29/06/2023

Dear Taxpayers,

1.   It is informed that GSTN has developed a functionality to enable the taxpayer to explain the difference in GSTR-1 & 3B return online as directed by the GST Council. This feature is now live on the GST portal.

2.   The functionality compares the liability declared in GSTR-1/IFF with the liability paid in GSTR-3B/3BQ for each return period. If the declared liability exceeds the paid liability by a predefined limit or the percentage difference exceeds the configurable threshold, taxpayer will receive an intimation in the form of DRC-01B.

3.   Upon receiving an intimation, the taxpayer must file a response using Form DRC-01B Part B. The taxpayer has the option to either provide details of the payment made to settle the difference using Form DRC-03, or provide an explanation for the difference, or even choose a combination of both options.

4.   To further help taxpayers with the functionality, a detailed manual containing the navigation details is available on the GST portal. It offers step-by-step instructions and addresses various scenarios related to the functionality. The link is stated below:



https://tutorial.gst.gov.in/downloads/news/return_compliance_in_form_drc_01b.pdf

GST

India imposes antidumping duty on 5 Chinese goods for 5 years

Dec 27, 2021

India has imposed antidumping duties on five Chinese products, including certain aluminium goods and some chemicals, for five years to guard local manufacturers from cheap imports from the neighbouring country. According to separate notifications of the Central Board of Indirect Taxes and Customs (CBIC), the duties have been imposed on certain flat rolled products of aluminium; sodium hydrosulphite (used on dye industry); silicone sealant (used in manufacturing of solar photovoltaic modules, and thermal power applications); hydrofluorocarbon (HFC) component R-32; and hydrofluorocarbon blends (both have uses in refrigeration industry).

These duties were imposed following recommendations of the commerce ministry's investigation arm Directorate General of Trade Remedies (DGTR).

GST

Govt hikes import duty on toys to 70%

Feb 02, 2023

The government on Wednesday increased the import duty on toys and its components to 70 per cent with a view to cut inbound shipments of these products and boost domestic manufacturing activities. Similarly, import duty on bicycles has also been hiked to 35 per cent from 30 per cent, according to a Union Budget document.

Import duty hike on toys and parts of toys excludes parts of electronic toys.

Earlier, basic customs duty on toys was increased from 20 per cent to 60 per cent in February, 2020 to promote local manufacturing.

GST

India raises tax on imported cars, motorbikes, including EVs in a bid to boost "Make in India" scheme

 Feb 02, 2023

India on Wednesday said it will raise taxes on imported cars and motorbikes, including electric vehicles (EVs), as it seeks to boost local manufacturing in line with Prime Minister Narendra Modi's "Make in India" campaign ahead of elections in 2024.

All vehicles with a landed cost of less than $40,000 will be taxed at 70%, up from 60% earlier, a move analysts say could impact demand. The landed cost includes the vehicle's price tag plus insurance and freight costs.

Import tax on all semi-knocked-down cars - where major parts are imported separately and the final vehicle is assembled in the country - will be raised to 35% from 30%.

GST

Finance Minister Nirmala Sitharaman announces rejig in customs duty, details here

 Feb 02, 2023

With promotion of exports and enhancement of domestic manufacturing in focus, Finance Minister Nirmala Sitharaman on Wednesday announced a rejig in custom duties on various commodities and products.

The concessional duty on the import of lithium-ion batteries has been extended for a year.

The customs duties on dore and bars of gold and platinum were increased earlier this fiscal. FM proposed to increase the duties on articles made therefrom to enhance the duty differential. "I also propose to increase the import duty on silver dore, bars and articles to align them with that on gold and platinum," she said.

The basic customs duty rate on compounded rubber will be increased from 10% to 25% or Rs 30/kg, whichever is lower, on par with that on natural rubber other than latex, to curb circumvention of duty.

GST

Imports of Covid-19 vaccines exempted from customs duty till March 31

 Jan 17, 2023

The government has exempted customs duty on imports of Covid-19 vaccines till March 31, 2023 in a bid to ensure domestic availability amid fears of a surge in coronavirus infections. In a notification, the Central Board of Indirect Taxes and Customs (CBIC) said Covid vaccines, when imported into India by central government or state governments, would be exempt from the whole of customs duty from January 14, 2023 till March 31, 2023.

The government had, in April 2021, first exempted Covid-19 vaccines from 10 per cent customs duty. The exemption was extended several times till June 2022.

With new variants causing significant rise in daily case load in certain countries, including neighbouring China, the government had re-introduced certain precautionary measures, like random passenger testing at airports and genome sequencing, to check Covid spread in India.

GST

CBIC to release list of identified goods to check undervaluation of imports

 Jan 12, 2023

The CBIC on Wednesday came out with a mechanism to check the undervaluation of imported goods under which two committees comprising tax officers will be set up for screening and evaluation.

The CBIC has notified the Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2023, which will come into effect from February 11.

The Central Board of Indirect Taxes and Customs (CBIC) will come out with a list of 'identified goods', which will be subject to stricter scrutiny for their true value.

As per the rules, two committees will be constituted -- a screening committee for a preliminary examination of 'identified goods' and an evaluation committee for a detailed examination.

GST

New rules on Customs valuations from Feb 11

Jan 12, 2023

The government on Wednesday notified new rules to address the menace of undervalued imports, proposed in the Budget, which will kick in on February 11 and could help raise revenue marginally.

The Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2023 will identify a list of goods where there is reason to believe the value may not be declared truthfully or accurately and the importer would have to undertake additional obligations in this regard. The Central Board of Indirect Taxes and Customs can specify such goods, which would be examined by a screening committee and later by an evaluation committee. “The written reference must have been made to the board which, if found suitable by screening committee for detailed examination, must have been comprehensively examined by evaluation committee which should have concluded the likelihood that the value of the relevant class of goods may not be declared truthfully …,” said the CBIC in a circular, adding that if satisfied, the board may then specify the identified goods

GST