Legal Update

1055

Circulars/Notifications
Given below are the important Circulars and Notifications issued by the CBDT, CBEC and
FEMA during the last month for information and use of members. Readers are requested to use
the citation/website or weblink to access the full text of desired circular/notification. You are
requested to please submit your feedback and suggestions on the column at eboard@icai.in

(Matter on FEMA has been

FEMA contributed by CA. Manoj Shah,
carried out financial
leasing of Opthalmic
Mumbai and CA. Hinesh Doshi, Surgical Equipment
Mumbai) (through wholesale
1. ECB Policy – Review of Hedging trading), from March
Provision 2006 to October 2015.
A.P. (DIR Series) Circular No.15 dated November  A company having
26, 2018 foreign investment and
engaged in financial
It has been decided to reduce the mandatory leasing was required
hedge coverage from 100 per cent to 70 per to meet the minimum
cent for ECBs raised under Track I of the ECB capitalisation norms,
framework by eligible borrowers given at para which the applicant
2.4.2(vi) viz. in infrastructure sector, Non-Banking company failed to do,
Financial Companies -Infrastructure Finance thus contravening
Companies (NBFC-IFCs), NBFCs-Asset Finance Regulation 5(1)
Companies (NBFC-AFCs), Holding Companies read with Annexure
and Core Investment Companies (CICs). Also, B of Schedule I of
Housing Finance Companies, regulated by the Notification No.
National Housing Bank, Port Trusts constituted FEMA 20/2000RB.
under the Major Port Trusts Act, 1963 or
Indian Ports Act, 1908, for a maturity period of 2. ECB Policy – Review of Minimum Average Maturity
3 to 5 years. and Hedging Provisions
It is also clarified that ECBs falling within the A.P. (DIR Series) Circular No.11 dated November
aforesaid scope but raised prior to the date of 6, 2018
this circular will be required to mandatorily “External Commercial Borrowings, Trade Credit,
roll-over their existing hedge(s) only to the Borrowing and Lending in Foreign Currency
extent of 70 per cent of outstanding ECB by Authorised Dealers and Persons other than
exposure. Authorised Dealers”, in terms of which certain
Gist of some Compounding Orders passed by eligible borrowers raising foreign currency
Reserve Bank of India denominated ECBs under Track I, having a
minimum average maturity requirement of 5
Sr. Subject Matter Contraventions years, are mandatorily required to hedge their ECB
No. Compounded exposure fully.
1. Foreign Direct  The applicant company
The extant provisions of the ECB framework are:
Investment was engaged in business
– FEMA of wholesale trading a) Minimum Average Maturity: Reduce the
Notification in India and providing minimum average maturity requirement
No. 20 maintenance services for ECBs in the infrastructure space raised
in relation to eye care by eligible borrowers from 5 years to 3
products. The company years.
had 100% FDI. It b) Hedging Requirements: Reduce the

www.icai.org THE CHARTERED ACCOUNTANT JANUARY 2019 111

 Legal Update
1056
average maturity requirement from extant
10 years to 5 years for exemption from
mandatory hedging provision applicable
to ECBs raised by eligible borrowers.
Accordingly, the ECBs with minimum
average maturity period of 3 to 5 years in
the infrastructure space will have to meet
100% mandatory hedging requirement.
Further, such ECBs raised prior to the
date of the circular will not be required
to mandatorily roll-over their existing
hedges.
