RECENT CHANGES IN GST

[Mr. M. GOVINDARAJAN]

Changes in CGST

The following are the changes that are brought in by the Central Government through various notifications-

Amendment to Notification No. 48/2017-Central Tax

The Central Government, vide Notification No.01/2019-Central Tax, dated 15.01.2019 amended the Notification No. 48/2017-Central Tax, dated 18.10.2017 to amend the meaning of ‘Advance Authorization’.  According to the amendment the supply of goods by a registered person against Advance Authorization is a deemed export provided-

• that goods so supplied, when exports have already been made after availing input tax credit on inputs used in manufacture of such exports, shall be used in manufacture and supply of taxable goods (other than nil rated or fully exempted goods) and a certificate to this effect from a chartered accountant is submitted to the jurisdictional commissioner of GST or any other officer authorized by him within 6 months of such supply;
•  that no such certificate shall be required if input tax credit has not been availed on inputs used in manufacture of export goods.

Effective date for Central Goods and Services Tax (Amendment) Act, 2018

The Central Government, vide Notification No. 2/2019-Central tax, dated 29.01.2019 appointed 01.02.2019 as the effective date of the provisions of Central Goods and Services Tax (Amendment) Act, 2018 except the following provisions (for which the appointment date will be notified later)-

• Section 8(b) which brings amendment to section 16(c) of CGST Act;
• Section 17 which brings amendment to section 39 of CGST Act;
• Section 18 which inserted a new Section 43A of CGST Act which provides for procedure for furnishing return and availing input tax credit;
• Section 20(a) which brings amendment to section 49(2) of CGST Act;
• Section 28(b)(i) which brings amendment to the Explanation 1 to section 140 of CGST Act;
• Section 28(c)(i) which brings amendment to the Explanation 2 to section 140 of CGST Act.

Amendment to CGST Rules, 2017

The Central Government, vide Notification No. 3/2019-Central tax, dated 29.01.2019 brings amendment to the Central Goods and Services Tax Rules, 2017.

• Rule 7 and 8 are amended;
• Rule 11 is substituted for a new provision which provides for separate registration for multiple places of businesses within a State or a Union Territory;
• A new Rule 21A is inserted which provides for suspension of registration;
• A new Rule 41A is inserted which provides for transfer of credit on obtaining separate registration for multiple places of business within a State or Union territory;
• Rule 42 and 43 are amended;
• Rule 53 is amended and a new sub rule (1A) is inserted which provides the details to be furnished in the debit/credit note;
• Rule 80 is amended;
• Rule 83 is amended sub rule (8) is substituted for a new rule which provides the activites that can be undertaken by a GST practitioner;
• Rule 85, 86, 89, 91, 92, 96A are amended;
• A new form GST-ITC – 2A is introduced under Rule 41A which requires to give declaration for transfer of ITC pursuant to registration under section 25(2);
• Form GST PCT – 05 is amended;
• Form GSTR -04 is amended;
• Form GST – RFD -01 is amended;
• Form GST – APL 01 is amended;
• Form GST – APL – 05 is amended;

Jurisdiction of Joint Commissioner (Appeals)

The Central Government, vide Notification No. 04/2019-Central Tax, dated 29.01.2019  seeks to amend Notification No. 02/2017-Central Tax, dated 19.06.2017 so as to define the jurisdiction of Joint Commissioner (Appeals).  This notification came into effect from 01.02.2019.

Rates of Composition Scheme

The Central Government, vide Notification No. 05/2019-Central Tax, dated 29.01.2019 seeks to amend Notification No. 08/2017-Central Tax, dated 27.06.2017 so as to align the rates for composition scheme with CGST Rules, 2017.  This notification came into effect from 01.02.2019.  As per the amendment the eligible registered person, whose aggregate turnover in the preceding financial year did not exceed one crore rupees , may opt to pay, in lieu of the central tax payable by him, an amount of tax calculated at the rate specified in rule 7 of the Central Goods and Services Tax Rules, 2017.

