The
GST Council in its 28thmeeting has recommended certain amendments in
the CGST Act, IGST Act, UTGST Act and the GST (Compensation to States) Act.
The
major recommendations are as detailed below:
1.
Upper
limit of turnover for opting for composition scheme to be raised from Rs. 1
crore to Rs. 1.5 crore. Present limit of turnover can now be raised on the
recommendations of the Council.
2.
Composition
dealers to be allowed to supply services (other than restaurant services), for
upto a value not exceeding 10% of turnover in the preceding financial year, or
Rs. 5 lakhs, whichever is higher.
3.
Levy
of GST on reverse charge mechanism on receipt of supplies from unregistered
suppliers, to be applicable to only specified goods in case of certain notified
classes of registered persons, on the recommendations of the GST Council.
4.
The
threshold exemption limit for registration in the States of Assam, Arunachal
Pradesh, Himachal Pradesh, Meghalaya,Sikkim and Uttarakhandto be increased to
Rs. 20 Lakhs from Rs. 10 Lakhs.
5.
Taxpayers
may opt for multiple registrations within a State/Union territory in respect of
multiple places of business located within the same State/Union territory.
6.
Mandatory
registration is required for only those e-commerce operators who are required
to collect tax at source.
7.
Registration
to remain temporarily suspended while cancellation of registration is under
process, so that the taxpayer is relieved of continued compliance under the
law.
8.
The
following transactions to be treated as no supply (no tax payable) under
Schedule III:
a.
Supply
of goods from a place in the non-taxable territory to another place in the
non-taxable territory without such goods enteringinto India;
b.
Supply
of warehoused goods to any person before clearance for home consumption; and
c.
Supply
of goods in case of high sea sales.
9.
Scope
of input tax credit is being widened, and it would now be made available in
respect of the following:
a.
Most
of the activities or transactions specified in Schedule III;
b.
Motor
vehicles for transportation of persons having seating capacity of more than
thirteen (including driver), vessels and aircraft;
c.
Motor
vehicles for transportation of money for or by a banking company or financial
institution;
d.
Services
of general insurance, repair and maintenance in respect of motor vehicles,
vessels and aircraft on which credit is available; and
e.
Goods
or services which are obligatory for an employer to provide to its employees,
under any law for the time being in force.
10. In case the recipient fails to pay the
due amount to the supplier within 180 days from the date of issue of invoice,
the input tax credit availed by the recipient will be reversed, but liability
to pay interest is being done away with.
11. Registered persons may issue
consolidated credit/debit notes in respect of multiple invoices issued in a
Financial Year.
12. Amount of pre-deposit payable for filing
of appeal before the Appellate Authority and the Appellate Tribunal to be
capped at Rs. 25 Crores and Rs. 50 Crores, respectively.
13. Commissioner to be empowered to extend
the time limit for return of inputs and capital sent on job work, upto a period
of one year and two years, respectively.
14. Supply of services to qualify as
exports, even if payment is received in Indian Rupees, where permitted by the
RBI.
15. Place of supply in case of job work of
any treatment or process done on goods temporarily imported into India and then
exported without putting them to any other use in India, to be outside
India.
16. Recovery can be made from distinct
persons, even if present in different State/Union territories.
17. The order of cross-utilisation of input
tax credit is being rationalised.
These
amendments will now be placed before the Parliament and the legislature of
State and Union territories with legislatures for carrying out the amendments
in the respective GST Acts.
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