DIRECT (Matter on Direct Taxes has been
contributed by the Direct Taxes
TAXES Committee of the ICAI)
I. NOTIFICATIONS
1. Amendment in Rule 114 and PAN
application forms (Form No. 49A and
49AA) - Notification No. 82/2018, dated 19-11-2018
Rule 114 inter alia provides that an application for
the allotment of permanent account number (PAN)
shall be made in Form No. 49A (in case of Indian
citizens/Indian companies/Entities incorporated in
India/Unincorporated entities formed in India) or
Form No. 49AA (In case of individuals not being a
citizen of India/entities incorporated outside India/
Unincorporated entities formed outside India). Prior
to amendment made vide this notification, providing
Father’s name in the PAN application Forms (Form
No. 49A and Form No. 49AA) was mandatory,
however, the applicant was given an option to select
name of either father or mother, which the applicant
may like to be printed on PAN card. In order to
provide that father’s name shall not be mandatory in
PAN application Forms, where mother is the single
parent, an amendment in PAN application Forms
has been made vide this notification to provide that
mentioning father’s name in the aforementioned
Forms shall be mandatory except in cases where
mother is the single parent and PAN is applied by
furnishing mother’s name only. Mentioning mother’s
name shall be mandatory in such exceptional
cases. In other cases, mentioning mother’s name
is optional.
Further, Section 139A has been amended vide the
Finance Act, 2018 to provide that every person being
a resident, other than an individual, which enters into
a financial transaction of an amount aggregating to
112 THE CHARTERED ACCOUNTANT JANUARY 2019
two lakh fifty thousand rupees or more in a financial
year; and every person who is a managing director,
director, partner, trustee, author, founder, karta,
chief executive officer, principal officer or office
bearer or any person competent to act on behalf of
such person, and who has not been allotted a PAN
has to apply to the Assessing Officer for allotment
of PAN. Accordingly, clauses (v) and (vi) have been
inserted in rule 114(3) to provide that in such cases,
PAN has to be applied for on or before 31st May of the
immediately following financial year.
Further, Clause (c) of Explanation to Section 139A(8)
has been amended vide the Finance Act, 2018 to
provide that “permanent account number under the
new series” means a permanent account number
having ten alphanumeric characters. Since issuance
in the form of a laminated card is no longer required,
an amendment in rule 114 is being made vide this
notification to empower PDGIT/DGIT (Systems) to
specify the manner in which PAN has to be issued.
The amendments vide this notification shall be
effective from 5.12.2018.
2. TDS deduction under section 194A of the Income-tax
Act, 1961 in case of Senior Citizens - Notification No.
6/2018, dated 6-12-2018
It has been brought to the notice of CBDT that incase
of Senior Citizens, some TDS deductors/Banks are
making TDS deductions even when the amount of
income does not exceed fifty thousand rupees. The
same is not in accordance with the law as the Income-
tax Act, 1961 provides that no tax deduction at source
under section 194A shall be made in the case of
Senior Citizens where the amount of such income or,
the aggregate of the amounts of such income credited
or paid during the financial year does not exceed fifty
thousand rupees. [Third proviso to Section 194A(3)]
Under Rule 31A(5), the DGIT (Systems) is authorised
to specify the procedures, formats and standards for
the purposes of furnishing and verification of the
statements or claim for refund in Form No. 26B and
shall be responsible for the day-to-day administration
in relation to furnishing and verification of the
statements or claim for refund in Form No. 26B in
the manner so specified.
In exercise of the powers delegated by CBDT under
Rule 31A(5), the PDGIT (Systems) has clarified
that no tax deduction at source under section 194A
shall be made in the case of Senior Citizens where
www.icai.org
 Legal Update
1058
the amount of such income or, the aggregate of the
amounts of such income credited or paid during the
financial year does not exceed fifty thousand rupees.
3. Notification of conditions under section 115JG(1)
in respect of conversion of Indian branch of foreign
bank into Indian subsidiary company and specification
of holding period of a capital asset which becomes
the property of the Indian subsidiary company in
consequence of such conversion - Notification No.
85&86/2018, dated 6-12-2018
The Finance Act, 2012 inserted a new Chapter XII-BB
consisting of Section 115JG which contains “Special
provisions relating to conversion of Indian Branch of
a foreign bank into a subsidiary company”. Section
115JG inter-alia provides that in case the conversion of
Indian Branch of foreign bank in accordance with the
scheme framed by Reserve Bank of India and fulfilling
the conditions notified by the Central Government,
the capital gains arising from such conversion shall
not be chargeable to tax and the provision relating
to unabsorbed depreciation, set-off or carry forward
and set-off of losses, tax credit in respect of tax paid
on deemed income relating to certain companies
and the computation of income in case of foreign
company and Indian subsidiary shall apply with such
modification, exception etc. as may be specified in the
notification.
