GST Council: 17 amendments under GST Acts to be place before Parliament

The GST Council held their 28th meeting at New Delhi, which was chaired by Union Minister of Railways, Coal, Finance and Corporate Affairs Piyush Goyal. Under the meeting, the council has recommended somewhat 17 amendments under the CGST, IGST, UTGST Act and GST (Compensation to States) Act. These amendments will now be placed before the parliament and the legislature of the state and union territories with legislatures for carrying out the amendments in the respective GST Acts.

Here’s the list of the amendments.

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 the turnover can now be raised on the recommendation 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 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, Meghalay, Sikkim and Uttrakhand to 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 taxpayer is relieved of continued compliance under the law. 

8 - The following transactions to be treated as no supply (no tax payable):

• Supply of goods from a place in the non-taxable territory to another place in the non taxable territory without such goods entering in India
• Supply of warehood goods to any person before clearance for home consumption and 
• Supple 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: 

• Most of the activities or transactions specified in Schedule 3
• Motor vehicles for transportation of person having seating capacity of more than 13 (including driver), vessels and aircraft
• Motor vehicles for transportation of money for or by a banking company or financial institution
• Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircrafts which credit is available
• 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 receipient fails to pay the due amount to supplier with 180 days from the date of issue of invoice, the ITC availed by the receipient will be reversed but liability to pay interrest is being done away with. 

11 - Registered perspm may issue consolidated credit/debit notes in respect to multiple invoices issued in a financial year. 

12 - Amount of pre-deposit payable for filing of appeal before the Appellate authority and the 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 up to period of one and two years respectively. 

14 - Supply of services to quality as exports, even if payment is received in Indian Rupees where permitted by 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-utilisatiion of ITC is being rationalised.