Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Service Tax »
Open DEMAT Account in 24 hrs
 Income Tax SFT return filing due date extension: Facility to remain open for a couple of days Latest news
 Income tax filing: Waiting for your Form 16? Here is what you need to know
 Salaried? Rental tax calculation rules you should know before ITR filing in 2023
 What are new tax regime's slabs? Know its limits, benefits, and more
 How much additional tax do you need to pay? ITR filing last date for FY 2019-20
 Income Tax Return Filing: How to file ITR - step-by-step guide
 New Income Tax Slabs for Super Senior Citizens 2023-24: Which rate will apply for ITR now?
 Income Tax Return filing 2023 data: How many Indians aged 18-35 years file ITR?
 Make tax-saving a part of your overall investment plan
 Filing ITR? Maximize Your Tax Savings With These 7 Allowance Benefits
 Extension of time limit for compliance to be made for claiming any exemption under Section 54 to 54GB of the Income-tax Act, 1961 ('Act') in view of the then-Covid-19 pandemic

The Central Goods And Services Tax (Amendment) Act, 2018
October, 10th 2018
MINISTRY OF LAW AND JUSTICE
                                                 (Legislative Department)
                                        New Delhi, the 30th August, 2018/ Bhadrapada 8, 1940 (Saka)
                   The following Act of Parliament received the assent of the President on the
              29th August, 2018, and is hereby published for general information:--

                   THE CENTRAL GOODS AND SERVICES TAX (AMENDMENT)
                                      ACT, 2018
                                   (NO. 31 OF 2018)
                                                                                         [29th August, 2018]

                  An Act further to amend the Central Goods and Services Tax Act, 2017.
                    BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:--
                    1. (1) This Act may be called the Central Goods and Services Tax (Amendment)                 Short title
              Act, 2018.                                                                                         and
                                                                                                                 commencement.
                    (2) Save as otherwise provided, the provisions of this Act shall come into force on
              such date as the Central Government may, by notification in the Official Gazette, appoint:
                     Provided that different dates may be appointed for different provisions of this Act and
              any reference in any such provision to the commencement of this Act shall be construed as
              a reference to the coming into force of that provision.
12 of 2017.         2. In section 2 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to     Amendment
                                                                                                                 of section 2.
              as the principal Act),­­
                          (a) in clause (4),­­
                               (i) for the words "Central Board of Excise and Customs", the words "Central
                          Board of Indirect Taxes and Customs" shall be substituted;
                 2                      THE GAZETTE OF INDIA EXTRAORDINARY                              [PART II--


                                   (ii) for the words "the Appellate Authority and the Appellate Tribunal",
                             the words, brackets and figures "the Appellate Authority, the Appellate Tribunal
                             and the Authority referred to in sub-section (2) of section 171" shall be
                             substituted;
                            (b) in clause (17), for sub-clause (h), the following sub-clause shall be substituted,
                       namely:--
                                  "(h) activities of a race club including by way of totalisator or a license to
                       .
                             book maker or activities of a licensed book maker in such club; and";
                             (c) clause (18) shall be omitted;
                             (d) in clause (35), for the word, brackets and letter "clause (c)", the word, brackets
                       and letter "clause (b)" shall be substituted;
                            (e) in clause (69), in sub-clause (f), after the word and figures "article 371", the
                       words, figures and letter "and article 371J" shall be inserted;
                             (f) in clause (102), the following Explanation shall be inserted, namely:­­
                                   `Explanation.­­For the removal of doubts, it is hereby clarified that the
                             expression "services" includes facilitating or arranging transactions in
                             securities;'.
Amendment              3. In section 7 of the principal Act, with effect from the 1st day of July, 2017,­­
of section 7.
                             (a) in sub-section (1), ­­
                                  (i) in clause (b), after the words "or furtherance of business;", the word
                             "and" shall be inserted and shall always be deemed to have been inserted;
                                  (ii) in clause (c), after the words "a consideration", the word "and" shall
                             be omitted and shall always be deemed to have been omitted;
                                   (iii) clause (d) shall be omitted and shall always be deemed to have been
                             omitted;
                            (b) after sub-section (1), the following sub-section shall be inserted and shall
                       always be deemed to have been inserted, namely:­­
                                  "(1A) where certain activities or transactions constitute a supply in
                             accordance with the provisions of sub-section (1), they shall be treated either as
                             supply of goods or supply of services as referred to in Schedule II.";
                             (c) in sub-section (3), for the words, brackets and figures "sub-sections (1)
                       and (2)", the words, brackets, figures and letter "sub-sections (1), (1A) and (2)" shall
                       be substituted.
Amendment              4. In section 9 of the principal Act, for sub-section (4), the following sub-section shall
of section 9.    be substituted, namely:­­
                             "(4) The Government may, on the recommendations of the Council, by notification,
                       specify a class of registered persons who shall, in respect of supply of specified
                       categories of goods or services or both received from an unregistered supplier, pay the
                       tax on reverse charge basis as the recipient of such supply of goods or services or
                       both, and all the provisions of this Act shall apply to such recipient as if he is the
                       person liable for paying the tax in relation to such supply of goods or services or
                       both.".
Amendment              5. In section 10 of the principal Act,--
of section 10.
                             (a) in sub-section (1) --
                                   (i) for the words "in lieu of the tax payable by him, an amount calculated at
                             such rate", the words, brackets and figures "in lieu of the tax payable by him
SEC. 1]               THE GAZETTE OF INDIA EXTRAORDINARY                                      3


