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Impacts of GST Amendment Act, 2018 w.e.f. 1st Feb, 2019

Posted on Thursday, January 31st, 2019 at 15:34 and is filed under GST Whats New, RNC Updates, Uncategorized

CGST Amendment ACT, 2018

1. Section 7:– The activity must first be covered in definition of supply then it is to be classified as goods or services as per Schedule II .

2. Section 9:- Section 9(4) substituted as follows:- Govt. may specified goods or services supplied by unregistered person under reverse charge u/s 9(4).
Thus, Section 9(4) to be applicable only for specified class of registered persons in case of specified goods or services to be notified later.

3. Section 10 :- Maximum limit for composition levy that can be extended by the Govt has been increased upto 1.5 Crore from 1 crore. However till now threshold limit for composition levy is still Rs 1 crore.

Further, by adding proviso a person under Composition levy (other than restaurant services provider specified in para 6(b) of schedule II) can also supply service but not exceeding 10% of turnover in previous financial year or Rs 5 lakh (which ever higher)

4. Section 16 :- where the services are provided by the supplier to any person on the direction of and on account of such registered person then it shall be deemed that the registered person has received the service.

5. After amendment in Section 17(5) ,
(i) the ITC in relation to motor vehicle having seating capacity more than 13 persons is allowed.
(ii) It is specifically provided that ITC on repair , Insurance and other expenditures relating to ineligible motor vehicle u/s 17(5) are also not allowed. whereas ITC in respect of said services are available to the manufacturer of such motor vehicle and the person providing General Insurance of services in respect of such motor vehicle.
(iii) ITC on leasing & renting , hiring of motor vehicle is not allowed except on which ITC is allowed.

6. Section 22 :- (i) Govt. may increase the limit for registration in special states from 10 lakh to upto 20 lakh. (ii) After excluding 6 states from special category states now it includes only Manipur, Mizoram, Nagaland, Tripura.

7. Section 25 :- A person having unit in SEZ is required to take separate registration for another unit even if it is located in same state o/s SEZ.
Person having multiple places of business in a state/UT may obtain separate registration for each such place of business subject to certain condition as specified in Rule 11.

8. Section 29:- 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.
Further as clarified in Rule 21A inserted vide Notification No. 03/2019 – Central Tax dt. 29.01.2019 during suspension and pendency of proceedings regarding cancellation of registration the person is not required to make any taxable supply or furnish any return during that period.

9. Section 34:- Now you can issue one or more Credit note/Debit note for one or more invoice for a financial year. Thus, periodic debit/credit notes can now be issued for multiple invoices.

Further in Rule 53 vide Notification No. 03/2019 – Central Tax dt. 29.01.2019 separate list for contents for credit note and debit note is inserted to give impact of issue of one credit note and debit note for multiple invoices.

10. Section 49 :- The credit balance of SGST and UGST can be utilized for payment of IGST only if the balance is not available in CGST.

11. Section 107:- For filing an appeal to Appellate Authority the appellant is required to pay an amount @ 10% of disputed amount of tax or 25 crores whichever is less.

12. Section 112:- For filing an appeal to Appellate Tribunal the appellant is required to pay an amount @ 20% of disputed amount of tax or 50 crores whichever is less.

13. Section 129:- Tax and penalty shall be paid within 14 days of detention or seizure of conveyance u/s 129(1).

14. Section 140:- Only CENVAT credit of eligible duty in the earlier return can be carried forward in GST.
Further for removal of doubts, it is hereby clarified that the expression “eligible duties and taxes” excludes any cess which has not been specified in Explanation 1 or Explanation 2 and any cess which is collected as additional duty of customs under sub-section (1) of section 3 of the Customs Tariff Act, 1975 w.e.f. from 1st july, 2017.

15. Section 143:- Period of received back of goods from job worker i.e. 1/3 years may be extended by the Commissioner for 1 /2 years respectively on sufficient cause.

16. Schedule I :- Now import of service by any person from related person o/s India for the purpose of business is considered as supply.

17. Following supplies are included in Schedule III:-
1. Export & import o/s India
2. High seas sale
3. Supply of warehousing goods to any person before clearance for home consumption.

IGST Amendment ACT, 2018

1. In section 12(8) of IGST act :- By insertion of proviso Place of Supply relating to transportation of goods to a place outside India has changed from location of recipient to destination of goods.