Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 11-8-2018 – Introduction The Central Goods and Services Tax Act, 2017 (the Act) was enacted with a view to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government. The Act provides for certain provisions for smooth transition of existing taxpayers to new goods and services tax regime. However, the new tax regime had faced certain difficulties. One of the major inconveniences caused to the taxpayers, especially small and medium enterprises, was the process of filing return and payment of tax. For this purpose the Government proposed to amend the Act so as to provide of ease of procedure. The Government introduced The Central Goods and Services Tax (Amendment) Bill, 2018 ( Bill for short) on 07.08.2018. The details of amendments proposed in the Bill are discussed in this article. Change of name of the Board By this amendment bill the name of the Central
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t, 1959 defines the term Council and not Cost Accountant . Section 2 (1)(b) of the Cost and Works Accountant Act, 1959 defines the term Cost Accountant as a person who is the member of the Institute. To rectify the same clause 2(d) of the Bill proposes to substitute the section 2(1) (c) by section 2 (1)(b). Local authority Clause 2(e) of the Bill proposes to expand the definition of local authority under section 2(69) by including the Regional Council constituted under Article 371J of the Constitution. Services Section 2(105) of the Act defines the term services . Clause 2(f) of the Bill proposes to add Explanation to this section which clarifies the expression services includes facilitating or arranging transactions in securities. Scope of supply Section 7(1) gives the scope of the term supply . Section 7(1) has four sub clauses from (a) to (d). Clause 3(a) proposes to omit the fourth clause (d) which reads – the activities to be treated as supply of goods or supply of services as ref
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and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both Composition levy Clause 5(a) of the Bill proposes to increase the threshold limit for composition of levy from Re.1 crore to ₹ 1.5 crores. This clause further proposes to add second proviso to the section 10(1) which reads as – a person who opts to pay tax under- clause (a) (1% of State or UT turnover by a manufacturer) or clause (b) (2.5% of State or UT turnover by a hotel) or clause (c) (0.5% of State or UT turnover by other suppliers) may supply services (other than those referred to in clause (b) of paragraph 6 of Schedule II), of value not exceeding ten per cent. of turnover in a State or Union territory in the preceding financial year or five lakh rupees, whichever is higher. Clause 5(b) of the bill proposes to substitute section 10(2)(a). The newly substituted provision provides that the registered person
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fines the expression value of exempt supply as not including the value of activities or transactions specified in Schedule III, except those specified in paragraph 5 of the said Schedule. Clause 9(b) of the bill proposes to substitute section 17(5)(a) and 17(5)(b). The newly substituted section 17(5)(a) provides that – (a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:- (A) further supply of such motor vehicles; or (B) transportation of passengers; or (C) imparting training on driving such motor vehicles; (aa) vessels and aircraft except when they are used- (i) for making the following taxable supplies, namely:- (A) further supply of such vessels or aircraft; or (B) transportation of passengers; or (C) imparting training on navigating such vessels; or (D) imparting training on flying such aircraft; (ii) for transportation
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ce: Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply; (ii) membership of a club, health and fitness centre; and (iii) travel benefits extended to employees on vacation such as leave or home travel concession: Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide to its employees under any law for the time being in force. Threshold limit for special States Clause 11(a) proposes to enhance the threshold limit to the Special categories not exceeding ₹ 20 lakhs at the request of the respective Special State and on recommendations of the GST Council. Clause 11(b) proposes that the States of Arunachal Pradesh, Assam
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ace of business, subject to such conditions as may be prescribed. Suspension of registration Clause 14(a) proposes to change the margin heading of section 29 from Cancellation of registration to Cancellation or suspension of registration. Clause 14(b) proposes to insert a proviso to section 29(1)(c) which provides that during pendency of the proceedings relating to cancellation of registration filed by the registered person, the registration may be suspended for such period and in such manner as may be prescribed Clause 14(c) proposes to insert a proviso to section 29(2) which provides that during pendency of the proceedings relating to cancellation of registration, the proper officer may suspend the registration for such period and in such manner as may be prescribed. Applicability of section 35 Section 35 provides for the maintenance of accounts and records by the registered person. Clause 16 proposes to insert a proviso after section 35(5) which provides that nothing contained in th
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vides that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall pay to the Government the tax due or part thereof as per the return on or before the last date on which he is required to furnish such return, subject to such conditions and safeguards as may be specified therein. Procedure for furnishing return and availing input tax credit Clause 18 proposes to insert a new section 43A to deal with the procedure for furnishing return and availing input tax credit. Section 43A provides- 43A(1) Notwithstanding anything contained in sub-section (2) of section 16, section 37 or section 38, every registered person shall in the returns furnished under sub-section (1) of section 39 verify, validate, modify or delete the details of supplies furnished by the suppliers. (2) Notwithstanding anything contained in section 41, section 42 or section 43, the procedure for availing of input tax credit by the recipient and verification thereof s
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in relation to outward supplies for which the details have been furnished under sub-section (3) or sub-section (4) but return thereof has not been furnished. (7) For the purposes of sub-section (6), the recovery shall be made in such manner as may be prescribed and such procedure may provide for non-recovery of an amount of tax or input tax credit wrongly availed not exceeding one thousand rupees. (8) The procedure, safeguards and threshold of the tax amount in relation to outward supplies, the details of which can be furnished under sub-section (3) by a registered person,- (i) within six months of taking registration; (ii) who has defaulted in payment of tax and where such default has continued for more than two months from the due date of payment of such defaulted amount, shall be such as may be prescribed. Utilization of input tax credit Clause 20(b)(i) proposes to insert a proviso to section 49(5)(c) which provides that the input tax credit on account of State tax shall be utilize
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payment. Order of utilization of input tax credit. 49B. Notwithstanding anything contained in this Chapter and subject to the provisions of clause (e) and clause (f) of sub-section (5) of section 49, the Government may, on the recommendations of the Council, prescribe the order and manner of utilization of the input tax credit on account of integrated tax, central tax, State tax or Union territory tax, as the case may be, towards payment of any such tax. Recovery of tax Clause 24 of the bill proposes to insert an explanation to section 79(4) which provides that the word person shall include distinct persons as referred to in sub-section (4) or, as the case may be, sub-section (5) of section 25. Pre deposit on appeal Section 107(6) provides that no appeal shall be filed unless the appellant has paid- (a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and (b) a sum equal to ten per cent. of the remaining a
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n 143(1)(b) which provides that the period of one year and three years may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding one year and two years respectively. Amendment to Schedule III Clause 32 (i) proposes to add the following paras in Schedule III- 7. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India. 8. (a) Supply of warehoused goods to any person before clearance for home consumption; (b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption. Clause 32(ii) proposes to give number to the existing explanation to Schedule III as Explanation 1 and also proposes to insert Explanation 2 which provides that the expression warehoused goods shall have the same meaning as a
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