February, 2021 – Issue No. II

GST

Payment of Tax by Fixed Sum Method under QRMP Scheme – GST portal issues instructions.Auto-population of e-invoice details into GSTR-1 – GST portal advises taxpayers not to wait for the complete auto-population, and instead proceed with preparation and filing of GSTR-1 (by the due date), based on actual data as per their records.

CUSTOMS

Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 amended to provide for the definition of capital goods, jobwork, manufacture, and output service. New rules inserted with respect to (i) prior information to be given by importer; (ii) accounts to be maintained by importer and return to be filed by him; (iii) procedure for jobwork; and (iv) clearance of used capital goods.

Import of articles in circumvention of anti-dumping duty/countervailing duty – such articles can now be provisionally assessed.

B-17 bond executed by EOU/STP/EHTPs in capacity of Proprietorship or partnership firm – surety cannot be given by Proprietor/ partner himself. Such sureties must be given by an independent legal entity other than the Proprietor/ Partner of the concerned Proprietorship/ Partnership EOU firm.

Customs Duty rate changes:

  • Effective rates of Customs Duty amended. BCD on copper scrap, iron scrap, steel, gold and silver reduced.
  • Effective BCD rate on IT/Electronics items amended.
  • Effective rate of duty under chapters 50 to 63 on textile products – certain amendments introduced to rationalise the duty on textile products.
  • BCD exemption on specified parts of transformers withdrawn.
  • Equipments for setting up of solar power generation project or facility – exemption withdrawn.
  • Tags or labels (whether made of paper, cloth or plastic), or printed bags – exemption withdrawn.

Changes in Cesses and Surcharges:

  • Agriculture Infrastructure and Development Cess introduced for specified goods.
  • Exemption from the of levy of Social Welfare Surcharge in excess of 3% for specified goods withdrawn.
  • Social Welfare Surcharge leviable on Agriculture Infrastructure and Development Cess on Gold and Silver – exempted.
  • Social Welfare Surcharge leviable on Crude or roughly trimmed or Blocks Marble or travertine – exempted.
  • Medical devices imported by international organizations and diplomatic missions – exempted from Health Cess.

CVD and ADD relaxation for steel products:

  • Countervailing duty on import of Flat rolled products of stainless steel from Indonesia rescinded.
  • Countervailing duty on import of “Certain Hot Rolled and Cold Rolled Stainless Steel Flat Products” from China not applicable from 2.2.2021 to 30.09.2021.
  • ADD on imports of “Straight Length Bars and Rods of Alloy Steel” from China not applicable from 2.2.2021 to 30.09.2021.
  • ADD on imports of “High-Speed Steel of Non-Cobalt Grade” from Brazil, China and Germany not applicable from 2.2.2021 to 30.09.2021.
  • ADD on imports of “Flat rolled product of steel, plated or coated with alloy of Aluminium and Zinc”  from China PR, Vietnam and Korea RP not applicable from 2.2.2021 to 30.09.2021.
CENTRAL EXCISE
  • Effective Rate of excise duty revised.
  • Special Additional Excise Duty on Petrol and Diesel reduced.
  • Exemption on Special additional duty on motor spirit and high speed diesel revised to include new items.
  • Agriculture Infrastructure and Development Cess on blended fuels exempted.
  • M-15, E-20 fuel exempt from Road and Infrastructure Cess.
INCOME TAX

Vivad Se Vishwas – last date to file declaration under the Scheme –  28.02.2021.

DGFT

With effect from 08.02.2021 onwards, all applicants seeking Tariff Rate Quota(TRQ) for imports are required to submit their application online under “e-Tariff Rate Quota” in the Import Management System.

COMPANIES ACT

MCA amends rules 6 related to One Person Company to Convert Itself into a Public Company or a Private Company in Certain Cases; Restriction on quantum of paid up share capital/turnover in Rule 7 related to Conversion of private company into One Person Company removed.

MCA revises upper threshold for paid up capital and turnover for Small Companies – increased to rupees two crores and rupees twenty crores respectively.

Fast track process for mergers has now been extended to also include mergers of Startups with other Startups and with Small companies.

MCA initiates process of De-criminalisation of compoundable offences under Limited Liability Act, 2008