CA Kishan Kumar GST Amendment Notes – Covering Entire RTP Nov 2018

GST Amendment Notes

Nov 2018 [RTP Covered]
C HARGE UNDER GST
1. Time limit for filing details of stock etc. by a person switching to composition levy increased
from 60 days to 90 days. [Notification No. 22/2017 CT dated 17.08.2017]

Rule 3(4) of the CGST Rules provides that

➢ any person who files an intimation for paying tax under composition levy
➢ shall electronically furnish the details of stock,
➢ held by him on the day preceding the date from which he opts to pay tax under composition levy
➢ within a period of 60 days from the date on which the option for composition levy is exercised.

Rule 3(4) has been amended to increase the said time period of 60 days to 90 days.

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CA Kishan Kumar GST Amendment Notes – Covering Entire RTP Nov 2018

2. Turnover limit for composition levy enhanced [Notification No. 46/2017 CT dated 13.10.2017]

The turnover limit for opting composition levy has been enhanced from INR 75 lakh to INR 1 crore.

Further, in respect of nine out of eleven Special Category States, the turnover limit for composition levy has been
increased from INR 50 lakhs to INR 75 lakhs.

The nine Special Category States are:

Arunachal Pradesh Meghalaya Sikkim

Assam Mizoram Tripura
Manipur Nagaland Himachal Pradesh

It may be noted that for the two remaining Special Category States viz., Jammu and Kashmir and Uttarakhand, the
turnover limit for composition levy will be INR 1 crore and not INR 75 lakh.

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3. Rate of composition tax (CGST portion) payable by manufacturers under CGST Act reduced to
0.5% from 1% [Notification No. 1/2018 CT dated 01.01.2018]

Similar notification has been issued under SGST/UTGST Acts. Therefore, w.e.f. 01.01.2018, effective rate of tax
under composition scheme for manufacturers has been reduced from 2% to 1% (CGST + SGST).

Thus, w.e.f. 01.01.2018, uniform rate of 1% is applicable for both manufacturers and traders paying tax under
composition scheme.

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Category of Registered Persons CGST SGST Total tax

Supply of any service or goods, being food or any other article for
2.5% 2.5% 5%
human consumption or any drink (Restaurant Service Providers)

Manufacturers, other than manufacturers of such goods as may be

0.5% 0.5% 1%
notified by the Government i.e. ice cream, pan masala and tobacco.

Other eligible suppliers (Traders) 0.5% 0.5% 1%

Note: In case of Trader, the composition tax shall be calculated on Taxable Turnover while in case
Manufacturer and Supplier of Service, composition tax shall be calculated on Total Turnover.

4. CGST on services by way of house-keeping (e.g. plumbing, carpentering etc.) supplied through
ECO to be paid by ECO, if the supplier of such services is not liable for registration under
section 22(1) of the CGST Act [Notification No. 23/2017 CT (R)]

Earlier, in case of following specific categories of services, the tax shall be paid by the electronic commerce operator:

i) services by way of transportation of passengers by a radio-taxi, motor cab, maxi cab and motor cycle;

ii) services by way of providing accommodation in hotels, inns, guest houses, clubs, campsites or other commercial
places meant for residential or lodging purposes, except where the person supplying such service through
electronic commerce operator is liable for registration under section 22(1) of the CGST Act.

Now, in addition to the above services,

➢ services by way of house-keeping, such as plumbing, carpentering etc. when

➢ supplied through an ECO,
➢ CGST on the said supply shall be paid by the ECO
➢ if the person supplying such service through ECO is not liable for registration u/s 22(1) of the CGST Act.

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5. GST payable under reverse charge on services provided by Overseeing Committee members
to RBI [Notification No. 33/2017 CT (R) & Notification No. 34/2017 IT (R)]

Supply of services by the

➢ members of Overseeing Committee constituted by the Reserve Bank of India

➢ to Reserve Bank of India shall be taxable under reverse charge and
➢ CGST & IGST will be payable by the recipient of service i.e., Reserve Bank of India.

