What are the key highlights of GST (Amendment) Act 2018?


gst registration

The GST council has certainly completed 2 successful years. In these 2 years, India has seen outstanding development and unbelievable progress. Last year, the GST department had proposed several amendments in the GST provisions. These include the newly proposed simplified GST return filing procedure, which will become effective after 30th September 2019.

Apart from that, the Central the government had made some changes to the GST Acts in order to update certain provisions and make them more and more lucid for the taxpayers having GST registration

Last year, GST Council had drafted 4 amendment bills, it had proposed on 7th August 2018. The revision bills are the following:

  • IGST (Amendment) Bill 2018
  • CGST (Amendment) Bill 2018
  • UTGST (Amendment) Bill 2018
  • GST (Compensation to States) Amendment Bill 2018

These 4 GST Amendment Bills have now been passed as GST Amendment Acts and have been made effective from 1st February 2019.

#1. Which are the 4 Amendments to GST Acts?

The 4 critical Amendments bills that were proposed by the GST department and the esteemed President of India approved them on 29th August 2018. These were present in the official Gazette of India as on 30th August 2018 as follows-

  • IGST (Amendment) Act 2018
  • CGST (Amendment) Act 2018
  • GST (Compensation to States) Amendment Act 2018
  • UTGST (Amendment) Act 2018

These 4 GST Amendment Acts have been made valid from February 1, 2019. To improve the ease of understanding of the taxpayers having GST registration, the 4 GST Amendment Acts are given here.

#2. What changes are there in CGST (Amendment) Act 2018?

The government has presented total of 32 corrections in the CGST Act-2017. The essential changes are here:

  • Section 2(4): The Government has renamed “Central Board of Excise and Customs”, as “Central Board of Indirect Taxes and Customs”.
  • Section 9(4): It looks to confine the necessity of tax on the reverse charge to particular supplies as per the suggestion of the 28th Council meeting.
  • Section 10(1): It tries to increase the edge furthest reaches of the yearly turnover taxpayer for getting GST registration under the composition scheme to from ₹1 crore to INR1.5 crores.
  • in addition to that, it will empower the merchants having GST registration under composition scheme to render services (aside from eatery) for incentive up to 10% of their turnover in the past fiscal year, or INR 5 lakhs, whichever is more.
  • Section 29: This will correct the expression “Cancellation of registration certificate”, wherein there will be a possibility for impermanent suspension of GST registration upon application for cancellation of GST registration till definite cancellation.

#3. What are the changes in UTGST Act 2017?

Also Read:  What were the key highlights of the 34th GST Council Meeting?

3 revisions have been done in the IGST Act 2017, which are as follows:

  • Section 7: It looks to advise classes of having GST registration who need to pay tax on RCM premise as respects receipt of determined supplies from URD.
  • Section 9: This will give that ITC because of the UTGST you can utilize for settlement of liability just if the balance of the information tax credit of CGST isn’t accessible for the equivalent.
  • In addition, sections 9A and 9B tell about  “Usage of Input Tax Credit” and “Request of use of Input Tax Credit” individually.

#4. What are the new provisions in IGST (Amendment) Act 2018?

Total 4 changes are present in the IGST (Amendment) Act 2018, which are given underneath:

  • Section 5: It looks to tell classifications of people having GST registration who need to pay tax on RCM premise as to receipt of explicit supplies from unregistered merchants (URD).
  • Section 12: It looks to tell that on the of the chance that if you have transported goods outside India, the place of the goal of such goods will be simply the place of the supply.
  • Section 17: It looks to accommodate the settlement of IGST balance sum similarly under center and state heads.
  • Section 20: This states the right measures of pre-store payable for filing advances previously
  • The Appellate Authority – INR 50 crores
  • The Appellate Tribunal – INR 100 crores.

#5. What are the revisions in the GST (Compensation to States) Amendment Act 2018?

Only 2 modifications are there in IGST Act of 2017. These are below:

  •       Section 10(3A): Department has added New subsection is to give that any sum in the Compensation Fund that is unutilized will be appropriated between the centre and state heads whenever amid FY.
  • Section 5: in the event of any Compensation Fund shortage against the real necessity, Government will release u/s 7 for 2 months’ term whenever amid the year at half of the needed amount. Be that as it may, this must not go past the all-out Compensation sum exchanged to Center and States.

Center will refund and the remaining half the States will refund in the proportion of the determined income pertaining to the base year.


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