Export benefit such as SEZ, EPCG, MEIS, etc. held to be non-compliant of WTO norms
A World Trade Organization (WTO) panel in its report has ruled that the export promotion schemes viz. Merchandise Export from India Scheme (MEIS), Duty Free Import Scheme (DFIS), Export Oriented Units (EOUs), Electronic Hardware Technology Park (EHTP), Bio-Technology Park (BTP), Special Economic Zone (SEZ), etc. are inconsistent with the agreement on Subsidies and Countervailing Measures (SCM), and accordingly should be withdrawn.
The key schemes considered by the WTO panel and its decision thereon are as follows:
|Sr. no.||Scheme and export benefit therein||Conclusion of the WTO panel||Scheme to be withdrawn within|
|1.||Exemption from Customs duties under EOU, EHTP, BTP and EPCG schemes
||Inconsistent with the SCM agreement
||120 days of the adoption of report|
|2.||Exemption from Customs duties and IGST, and deductions from taxable income under the SEZ scheme||Inconsistent with the SCM agreement||180 days of the adoption of report|
|3.||Exemptions from Customs duties under conditions 10, 21, 36, 60(ii), 61 of DFIS||Inconsistent with the SCM agreement||90 days of the adoption of report|
|4.||Duty Credit Scrips under MEIS ||Inconsistent with the SCM agreement||120 days of the adoption of report|
|5.||Exemptions from Central excise duty on domestically procured goods under EOU, EHTP and BTP schemes||Consistent with the SCM agreement||NA|
|6.||Exemption from Customs duties under conditions 28, 32, 33, 101 of DFIS ||Consistent with the SCM agreement||NA|
Government invites suggestion for RoDTEP scheme
Recently, the government had announced its plans to launch the Remission of Duties or Taxes on Export Products (RoDTEP) scheme to replace the existing MEIS and other export promotion schemes.
Now, in order to determine the burden of embedded taxes and formulate incentive rates under the proposed scheme, the Ministry of Commerce and Industry is inviting product-wise data/information from manufacturing units/exporters. Product-wise data should be provided in a format set by the government:
On October 9 2019, the government had inserted Rule 36(4) to the CGST Rules, 2017 whereby, Input Tax Credit (ITC) with respect to invoices or debit notes, the details of which have not been uploaded by the supplier, is restricted to 20% of the ITC with respect to invoices or debit notes uploaded by the supplier i.e. appearing in GSTR-2A.
In this regard, the government vide Circular No. 123/42/2019-GST dated 11 November 2019 has provided the following clarifications:
|Particulars||Month in which eligible ITC is being computed|
|December 2019||January 2020|
|Total ITC as per books
|ITC of invoices appearing in GSTR-2A||6,00,000||Say, 10,00,000/1.2
|ITC of invoices not appearing in GSTR-2A||4,00,000
|Eligible ITC to be claimed||6,00,000 + 20% of 6,00,000
|8,33,000 + 20% of 8,33,333
As per the above, a taxpayer can claim the entire ITC of INR 1 million for invoices for the month of November 2019 once invoices to the extent of INR 0.83 million appear in GSTR-2A.
The government vide Circular No. 122/41/2019-GST dated 5 November 2019 has directed that search authorizations, summons, arrest memos, inspection notices and letters issued in course of any inquiry by any officer should contain a computer-generated Document Identification Number (DIN). This should be applicable to documents issued on or after 8 November 2019.
Any communication not bearing the DIN and not covered under certain exceptions should be considered invalid and deemed to have never been issued. The recipient of the communication can ascertain the genuineness of the DIN by using the facility available on https://www.cbicddm.gov.in/MIS/Home/DINSearch