            under sub-section (1) of section 9, an amount of tax calculated at such rate" shall
            be substituted;
                  (ii) in the proviso, for the words "one crore rupees", the words "one crore
            and fifty lakh rupees" shall be substituted;
                  (iii) after the proviso, the following proviso shall be inserted, namely:­­
                        "Provided further that a person who opts to pay tax under
                  clause (a) or clause (b) or clause (c) may supply services (other than those
                  referred to in clause (b) of paragraph 6 of Schedule II), of value not
                  exceeding ten per cent. of turnover in a State or Union territory in the
                  preceding financial year or five lakh rupees, whichever is higher.";
           (b) in sub-section (2), for clause (a), the following clause shall be substituted,
      namely:­­
                  "(a) save as provided in sub-section (1), he is not engaged in the supply
            of services;".
     6. In section 12 of the principal Act, in sub-section (2), in clause (a), the words,          Amendment
brackets and figure "sub-section (1) of " shall be omitted.                                        of section 12.

      7. In section 13 of the principal Act, in sub-section (2), the words, brackets and figure    Amendment
"sub-section (2) of " occurring at both the places, shall be omitted.                              of section 13.

      8. In section 16 of the principal Act, in sub-section (2),­­                                 Amendment
                                                                                                   of section 16.
            (a) in clause (b), for the Explanation, the following Explanation shall be
      substituted, namely:--
                  "Explanation.--For the purposes of this clause, it shall be deemed that
            the registered person has received the goods or, as the case may be, services­­
                        (i) where the goods are delivered by the supplier to a recipient or
                  any other person on the direction of such registered person, whether
                  acting as an agent or otherwise, before or during movement of goods,
                  either by way of transfer of documents of title to goods or otherwise;
                        (ii) where the services are provided by the supplier to any person
                  on the direction of and on account of such registered person.";
             (b) in clause (c), for the word and figures "section 41", the words, figures and
      letter "section 41 or section 43A" shall be substituted.
      9. In section 17 of the principal Act,­­                                                     Amendment
                                                                                                   of section 17.
            (a) in sub-section (3), the following Explanation shall be inserted, namely:­­
                  `Explanation.--For the purposes of this sub-section, the expression
            ``value of exempt supply'' shall not include the value of activities or transactions
            specified in Schedule III, except those specified in paragraph 5 of the said
            Schedule.';
            (b) in sub-section (5), for clauses (a) and (b), the following clauses shall be
      substituted, namely:--
                   "(a) motor vehicles for transportation of persons having approved seating
            capacity of not more than thirteen persons (including the driver), except when
            they are used for making the following taxable supplies, namely:--
                         (A) further supply of such motor vehicles; or
                         (B) transportation of passengers; or
                         (C) imparting training on driving such motor vehicles;
                 4                     THE GAZETTE OF INDIA EXTRAORDINARY                                  [PART II--