Accordingly, the Reserve Bank of India released the
“Scheme for setting up of wholly owned subsidiaries
(WOS) by foreign bank in India” on 6.11.2013. The
Scheme, inter alia, provides the procedure for
conversion of existing branches of foreign bank with
the WOS. A foreign bank is required to set up a WOS
in India and the Indian branch shall amalgamate with
WOS as per the amalgamation scheme approved by
the shareholder of foreign bank and WOS which is
sanctioned by the RBI.
Accordingly, Notification No. 85/2018 has specified
the conditions to be fulfilled in case of such
conversion and has also specified modifications
and exceptions in applicability of certain provisions
of the Act to such conversion. For details
regarding the same, the said notification may
be referred.
Further, vide Notification No. 86/2018, sub-rule (4)
has been inserted in Rule 8AA providing for method
of determination of period of holding of capital assets
in certain cases. This sub-rule provides that in the
case of a capital asset which became the property of
114 THE CHARTERED ACCOUNTANT JANUARY 2019
the Indian subsidiary company in consequence to
conversion of a branch of a foreign company referred
to in Section 115JG(1), there shall be included the
period for which the asset was held by the said branch
of the foreign company and by the previous owner,
if any, who has acquired the capital asset by a mode
of acquisition referred to in clause (i)/(ii)/(iii)/(iv) of
Section 49(1) or Section 115JG(1).
The complete text of the above Notifications can
be downloaded from the link below:
http://www.incometaxindia.gov.in/Pages/communications/
notifications.aspx
II. PRESS RELEASES / INSTRUCTIONS / OFFICE
MEMORANDUM
1. Task Force for drafting a New Direct Tax Legislation –
Press Release, dated 26-11-2018
In order to review the Income-tax Act, 1961 and to
draft a new direct tax law in consonance with the
economic needs of the country, a Task Force was
constituted by the Government of India in November,
2017.
In partial modification of the earlier order, the
Government has appointed Shri Akhilesh Ranjan,
Member (Legislation), CBDT as Convenor of the
Task Force. Other members of the Task Force remain
unchanged.
The Task Force is required to submit its report to the
Government by 28th February, 2019.
2. Protocol amending India-China DTAA – Press Release,
dated 26-11-2018
The Government of the Republic of India and the
Government of the People’s Republic of China have
amended the Double Taxation Avoidance Agreement
(DTAA) for the avoidance of double taxation and for
the prevention of fiscal evasion with respect to taxes
on income, by signing a Protocol on 26/11/2018.
Besides other changes, the Protocol updates the
existing provisions for exchange of information to the
latest international standards. Further, the Protocol
incorporates changes required to implement treaty
related minimum standards under the Action reports
of Base Erosion & Profit shifting (BEPS) Project, in
which India had participated on an equal footing.
Besides minimum standards, the Protocol brings in
changes as per BEPS Action reports as agreed upon
by the two sides.
www.icai.org

(Matter on Indirect Taxes has been contributed
by the Indirect Taxes Committee of the ICAI)
1. GST
INDIRECT
TAXES Extension of due date of filing Form
GSTR 9 & 9C
The Central Government vide Order
No. 1/2018-Central Tax dated 11th
December, 2018 has extended the
due date of filing annual return (Form GSTR-9) for
the period (1st July, 2017 to the 31st March, 2018)
to 31st March, 2019 as the technical utility for filing
at online portal of the same is not available and
expected to be available for the taxpayer by 31st Jan,
2019 only.
As the Annual Return is required to be filed
along with a copy of the audited annual accounts
and reconciliation statement (GSTR 9C) in case
aggregate turnover exceeds `2 crore, the due date
of filing GSTR 9C has also been extended to 31st
March, 2019.
