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GST (Amendment) Act, 2018
The President has given its assent to the The Central Goods and Services
Tax (Amendment) Act 2018 , The Integrated Goods and Services Tax (Amendment)
Act 2018. , The Union Territory Goods and Services Tax (Amendment) Act 2018. ,
The Goods and Services Tax (Compensation to States) Amendment Act 2018. on
August 29, 2018.
Effective Date for Amendment in GST Act(s) 2018 will be 01.02.2019
Changes in CGST Act 2017 w.e.f 01.02.2019
Following are the Changes in the Relevant Section of CGST Act 2017 by Central Goods and Services Tax (Amendment) Act 2018
Section 2(4). Definitions of CGST Act 2017 : Adjudicating Authority
Section 2(17). Definitions of CGST Act 2017 : business
Section 2(18). Definitions of CGST Act 2017 :business vertical
Section 2(35). Definitions of CGST Act 2017 : cost accountant
Section 2(69). Definitions of CGST Act 2017 : local authority
Section 2(102). Definitions of CGST Act 2017 : services
Section 7. Scope of supply. : Amended relating to “Scope of
Supply” in order to clarify the scope of supply.
Section 9. Levy and collection. : Amended so as to restrict the levy of
tax on reverse charge basis to receipt of supplies of certain specified
categories of goods or services or both by notified classes of registered
persons from unregistered suppliers on the recommendations of the Council.
Section 10. Composition levy. : Amended so as to raise the statutory
threshold of turnover for a taxpayer to be eligible for the composition scheme
from one crore rupees to one crore and fifty lakh rupees, and to allow the
composition taxpayers to supply services (other than restaurant services), for
up to a value not exceeding ten per cent. of turnover in the preceding
financial year, or five lakh rupees, whichever is higher.
Section 12. Time of supply of goods. : Amended and the said amendment is
drafting in nature.
Section 13. Time of supply of services. : Amended and
the said amendment is drafting in nature.
Section 16. Eligibility and conditions for taking input tax credit. :
Amended in order to provide for input tax credit in cases of “Bill-
to-ship-to” model in the case of supply of services. The said Amendment further
seeks to include the provisions relating to the new return format as specified
in the proposed new section 43A, for availment of input tax credit.
Section 17. Apportionment of credit and blocked credits. :
:Amended in order to further expand the scope of eligibility of input tax
Section 20. Manner of distribution of credit by Input Service
Distributor. : Amended in order to exclude the amount of tax levied under
Entry 92A of List I of the Seventh Schedule of the Constitution from the value
of turnover for the purposes of distribution of credit.
Section 22. Persons liable for registration. : Amended so as to increase
the threshold turnover for registration in special category States of Arunachal
Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand from ten
lakh rupees to twenty lakh rupees.
Section 24. Compulsory registration in certain cases. : Amended so
as to provide for mandatory registration for only those e-commerce operators
who are liable to collect tax at source under section 52 of the Act.
Section 25. Procedure for registration. : Amended aso as to allow
persons having multiple places of business in a State or Union territory to
obtain separate registration for each such place of business, and to insert the
provisions for separate registration for a person having a unit(s) in a Special
Zone or being a Special Economic Zone developer, distinct from his other
units located outside the Special Economic Zone.
Section 29. Cancellation of registration. Amended so as to provide for
temporary suspension of registration while cancellation of registration is
Section 34. Credit and debit notes. Amended so as to allow registered
persons to issue consolidated credit or debit notes in respect of multiple
invoices issued in a Financial Year.
Section 35. Accounts and other records. Amended so as to provide that
any Department of the Central or State Government or local authority which is
subject to audit by the Comptroller and Auditor-General of India need not get
their books of account audited by any Chartered Accountant or Cost Accountant.
Section 39. Furnishing of returns. : Amended so as to provide for
prescribing the procedure for quarterly filing of returns with monthly payment
Section 43A: Procedure for furnishing return and availing input
tax credit. (Newly inserted)
Section 48. Goods and services tax practitioners : Amended so as to
allow Goods and Services Tax Practitioners to perform other functions such as
filing refund claim, filing application for cancellation of registration, etc.
Section 49. Payment of tax, interest, penalty and other amounts.
