Highlights of amendments in GST Law
By: – Ashwarya Agarwal
Goods and Services Tax – GST
Dated:- 2-2-2019
Highlights of major amendments in GST law to be made effective from 1st day of February, 2019.
* The word 'Central Board of Excise and Customs', wherever used is substituted as 'Central Board of Indirect Taxes and Customs'
* Sub-clause (h) in definition of 'Business' (Clause 17) is amended to ensure that all activities of Race club are included. The word service is also substituted to remove ambiguity as actionable claims have been defined as 'goods' in the CGST Act.
* Now an assessee can have separate registration for multiple place of business within a single state. The concept of Business Vertical is done away with.
For this purpose definition of 'Business Vertical' in Section 2 clause (18) is omitted, Proviso to section 25(2) is substituted and Rule 11 of CGST Rule is amended. Rule 41A is inserted to prescribe manner and Form ITC 02A for distribution of
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ces is notified under section 9(4). Similar amendment is done in section 5(4) of IGST Act.
Composition Scheme
Section 10 is amended to increase the limit from Rupees One Crore to Rupees One Crore and Fifty Lakh. Further necessary amendment is done to allow Composition dealers to supply services
Explanation in clause (b) of section 16(2) is substituted to introduce concept of deemed receipt of Goods and Service for eligibility to claim Input Tax Credit. Presently this concept was only for goods.
Now, in case of services, the registered person shall be deemed to have received the services where the services are delivered by the supplier to recipient or any other person on the direction of the said registered person. This may benefit Works contractors who are providing services elsewhere and billing elsewhere.
Section 17(5) is amended to restrict eligibility of ITC on in respect of Motor Vehicle. Further ITC is being allowed in respect of food and beverages or both where the pro
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
has applied for cancellation of registration, his registration shall be deemed to be suspended from the date of submission of application of cancellation, till the proceeding for cancellation of registration is pending.
The registered person shall not make any taxable supply during the period of suspension and shall not be required to furnish any return under section 39.
Credit Note / Debit Note
Now a registered person can issue Single Credit Note / Single Debit Note for multiple invoices. This amendment will provide huge relief across industries as presently separate credit note / debit note was required to be issued for every single invoice. Section 34 is amended for this purpose along with insertion of sub-rule (1A) to Rule 53. Necessary changes shall be made in GST portal also for this purpose.
Proviso is inserted to section 35(5) to exempt department of the Central or State Government / local authority which is subject to audit by CAG, from getting their books of account
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
nce in transit under section 129 is increased from 7 days to 14 days. Thereafter the proceeding shall be initiated in accordance with provisions of section 130;
Job Work
Proviso is inserted in section 143(1) to empower Commissioner to extend the period of one year and three year as provided in section by further period not exceeding one year and two years respectively;
Para 4 of Schedule I is amended to increase its scope. Now import of services by entities which are not registered under GST (say, they are only making exempted supplies) but are otherwise engaged in business activities, shall be taxed when received from a related person or from any of their establishments outside India. This will affect the foreign Companies not registered in India;
New entries are made in Schedule III which are as below:
Para 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.
Para 8
* Supply
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =