The GST Council in its 28th meeting held on 21st July 2018, has recommended certain amendments in the CGST Act, IGST Act, UTGST Act and the GST (Compensation to States) Act. The proposed amendments intend to clear the air on some matters and rationalises certain provision. The proposed amendments, once approved by the parliament and state legislatures will become the new law.

Here is a gist of those amendments, with our comments on major recommendations:

(this is in continuation of our article posted on July 31, 2018. Read the article here)

  • In case the recipient fails to pay the due amount to the supplier within 180 days from the date of issue of invoice, the ITC availed by the recipient will be reversed, but liability to pay interest is being done away with.
  • 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.
  • The following transactions to be treated as no supply (no tax payable) under Schedule III
    • Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India;
    • Supply of warehoused goods to any person before clearance for home consumption;
    • Supply of goods in case of high sea sales
  • Where permitted by the Reserve Bank of India, supply of services will qualify as exports, even if payment is received in Indian Rupees.
  • 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
  • Registration will remain temporarily suspended while cancellation of registration is under process, so that the taxpayer is relieved of continued compliance under the law.
  • 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, shall be outside India

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