                                   (aa) vessels and aircraft except when they are used­­
                                           (i) for making the following taxable supplies, namely:--
                                                 (A) further supply of such vessels or aircraft; or
                                                 (B) transportation of passengers; or
                                                 (C) imparting training on navigating such vessels; or
                                                 (D) imparting training on flying such aircraft;
                                          (ii) for transportation of goods;
                                    (ab) services of general insurance, servicing, repair and maintenance in so
                             far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or
                             clause (aa):
                                    Provided that the input tax credit in respect of such services shall be available--
                                         (i ) where the motor vehicles, vessels or aircraft referred to in
                                   clause (a) or clause (aa) are used for the purposes specified therein;
                                          (ii) where received by a taxable person engaged--
                                                (I) in the manufacture of such motor vehicles, vessels or
                                          aircraft; or
                                               (II) in the supply of general insurance services in respect of
                                          such motor vehicles, vessels or aircraft insured by him;
                                   (b) the following supply of goods or services or both--
                                         (i) food and beverages, outdoor catering, beauty treatment, health
                                   services, cosmetic and plastic surgery, leasing, renting or hiring of motor
                                   vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except
                                   when used for the purposes specified therein, life insurance and health
                                   insurance:
                                          Provided that the input tax credit in respect of such goods or services
                                   or both shall be available where an inward supply of such goods or services
                                   or both is used by a registered person for making an outward taxable
                                   supply of the same category of goods or services or both or as an element
                                   of a taxable composite or mixed supply;
                                          (ii) membership of a club, health and fitness centre; and
                                         (iii) travel benefits extended to employees on vacation such as
                                   leave or home travel concession:
                                         Provided that the input tax credit in respect of such goods or services
                                   or both shall be available, where it is obligatory for an employer to provide
                                   the same to its employees under any law for the time being in force.".
Amendment              10. In section 20 of the principal Act, in the Explanation, in clause (c), for the words
of section 20.   and figures "under entry 84,", the words, figures and letter "under entries 84 and 92A" shall
                 be substituted.
Amendment              11. In section 22 of the principal Act,­­
of section 22.
                            (a) in sub-section (1), after the proviso, the following proviso shall be inserted,
                       namely:--
                                   "Provided further that the Government may, at the request of a special
                             category State and on the recommendations of the Council, enhance the aggregate
                             turnover referred to in the first proviso from ten lakh rupees to such amount, not
                             exceeding twenty lakh rupees and subject to such conditions and limitations, as
                             may be so notified.";
              SEC. 1]               THE GAZETTE OF INDIA EXTRAORDINARY                                       5


