Major Changes in GST effective from 01.02.2019

Fol­low­ing Amend­ments would take effect under GST from 1st Feb 2019.

Major changes in GST
  1. Upper lim­it of turnover for opt­ing com­po­si­tion scheme shall be raised from Rs. 1 Cr to Rs. 1.50 Cr.
  2. A Com­pos­ite dealer(in goods) shall be allowed to sup­ply ser­vices (oth­er than restau­rant ser­vices), for a val­ue not exceed­ing — High­er of 10% of turnover in the pre­ced­ing finan­cial year, or Rs. 5 lakh.
  3. The thresh­old lim­it of Turnover for exemp­tion from reg­is­tra­tion in the States of Assam, Arunachal Pradesh, Himachal Pradesh, Megha­laya, Sikkim and Uttarak­hand shall be increased to Rs. Twen­ty Lakh from Rs. Ten Lakh.
  4. In case of pur­chase of goods from unreg­is­tered sup­pli­ers, Reverse charge mech­a­nism shall be applic­a­ble to noti­fied reg­is­tered per­sons only.
  5. Tax­pay­ers may opt for mul­ti­ple reg­is­tra­tions with­in a State/U.T in respect of mul­ti­ple places of busi­ness locat­ed with­in the same State/U.T on the same PAN even if same ver­ti­cal of busi­ness. Ear­li­er it was allowed for dif­fer­ent ver­ti­cal of busi­ness only.
  6. Manda­to­ry reg­is­tra­tion is required for only those e-com­merce oper­a­tors who are required to col­lect tax at source.
  7. Reg­is­tra­tion shall be remain tem­porar­i­ly sus­pend­ed while can­cel­la­tion of reg­is­tra­tion is under process, so that the tax­pay­er could get relief of fur­ther con­tin­ued com­pli­ance. (i.e Tax­pay­ers will not be required to file returns for that peri­od of pend­ing order).
  8. The fol­low­ing trans­ac­tions shall not treat­ed as sup­ply (i.e no tax payable under GST) under Sched­ule III:-

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.

9. Input tax cred­it would now be avail­able 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. Ser­vices of gen­er­al insur­ance, repair and main­te­nance in respect of motor vehi­cles, ves­sels and air­craft on which cred­it is avail­able; and
d. Goods or ser­vices which are oblig­a­tory for an employ­er to pro­vide to its employ­ees, under any law for the time being in force.

10. Reg­is­tered per­sons may issue con­sol­i­dat­ed credit/debit notes to a par­ty in respect of mul­ti­ple invoic­es issued in a Finan­cial Year to that par­ty.

11. Com­mis­sion­er may extend the time lim­it for return of inputs and cap­i­tal sent on job work, upto a peri­od of 1 year and 2 years, respec­tive­ly.

12. If RBI would per­mit, Sup­ply of ser­vices out­side India shall be regard­ed as exports, even if pay­ment is received in Indi­an Rupees.

13. Place of sup­ply shall be out­side India, where job work or any treat­ment or process has been done on goods tem­porar­i­ly import­ed into India and then export­ed out of India with­out putting them to any oth­er use in India except the uses which were nec­es­sary for the pur­pose of such job work or treat­ment or process.

14. Recov­ery of tax­es, inter­est, fine, penal­ty etc. can be made from dis­tinct per­sons, even if such dis­tinct per­sons are present in dif­fer­ent State/Union ter­ri­to­ries.

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