PART- 1- AMENDMENTS PROPOSED IN THE BILL PASSED BY THE LOK SABHA

PART- 1- AMENDMENTS PROPOSED IN THE BILL PASSED BY THE LOK SABHA

Recently, the Lok Sabha has passed a number of amendment bills naming The CGST (Amendment) Bill 2018, The IGST(Amendment) Bill 2018, The UGST (Amendment)Bill and The GST(Compensation to States) Amendment Bill 2018. The CGST (Amendment) Bill passed has cleared out many ambiguities that have raised confusions in the minds of assessee.
Certain amendments have been proposed in Section 2- Definitions under the CGST Act, 2018 via issuance of bill-

In Section 2(4), in the definition of Adjudicating Authority, Words “Central Board of Excise and Customs” has been replaced with “Central Board of Indirect Taxes and Customs”.

Moreover, now the authority referred in Section 171(2) i.e Anti profiteering authority is also been included in the definition of Adjudicating Authority.

Another clause has been inserted in the definition of Business explained in Section 2(17).

“Clause (h) - Activities of a race club including by way of totalisator or a license to book maker or activities of a licenses book maker in such club.”

Meaning of business vertical as defined in Section 2(18) has been omitted. As per Section 25 of the CGST Act 2017, separate GST registration can be obtained for branches within a state for businesses having multiple business verticals. Now, after this deletion, separate registration in a State will be granted to registered assessee whether he is having a separate business vertical or not.

The definition of service has been broadened by including “facilitating or arranging transactions in securities” in Section 2(102) of the CGST Act, 2017.

As per Section 9(4) of CGST act 2017, any Supply of goods or service from an unregistered supplier to a registered supplier will cast liability to pay GST to the Government in the form of RCM I.e Reverse charge mechanism. Tax under RCM would arise if the supply exceeds the limit of Rs. 5000 in a day.
However, vide Notification No. 22/2018 – Central Tax (Rate) dated 06^th August’18, applicability of Section 9(4) has been postponed till 30^th September’19. Though it has been deferred but an amendment inserted via bill indicates that it has not been completely dispensed off.
The Government can specify certain class of registered persons who shall in respect of supply of specified categories of goods and services received from an unregistered supplier will be liable to pay tax under RCM. Thus, the reverse charge will be applicable only to specified person only. This mean the Government intend to limit the scope of such function to certain category of assessee. This is welcome step.
We will keep you updated with the amendments proposed in the bill by releasing a chain of updates in this regard.

Till then, keep updated.

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PART- 1- AMENDMENTS PROPOSED IN THE BILL PASSED BY THE LOK SABHA

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