Recent amendments under GST and Customs laws w.e.f. 01 April 2020
by ReinHeads Team | Mar 27, 2020
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Key amendments under GST and Customs laws
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| Dear All,
The Central Board of Indirect Taxes and Customs (‘CBIC’) has issued various notifications to bring into effect certain changes in the GST laws as recommended in the GST council meeting on 14 March 2020 and the Customs law. We have hereinbelow summarized key amendments of the notifications issued:
A. GST Laws
- ·Amendment in GST rate and place of supply on Maintenance, Repair and Overhaul services in respect of aircraft
Vide Notification No. 02/ 2020 – Central Tax (Rate) dated 25 March 2020, the GST rate on Maintenance, Repair and Overhaul services in respect of aircraft has been reduced from 18% to 5% with full Input Tax Credit (‘ITC’). Relevant extract is reproduced hereinbelow:
| S. No. |
Chapter, Section or Heading |
Description of Service |
Rate
(per cent.) |
S. No. |
| 25 |
9987 |
(ia) Maintenance, repair or overhaul services in respect of aircrafts, aircraft engines and other aircraft components or parts. |
2.5 |
– |
Further, vide Notification No. 02/ 2020 – Integrated Tax dated 25 March 2020, the place of supply for B2B MRO services has been changed to the location of recipient vis-à-vis place of effective use and enjoyment. Relevant extract is reproduced hereinbelow:
| S. No. |
Description of Services |
Place of Supply |
| 2 |
Supply of maintenance, repair or overhaul service in respect of aircrafts, aircraft engines and other aircraft components or parts supplied to a person for use in the course or furtherance of business |
The place of supply of services shall be the location of the recipient of service |
- Amendment in GST rates for specific goods
Vide Notification No. 03/ 2020 – Central Tax (Rate) dated 25 March 2020, the GST rate for following key goods has been amended:
| Particulars of Goods |
HSN |
Current Rate |
Amended Rate
(w.e.f. 01 April 2020) |
| Handmade safety matches |
3605 00 10 |
5% |
12% |
| Matches (other than handmade safety matches 3605 00 10) |
3605 |
18% |
| Telephones for cellular networks or for other wireless networks and parts for manufacture |
8517 and 85 |
12% |
18% |
B. Customs Laws
- Vide the Notification No. 17/ 2020 – Customs dated 25 March 2020, basic customs duty on various goods imported into India from Japan has been reduced. The list is comprehensive and specified in the attached Notification.
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