The GST council in its 28th Meeting held at New Delhi on July 21st, 2018, has made various recommendations in GST laws which is summarized below. These are the proposed recommendations which have been discussed in the 28th GST Council Meeting. However, these recommendations shall be placed before the parliament and the respective legislatures of States & Union territories for carrying out the amendments and issuing various Notifications/Circulars/Orders to give effect to such recommendations. GST Council has reviewed 46 proposed amendments in CGST Act, 2017, IGST Act, 2017 and the GST (Compensation to States) Act, 2017 and has recommended the following amendments:
Increase threshold for Composition Scheme from 1 crore to 1.5 crore.
Composition Dealers to be allowed to Supply Services (other than restaurant services), for upto a value not exceeding 10% of turnover in the preceding financial year, or Rs. 5 lakhs, whichever is higher.
RCM on Supply of Specified Goods only in case of certain notified classes of registered persons.
Registration Exemption Threshold Increased from 10 Lac to 20 Lac for Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand.
Multiple Registrations within One State of business located within the same State/ Union territory.
Mandatory Registration only for certain E-commerce Operators.
GST Registration to remain Suspended Temporarily till the time the process of cancellation of registration is in process.
Certain Supplies specified as not to be treated as ‘Supply’:
The list of the following transactions has been recommended which shall not be treated as supply (no tax payable) under Schedule III of the CGST Act, 2017:
a) Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India;
b) Supply of warehoused goods to any person before clearance for home consumption; and
c) Supply of goods in case of high sea sales.
Scope of ITC Widened: it has been proposed to widen the Scope of input tax credit, so as to make available the ITC in respect of the following:
a) Most of the activities or transactions specified in Schedule III;
b) Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft;
c) Motor vehicles for transportation of money for or by a banking company or financial institution;
d) Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; and
e) Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force.
Provision to pay interest has been done away with, Recipient to pay Invoice in 180 days, else reverse ITC.
Commissioner empowered to extend due date of certain returns of inputs and capital sent on job work, upto a period of one year and two years, respectively.
INR Supplies to qualify as Exports where RBI permits.
Place of Supply in the case of certain Job work of any treatment or process done on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India.
Recovery can be made from distinct persons, even if present in different State/ Union territories.
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