GST Updates: New Rules For Goods In Transit and Electronic Sealing At Custom Bonded Warehouses

It has almost a year to the implementation of GST. There have been continuous reforms in the system and yet more to come. Recently, new rules for goods in transit and electronic sealing at warehouses were announced by GST Council. In addition to that, RCM and TDS/TCS have deferred until September 2018. Let us discuss each in brief.

New rule for verification of goods in transit

According to the GST law, where physical verification of goods in transit has taken place once, it cannot be done again, unless there is any and thorough information related to evasion of tax.

Till now, there have been no forms for intimation of action taken by the tax officers of State to tax officer of Centre and vice-versa.

Now it has been clarified. From now on the hard copies of the notices/orders issued vide specified FORMS by a tax authority may be shown as proof of initiation of action by the transporter/registered person to another tax authority as and when required.

The taxpayer must carry sufficient proof to avoid any repeat detention of goods. The intent behind this clarification is to avoid the act of repeat stoppages. But again as mentioned earlier carrying physical documents are essential to avoid repeat detentions.

The new procedure for electronic sealing for custom bonded warehouse

RFID sealing has now been extended to transport of goods for deposit and removal of goods from a warehouse. Thus, as and when prescribed by Warehousing Regulations to affix a One Time Lock, the importer/owner of the goods must use RFID anti-tamper one-time-locks.

Such removal of good will get moved through a variety of vehicles, different types of RFID OTLs like bolt seals, wire – cable seals will be used.

You can download the detailed Circular For complete procedures from the link below:

Detailed Procedure For Electronic Sealing from Custom Bonded Warehouses

RCM and TDS/TCS deferred until September 2018

Once again, the push out the date for applicability of TDS and TCS provisions has been extended until September 2018. According to the experts, such push back and delay in implementation will create huge complications at a later stage.

Earlier, RCM was deferred till 30th June 2018. The new date for RCM is yet to be declared. RCM is also expected to be deferred till September 2018.

It has been discussed earlier in many debates that if RCM is well implemented, it will help the government to bring a large number of taxpayers under GST and eventually increase revenue as well as compliance.

We thank our readers for liking, sharing and following us on different social media platforms.

If you have any queries please share in the comment section below. I will be more than happy to assist you.