Change in newly introduced Central GST bill – Series I

Change in newly introduced Central GST bill – Series I

1. EXTENT OF LEVY.
   1.       CGST Act shall not apply to the state of Jammu and Kashmir.

2. DEFINITION
   1. Agent when not disclosed has not been considered as agent in new act.
   2. Definition of agriculturist amended to include cultivation through family or under supervision. Family has been define as the spouse and children of the person, and the parents, grand-parents, brothers and sisters of the person if they are wholly or mainly dependent on the said person.
   3. Continuous supply of goods shall include any supply which shall be notified by the Government.
   4. Deemed Exports restricted to notified goods only when such good are manufactured in India.
   5. First stage Dealer deleted from Act.
   6. Government meaning restricted to Central Government for the purpose of CGST Act.
   7. Concept of GST practitioner introduced who shall be eligible to file return etc on behalf of registered person.
   8. Definition of Input tax amended and such new definition to include tax paid under reverse charge, tax paid on import of goods and services under IGST Act, tax paid on purchases from unregistered person under reverse charge.
   9. Location of recipient / supplier of services defined.
   10. Manufacture definition introduced as any process resulting in a new product in place of earlier definition referring to Central Excise Act.
   11. Term ‘Voucher’ has been defined as an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services or both and where the goods or services or both to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument.
   12. Works contract restricted to immovable property.
3. ADMINISTRATION
   Cross administration power restricted under the Act, whereby orders or proceeding when issued or initiated by state officer would restrict the Central officer to issue order/initiate proceedings on same subject matter.
4. SUPPLY
   1. Supply specified in schedule II now included within the definition of supply.
   2. Tax on purchase of goods/services from a unregistered person to be paid by registered taxable person under reverse charge.
5. RATE
   1. Peak rate specified at 20%.
   2. Petroleum crude, HSD, Petro, Natural Gas & ATF kept outside the purview of GST.
   3. Composition levy allowed for service provider engaged in supply of food for human consumption (restaurants).
   4. Rate of Composition prescribed as under :-
      1. Manufacturer – 2% (1% CGST + 1% SGST)
      2. Restaurant /Caterer – 5% (2.5% of CGST + 2.5% SGST)
      3. Other Suppliers – 1%.
   5. Person engaged in supplies not taxable under the Act shall be outside the composition levy.
   6. Aggregate turnover for composition may enhanced to 1 Crore by Government.
6. TIME OF SUPPLY
   Time of supply in case of additional value in form of interest late fee or penalty shall be the date on which supplier receives such additional value.
7. INPUT TAX CREDIT
   1. Payment to supplier of goods/services made mandatory within 180 days failing which credit shall be disallowed.
   2. Input Tax Credit on food & beverages, outdoor catering, beauty treatment, health services, cosmetic surgery allowed when provided for other output taxable services as part or element.
   3. Restriction of 50% in case of Banks/NBFC shall not apply to credit in case of Inter-state branch supplies.
   4. Credit on Telecom towers and pipeline again removed from available credit.

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