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6. In case of supply of services by a goods transport agency (GTA) in respect of transportation of goods,

➢ CGST or IGST will be payable by the recipient of services under reverse charge
➢ only when GTA has not paid CGST @ 6% or IGST @ 12%, as the case may be.

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7. GST to be payable under reverse charge on renting of immovable property by Central/ State
Government, Union territory or local authority to a registered person [Notification No.
3/2018 CT (R) dated 25.01.2018 & Notification No. 3/2018 IT (R) dated 25.01.2018]

Renting services by the Government to a business entity is always taxable even if turnover in preceding
financial year is of less than the specified limit.

Renting of immovable property by Government or Local Authority

To Taxability
Registered Person Chargeable to tax under Reverse Charge
Un-registered Person Chargeable to tax under Forward Charge

E XEMPTION FROM GST

8. New exemptions for supply of services from GST

Notification No. 12/2017 CT (R) dated 28.06.2017, which grants exemption to supply of intra-State services from
CGST, has been amended as under:

1) Education

Following services provided by education institutions are exempt:

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a) by education institutions to its students, faculty and staff

b) by education institutions by way of conduct of entrance examination against consideration in the form of
entrance fee.

Services provided to educational institution shall be exempt from GST but only the following services:

i) Catering, including any mid-day meals scheme sponsored by the Government to educational institution upto
higher secondary school.

ii) Supply of online educational journals/periodicals to educational institutions other than upto
higher secondary school.

iii) Services of security / cleaning / house-keeping to educational institution upto higher secondary
school.

iv) Transportation of students, faculty and staff to educational institution upto higher secondary school;

v) Services relating to admission / conduct of examination to all educational institution.

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2) Service provided by way of

➢ renting of transport vehicles provided

➢ to a person providing services of transportation of students, faculty and staff
➢ to an educational institution providing education upto higher secondary or equivalent

is also exempt.

3) Supply of services provided by and to FIFA and its subsidiaries directly or indirectly related to any of the
events under FIFA U-17 World Cup 2017 to be hosted in India have been exempted from CGST.

Similarly, supply of services by way of right to admission to the events organised under FIFA U- 17
World Cup 2017 have been exempted from CGST.

Services to and By Government

4) Supply of Services by Central Government, State Government, Union territory, local authority or
governmental authority or Government Entity

➢ in relation to any function entrusted to

➢ a municipality or Panchayat under the Constitution

shall be exempt from GST.

5) Composite supply of goods and services in which the value of supply of goods constitutes not more than 25%
of the value of the said composite supply provided

➢ to the Central Government, State Government or Union territory or local authority or a Governmental
authority or a Government Entity

by way of any activity in relation to any function entrusted to a Panchayat or Municipality under
Constitution, has been exempted from CGST [Notification No. 2/2018 CT (R) dated 25.01.2018].

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CA Kishan Kumar GST Amendment Notes – Covering Entire RTP Nov 2018

6) Supply of service provided by Fair Price Shops

a) To Central Government, State Governments or Union territories

b) by way of sale of wheat, rice and coarse grains, kerosene, sugar, edible oil, etc.
c) under Public Distribution System (PDS)

against consideration in the form of commission or margin have been exempted from CGST.

Note: Fair price shops means a shop which has been licensed to distribute essential commodities to the ration
card holders.

7) Supply of service by a Government Entity to Central Government, State Government, Union territory, local
authority or any person specified by Central Government, State Government, Union territory or local authority
against consideration received from Central Government, State Government, Union territory or local
authority, in the form of grants, has been exempted from CGST.

8) Services provided to the Central Government under regional connectivity scheme, against consideration
in the form of viability gap funding, are exempt from CGST.

Now the said exemption will be available for a period of three years from the date of commencement of
operations of the regional connectivity scheme airport as notified by the Ministry of Civil Aviation
[Notification No. 2/2018 CT (R) dated 25.01.2018].

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CA Kishan Kumar GST Amendment Notes – Covering Entire RTP Nov 2018

9) Any legal service, directly or indirectly

➢ by advocate,
➢ form of advocate,
➢ arbitral tribunal or
➢ senior advocate to
➢ Central Government, State Government, Union territory, local authority or Government Entity

has been exempted.