[Order No. 1/2018-Central Tax dated
11th December, 2018]
Comments: Given order is passed under section
172 which provides Government a power to issue
order to make provision not inconsistent with the
provisions of this Act for the purpose of removing
any difficulty arising to give effect to any provisions
of the Act and the said order has to be approved by
Parliament when it is in session.
Revision of All Industry Rates (AIRs) of Duty
Drawback.
The Central Government vide Notification No.
95/2018 Customs (N.T) dated 6th December, 2018
has notified the rates of drawback for the tariff item
corresponding to the export goods as if it were a
claim for duty drawback filed with reference to
such rate and cap.
Drawback rates are available at http://www.cbic.gov.
in/resources//htdocs-cbec/customs/cs-act/notifica-
tions/notfns-2018/cs-nt2018/csnt95-2018.pdf;jses-
sionid=18CE59CB8EA39210910996AE2D282562
[Notification no. 95/2018 Customs (N.T)
dated 6th December, 2018]
The Central Government vide Circular No.
52/2018-Customs dated 12th December, 2018 has
clarified salient features of the revised AIR’s which
are discussed here:
www.icai.org
Legal Update
1059
 The revised AIRs of Duty Drawback
neutralise incidence of duties of Customs
on inputs used and remnant Central Excise
duty on specified petroleum products
used in the manufacture of export goods.
For claiming these AIRs, the relevant tariff
item have to be suffixed with suffix ‘B’ e.g.
for export of goods covered under tariff
item (TI) 640609, the drawback serial no.
should be declared as 640609B.
 The notification also specifies the
alternative AIRs on garments exports made
against the Special Advance Authorisation.
For claiming these alternative AIRs, the
relevant tariff item has to be suffixed with
suffix ‘D’ instead of the usual suffix ‘B’.
 The AIR of Duty Drawback for items of
marine products and seafood, chemicals,
leather articles and footwear, cotton,
textiles , silk, sports goods etc. have been
increased on account of various factors
such as change in duty structure, change
in prices (CIF) of imported inputs and
FOB of export goods, change in import
intensity of inputs, etc.
 Rationalisation of rates for some
readymade garments have been done on
account of various reasons viz. decrease in
Central Excise. Duty rate on diesel, change
in prices (CIF) of imported inputs and
FOB of export goods and change in import
intensity of inputs etc.
 Appropriate caps have been provided
wherever felt necessary to prescribe upper
limit of Duty drawback.
[Circular no. 52/2018-Customs dated
12th December, 2018]
Comments: Care should be taken to review the
rates of drawback and the notes that are now
made applicable in a very granular manner to
look for any deviations from well established
practices in the past. It appears that reference to
these notes made in such a cautious manner may
be an attempt at unsettling past practices. Also the
legality of ‘notes and conditions’ is to be evaluated
as this is out of the ordinary for Government to be
applying conditions to drawback rates outside of
the Rules.
THE CHARTERED ACCOUNTANT JANUARY 2019 115
 Legal Update
1060
Clarification with respect to amendments to
Customs and Central Excise notifications for
EOUs
The Central Government vide Circular no.
50/2018-Customs dated 6th December, 2018
has clarified various aspects covered in the
Notification No. 79/20148 dated 5th December,2018;
Notification No. 23/2018-Central Excise dated 5th
December,2018 which are explained below:
The Central Government vide Notifications No.
79/2018–Customs dated 5th December,2018 has
amended Notification No. 52/2003-Customs, dated
the 31st March, 2003 in order to align them with the
present Foreign Trade Policy (FTP), 2015-2020, as
amended, as well as to remove redundancies that
had crept in over the time on account of changes/
supersession of certain other notifications and legal
developments such as the introduction of GST and
exempting the EOUs from the application of the
Customs warehousing provisions.