                        (b) in the Explanation, in clause (iii), after the words "State of Jammu and
                    Kashmir", the words "and States of Arunachal Pradesh, Assam, Himachal Pradesh,
                    Meghalaya, Sikkim and Uttarakhand" shall be inserted.".
                    12. In section 24 of the principal Act, in clause (x), after the words "commerce operator",   Amendment
              the words and figures "who is required to collect tax at source under section 52" shall be          of section 24.
              inserted.
                    13. In section 25 of the principal Act,­­                                                     Amendment
                                                                                                                  of section 25.
                          (a) in sub-section (1), after the proviso and before the Explanation, the following
                    proviso shall be inserted, namely:­­
                                "Provided further that a person having a unit, as defined in the Special
28 of 2005.               Economic Zones Act, 2005, in a Special Economic Zone or being a Special
                          Economic Zone developer shall have to apply for a separate registration, as
                          distinct from his place of business located outside the Special Economic Zone in
                          the same State or Union territory.";
                         (b) in sub-section (2), for the proviso, the following proviso shall be substituted,
                    namely:­­
                                "Provided that a person having multiple places of business in a State or
                          Union territory may be granted a separate registration for each such place of
                          business, subject to such conditions as may be prescribed.".
                    14. In section 29 of the principal Act,­­                                                     Amendment
                                                                                                                  of section 29.
                          (a) in the marginal heading after the word "Cancellation", the words "or
                    suspension" shall be inserted;
                          (b) in sub-section (1), after clause (c), the following proviso shall be inserted,
                    namely:--
                                "Provided that during pendency of the proceedings relating to cancellation
                         of registration filed by the registered person, the registration may be suspended
                         for such period and in such manner as may be prescribed.";
                         (c) in sub-section (2), after the proviso, the following proviso shall be inserted,
                    namely:--
                                "Provided further that during pendency of the proceedings relating to
                         cancellation of registration, the proper officer may suspend the registration for
                         such period and in such manner as may be prescribed.".
                    15. In section 34 of the principal Act,­­                                                     Amendment
                                                                                                                  of section 34.
                          (a) in sub-section (1),­­
                                (i) for the words "Where a tax invoice has", the words "Where one or more
                          tax invoices have" shall be substituted;
                                (ii) for the words "a credit note", the words "one or more credit notes for
                          supplies made in a financial year" shall be substituted;
                          (b) in sub-section (3),­­
                                 (i) for the words "Where a tax invoice has", the words "Where one or more
                          tax invoices have" shall be substituted;
                                 (ii) for the words "a debit note", the words "one or more debit notes for
                           supplies made in a financial year" shall be substituted.
                    16. In section 35 of the principal Act, in sub-section (5), the following proviso shall be    Amendment
              inserted, namely:--                                                                                 of section 35.

                          "Provided that nothing contained in this sub-section shall apply to any
                    department of the Central Government or a State Government or a local authority,
                    whose books of account are subject to audit by the Comptroller and Auditor-General
                    of India or an auditor appointed for auditing the accounts of local authorities under
                    any law for the time being in force.".
                   6                    THE GAZETTE OF INDIA EXTRAORDINARY                               [PART II--


Amendment              17. In section 39 of the principal Act,­­
of section 39.
                             (a) in sub-section (1),­­
                                  (i) for the words "in such form and manner as may be prescribed", the
                             words "in such form, manner and within such time as may be prescribed" shall
                             be substituted;
                                   (ii) the words "on or before the twentieth day of the month succeeding
                             such calendar month or part thereof " shall be omitted;
                                    (iii) the following proviso shall be inserted, namely:--
                                          "Provided that the Government may, on the recommendations of the
                                    Council, notify certain classes of registered persons who shall furnish
                                    return for every quarter or part thereof, subject to such conditions and
                                    safeguards as may be specified therein.";
                             (b) in sub-section (7), the following proviso shall be inserted, namely:­­
                                   "Provided that the Government may, on the recommendations of the
                             Council, notify certain classes of registered persons who shall pay to the
                             Government the tax due or part thereof as per the return on or before the last date
                             on which he is required to furnish such return, subject to such conditions and
                             safeguards as may be specified therein.";
                             (c) in sub-section (9),­­
                                   (i) for the words "in the return to be furnished for the month or quarter
                             during which such omission or incorrect particulars are noticed", the words "in
                             such form and manner as may be perscribed" shall be substituted;
                                   (ii) in the proviso, for the words "the end of the financial year", the words
                             "the end of the financial year to which such details pertain" shall be substituted.
Insertion of new       18. After section 43 of the principal Act, the following section shall be inserted, namely:--
section 43A.