10) Any insurance services (life as well as general) provided under the Schemes of the Central
Government/State Government, have been exempted from CGST.

11) Supply of services associated with transit cargo to Nepal and Bhutan (landlocked countries) have
been exempted from CGST.

12) Services by way of transportation of goods by an aircraft from customs station of clearance in India to a place
outside India have been exempted till 30.09 .2018 [Notification No. 2/2018 CT (R) dated 25.01.2018].

13) Services by way of transportation of goods by a vessel from customs station of clearance in India to a place
outside India have been exempted till 30.09.2018 [Notification No. 2/2018 CT (R) dated 25.01.2018].

Amendment has also been made in CGST Rules to provide that value of such service may be excluded from
the value of exempted services for the purpose of reversal of ITC - Chapter 6: Input Tax Credit of this Update
may be referred to for the amendment.

14) Service by an unincorporated body or a non- profit entity registered under any law for the time being in force,
to its own members by way of reimbursement of charges or share of contribution –

➢ up to an amount of INR 7,500 per month per member for sourcing of goods or services from a
third person for the common use of its members in a housing society or a residential complex.

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CA Kishan Kumar GST Amendment Notes – Covering Entire RTP Nov 2018

15) Recreational Services

Services by way of right to admission to-

a) a museum, national park, wildlife sanctuary, tiger reserve or zoo;

b) the events organized under FIFA U-17 World Cup 2017;

c) Planetarium, circus, dance, or theatrical performance including drama or ballet;

d) award function, concert, pageant, musical performance or any sporting event;

provided the consideration for admission is not more than INR 500 per person as referred to in (c) and (d)
above.

16) Supply of services provided by a goods transport agency to an unregistered person, including an
unregistered casual taxable person, other than the following recipients, namely: -

i) any factory registered under or governed by the Factories Act, 1948; or

ii) any Society registered under the Societies Registration Act, 1860 or under any other law for the time being
in force in any part of India; or

iii) any Co-operative Society established by or under any law for the time being in force; or

iv) anybody corporate established, by or under any law for the time being in force; or

v) any partnership firm whether registered or not under any law including association of persons;

vi) any casual taxable person registered under the CGST Act or IGST Act or SGST Act or UTGST Act;

have been exempted from GST.

Service Supplier/ Consignor Receiver of goods/ Person paying Person liable
Provider Consignee Freight to pay GST
GTA A company Partnership Firm Company Company
(Whether or not registered (Whether or not
under GST) registered under GST)

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GTA Partnership Firm Registered Dealer (Ram) Ram Ram

(Whether or not registered
under GST)
GTA Partnership Firm Registered Dealer (Ram) Firm Firm
(Whether or not registered
under GST)
GTA A Co-op Society Ltd Registered Dealer (Ram) Ram Ram
(Whether or not registered
under GST)
GTA A Co-op Society Ltd Registered Dealer (Ram) A Co-Op Society A Co-Op Society
(Whether or not registered Ltd Ltd
under GST)
GTA A Ltd. B Ltd. B Ltd B Ltd
(Whether or not registered (Whether or not
under GST) registered under GST)
GTA URD (Shyam) Registered Dealer (Ram) Shyam Exempt
GTA URD (Shyam) Registered Dealer (Ram) Ram Ram
GTA URD (Shyam) URD (Ram) Ram Exempt

17) Supply of service by way of access to a road or a bridge on payment of annuity, has been exempted from GST.

18) Services by way of admission to a protected monument so declared under the Ancient Monuments and
Archaeological Sites and Remains Act 1958 or any of the State Acts, for the time being in force, have been
exempted from CGST [Notification No. 47/2017 CT (R) dated 14.11.2017].

T IME AND V ALUE OF S UPPLY

9. No GST on advance received against supply of goods for Assesses paying tax under Regular
Scheme [Notification No. 66/2017 CT dated 15.11.2017]

The time of supply for all registered suppliers of goods (excluding composition suppliers)

➢ will be the time of issue of invoice

➢ without any turnover limit.

Thus, GST will not be leviable on advances received against supply of goods in case of all suppliers
registered under Regular scheme.