The Notification No. 52/2003-Customs, dated
31.03.2003 provides for exemption from various
custom duties on various goods listed therein,
when imported by the EOUs for specified
purposes.
a) Imported goods could be temporarily
cleared without payment of all Customs
duties, IGST and Compensation Cess not
paid at the time of their import. However,
the applicability of GST on supply of such
goods shall be independently governed by
GST laws.
b) When duty has to be paid on the imported
goods such as when these are cleared from
the EOU, the same would be the duty/
tax for which exemption was availed at
the time of their import. However, in the
case of capital goods, depreciation would
be allowed as provided in para 4 of the
Notification No. 52/2003-Customs, dated
31.03.2003. Further, for leftover textile
fabric or textile material, such payment
of duty would be based on the transaction
value as per existing provisions.
c) Removal/modification/updation of the
redundant/old notifications/ provisions of
the FTP etc.,
d) For promoting indigenisation and export
116 THE CHARTERED ACCOUNTANT JANUARY 2019
of electronics, Ministry of Electronics
& Information Technology (MEIT) had
recommended that the period of three
years allowed for re-import of goods
manufactured and exported by EOUs for
the purposes of repair and reconditioning
may be extended to seven years for
specified goods. This was justified on the
ground that overseas customers were
otherwise constrained to prematurely
scrap the repairable goods which are more
than three years old. Accordingly, Sr.No.
14 of the Annexure-I of the notification
has been amended to list specific goods
manufactured and exported by EOUs
that can be re-imported within seven
years. These goods are required to be
re-exported within one year of the date of
re-importation.
The Central Government vide Notification No.
23/2018-Central Excise dated 5th December, 2018
has amended Notification No. 22/2003-Central
Excise dated 31.03.2003 which provides for
exemption from various duties of Excise on the
goods listed therein when procured indigenously by
the EOUs for specified purposes. This notification
has been amended to provide for:-
(a) Deletion of reference to the Additional
Duties of Excise (Goods of Special
Importance) Act, 1957) and Additional
Duties of Excise (Textile and Textile
Articles) Act, 1978 these Acts are not in
existence post-GST.
(b) Modification of clauses (a) to (e) of the
opening para of the said notification to
allow procurement of excisable goods
falling under the Fourth Schedule to
the Central Excise Act, 1944 (1 of 1944).
Also, Annexures I, II, IV and V of the said
notification which listed various excisable
goods that were allowed to be procured
indigenously without payment of Excise
duties have been removed as post GST;
most of the goods now fall under GST.
(c) Continuation of the facility extended to the
EOUs engaged in processing or manufacture
of articles of granite, processing of
agricultural products and production
or manufacture or packaging of goods
www.icai.org

in horticulture, agriculture and animal
husbandry sector to temporarily remove
specified goods procured prior to 30.06.2017
without payment of Excise duty to granite
quarries and to the fields and farms.
(d) Clearance of capital goods and goods
other than packaging material unsuitable
for repeated use which were procured
without payment of Excise duty prior to
30.06.2017, on payment of Excise duty
availed as exemption. Further, allowing the
depreciation on capital goods, as provided
and charging duty on leftover textile fabric
or textile material on the transaction value
as at present.
(e)
Changes on account of redundant
references to old / superseded notifications
/ FTP etc., as follows:-
(i) Replacement of the reference to old Rule
20 of the Central Excise Rules, 2002 with
the present Rule 16 of the Central Excise
Rules, 2017.
(ii) Replacement of the reference to outdated
Notification No. 106/58-Customs, dated
29.03.1958 with presently applicable
Notification No. 36/2017-Customs, dated
30.06.2017.
(iii) Replacement of the references to old FTP,
2004-2009 with the new FTP, 2015-2020
and its Appendix.
The Central Government vide Notification no.
23/2018-Central Excise dated 5th December,
2018 has also amended Notification  no.