Sl. No.	Category of registered persons	Rate of tax
(1)	(2)	(3)
1.	Manufacturers, other than manufacturers of such goods as may be notified by the Government	half per cent. of the turnover in the State or Union territory
2.	Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II	two and a half per cent. of the turnover in the State or Union territory
3.	Any other supplier eligible for composition levy under section 10 and the provisions of this Chapter	half per cent. of the turnover of taxable supplies of  goods and services in the State or Union territory

Amendment of Notification No. 65/2017

The Central Government, vide Notification No.06/2019-Central Tax, dated 29.01.2019 seeks to amend Notification No. 65/2017-Central Tax, dated 15.11.2017 in view or bringing  into effect the amendments to align Special Category States with the explanation to section 22 of CGST Act.

Changes in CGST Rate

Vide Notification No. 01/2019-Central tax (Rate), dated 29.01.2019 rescinded the Notification No. 08/2017-Central tax (Rate), dated 28.06.2017.  This notification came into effect from 01.02.2019.

Changes in IGST

The following are the changes that are brought in by the Central Government through various notifications-

Effective date for Integrated Goods and Services Tax (Amendment) Act, 2018

The Central Government, vide Notification No. 01/2019-Integrated tax, dated 29.01.2019 appointed 01.02.2019 as the effective date for the provisions in Integrated Goods and Services Tax (Amendment) Act, 2018.

Amendment to Notification No. 07/2017-IGST

The Central Government, vide Notification No. 02/2019-Integrated tax, dated 29.01.2019 amended the Notification No. 07/2017-IGST, dated 14.09.2017, which specifies the job workers engaged in making inter-State supply of services to a registered person as the category of persons exempted from obtaining registration under the said Act.  nothing contained in this notification shall apply to a job-worker –

• who is liable to be registered under  or who opts to take registration voluntarily under  of the said  or
• who is involved in making supply of services in relation to the goods mentioned against serial number 5 in the  of the 

This notification came in to effect from 01.02.2019.

Amendment to Notification No.10/2017-IGST,

The Central Government, vide Notification No.03/2019-IGST, dated 29.01.2019 amended the Notification No.10/2017-IGST, dated 13.10.2017.  After amendment this Notification specifies the persons making inter-State supplies of taxable services and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees in a financial year as the category of persons exempted from obtaining registration under the said Act.  The aggregate value of such supplies, to be computed on all India basis, should not exceed an amount of ten lakh rupees in case of “special category States” as specified in the first proviso to sub-section (1) of section 22 of the said Act, read with clause (iii) of the Explanation to the said section.

This Notification came into effect from 01.02.2019.

Changes in IGST Rate

The Central Government, vide Notification No. 01/2019-IGST-Rate, dated 29.01.2019 rescinded the Notification No.32/2017, dated 13.10.2017 which exempted the inter-State supply of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the integrated tax leviable thereon under sub-section (4) of section 5 of the said Act.

This Notification came into effect from 01.02.2019.

Changes in UTGST

The Central Government, vide Notification No. 01/2019-Union Territory tax, dated 29.01.2019 appointed 01.02.2019 as the effective date for the provisions in Union Territory Goods and Services Tax (Amendment) Act, 2018.

Changes in UTGST - Rate          

The Central Government, vide Notification No.01/2019-Union Territory Tax –Rate, dated 29.01.2019 rescinded the Notification No.08/2017-Union Territory Tax, dated 28.06.2017, which exempted intra-State supplies of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the Union territory tax leviable thereon under sub-section (4) of section 7 of the said Union Territory Goods and Services Tax Act.

This Notification came into effect from 01.02.2019.

Changes in Compensation Cess

The Central Government, vide Notification No. 01/2019-Goods and Services tax compensation, dated 29.01.2019 appointed 01.02.2019 as the effective date for the provisions in Goods and Services Tax (Compensation to State) (Amendment) Act, 2018.

Discussions to this article

[KASTURI SETHI]

Sir,

Comprehensive and nice article indeed. Very useful for all.