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Amendment in GST Laws – Draft Proposal
Minimization of Compliance burden of taxpayer (return amendments, new return filing section introduction), more input tax credit (Unblocking the Blocked Credit section) & ease of doing business (Consolidated Debit/Credit Notes without linkage with individual invoice) seems to be main agenda in Proposed Draft GST amendments.
There are approx. 46 draft amendments proposed in GST, some of the key draft amendments are.
- Deletion of reverse charge mechanism provision (RCM is where registered person purchased goods or services from unregistered persons & pay taxes). Though this provision which is u/s 9(4) of CGST Act 2017 is suspended till 30th of Sept 2018. In Draft amendments this has been further proposed to restrict to specified class of registered person only. By this discrimination between registered person & unregistered person can be eliminated.
- Proposal of amendment in GST return.
- There are some of the benefits/amenities provided by the employer to employee like Food and beverages, health services, transport etc which are currently under “Blocked Credit” sec 17(5) of CGST Act 2017. Now in proposed Draft amendment if these services are obligatory under any law for time being in force then employer is eligible for input tax credit.
- Debit/credit note currently linked with original invoice, under Draft Proposed amendment u/s 34(1) & (3) of CST Act 2017 registered person can issue consolidated debit/credit note in respect of multiple invoices without linking to individual invoice.
- Compulsory registration to E-commerce operator who are require to collect TCS u/s 52 of CSGT Act 2017.
- Eligibility of Input tax credit to passenger vehicle having seating capacity over 13 seats.
- If a person fails to pay the value of goods & services along with tax to supplier in 180 days, interest of reversal of input credit is there, in Proposed Draft amendment it is proposed to remove the interest liability.
- New return filing procedure.
- Transfer of education cess credit balance – Denial of accumulated balances of Education Cess, Secondary and Higher Education Cess, Krishi Kalyan Cess, in Transitional credit.
- The definition of ‘supply’ is proposed to be amended. Amendment proposed to remove the deemed inclusion of activities mentioned in Schedule II.
- Availing of composition scheme Threshold limit has been raised to INR 1.5 cr from INR 1 cr.
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Author Bio
Suggestions to amendment in GST as under
1. Every applicant whose turnover say ex 1 cr. should obtain invoice from GST portal which easy to input credit automatically to buyers which creating problem.
By Namdev Gawde
9822092469