23/2003-Central Excise, dated 31.03.2003
which prescribes effective duties leviable on the
DTA clearance of excisable goods by EOUs. The
main amendments are as follows:-
Removal of reference to non-existing entries
at Sr. Nos. 5, 5A, 6 and 7A of the Table removal
of the reference to Duty Free Replenishment
Certificate (DFRC), which has been replaced by
Duty Free Import Authorisation (DFIA). Removal
of the condition that the goods cleared to the
DTA must be “similar” to those exported and also
removal of the cap of 50% on DTA sale in line
with the present FTP, 2015-2020. Replacing the
www.icai.org
Legal Update
1061
references to the old FTP, 2004-2009 with the new
FTP, 2015-2020.
The Central Government vide Notification no.
23/2018-Central Excise dated 5th December, 2018
has amended Notification no. 24/2003-Central
Excise, dated 31.03.2003 which provides for
exemption from duties of Excise on the goods
manufactured by a EOU provided these are not
brought to any place in India. Post GST, the
Additional Duties of Excise (Goods of Special
Importance) Act, 1957 and the Additional Duties of
Excise (Textile and Textile Articles) Act, 1978 are no
more in existence. Therefore, suitable amendment
has been made to remove reference to these Acts.
Further, B-17 bond (General surety/security)
being submitted by the EOU’s has been updated
by Notification No. 1/2018-Central Excise (N.T.),
dated 05.12.2018. The EOUs have been furnishing
a “Mother Bond” in form B-17 (General Surety/
Security) for Customs duty free import, Excise
duty free domestic procurement, provisional
assessment, export without payment of duty,
movement of goods for job work and return,
temporary clearances, proper account of goods,
etc. This bond was notified vide Notification No.
6/98-Central Excise (N.T.), dated 02.03.1998 under
the erstwhile Central Excise Rules, 1944. A revised
B-17 (General Surety/Security) bond updated
with references to GSTIN, present FTP provisions
and Notification No.52/2003 - Customs dated
31.03.2003 etc., has been notified under the present
Rules 21, 9, 7 and 22 of the Central Excise Rules,
2017. This new bond will be applicable to the new
EOUs. The existing EOUs shall continue with the
earlier B17- bond already executed by them so that
there is no disruption in their working. Also, all
relevant instructions applicable for the old B17-
bond will be mutatis mutandis applicable to the
new B17- bond.
Comment: Goods (capital goods and inputs except
packing material unsuited for reuse) on which
customs duty or excise duty benefit was availed
by EOUs are “taken outside” the premises in
accordance with FTP, the whole of the customs duty
or excise duty (originally foregone) will need to be
paid back but on depreciated value. This will be in
addition to applicable GST that will be attracted
on their supply or disposal.
THE CHARTERED ACCOUNTANT JANUARY 2019 117
 Legal Update
1062
Please consider that vide Notification 12/2017-CE
dated 30 June, 2017 ‘all goods’ (other than those
continuing to be liable to ED) manufactured and
lying in stock as on date of introduction of GST
were exempted from the levy of Excise Duty. Similar
benefit is also allowed to goods manufactured in
EOU and sold in DTA.
AEO website has been developed
The Central Government vide Circular no.
51/2018-Customs dated 6th December, 2018
has provided regarding AEO website namely
aeoindia.gov.in which has been developed under
the aegis of DIC for online filing and processing
of AEO T1 applications. This AEO Website was
launched by the Chairman; CBIC on 30.11.2018
and subsequently the access to the website
was made available to both the applicant, for
filing of AEO T1 application (annexures), and
Customs officials, for processing and delivery of
digitised AEO Certificate online of newly filed
applications.
[Circular no. 51/2018-Customs dated
6th December, 2018]
Terms and Conditions: Use of GST Portal
This User Agreement shall apply to all the Users of
GST Portal.
Permitted use
GST Portal shall not in any manner be used for any
unauthorised activity(ies). The GST Portal shall be
used only for purposes as authorised by GST Law/
GST portal policy.
Confidential Information and personally
identifiable information of any taxpayer shall not
be disclosed. For any unauthorised disclosure
which is not attributable to GSTN, GSTN shall not
be held responsible.