Procedure for                "43A. (1) Notwithstanding anything contained in sub-section (2) of section 16,
furnishing             section 37 or section 38, every registered person shall in the returns furnished under
return and
availing input         sub-section (1) of section 39 verify, validate, modify or delete the details of supplies
tax credit.            furnished by the suppliers.
                              (2) Notwithstanding anything contained in section 41, section 42 or section 43,
                       the procedure for availing of input tax credit by the recipient and verification thereof
                       shall be such as may be prescribed.
                              (3) The procedure for furnishing the details of outward supplies by the supplier
                       on the common portal, for the purposes of availing input tax credit by the recipient
                       shall be such as may be prescribed.
                             (4) The procedure for availing input tax credit in respect of outward supplies
                       not furnished under sub-section (3) shall be such as may be prescribed and such
                       procedure may include the maximum amount of the input tax credit which can be so
                       availed, not exceeding twenty per cent. of the input tax credit available, on the basis of
                       details furnished by the suppliers under the said sub-section.
                             (5) The amount of tax specified in the outward supplies for which the details
                       have been furnished by the supplier under sub-section (3) shall be deemed to be the
                       tax payable by him under the provisions of the Act.
                              (6) The supplier and the recipient of a supply shall be jointly and severally
                       liable to pay tax or to pay the input tax credit availed, as the case may be, in relation to
                       outward supplies for which the details have been furnished under sub-section (3) or
                       sub-section (4) but return thereof has not been furnished.
SEC. 1]               THE GAZETTE OF INDIA EXTRAORDINARY                                       7


          (7) For the purposes of sub-section (6), the recovery shall be made in such
      manner as may be prescribed and such procedure may provide for non-recovery of an
      amount of tax or input tax credit wrongly availed not exceeding one thousand rupees.
            (8) The procedure, safeguards and threshold of the tax amount in relation to
      outward supplies, the details of which can be furnished under sub-section (3) by a
      registered person,--
                  (i) within six months of taking registration;
                  (ii) who has defaulted in payment of tax and where such default has
            continued for more than two months from the due date of payment of such
            defaulted amount,
      shall be such as may be prescribed.".
      19. In section 48 of the principal Act, in sub-section (2), after the word and figures        Amendment
"section 45", the words "and to perform such other functions" shall be inserted.                    of section 48.

      20. In section 49 of the principal Act,­­                                                     Amendment
                                                                                                    of section 49.
            (a) in sub-section (2), for the word and figures "section 41", the words, figures
      and letter "section 41 or section 43A" shall be substituted;
            (b) in sub-section (5),­­
                  (i) in clause (c), the following proviso shall be inserted, namely:­­
                         "Provided that the input tax credit on account of State tax shall be
                  utilised towards payment of integrated tax only where the balance of the
                  input tax credit on account of central tax is not available for payment of
                  integrated tax;";
                  (ii) in clause (d), the following proviso shall be inserted, namely:­­
                         "Provided that the input tax credit on account of Union territory tax
                  shall be utilised towards payment of integrated tax only where the balance
                  of the input tax credit on account of central tax is not available for payment
                  of integrated tax;".
     21. After section 49 of the principal Act, the following sections shall be inserted,           Insertion of
namely:­­                                                                                           new sections
                                                                                                    49A and 49B.

             "49A. Notwithstanding anything contained in section 49, the input tax credit on        Utilisation of
                                                                                                    input tax
      account of central tax, State tax or Union territory tax shall be utilised towards payment
                                                                                                    credit subject
      of integrated tax, central tax, State tax or Union territory tax, as the case may be, only    to certain
      after the input tax credit available on account of integrated tax has first been utilised     conditions.
      fully towards such payment.
             49B. Notwithstanding anything contained in this Chapter and subject to the             Order of
      provisions of clause (e) and clause (f) of sub-section (5) of section 49, the Government      utilisation of
                                                                                                    input tax
      may, on the recommendations of the Council, prescribe the order and manner of                 credit.
      utilisation of the input tax credit on account of integrated tax, central tax, State tax or
      Union territory tax, as the case may be, towards payment of any such tax.".
      22. In section 52 of the principal Act, in sub-section (9), for the word and figures          Amendment
"section 37", the words and figures "section 37 or section 39" shall be substituted.                of section 52.

