1. Earlier supplier of goods and services were not allowed to opt for composition scheme but now they can apply if the value of supply of service does not exceed – higher of the amount-10% of the state turnover in the previous financial year and Rs. 500000.

2. Input Tax Credit in relation to Passenger Vehicle having seating capacity of more than 13, used for other than Personal purpose would be allowed. Due to this input tax credit would now be available in respect of dumpers, work-trucks, fork-lift trucks and other special purpose motor vehicles when used for other than personal purpose.

3. If ITC is allowed for purchase of motor vehicle as above then, ITC in respect of services of general insurance, servicing, repair and maintenance in respect of those motor vehicles, vessels and aircraft would also be allowed.

4. ITC was not available in respect of food and beverages, health services, travel benefits to employees etc. But now it has been amended, to allow ITC in respect of such goods or services or both, where the provision of such goods or services or both is obligatory for an employer to provide to its employees under any law for the time being in force.

5. Government has now allowed a person having multiple places of business within the state to obtain separate registration for each place of business irrespective of nature of goods etc. as the definition of business vertical is omitted from the act.

6. Taxpayer can now issue single debit/credit note against multiple invoices there is no need to link the notes to individual invoices.

7. Utilization of SGST for IGST liability would not be allowed until and unless credit of s CGST is totally utilized.

8. Reverse charge mechanism shall be applicable to notified registered persons for the purchases made of notified goods but until now neither the class of registered persons nor the category of the specified goods has been prescribed by the Govt. Therefore until and unless notified, RCM will not applicable.

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June 2021