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10. Liability to pay GST in case of TDR in lieu of construction service and on construction service
in lieu of TDR has been deferred till possession/ right in the property is transferred to the land
owner by entering into a conveyance deed/ similar instrument [Notification No. 4/2018 CT (R)
dated 25.01.2018]

In case of

➢ transfer of development rights

➢ by a registered person
➢ to a developer, builder, construction company or any other registered person
➢ against consideration, wholly or partly, in the form of construction service of complex, building or civil
structure;
and
➢ supply of construction service of complex, building or civil structure
➢ to supplier of development rights
➢ against consideration, wholly or partly, in the form of transfer of development rights,

the liability to pay CGST shall arise at the time

➢ when the said developer, builder, construction company or any other registered person, as the case may be,
➢ transfers possession or the right in the constructed complex, building or civil structure,
➢ to the person supplying the development rights
➢ by entering into a conveyance deed or similar instrument (for example allotment letter).

In other words, the liability to pay GST in case of

➢ transfer of development rights (TDR) against consideration in the form of construction service and
➢ on construction service against consideration in the form of TDR
➢ has been deferred to the time
➢ when the possession or right in the property is transferred to the land owner
➢ by entering into a conveyance deed or similar instrument (e.g. allotment letter).

Note: Parallel amendment has been made with regard to liability to pay IGST on the said services vide Notification
No. 4/2018 IT (R) dated 25.01.2018.

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I NPUT T AX C REDIT
11. While apportioning input tax credit attributable to exempt supplies out of common input tax credit pertaining
to inputs and input services and capital goods respectively, Value of exempt supplies shall exclude:

a) Inter-state supply of services having place of supply in Nepal or Bhutan, against payment in Indian
Rupees;

b) the value of services by way of accepting deposits, extending loans or advances in so far as the
consideration is represented by way of interest or discount, except in case of a banking company or a
financial institution including a non-banking financial company, engaged in supplying services by way of
accepting deposits, extending loans or advances; and

c) the value of supply of services by way of transportation of goods by a vessel from the customs station of
clearance in India to a place outside India.

R EGISTRATION
12. UIN under section 25(9) of the CGST Act can also be assigned after receiving a recommendation
from the Ministry of External Affairs, Government of India [Notification No. 22/2017 CT]

Any specialized agency of the United Nations Organization or any Multilateral Financial institution and
organization notified under the United Nations (Privileges and Immunities) Act, 1947, consulate or embassy of
foreign countries and any other person notified by the Commissioner,

➢ is required to obtain a Unique Identity Number (UIN) from the GSTN portal by submitting an application
in the prescribed form.

Now, UIN may be assigned by the proper officer upon

➢ submission of an application in the prescribed form or

➢ after receiving a recommendation from the Ministry of External Affairs, Government of India.

Further, Unique Identity Number granted to these organizations shall be applicable all over India. Such
centralized UIN will lessen the compliance burden on Foreign Diplomatic Missions / UN Organizations.
[Notification No. 75/2017 CT dated 29.12.2017].

13. Application for cancellation of voluntary registration can be considered before one year from
the effective date of registration [Notification No. 3/2018 CT dated 23.01.2018]

Earlier an application for cancellation of registration by a person who has obtained voluntary registration cannot
be considered before one year from the effective date of registration. The said provision has been omitted to do
away with such a condition.

14. Following Persons liable for mandatory registration u/s 24, have been exempted from taking
registration subject to certain conditions

a) Persons making inter-State taxable supplies of handicraft goods and casual taxable person
making taxable supplies of handicraft goods

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Conditions

i) the aggregate value of such supplies, to be computed on all India basis, does not exceed an amount of INR
20 lakh [INR 10 lakh in case of Special Category States, other than the State of Jammu and Kashmir] in a
financial year.

ii) persons making inter-State taxable supplies/Casual taxable Person of handicraft goods obtain a PAN and
generate an e-way bill.

