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Important Changes in GST law on 13th June 2018

Arjun (Fictional Character): Krishna, Does government has made changes in GST law on 13th June 2018?

Krishna (Fictional Character): Arjuna government makes amendment to the Act, Rules as and when needed, these amendments are conveyed to the Taxpayers by the way of notification, clarification etc. Recently a notification has been issued in Central Tax in relation to amendment for rules of Input Tax Credit, Refund, e way Bill etc.

Arjuna:  Krishna what has been amended in relation to ITC rules?

Krishna: Arjuna there is provision under GST wherein the recipient of goods/services is required to reverse ITC claimed by him on inward supplies if payment is not made to the supplier within 180 days.

If a recipient makes any payment, which the supplier has incurred i.e. pays on behalf of the supplier and such amount is not included in the price actually paid or payable for the goods or services or both, then ITC in relation to such amount will not be reversed if payment is not made to the supplier within 180 days.

For eg.  A sells goods to B and issues invoice of Rs.1000. B paid Rs. 200 to the freight on behalf of A. So, if B fails to pay the remaining amount to the A within 180 days, then ITC taken on Rs. 800 will be reversed instead of ITC on Rs. 1000.

Arjuna: Krishna are there any changes in regards to refund rules from 1st July 2017?

Krishna: Arjuna, earlier there was a condition to claim refund which was the price of the supply covered under a single tax invoice should exceed five thousand rupees, excluding tax paid, if any. But now this condition has been removed and hence even if the invoice value is less than Rs. 5000, taxpayer would be eligible to claim refund if all other conditions required are fulfilled.

Arjuna: Krishna what change has been introduced in relation to e way Bill?

Krishna: Arjuna, in this notification no new provision has been introduced for e way Bill but an addition have been made to the already existing list of Goods where e-way bill generation is not required. In this list Empty cylinders for packing of liquefied petroleum gas has been added.

Arjuna:  what are the other changes made in GST Rules through this notification?

Krishna: Arjuna, from 1st July 2017 in the case of refund on account of inverted duty structure, formula for the calculation of refund of input tax credit is given in the notification. Similarly, amount to be deposited in Consumer welfare Fund is specified. Along with that, certain changes in the order of Authority are made through this notification.

Arjuna: Krishna what lesson must taxpayer take from this?

Krishna: businessman will have to be careful while doing business. He must understand the changed brought by the government in GST law. Now almost one year has been completed of GST law and government is continuously bringing changes in the law. We hope GST law will be simplified.

View Comments (6)

  • IF I ISUUED A TENDER UNDER WORK CONTRACT FOR CONSTRUCTION OF ROAD WITH MATERIAL AND I SUPPLIED SOME MATERIAL LIKE CEMENT, STEEL. ON WHAT AMOUNT TENDERER CAN RAISE INVOICE ON GROSS AMOUNT WITH MATERIAL OR NET AMOUNT MATERIAL SUPPLIED BY US.

  • Sir
    Very nice crisp update. Your style of writing through Arjuna and Krishna is also very nice.

  • ITC credit availed more than actual in GSTR-3B for April, 2018, how to reverse excess amount

  • Sir,
    what is the notification no. of this ? ( changes in ITC reversed due to non payment).

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