Govt. introduces in Lok Sabha today Central Goods and Services Tax (Amendment) Act, 2018, Integrated Goods and Services Tax (Amendment) Act, 2018 , Union Territory Goods and Services Tax (Amendment) Act, 2018 and Goods and Services Tax (Compensation to States) Amendment Act, 2018. Bills are likely to get passed in this session of Parliament. Copy of bills are as follows:-
Central Goods and Services Tax (Amendment) Act, 2018 as Introduced in Lok Sabha
The proposed Central Goods and Services Tax (Amendment) Bill, 2018, inter alia, provides for the following, namely:—
(i) to amend section 7 of the Act to clarify the scope of supply;
(ii) to amend section 9 of the Act empowering the Central Government to notify classes of registered persons to pay the tax on reverse charge basis in respect of receipt of supplies of certain specified categories of goods or services or both from unregistered suppliers;
(iii) to amend section 10 of the Act so as to enhance the limit of composition levy from one crore rupees to one crore and fifty lakh rupees;
(iv) to amend section 17 of the Act to specify the scope of input tax credit;
(v) to amend section 22 of the Act to enhance the exemption limit for registration in the special category States from ten lakh rupees to twenty lakh rupees;
(vi) to amend section 25 of the Act so as to facilitate tax payer to have the option to obtain multiple registrations for multiple places of business located within the same State or Union territory and to provide for separate registration for Special Economic Zone unit or developer;
(vii) to amend section 29 of the Act so as to insert a provision for temporary suspension of registration while cancellation of registration is under process;
(viii) to insert a new section 43A so as to provide for the new system of filing return and availing input tax credit;
(ix) to amend sub-section (6) of section 107 of the Act relating to Appeals so as to provide that the amount of pre-deposit payable for filing of appeal shall be capped at twenty five crore rupees;
(x) to amend section 129 of the Act so as to increase the period relating to detention or seizure of goods and conveyance in transit from seven days to fourteen days.
Integrated Goods and Services Tax (Amendment) Act, 2018 as Introduced in Lok Sabha
2. The proposed Integrated Goods and Services Tax (Amendment) Bill, 2018, inter alia provides for the following, namely:—
(i) to amend section 5 of the Act empowering the Central Government to notify classes of registered persons to pay tax on reverse charge basis in respect of receipt of supplies of certain specified Categories of goods or services or both from unregistered suppliers;
(ii) to amend section 12 of the Act to provide that if the transportation of goods is to a place outside India, the place of supply shall be the place of destination of such goods;
(iii) to amend section 17 of the Act to make a provision for settlement of balance in the integrated tax account equally between the Central Government and the State Governments; and
(iv) to amend section 20 of the Act to specify the amount of pre-deposit payable for filing of appeals
(a) before the Appellate Authority to be capped at fifty crore rupees;
(b) before the Appellate Tribunal to be capped at one hundred crore rupees.
Union Territory Goods and Services Tax (Amendment) Act, 2018 as Introduced in Lok Sabha
Proposed Union Territory Goods and Services Tax (Amendment) Bill, 2018, inter alia, provides for the following, namely:—
(i) to amend section 7 of the Act so as to empower the Central Government to notify classes of registered persons to pay the tax on reverse charge basis in respect of receipt of supplies of certain specified categories of goods or services or both from unregistered suppliers;
(ii) to amend section 9 of the Act so as to provide that input tax credit on account of the Union territory tax shall be utilised towards payment of integrated tax only when the balance of the input tax credit on account of central tax is not available for payment of integrated tax; and
(iii) to insert new sections 9A and 9B relating to “Utilisation of input tax credit” and “Order of utilisation of input tax credit”.
Goods and Services Tax (Compensation to States) Amendment Act, 2018 as Introduced in Lok Sabha
The Goods and Services Tax (Compensation to States) Amendment Bill, 2018 provides for the following, namely:—
(i) to insert a new sub-section (3A) in section 10 of the Act so as to provide that any amount remaining unutilised in the Compensation Fund may, on the recommendations of the Council, be distributed between Centre and the States at any point of time in a financial year; and
(ii) to provide that in case of shortfall in the amount collected in the Fund against the requirement of compensation to be released under section 7 for any two months’ period, fifty per cent of the same, but not exceeding the total amount transferred to the Centre and the States as recommended by the Council shall be recovered from the Centre and the balance fifty per cent. from the States in the ratio of their base year revenue determined in accordance with the provisions of section 5 of the Act.
