Message From Shri V D Aggarwal

Bharatmala Project – Big Bang Economic Reform

Over the last three years, Indian government has taken all major steps to revive up the economy and has strategically navigated the Indian economy to all-round stability. It includes big bang structural reforms in the form of recapitalization of the PSU banks and booster dose of Rs 14 lakh crore infrastructures spending in Bharatmala Projects. It is the government’s ambitious highway development plan and has potentiality to add 3% to the nation’s gross domestic product (GDP) and provide 10 million jobs.

In the second term of NDA government has again focused to boost infrastructure. The capital expenditure on infrastructure since 1997 to 2017 is tabled in absolute figure is as under;-

Bharatmala Pariyojana (BMP) is the second-largest highways project after the National Highways Development Project (NHDP) that saw development of about 83,677 km. It is an umbrella program for constructing national highways to connect coastal/port areas, pilgrimage centers, district headquarters and develop border and international connectivity roads, economic corridors, inter corridors, feeder routes and greenfield express ways etc..

Bharatmala is an initiative to add 35,000km of new highways (subsuming existing plans to add 10,000km of national highways) with an outlay of Rs 5.35 trillion over the next five years—to raise investments in infrastructure, and boost economic growth. An additional Rs 1.57 trillion is set to be used in existing projects. Thus, overall the Modi government is set to spend around Rs 6.92 trillion on roads over the next five years.

Addition to National Highways (KMs)

BharatMala phase-1 includes 24,800 kms of new highways and balance of existing National Highways Development Project (NHDP) (10,000 kms)

The components of BharatMala Pariyojana are 

• Development of Economic corridors – 9,000 Kms
• Inter-corridor & feeder roads – 6,000 Kms
• Improving the efficiency of National Corridors – 5,000 Kms
• Border & International connectivity roads – 2,000 Kms
• Coastal & port connectivity roads – 2,000 Kms
• Expressways – 800 Kms
• Balance of NHDP works – 10000 Kms

Why we need Bharatmala Pariyojna (BMP) ?

·         There is a need for reducing logistics cost in the country from the current 18 per cent. Noting that high logistics cost has been one of the major bottlenecks in trade and business, the minister has been stressing on the need to develop innovative methods for transport.

·         To develop the identified Economic Corridors with heavy freight traffic, end to end to ensure seamless, speedy travel and uniformity in standards. Feeder Corridors will be developed so as to address the infrastructure asymmetry that exists at many places.

·         To unlock the full economic potential.

·         To improve the efficiency of the National Corridor including the Golden-Quadrilateral and North, South –East West corridor by decongesting the choke points through construction of elevated corridors, bypasses, ring roads, and lane expansion and logistics parks at identified points.

·         Construction of Border Roads of strategic importance along international boundaries and International Connectivity roads to promote trade with Myanmar, Bangladesh, Bhutan and Nepal.

Where the funds come from?

The government will mobilize resources for Bharatmala through four different routes:

      Market borrowings – 49% of the funds raised through Market borrowings and government will also invite private participation to complete the projects.

      Government Investment – 51% of the funds invested by the government through

• Central road fund
•  Monetizing government-owned road assets
• Budgetary allocation

Infrastructure Investment and Economic Development

Infrastructure sector includes power, bridges, dams, roads and urban infrastructure development. It is a key driver for the Indian economy as every $1 Of Infrastructure Spending by Government; Boosts The Economy By $8. The multiplier effect of the investment in the infrastructure sector is more than 8 times in the longer run for the economy.

Impact to Indian Economy

Infrastructure is understood to be a critical factor in the health and wealth of a country, enabling private businesses and individuals to produce goods and services more efficiently. With respect to overall economic output, increased infrastructure spending by the government is generally expected to result in higher economic output in the short term by stimulating demand and in the long term by increasing overall productivity.

According to Crisil, “India needs to spend at least Rs 50 lakh crore over the next five years or close to Rs 3000 crore a day to build its infrastructure sustainably”. Spending of such magnitude requires expeditious resolution of the problem of stressed assets in banking, front-ending of bankable projects, comprehensive re-tooling of public-private partnership frameworks, and deepening of the infrastructure financing ecosystem, which is of tremendous importance.

It is more important that infrastructure investments may affect employment in the short and medium period of time. As the government selects new companies to complete new infrastructure projects, contractors hire additional workers. Increased infrastructure investment also contributes to increased productivity over a period of time which leads to higher GDP in the long term.

I.                    New E-Facility on GST Portal 

1.       GSTR-3B

GSTR3B RESET facility is working now and can be used for the month of Aug, Sept & Oct, 2017. This facility is available after submission but before filing of return.

2.       Online Refund

i.  A functionality for refund of Input Tax Credit of inputs/input services attributed to export of Goods & Services has been provided to taxpayers on the GST Portal, as per Rule 89(4) of CGST Rules, 2017.

ii. This refund application can be filed only if, Form GSTR 3B has been filed by the taxpayer for that particular tax period. This refund application can be filed only once for a tax period.

iii.   Further refund of excess balance in cash ledger is also enabled from 29^th November 2017.