      23. In section 54 of the principal Act,--                                                     Amendment
                                                                                                    of section 54.
           (a) in sub-section (8), in clause (a), for the words "zero-rated supplies", the
      words "export" and "exports" shall respectively be substituted;
            (b) in the Explanation, in clause (2),­­
                 8                      THE GAZETTE OF INDIA EXTRAORDINARY                               [PART II--


                                    (i) in sub-clause (c), in item (i), after the words "foreign exchange", the
                              words "or in Indian rupees wherever permitted by the Reserve Bank of India"
                              shall be inserted;
                                   (ii) for sub-clause (e), the following sub-clause shall be substituted,
                              namely:­­
                                          "(e ) in the case of refund of unutilised input tax credit under
                                    clause (ii) of the first proviso to sub-section (3), the due date for furnishing
                                    of return under section 39 for the period in which such claim for refund
                                    arises;".
Amendment               24. In section 79 of the principal Act, after sub-section (4), the following Explanation
of section 79.   shall be inserted, namely:--
                             `Explanation.­­For the purposes of this section, the word person shall include
                       "distinct persons" as referred to in sub-section (4 ) or, as the case may be,
                       sub-section (5) of section 25.'.
Amendment of            25. In section 107 of the principal Act, in sub-section (6), in clause (b), after the words
section 107.     "arising from the said order,", the words "subject to a maximum of twenty-five crore rupees,"
                 shall be inserted.
Amendment of            26. In section 112 of the principal Act, in sub-section (8), in clause (b), after the words
section 112.     "arising from the said order," the words "subject to a maximum of fifty crore rupees," shall be
                 inserted.
Amendment of          27. In section 129 of the principal Act, in sub-section (6), for the words "seven days",
section 129.     the words "fourteen days" shall be substituted.
Amendment of           28. In section 140 of the principal Act, with effect from the 1st day of July, 2017,­­
section 140.






(a) in sub-section (1), after the letters and word "CENVAT credit", the words "of eligible duties" shall be inserted and shall always be deemed to have been inserted; (b) in the Explanation 1-- (i) for the word, brackets and figures "sub-sections (3), (4)", the word, brackets and figures "sub-sections (1), (3), (4)" shall be substituted and shall always be deemed to have been substituted; (ii) clause (iv) shall be omitted and shall always be deemed to have been omitted; (c) in the Explanation 2-- (i) for the word, brackets and figure "sub-section (5)", the words, brackets and figures "sub-sections (1) and (5)" shall be substituted and shall always be deemed to have been substituted; (ii) clause (iv) shall be omitted and shall always be deemed to have been omitted; (d) after Explanation 2 as so amended, the following Explanation shall be inserted and shall always be deemed to have been inserted, namely:-- `Explanation 3.--For removal of doubts, it is hereby clarified that the expression "eligible duties and taxes" excludes any cess which has not been specified in Explanation 1 or Explanation 2 and any cess which is collected as additional duty of customs under sub-section (1) of section 3 of the Customs Tariff Act, 1975.'. 51 of 1975. SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 9 29. In section 143 of the principal Act, in sub-section (1), in clause (b), after the Amendment proviso, the following proviso shall be inserted, namely:-- of section 143. "Provided further that the period of one year and three years may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding one year and two years respectively.". 30. In Schedule I of the principal Act, in paragraph 4, for the words "taxable person", Amendment the word "person" shall be substituted. of Schedule I. 31. In Schedule II of the principal Act, in the heading, after the word "ACTIVITIES", Amendment of Schedule II. the words "OR TRANSACTIONS" shall be inserted and shall always be deemed to have been inserted with effect from the 1st day of July, 2017. 32. In Schedule III of the principal Act, -- Amendment of Schedule III. (i) after paragraph 6, the following paragraphs shall be inserted, namely:­­ "7. 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. 8. (a) Supply of warehoused goods to any person before clearance for home consumption; (b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption."; (ii) the Explanation shall be numbered as Explanation 1 and after Explanation 1 as so numbered, the following Explanation shall be inserted, namely:-- `Explanation 2.­­For the purposes of paragraph 8, the expression "warehoused goods" shall have the same meaning as assigned to it in the 52 of 1962. Customs Act, 1962.'. -------- DR. REETA VASISHTA, Additional Secretary to the Govt. of India. UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI­110 002 AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI­110 054. Digitally signed MANOJ by MANOJ KUMAR KUMAR Date: 2018.08.30 19:20:27 +05'30' MGIPMRND--1723GI(S3)--30-08-2018.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting