The ministry of Finance has proposed to amend CGST Act, 2017 and IGST Act, 2017. This is pertaining to Section 91 to 111 of Finance Bill, 2019. Here is the CGST Section wise, quick summary of these changes.
Section 2(4)
‘Adjudicating Authority’ amendment to exclude ‘the National Appellate Authority for Advance Ruling’
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Section 10
To amend and introduce composition scheme for service providers Up to a limit of Rs. 50 lacs per year.
Section 22
To Increase the threshold limit for GST registration in respect of goods up to a limit of Rs. 40 lacs per year.
Section 25
Aadhaar Number authentication for new and existing GST registrants.
Section 31A
To amend Specified suppliers to mandatorily provide the option of electronic payment to the recipients of supply of goods or services or both made by them.
Section 39
To Provide for new return system and allow the composition scheme taxpayers to furnish annual return in GSTR 9A along with quarterly payment.
Section 44
To amend and Empower the “Commissioner or Joint Secretary posted in the Board” to extend the due date furnishing Annual Return in FORM GSTR9/9A) and reconciliation statement in GSTR-9C.
Section 49
To Provide for transfer of an amount from one head to another head online in the electronic cash ledger.
Above Such transfers will be deemed to be a refund from the electronic cash ledger under this Act. Further, any amount that has been transferred to the electronic cash ledger under this Act, shall be deemed to be deposited in the said ledger.
Section 50:
Need an amendment for Charging interest only on the net cash tax liability, except in proceedings under CGST section 73 or Section 74.
• The Interest on late payment of tax will get calculate on net cash liability (gross liability less credit available), and not on gross tax liability.
Section 52(4&5)
This is for amending to Empower the “Commissioner or Joint Secretary posted in the Board” to extend due date of monthly/ annual statement of TCS payer.
Section 53A
To insert Section 53A for providing consequential transfer of amount between Centre and States, due to section 49 (Transfer of an amount from one head to another head in the electronic cash ledger
Section 54(8A)
To insert the statement “Provides that the Central Govt may disburse refund amount to taxpayers in respect of refund of State taxes i.e disbursement of refund by single authority”
Section 95(f):
Amendment To define the “National Appellate Authority (NAA)” for Advance Ruling.
Section 101A, B & C
Amending section 101, to introduce provisions relating to ‘National Appellate Authority (NAA) for Advance Ruling’
Section 102
Giving Power to NAA to rectify any error apparent on the face of the record.
Section 103
Amending to state AR pronounced by the NAA shall be binding PAN wise.
Section 104
To amend and state AR pronounced by NAA to be void in certain cases
Section 105
Proposal to amend CGST section 105 so that, NAA will have powers of Civil Court under the Code of Civil Procedure, 1908.
Section 106
NAA to regulate its own procedure
Section 168
To include the wording “Commissioner or Joint Secretary shall exercise the powers specified in respect of section 44(1) and section 52( 4&5)”
Section 171
Proposal to empower the National Anti-profiteering Authority to impose penalty equivalent to 10% of the profiteered amount. However, no penalty shall be levied if the profiteered amount is deposited within thirty days of the date of passing of the order by the Authority.
Proposal to Amend IGST Act, 2017
Section 17A
To amend and insert the Provisions for consequential transfer of amount between Centre and States, in view of inter-operability of amounts in different heads of cash ledger under section 49 of CGST Act).
Top updates of GST Amendment Act 2018 Applicable from 01.02.2019
Here are the Top GST amendment Act 2018 updates, which are going to be applicable from tomorrow i.e 01.02.2019.
The government has notified to make this effective from tomorrow vide notification no. 02/2019-Central Tax ,dt. 29-01-2019. Click on below links to download Specific GST Amendment Act 2018 in pdf format.
The government has published below amendment acts through official Gazette on 30.08.2018. However, it is going to be applicable from 01st February 2019.
- Central Goods and Services Tax (Amendment) Act 2018. (Download pdf)
- Integrated Goods and Services Tax (Amendment) Act 2018. (Download pdf)
- Union Territory Goods and Services Tax (Amendment) Act 2018. (Download pdf)
- Goods and Services Tax (Compensation to States) Amendment Act 2018. (Download pdf)
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Important Changes in CGST ACT 2017
Below are some of the important changes made in CGST ACT 2017 through CGST Amendment ACT 2018, which is going to be effective from 01st February 2019.
1. Amendment in CGST Section 2 – Definitions:
- Words “Central Board of Excise and Customs” gets replace with words “Central Board of Indirect Taxes and Customs”.
- Words “the Appellate Authority and the Appellate Tribunal”, gets replaced with the Appellate Authority, the Appellate Tribunal, and the Authority.
2. Amendment in CGST Section 7 – Scope of supply:
- (i) in clause (b), after the words “or furtherance of a business;”, the word “and” are inserted and will always be deemed to have been inserted.
3. Amendment in CGST Section 9 – Levy and Collection:
For sub-section (4), the following sub-section got added.
- The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both.”
Clarification: Earlier the RCM mechanism was postponed till 30.09.2019. However, in the 31st GST council meeting, it was decided to make this applicable for a specific class of registered person and not for everyone.
Therefore, the government will notify in future, which class of taxpayers will need to pay GST on a Reverse charge basis. Also, this will be applicable for intra-state, interstate and union territory dealers.
Till then Reverse charge mechanism will not be applicable to the registered person for receiving goods or services from UN-registered person.
4. Amendment in CGST Section 10 – Composition Levy :
- The words “one crore rupees”, get replace with the words “one crore and fifty lakh rupees”.
As per this clause, A person can opt for composition scheme whose previous year turnover is equal to or less than 1.5 crore rupees. Earlier this limit was 1 crore only.
Also, they are allowed to opt for services (except restaurant service) under composition scheme for a turnover up to a value not exceeding ten percent in the previous financial year, or five lakh rupees, whichever is higher
Do visit again this page for rest changes in GST Amendment ACT 2018. You may also download the pdf file for quick reference for these amendments from the top section on this page.
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