While using the GST Portal the user shall comply
with all applicable laws, provide up to date, and
correct and accurate information as may be required.
The Services provided on the GST Portal shall
be accessed only through the interfaces expressly
authorised by GSTN or on the GST Portal.
Without limitation of the above, the Users of GST
Portal shall not:-
118 THE CHARTERED ACCOUNTANT JANUARY 2019
I. Imply or state any affiliation with or
endorsement of GSTN / without direct
and express consent of such organisation
(e.g., representing oneself as an accredited
GSTN associate).
II. Manipulating identifiers in order to
disguise the origin of any message or post
transmitted through the GST portal.
III. Monitoring the GST portal’s availability,
performance or functionality for any
competitive purposes.
IV. Overlaying or otherwise modifying the
GST portal or their appearance.
V. Removing or covering or obscuring any
advertisement included on the GST
portal.
VI. Renting, leasing, loaning, trading, selling/
re-selling access to the GST portal or
related data of GST portal.
VII. Selling, sponsoring, or otherwise
monetising any GST portal Service or
feature without GSTN’s direct and
express consent.
VIII. Soliciting or collecting email addresses or
other personal information of GST portal
users or GSTN users in any manner.
IX. Using, disclosing or distributing any data
obtained in violation of this policy.
This User Agreement shall be governed by and
construed in accordance with the Indian Laws.
Any contravention of this User Agreement shall
be viewed strictly and appropriate Criminal/ Civil
action will be initiated in accordance with the
applicable laws.
GSTN exclusively reserves the rights, to change
or modify or alter this User Agreement(whether
completely or partially), from time to time, at its
discretion, without any objections, interruptions,
grounds, claims or liabilities of any third party/
users.
By accessing GST Portal it is deemed that you
have given your consent to this User Agreement
and shall be bound by the terms of this User
Agreement.
www.icai.org

Unauthorised activities: The term Unauthorised
activities includes any activity which is punishable
under section 43 (for eg web scraping, altering
source code, hacking, introducing viruses etc.) and
Section 45 of the Information Technology Act, 2000
(hereinafter IT Act) or which have been defined as
offence under Chapter XI of The IT Act and/or any
other activity which is prohibited under any Act,
rules, regulations having force of law in India and/
or any activity which contravenes access controls/
Service use limits set by GSTN on the GST Portal
and/or any security feature developed by GSTN
on the GST Portal and/or any activity which is
contrary to any other policies of the GST Portal.
[GST Portal]
Enhancements in E-Way Bill System w.e.f
16.11.2018
1. Checking of duplicate generation of
e-way bills based on same invoice
number: The e-way bill system is enabled
in a way that if the consignor has generated
one e-way bill on the particular invoice,
then he or consignee or transporter will
not be allowed to generate one more
e-way bill on the same invoice number.
For eg: If the transporter or consignee
has generated one e-way bill on the
consignor’s invoice, then if any other party
(consignor, transporter or consignee) tries
to generate the e-way bill, the system will
alert that there is already one e-way bill for
that invoice, and further it allows him to
continue, if he wants.
2. CKD/SKD/Lots for movement of
Export/Import consignment : CKD /
SKD / Lots supply type can now be used
for movement of the big consignment in
batches, during Import & Export also.
Delivery challan and tax invoice need to
accompany goods as prescribed in Rule 55
(5) of CGST Rules, 2017.
CKD/SKD: Completely knocked down/
semi knocked down.
3. Shipping address in case of export
supply type : For Export supply type, the
‘Bill To’ Party will be URP or GSTIN of
SEZ Unit with state as ‘Other Country’
www.icai.org
Legal Update
1063
and shipping address and PIN code can
be given as the location (airport/shipping
yard/border check post/ address of SEZ),
from where the consignment is moving
out from the country.
