Blog

Summary of GST Amendments effective from 1st February 2019.

March 6, 2019 July 09, 2016 Admin

With reference to Notification No. 06/2019 –Central Tax 29/01/2019 

CGST Registration provision amended to align Special Category States

Particulars Before 01/02/2019 After 01/02/2019
Threshold Limit   The threshold limit for registration was INR 10 lakh in states of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand. The threshold limit for registration has been increased from INR 10 lakh to INR 20 lakh in states of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand.
Multiple
Business Vertical
Central Goods and Services Tax (Amendment) Rules, 2019 Notification No. 03/2019 – Central Tax 29/01/2019
Existence of the term and concept of Multiple Business vertical. The term ‘multiple business verticals’ has been removed from the provisions of registration and has been substituted by the term ‘multiple places of business’, and separate registration for each such place of business within the state or union territory shall be granted subject to the fulfilment of conditions specified therein.
Separate
Registration by Special Economic Zones

Central Goods and Services Tax (Amendment) Rules, 2019 Notification No. 03/2019 – Central Tax 29/01/2019
Separate registration was not required by a person having a special economic zone unit of a developer. A separate registration shall be required by a person having a special economic zone (SEZ) unit or being an SEZ developer from his/her other units located outside the SEZ in the same state or union territory.
E- Commerce Operators Mandatory registration is required for those e-commerce operators who are required to collect tax at source under the relevant provisions of GST law- Section 52 of CGST Act.

With reference to Notification No. 03/2019- Central Tax 29/01/2019

Scope of the term ‘supply’ Central Goods and Services Tax (Amendment) Rules, 2019

Particulars Before 01/02/2019 After 01/02/2019
Inclusions and reference of Schedule II Activities to be treated as supply of goods or supply of services are mentioned in Schedule II For any activity to qualify as ‘supply’ under the GST Act, mere inclusion in Schedule II (activities to be treated as supply of goods or supply of services) is not sufficient, as the said activity has to qualify as ‘supply’ at the first place as per the relevant provisions under GST and thereafter the same can get further classified as supply of goods or services under Schedule II.

Composition Scheme CBIC aligns rates for Composition Scheme with CGST Rules, 2017 Notification No. 05/2019 – Central Tax 29/01/2019

Particulars Before 01/02/2019 After 01/02/2019
Threshold Limit The threshold limit for the composite suppliers was INR 1 crore The threshold limit for the composite suppliers has been increased from INR 1 crore to INR 1.5 crore.
Supplier of Services
Central Goods and Services Tax (Amendment) Rules, 2019 Notification No. 03/2019 – Central Tax 29/01/2019
Composition Scheme was applicable only on supplier of goods The supplier of services can also opt for the composition scheme.
Limit prescribed for Supplier of Services for Composition Scheme A person opting for such scheme may supply services (other than restaurant services) of value not exceeding 10% of the turnover in a state/union territory in the preceding financial year or INR 5 lakh, whichever is higher.

Input Tax Credit Central Goods and Services Tax (Amendment) Rules, 2019 Notification No. 03/2019 – Central Tax 29/01/2019

Particulars Before 01/02/2019 After 01/02/2019
Restriction placed Input Tax Credit on Motor Vehicles used for transportation of person was allowed. Input tax credit has been restricted for motor vehicles for transportation of persons having a seating capacity of not more than 13 persons except when they are used for making further supply of motor vehicles, transportation of passengers or imparting training on driving such motor vehicles.
  Input Tax Credit on Vessels and Aircrafts input tax credit shall not be available in respect of vessels and aircraft except when they are used for making further supply of such vessels or aircrafts, transportation of passengers, imparting training or navigating such vessels or imparting training on flying such aircraft.
  Input Tax Credit on Services of General Insurance Input tax credit for services of general insurance, servicing, repair and maintenance relating to motor vehicles, vessels or aircrafts shall be available only where the motor vehicles, vessels and aircrafts are used for the above-mentioned purpose or received by a taxable person engaged in the manufacture of such motor vehicles, vessels or aircrafts or in the supply of general insurance services in respect of such motor vehicles, vessels or aircrafts
  Input tax credit on employee-related welfare goods or services or both Input tax credit on employee-related welfare goods or services or both (eg food and beverages, outdoor catering, beauty treatments, health services, etc.) shall be available where such supply is used for making outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply
  Input tax credit of services such as club memberships, health and fitness centres, travel benefits on vacation, etc Input tax credit of services such as club memberships, health and fitness centres, travel benefits on vacation, etc. shall be available where the provision of such goods or services or both is obligatory for an employer to provide its employees under any law for the time being in force.
Inclusion of an explanation   An explanation has been inserted to provide that the ‘value of exempt supply’ shall not include the value of activities or transactions specified in Schedule III (other than the sale of land and building).

Credit Note/ Debit Note Central Goods and Services Tax (Amendment) Rules, 2019 Notification No. 03/2019 – Central Tax 29/01/2019

Particulars Before 01/02/2019 After 01/02/2019
Raising of Consolidated Credit/ Debit Note Separate credit/ debit note was to be raised for  invoices pertaining to a financial year A registered person can issue a consolidated credit note/debit note in respect of multiple invoices issued in a financial year.

Cross-utilisation of ITC rationalized

Central Goods and Services Tax (Amendment) Rules, 2019 Notification No. 03/2019- Central Tax 29/01/2019

Particulars Before 01/02/2019 After 01/02/2019
Mode The credit of state tax/union territory tax can be utilised for payment of integrated tax only when the balance of input tax credit on account of central tax is not available for payment of integrated tax.
New Section 49 A A new section has been inserted to provide that the input tax credit on account of central tax and state tax/union territory tax can be utilised towards the payment of integrated tax, central tax and state tax/union territory tax only after the input tax credit available on account of integrated tax has been first utilised fully towards such payment.
New Section 49 B A new section  has been inserted to allow the government, on the recommendation of the GST Council, to provide a specific order in which a registered person can utilise input tax credit, viz. integrated tax, central tax and state tax or union territory, for the settlement of the tax liability.

Export of Services Central Goods and Services Tax (Amendment) Rules, 2019 Notification No. 03/2019 – Central Tax 29/01/2019

Particulars Before 01/02/2019 After 01/02/2019
Meaning & Clause of Consideration A service can be said to be exported even if the consideration is received in Indian rupees wherever permitted by the Reserve Bank of India subject to the fulfilment of other conditions prescribed therein.

Refund Central Goods and Services Tax (Amendment) Rules, 2019 Notification No. 03/2019 – Central Tax 29/01/2019

Particulars Before 01/02/2019 After 01/02/2019
Relevant Date   The relevant date in the case of refund of unutilized ITC arising out of the inverted duty structure shall be the due date for furnishing of return under section 39 for the period in which such claim for refund arises
Tel.: +91 9322216142 | Email: info@3sba.com
Employee login | Client login