Handicraft goods: mean the products made by the craftsmen predominantly by hand even though some
machinery may also be used in the process.

b) Persons making inter-State supplies of taxable services up to INR 20,00,000 exempted from
obtaining registration [Notification No. 10/2017 IT dated 13.10.2017]

Conditions

i) the aggregate value of such supplies, to be computed on all India basis, does not exceed an amount of INR
20 lakh [INR 10 lakh in case of Special Category States, other than the State of Jammu and Kashmir] in a
financial year.

c) Job workers engaged in making inter-State supply of services to a registered person exempted
from obtaining registration with certain exceptions

Conditions

i) the aggregate value of such supplies, to be computed on all India basis, does not exceed an amount of INR
20 lakh [INR 10 lakh in case of Special Category States, other than the State of Jammu and Kashmir] in a
financial year.

Note: This relief shall not be available to a job-worker who is involved in making supply of services in
relation to jewellery, goldsmiths’ and silversmiths’ wares and other articles.

d) Persons making supplies of services through an ECO (other than supplies specified under
section 9(5) of the CGST Act) [Notification No. 65/2017 CT dated 15.11.2017]

Conditions

i) the aggregate value of such supplies, to be computed on all India basis, does not exceed an amount of INR
20 lakh [INR 10 lakh in case of Special Category States, other than the State of Jammu and Kashmir] in a
financial year.

Note: As a result of amendments given at point (b), (c) and (d),

➢ all service providers,

➢ whether supplying intra-State, inter-State or through e-commerce operator,
➢ will be exempt from obtaining registration,
➢ provided their aggregate turnover does not exceed INR 20 lakh (INR 10 lakh in special category States
except Jammu & Kashmir) in a financial year.

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T AX I NVOICE , C REDIT AND D EBIT N OTES

15. Single invoice-cum-bill of supply for taxable as well as exempted supplies made to an
unregistered person [Notification No. 45/2017 CT dated 13.10.2017]

Where a registered person is supplying

➢ taxable as well as exempted goods or services or both to

➢ an unregistered person,
➢ a single “invoice-cum-bill of supply” may be issued for all such supplies.

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16. Insurer/banking company/financial institution, including NBFC can issue a consolidated tax
invoice at month end for the supply made during that month instead of issuing a tax invoice/any
other document [Notification No. 45/2017 CT]

P AYMENT OF T AX
17. Challan generated at the common portal under rule 87(2) of CGST Rules to be valid for a period
of 15 days [Notification No. 22/2017 CT dated 17.08.2017]

Note: FAQs issued by CBEC had already clarified this point. Now the rule has also been amended to provide the
same.

R ETURNS
18. Taxpayers with annual aggregate turnover up to INR 1.5 crore to file GSTR-1 on quarterly basis
and taxpayers with annual aggregate turnover greater than INR 1.5 crore to file GSTR-1 on
monthly basis

There have been many issues in the functioning of GSTN since it became operational. Therefore, a simplified return
in Form GSTR 3B was introduced in July, 2017 to help businesses to file returns easily in the initial months of GST
roll out. This was to be followed with filing of returns - GSTR - 1, 2 and 3.

Further, to ease the compliance requirements for small tax payers, the GST Council allowed

➢ taxpayers with annual aggregate turnover up to INR 1.5 Crore

➢ to file details of outward supplies in Form GSTR-1
➢ on a quarterly basis.

Note: Taxpayers with annual aggregate turnover greater than INR 1.5 Crore shall file GSTR 1 on monthly basis.

The GST Council also recommended to postpone the date of filing of Forms GSTR-2 (details of inward supplies)
and GSTR-3 (monthly return) for all normal tax payers, irrespective of turnover, till further announcements are
made in this regard.

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M ISCELLANEOUS (J UST FOR R EADING )

19. Limited Liability Partnership Act, 2008 shall also be considered as a partnership firm or a firm.

20. Inter-State supply of services having place of supply in Nepal or Bhutan, against payment in Indian
Rupees have been exempted vide Notification No. 42/2017 IT (R) dated 27.10.2017.

21. Central Government’s share of profit petroleum exempted from CGST [Notification No. 5/2018
CT (R) dated 25.01.2018]

22. Reverse charge on procurements made from unregistered persons deferred till June 30, 2018.

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