50% Exemption of GST to CSD Items - URCs sales to end customers are exempted levy of GST

ADVISORY 10/ 2017: IMPLEMENTATION OF GST AT URCs

1. The Govt has declared 50% exemption of GST to CSD (copy of relevant extract at as Annx).

2. URCs sales to end customers are exempted levy of GST. As a consequence, URCs are exempted from registration for GST and filing of monthly returns etc.

3. URCs need not make any extra efforts in implementation of GST wef 01 July 2017, except the following activities: –

(a) Ensure proper accounting of closing stock as on 30 Jun 2017 since, they have to be sold at old selling prices wef 01 July 2017.

(b) CSD Depots will be selling the balance stocks as on 30 June 2017 at the old rates to URCs. All the stocks received from CSD Depots with old selling prices during July 2017 and the closing stocks at URCs as on 30 June 2017 should be sold at old prices as on 30 June 2017 to end customer.

(c) No URC should refuse the stocks already demanded by them in the months of June 2017, as these stocks have been purchased and supplied to Depots.

(d) Goods purchased by CSD Depots from the companies in GST Regime (wef 01 Jul 2017) will be sold at revised wholesale price. URCs will sell these goods at revised retail price to end customers which wil be communicated by CSD HO in due course of time through their respective depots.

(e) It is advisable to liquidate old stocks at URCs as on 30 June 2017 first and then only start selling new stocks.

(f) Dual billing system may be followed, if all the stocks as on 30 Jun 2017 cannot be liquidated and sale of new stocks to be carried out with new rates, if situation warrants.

(g) CS Dte has directed CIMS management to prepare and forward revised software to all URCs, in order to switchover the billing process in GST environment. This is dependent on companies disclosing post GST prices to CSD HO in an early timeframe.

(h) All URCs should maintain the record of purchases and sales meticulously in electronic mode.

(j) The Government is yet to finalise e way bill procedure is GST environment for collection vehicles that will be used to collect stores from CSD Depots by URCs. Once e way bill is made mandatory for URCs, the same will be intimated.

4. However, as liquor is outside the purview of GST, URCs will continue with the existing system for sale of liquor.

5. This letter supersedes all earlier instrs on the subject and be disseminated to all URCs under respective comd.

Source: http://csdindia.gov.in