Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 15-12-2016 – CHANGES IN SCHEDULE IV AND SCHEDULE V OF REVISED GST DRAFT LAW We have till now discussed the definition of supply along with provisions described in schedule I, schedule II and schedule III, and in this update, we will discuss the changes and consequences in schedule IV and V. Schedule IV:- In the previous GST Law, Schedule IV specified the activities or transactions in respect of which the Central Government, a State Government or any Local Authority shall not be regarded as a taxable person. However, in the revised GST Law, Schedule IV specified activities or transactions undertaken by the Central Government, State Government or any local authority which shall be treated neither as supply of goods nor supply of services. Although, the heading of the Schedule has been changed but it does not has significant impact with the only difference that earlier government was not considered as taxable person for certain
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me charges shall be exempt. The explanation was merely for clarification purpose and removing the same does not bring any sort of change. No other change has been made in the revised draft in context of this schedule and it has been kept identical to earlier law. Also it is worthwhile to mention that the provisions mentioned in these schedules are exactly parallel to current Service Tax Laws. SCHEDULE V:- In the previous GST draft law, the persons to be registered were specified in schedule III but in revised GST law, these have been transferred to schedule V. Changes made therein are discussed hereunder:- In the revised GST Draft Law, there is substantial relaxation in the threshold limit for getting registered under GST Law. In earlier GST draft law, the limit for registration was nine lakh rupees which has been increased to twenty lakh rupees. It is an appreciable step from Government s side. As already told by us in our earlier GST updates, this limit has been enhanced by GST counc
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or the special category states the limit is ten lakh rupees. The government in earlier GST draft had explicitly specified that for the NE states including Sikkim the registration limit shall be four lakh rupees, but in new GST draft law though the limit for special category states has been increased but it is nowhere mentioned that special category states shall be North Eastern states including Sikkim. Hence, in future there is a possibility that government may specify a new list of states for this threshold limit. In the list of persons who are required to get registered irrespective of the threshold limit following entries have been added:- Persons who are required to pay tax under sub-section (4) of section 8, irrespective of the threshold specified under paragraph 1; Persons who are required to collect tax under 56, whether or not separately registered under the Act; Every person supplying online information and database access or retrieval services from a place outside India to a
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