  2. commercial documents, such as invoices, purchase orders, any applicable contracts, technical documentation on products, packing lists, etc
  3. regulatory documents such as licences, permits, certificates, etc.

Paperless clearance implies no hard-copy submission by trade to regulatory authorities and, likewise, no hard-copy responses from regulatory authorities to trade. It involves electronic transmission of all regulatory documents to Customs and to other regulatory agencies. This eliminates the need to print and manually attach the documents to shipments. Printed or handwritten documents can cause difficulties in the processing of shipments, leading to costs and delays. Paperless processing means that regulatory authorities, also, can communicate electronically their decisions on release/hold/payment of shipments.

In its continuing endeavor to promote ‘Faceless, Contactless, Paperless Customs’ the Central Board of Indirect Taxes & Customs (CBIC) has decided to rely upon digital copies of the Shipping Bill and do away with the requirement of taking bulky printouts from the Service Centre or maintenance of voluminous physical dockets in the Custom Houses.

This reform will yield immense benefits in terms of saving the time and cost of compliance for the trade, thereby enhancing the ease of doing business, while providing enhanced security features for verification of authenticity and validity of the electronic document.

CBIC directs that w.e.f 22.06.2020 only the digital copy of the Shipping Bill bearing the Final LEO would be electronically transmitted to the exporter and the present practice of printing copies of the said document for the exporters and also for maintaining a docket in the Customs House would stand discontinued.

Final Let Export Order (LEO) copy of the Shipping Bill:-

  1. CBIC vide Circular No. 55/2016-Customs dated 23.11.2016, had done away with Exchange Control copy of the Shipping Bill and made printing of the Export Promotion copy of the Shipping Bill optional.
  2. Currently, the Shipping Bill is being printed in duplicate (Customs Copy and Exporter Copy).
  3. Further, it is ascertained that, the Export Promotion copy is also being printed in many instances, based on the request of the exporters.
  4. This necessitates the exporter/Customs Broker to take physical printouts in the Service Center and present it to the Customs Officer. In many locations, physical signing of the printouts is also insisted upon.
  5. To promote a paperless environment, CBIC has decided to do away with the taking the printouts referred above.
  6. Instead, Directorate General of Systems has enabled a functionality of communicating by email, the PDF version of the Final LEO copy of the Shipping Bill to the Customs Broker and exporter, if registered.
  7. This electronic Final LEO copy can serve multiple purposes such as being shared with DGFT, Banks etc.

Features Electronic Communication of Final LEO copy of the Shipping Bill

  1. The PDF version will bear a digitally signed and encrypted QR code which can be scanned to verify the authenticity of the document using Mobile App ICETRAK.
  2. The QR code is tamper proof, which is digitally signed by CBIC to ensure the authenticity.
  3. Key details like SB No., SB Date, FOB value, Package Details are available in the secured QR Code.
  4. A version number is also embedded in the QR code which can be used to ascertain whether the document is indeed the latest version (in case of cancellation of LEO etc.). The same would be verifiable at ICEGATE Enquiry.
  5. Let Export Order (LEO) message shall also be sent to custodians who are integrated with ICEGATE.
  6. SB LEO message is not being received electronically by those custodians who are NOT connected via MFTP.
  7. Field formations are urged to immediately ensure the registration of all custodians with the ICEGATE system.

E-Gatepass Copy of Shipping Bill:-

  1. The Shipping Bill printout is also being used extensively by the logistics operators during the movement of export goods, including transshipment, by road or rail or during the loading of cargo into vessels, aircrafts etc. as a proof of export.
  2. This is despite the electronic information existing in the Customs Automated System and Board having made printing and use of Transference copies of Shipping Bill optional.
  3. Therefore, taking cognizance of the logistics needs, the Directorate General of Systems would henceforth communicate through email, the eGatepass PDF copy of the Shipping Bill to the Customs Broker and the Exporter, if registered.
  4. Accordingly, Board has decided to do away with the printing of Transference copies of Shipping Bill.

Features of e-Gatepass Copy of Shipping Bill:-

1.The electronic document provides key summary details like Container/Packages related to logistics movement and facilitates authentic, easy and quick verification by the Custodian, at the point of Entry/Exit.

2. There will be following 2 types of QR codes which will ensure that only those containers/package move out which are covered under the Gatepass document:-

i. for entire eGatepass document, and

ii. for each container/package covered under the eGatepass

3. In case of packaged and other bulk cargos, the eGatepass copy of the Shipping Bill will be generated during LEO

4. In case of containerised cargo, the eGatepass copy of the Shipping Bill will be generated after the receipt of the container stuffing information for the Shipping Bill.

CBIC desires that scenarios other than those mentioned above, where printouts of Shipping Bills are required shall be immediately informed. The respective Principal Commissioners / Commissioners of Customs would take a decision on allowing printouts only in such exceptional situations.

It is also repeated that for the purposes of exports, all the supporting documents should mandatorily be uploaded in eSanchit and collection of physical dockets shall be dispensed with.

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