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In this Edition, UIN Entities under GST has been detailed following with our usual Legal terms and News Bites related to notifications by MCA, SEBI, RBI, IT and GST.
Saranya Deivasigamani,
CEO
UIN Entities Under GST
Though, the GST universally applies to all business entities in India, however there are certain bodies and individuals, which enjoy exemption from complying with the Goods and Services Tax. GST Unique Identification Number (UIN) is a special category of GST registration, given to foreign diplomatic missions and agencies, which are not liable to pay any taxes in the Indian terrain and hence does not fall in the purview of GST. Any sort of indirect or direct tax collected from such bodies is returned back to them.
As per Entry no. 59 of Notification no. 12/2017 Central Tax (Rate) Dated 28-6-2017 Services provided by foreign diplomatic missions (Located in India) to any Person is exempt. But Service received by foreign diplomatic missions is not exempt , however FDM can take refund of GST paid.
Eligibility to obtain UIN
GST UIN applies to any specialized agency of the United Nations Organization or any Multilateral Financial Institution and Organization notified under the United Nations [Privileges and Immunities] Act, 1947, Consulate or Embassy of foreign countries and any other persons notified by the Commissioner. GST UIN enables such special bodies and individuals to claim refund of the GST, which they paid while receiving inward supplies.
The following organizations can apply for a UIN:
- A specialized agency of the United Nations Organization
- A Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947,
- Consulate or Embassy of foreign countries
- Any other person or class of persons as notified by the Commissioner
Purpose of a UIN
The organizations listed above will be granted a Unique Identification Number (UIN). This allows the body to receive tax refund on inward supplies of goods and services (purchases).
Format of UIN
GST UIN is a 15 digit alpha-numeric code, which helps to identify the exclusive identity of a GST exempted person or an entity.
Difference between GSTIN and UIN
GSTIN and UIN are two different types of identification numbers under GST.
Goods and Services Tax Identification Number (GSTIN) is allotted to regular taxpayers who are required to collect GST and file GST returns
UIN is allotted to only the above-mentioned organization.
Registration process
The organization must apply for UIN in FORM GST REG- 13.
If the GST officer is satisfied, he will assign a UIN and issue a certificate in FORM GST REG-06 within 3 working days from the date of the submission of the application.
Forms and Returns
Every UIN holder must file GSTR-11 by 28th of next month in order to claim refund of the taxes paid on his inward supplies. GSTR-11 will contain details of such supplies of taxable goods and/or services.
GSTR-11 will contain details of such supplies of taxable goods and/or services.
A UIN holder will not be allowed to add or modify any details in GSTR-11. The Information will be auto-populated information from seller’s GSTR-1 (sales).
Obligation of Seller
The taxable supplier (normal registered taxpayer under GST) while supplying to a UIN organization must:
- Mention the UIN on the invoices
- Treat such sales as supplies to another registered person (B2B)
- Invoices should be uploaded in the same manner as for normal B2B sales.
Provide correct ”Place of Supply” for every invoice on which refund is applied for.
For example, Embassies registered in New Delhi providing hotel service consumed in the State of Maharashtra should mention the place of supply as Maharashtra. As place of supply determines the chargeability of CGST/SGST or IGST tax on an invoice, the supplier has to clearly mention the state where the activity is taking place. Wrong reporting of invoice level data in GSTR-11 or in the statement of invoice submitted may lead to delay in processing / rejection of refund claims.
Last day for claiming a refund on purchases by a UIN holder
As mentioned before, refunds can be claimed only through GSTR-11. The return must be filed within 6 months from the last day of the quarter in which supply was received.
For example, consider a UIN holder that received purchases on 10th October 2017.
A UIN holder will not be allowed to add or modify any details in GSTR-11. The Information will be auto-populated information from seller’s GSTR-1 (sales).
The last day of the quarter of receiving the supplies is 31st December 2017.
The deadline to claim the refund is 6 months from then, 30th June 2018.
Beyond the 6 month deadline, the refund will lapse.
Therefore, as a professional, we should advise our clients regarding their statement of invoice and remind on submitting the returns and forms in time.
Legal Term
A posteriori
An argument derived from subsequent event.
MCA Updates
- No major updates.
SEBI Updates
- Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 [last amended on September 11, 2018].
RBI Updates
- External Commercial Borrowings (ECB) Policy – Review of Minimum Average Maturity and Hedging Provisions.
Income Tax Updates
- No major updates.
GST Updates
- No major updates.
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