4. Dispatching address in case of import
supply type : For Import supply, the ‘Bill
From’ Party will be URP or GSTIN of SEZ
Unit with state as ‘Other Country’ and
dispatching address and PIN code can be
given as the location (airport/shipping
yard/border check post/ address of SEZ),
from where the consignment is entering
the country.
5. Enhancement in ‘Bill to – Ship To’
transactions:  EWB generation is now
categorised to four types now Regular and
Bill to Ship to, Bill from Dispatch from and
combination of both.
6. Changes in Bulk Generation
Tool: Facility of EWB generation through
the Bulk Generation Tool has been
enhanced.
For more information visit 
https://docs.ewaybillgst.gov.in/Documents/
Enhancementsewb16nov.pdf
GST Revenue collection for the month of
November 2018 crosses Ninety-Seven Thousand
Crore Rupees
The total gross GST revenue collected in the month
of November, 2018 is ` 97,637 crore, segregation
of which is given below:
Tax Amount
CGST ` 16,812 crore
SGST ` 23,070 crore
IGST ` 49,726 crore
Cess ` 8,031 crore
The total number of GSTR 3B Returns filed for
the month of October up to 30th November, 2018
is 69.6 lakh.
(Release ID:186059) 
Press release dated 1st December, 2018
[http://pib.nic.in/newsite/erelease.aspx]
THE CHARTERED ACCOUNTANT JANUARY 2019 119
 Legal Update
1064
Due date of filing of GSTR-7 extended to 31st
January, 2019
The Central Government vide Notification No. 66
/2018 – Central Tax dated 29th November, 2018
has notified that the due date of furnishing return
in FORM GSTR-7 (Form for furnishing return by
registered persons who are required to deduct tax
at source under the provisions of Section 51) for
the months of October, 2018 to December, 2018
has been extended to the 31st January, 2019.
Comments: It may be noted that extension
of GSTR-7 would also extent the due date of
payment of TDS as both of them are interrelated.
Deductees will need to file monthly returns without
the benefit of TDS and this might cause some
concerns.
[Notification No. 66 /2018 – Central Tax
dated 29th November, 2018]
PUBLICATION- INDIRECT TAXES COMMITTEE
Technical Guide on Annual Return and GST Audit
The Indirect Taxes Committee of ICAI has come
up with a publication “Technical Guide on
Annual Return and GST Audit”. It has been
comprehensively designed and contains clause
by clause analysis of Form GSTR-9, GSTR-9A
and GSTR -9C. It will be of great significance
and will provide assistance to the members on
120 THE CHARTERED ACCOUNTANT JANUARY 2019
(Matter on Corporate Laws has been
contributed by CA. Rahul Joglekar)
MCA (www.mca.gov.in)
MCA notification No.GSR 1157(E) Dated 3 rd December
2018 – Companies (cost records and audit) Amend-
ment Rules, 2018
MCA has notified the aforesaid Rules, to amend
the Cost Records and Audit Rules 2014. Certain
amendments to the Non-regulated sectors
requiring maintenance of cost records have been
made. It is also clarified that where extension
for holding AGM has been taken, Form CRA-
4 can be filed within the extended timelines. For
a complete text of this notification, please refer
the link:
http ://w w w.mc a .gov.in/Mini str y/p df/
CompaniesAmendmentRulesCostAndAudit_
03122018.pdf 
Annual Return and the critical issues arising while
conducting GST audit.
Ordering Information
The Publication can be purchased directly from
the Head Office. Member may also download all
publications of Indirect Taxes Committee free of
cost at http://idtc.icai.org/publications.php. The
hard copy of the publication can be ordered online
at https://icai-cds.org/
Your Comments / Suggestions are welcome at
idtc@icai.in
Secretary
Indirect Taxes Committee
The Institute of Chartered Accountants of India
ICAI Bhawan
A-29, Sector - 62, NOIDA (U.P.)
India
Telephone Direct - +91 120 3045 954
Website:  http://www.idtc.icai.org/ 
 s.singhal@icai.in
www.icai.org