Amended in order to provide that the credit of State tax or Union territory tax
can be utilised for payment of integrated tax only when the balance of the
input tax credit on account of central tax is not available for payment of
Section 49A : Utilisation of input tax credit subject to certain
conditions (Newly inserted) This Section seeks to specify that a taxpayer would
be able to utilise the input tax credit on account of central tax, State tax or
Union territory tax only after exhausting all the credit on account of
integrated tax available to him towards payment or integrated tax, Central tax,
State tax or Union territory tax.
Section 49B :Order of utilisation of input tax credit. (Newly
inserted) This Section seeks to empower the Government to prescribe any
specific order of utilisation of input tax credit of any of the taxes for
payment of any tax.
Section 52. Collection of tax at source. : Amended in order to give the
reference of section 39 of CGST Act 2017 Furnishing of Returns
Section 54. Refund of tax. Amended in order to provide that the
principle of unjust enrichment will apply in case of a refund claim arising out
of supplies of goods or services or both made to a Special Economic Zone
developer or unit, and to allow receipt of payment in Indian rupees, where
permitted, by the Reserve Bank of India in case of export of services.
Section 79. Recovery of tax. Amended to enable recovery to be made from
distinct persons registered in different States or Union territories in order
to ensure speedy recovery from other establishments of the registered person.
Section 107. Appeals to Appellate Authority. Amended Authority”, in
order to specify twenty-five crore rupees as the upper limit of the amount of
pre-deposit payable for filing of appeal before the Appellate Authority.
Section 112. Appeals to Appellate Tribunal. Amended in order to specify
fifty crore rupees as the upper limit of the amount of pre-deposit payable for
filing of appeal before the Appellate Tribunal.
Section 129. Detention, seizure and release of goods and conveyances in
transit Amended in order to increase the time limit before which
proceedings under section 130 can be initiated from seven to fourteen days.
Section 140. Transitional arrangements for input tax credit.
Amended in order to clarify with retrospective effect from 1st July, 2017
that the cesses and additional duty of excise (on textile and textile articles)
levied under the pre-Goods and Services Tax laws shall not be a part of
transitional input tax
credit under the goods and services tax.
Section 143. Job work procedure. Amended in order to empower the
Commissioner to extend the time limit for return of inputs and capital goods sent
on job work, upto a period of one year and two years, respectively.
SCHEDULE I. of CGST Act 2017 “Activities to be treated as supply even if
made without consideration”. : Amended
SCHEDULE II. of CGST Act 2017 : Amended the title of Schedule II
of the principal Act from “Activities to be treated as supply of goods or
supply of services” to “Activities or transactions to be treated as supply of
goods or supply of services”.
SCHEDULE III. of CGST Act 2017 “Activities or transactions which shall
be treated neither as a supply of goods nor a supply of services”. Amended
Changes in IGST Act 2017 w.e.f 01.02.2019
Section 2(6). Definitions. “export of services
Section 2(16). Definitions. “non-taxable online recipient”
Section 5. Levy and collection. : Amended to empower the Central
Government to notify classes of registered persons to pay tax on reverse charge
basis in respect of receipt of supplies of certain specified Categories of
goods or services or both from unregistered suppliers;
Section 8. Intra-State supply. Words ‘‘being a business vertical’’ shall
Section 12. Place of supply of services where location of supplier and
recepient is in India. : Amended to provide that if the
transportation of goods is to a place outside India, the place of supply shall
be the place of destination of such goods;
Section 13. Place of supply of services where location of supplier or
location of receipient is outside India. Provisions of Section 13(1)(3)(a)
Amended and shall not apply in the case of services supplied in respect
of goods which are temporarily imported into India for repairs or for any other
treatment or process and are exported after such repairs or treatment or
process without being put to any use in India, other than that which is
required for such repairs or treatment or process;
Section 17. Apportionment of tax and settlement of funds. Amended to
make a provision for settlement of balance in the integrated tax account
equally between the Central Government and the State Governments or the Union
territories, as the case may be, on ad hoc basis and shall be adjusted against
the amount apportioned under the said sub-sections.
Section 20. Application of provisions of Central Goods and Services Tax
Act. Amended to specify the amount of pre-deposit payable
for filing of appeals —
(a) before the Appellate Authority to be capped at fifty crore rupees;
(b) before the Appellate Tribunal to be capped at one hundred crore rupees.