Southern India Regional Council of
The Institute of Chartered Accountants Of India
(Setup by an Act of Parliament)


Professional Updates- November 2017


Professional Updates- November 2017

Amendments made in 22nd GST Council meet and relevant notifications

  • 1. No RCM on inward supply received on or after 13th October 2017 – Notification No 38/2017-Central GST Rate & 32/2017- Integrated Tax Rate dt. 13.10.2017
Payment of tax under reverse charge mechanism under section 9(4) of CGST Act / 5(4) of IGST Act is suspended till 31.03.2018. This is applicable for all supplies made on and from 13.10.2017. Therefore no GST/IGST is to be paid for all supplies after 12.10.2017.
  • 2. State government officers are empowered to sanction refund – Notification no 39/2017-Central Tax dated 13th October, 2017
State government officers are empowered to sanction refund under section 54 & 55 of CGST Act except in case of refunds on exports. Refunds on exports shall be sanctioned by Central government officers.
  • 3. No GST is payable on receipt of advance for supply of goods – Notification No 40/2017-Central Tax dt. 13.10.2017
Tax is not payable on advance received by a taxable person towards supply of goods having turnover not exceeding Rs. 1.50 Crore in preceding financial year or whose turnover is not likely to exceed Rs. 1.50 Crore in the current financial year in case he has obtained registration in the current year. This exemption is applicable only for supply of goods and not for supply of services. Hence no GST is payable for receipt of advances against supply of goods after 12th October, 2017.
  • 4. Extension of time limits for filing various GST Returns – Notification No 41/42/43/44 /2017 CGST dt 13.10.2017
In terms of above notifications time limit for filing following GST returns have been extended as under:
  • GSTR – 4 – Original due date of 18.10.2017 for quarter ended September 2017 has been extended to 15.11.2017.
  • Due date for filing the return GSTR-5A by online information and database access or retrieval services from a place outside India to a non-taxable online recipient, for July, Aug, Sept 17 has been extended to 20.11.2017.
  • Due date for filing the return in GSTR-6 by ISD for Jul, Aug, Sept 17 has been extended to 15.11.2017.
  • Persons opting out of composition scheme in Jul, Aug, Sept 17, shall file declaration for credit in ITC-01 on or before 31.10.2017.
  • 5. Amendments to CGST Rules through Notification no 45/2017-Central Tax dated 13.10.2017
  • Option to exercise composition scheme has been extended till 31.03.2018.
  • A registered taxable person supplying taxable as well as exempted supplies to an unregistered persons shall issue a single “invoice-cum-bill of supply”.
  • The invoices to be issued by Insurance Co/Banks/ NBFCs is renamed as "consolidated tax invoice" and such consolidated tax invoice shall be issued at the end of the month for the supplies made during the month.
  • Procedure to file GST-4 by persons opting for composition scheme in between quarter has been specified.
  • In GSTR-1, Table 6 has been substituted by adding a column for Cess.
  • In GSTR-1A, Table 4 has been substituted by adding a column for Cess.
  • Instruction No. 10 has been added in GST-4 which states for the qtrs ended Sep 17 & Dec 17, details in 4A of Table 4 need not be given.
  • 6. Threshold exemption for registration is applicable for persons making inter-state supply of services – Notification No 10/2017-Integrated Tax dated 13.10.2017

Persons whose turnover has not exceeded Rs. 20lacs/10lacs can make inter-state supplies without obtaining the registration.

Professional Updates- September 2017



GST on Selling of space for advertisement in print media – Press release dated 23rd August, 2017

  1. Selling of space for advertisement in print media is leviable to 5% GST.
  2. If the advertisement agency works on principal to principal basis, that is, buys space from the newspaper and sells such space for advertisement to clients on its own account, that is, as a principal, it would be liable to pay GST @5% on the full amount charged by advertisement agency from the client.
  3. If newspaper sells a unit of space for worth Rs. 100/- to advertisement agency for Rs. 85/- say after a discount of Rs. 15/-, the advertisement agency sells the same unit of space to client at Rs. 100/- newspaper would be liable to pay GST @5% on Rs. 85 (Rs. 4.25/-) and the advertisement agency would be liable to pay GST on full value, that is, Rs. 100/- (Rs. 5/-) and may utilize ITC of Rs. 4.25/- for payment of the same.
  4. On the other hand, if the advertisement agency sells space for advertisement as an agent of the newspaper on commission basis, it would be liable to pay GST@ 18% on the sale commission it receives from the Newspaper. ITC of GST paid on such sale commission would be available to Newspaper.
  5. Advertisement agency sells unit of space to the client not on its own account but on account of newspaper for Rs. 100/- and receives commission of Rs. 15/- for such sale from the newspaper. In such case advertisement agency shall be liable to pay GST @18% on the sale commission of Rs. 15/- (Rs. 2.7/-) ITC of which shall be available to newspaper for payment of GST @ 5% on Rs. 100/- (value of space for advertisement sold by newspaper).
  6. However, if the advertisement agency supplies any service other than selling of space for advertisement, such as designing or drafting the advertisement, and such supply is not a part of any composite supply, the same would be liable to tax @18%. If such supplies are part of any composite supply, the rate applicable for the principal supply shall apply.
  7. Therefore, everything depends on the terms of the contract between the newspaper, advertisement agency and the client.