3.       GSTR-1

v  Filing of Form GSTR 1 for July, 2017, has been opened again for filing for those taxpayers who have not filed it so far.

v  Filing of GSTR1 (Quarterly or Monthly) is live now, you can file it by Providing the details of your turnover in previous financial year.

4.       GST Practitioner

i.    Locate GST Practitioner : This service will enable taxpayers to search & view the details and address of a GST Practitioner (GSTP) at the GST Portal. 

ii.    Engage/Disengage GST Practitioner : This service will enable taxpayers to engage/disengage a GST Practitioner for performing specified activities on his behalf. 

iii.    GST Practitioner Dashboard –

a.       Accept / Reject Taxpayer : This service will enable GST Practitioner (GSTP) to accept/ reject the taxpayer’s request who wishes to engage him. 

b.      List of Taxpayers : This service will enable GST Practitioner (GSTP) to view list of all the taxpayers on his dashboard who have engaged him as GSTP 

c.       GST Practitioner Dashboard : After Login to GST portal, the GSTP will first land on its dashboard. GSTP’s Dashboard will have various functionalities like profile details, List of Taxpayers, Accept/Reject Taxpayer etc. using which GSTP can take actions on any pending tasks or can view respective details with respect to taxpayer’s engaged.  

a.        Following functionalities will be made available soon regarding GST Practitioner

Ø     GSTP dashboard for filing registration and returns

Ø     GSTP dashboard for clearing remaining backlogs

i.     Downloading of E-filed returns

 Filed return on GST portal can be downloaded from GST portal under the head services.

I.                    Recent Circulars/Press Release

1.       Clarification on applicability of GST on sale of goods deposited in a custom bonded warehouse

Customs Circular No. 47-Customs

v  Clarifies that goods imported and deposited into a warehouse will be amenable to Customs duty + IGST at the time of filing ex-bond bill of entry. ( Value to be taken at the time of filing into bond bill of entry, rate of tax applicable will be the rate in force at the time of filing ex-bond bill of entry). Thus Customs duty + IGST will be payable at the time of filing ex-bond bill of entry (at the value determined at the time of filing into bond bill of entry)

v  If the importer sells the customs bonded goods to another person before clearance, IGST will be leviable on such transaction at the time of sale. The importer will have to pay by 20th of next month.

v  There is no provision to vary the assessable value of the goods at the ex-bond stage unless they are such goods on which tariff valuation applies. Therefore, duties of customs (BCD + IGST) shall be paid on the imported goods at the stage of ex-bonding on the value determined under section 14 of the Customs Act.

v  Integrated tax on the import transaction shall be leviable, however the same so long as such goods remain deposited in the warehouse the customs duty to be collected shall remain deferred.

v  When the buyer clears the goods from the warehouse by filing ex-bond bill of entry, Customs duty + Integrated tax as applicable will be payable. 

2.       Clarification on inter-state movement of rigs/spares & all goods on wheels

v      Circular No. 1/1/2017-IGST dated 7.7.2017 clarified that inter-state movement of various modes of conveyance, between distinct persons as specified in section 25(4) of the CGST Act, 2017, carrying goods or passengers or both; or for repairs and maintenance, [except in cases where such movement is for further supply of the same conveyance] shall be treated “neither as a supply of goods nor supply of service” and therefore would not be leviable to IGST.

v   Circular shall mutatis mutandis apply to inter-state movement of rigs, tools and spares, and all goods on wheels [like cranes], and except in cases where movement of such goods is for further supply of the same goods, such interstate movement shall be treated ‘neither as a supply of goods or supply of service,’ and consequently no IGST would be applicable on such movements.

v        It is also reiterated that applicable CGST/SGST/IGST, as the case maybe, is leviable on repairs and maintenance done for such goods.

3.       Press Release on Export Refunds

v  The prerequisites for sanction of refund of IGST paid are filing of GSTR 3 B and table 6A of GSTR 1 on the GSTN portal and Shipping Bill on Customs EDI system by the exporter. 

v  As the Customs system is designed to automatically grant refunds without involvement of any officer by matching information that is furnished on GSTN portal and Customs system, the onus is on the exporters to fill in all the details accurately

v  As far as refund of the unutilized input tax credit on inputs or input services used in making exports is concerned, exporters shall file an application in FORM GST RFD- 01A on the common portal where the amount claimed as refund shall get debited from the electronic credit ledger of the exporter to the extent of the claim. Thereafter, a proof of debit (ARN- Acknowledgement Receipt Number) shall be generated on the GSTN portal, which is to be mentioned on the print out of the FORM GST RFD-01A and to be submitted manually 2 to the jurisdictional officer. The exporters may ensure that all the necessary documentary evidences are submitted along with the Form GST RFD 01A for timely sanction of refund.

4.       Press Release on E-way bills

v  GST E-way Bill on trial basis to be introduced from 16-01-2018.

v  Compulsory e-way bill for inter-state movement will be made applicable w.e.f. 01-02-2018.

v  States may choose their respective timing for e-way for intra-state movement on or before 01-06-2018

II.                  Upcoming Event of GST 

GST Council may discuss Big bang changes in GST laws, rules and procedures as per law advisory group’s recommendations in its next meeting in January including a decision on whether to continue with RCM, TDS and TCS provisions in the Act.