Major Amendments in GST ACT(s) Applicable from

01.02.2019
taxguru.in/goods-and-service-tax/major-amendments-gst-acts-applicable-01-02-2019.html

parveen.ca@live.com

After receiving the assent from The President of India on 22 nd August

2018, the GST Council in its 31st meeting held on 22nd December 2018,
announced following amendments in GST Act(s) 2017 which have now got
effective from 01st of February 2019.

The government has made various important changes in CGST and IGST
Act which were applicable from 1st February 2019. To understand the
important amendments the comparison between provisions contained
under old GST Act 2017 and GST Amendment Act 2018 along with our
team’s germane analysis is presented in a tabular fashion below:

Section Earlier Provision Amended Provisions Analysis of

from 01.02.2019 changes

Section 7 – 1) For the purposes 1) For the purposes of Amendments

Definition of of this Act, the this Act, the expression under this section
‘Supply’ expression “supply” “supply” includes– were given
includes– (a) all forms of supply retrospective
(a) all forms of of goods or services or effect i.e. such
supply of goods or both such as sale, amendments
services or both transfer, barter, shall become
such as sale, exchange, licence, operational w.e.f.
transfer, barter, rental, lease or 01.07.2017.
exchange, licence, disposal made or The amendment
rental, lease or agreed to be made for will help to ensure
disposal made or a consideration by a that the activities
agreed to be made person in the course or specified in
for a consideration furtherance of schedule II will be
by a person in the business; taxed, only when
course or the activity is
furtherance of (b) import of services constituted as
business; for a consideration supply in
whether or not in the accordance of
(b) import of course or furtherance provisions of
services for a of business; and section 7 (1).
consideration
whether or not in (c) the activities Govt. has
the course or specified in Schedule I provided
furtherance of made or agreed to be clarification to
business; made without a end any
consideration, and controversial
(c) the activities interpretation,
specified in (d) the activities to be
stating that
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Schedule I, made or treated as supply of merely
agreed to be made goods or supply of mentioning of an
without a services as referred activity in
consideration; and to in Schedule II. schedule II do not
bring it under tax
(d) the activities to (1A) where certain net of GST, unless
be treated as supply activities or it is ‘supply’ perse.
of goods or supply transactions
of services as constitute a supply in
referred to in accordance with the
Schedule II. provisions of sub-
section (1), they shall
(2) Notwithstanding be treated either as
anything contained supply of goods or
in sub-section (1), –– supply of services as
referred to in
(a) activities or
Schedule II.
transactions
specified in (2) Same
Schedule III; or
(3) Subject to the
(b) such activities or provisions of sub-
transactions sections (1), (1A) and
undertaken by the (2), the Government
Central may, on the
Government, a recommendations of
State Government the Council, specify, by
or any local notification, the
authority in which transactions that are to
they are engaged as be treated as–
public authorities,
as may be notified (a) a supply of goods
by the Government and not as a supply of
on the services; or
recommendations
of the Council, shall (b) a supply of services
be treated neither and not as a supply of
as a supply of goods goods.
nor a supply of
services.

(3) Subject to the

provisions of sub-
sections (1) and (2),
the Government
may, on the
recommendations
of the Council,
specify, by
notification, the
transactions that
are to be treated as
—

(a) a supply of
goods and not as a
supply of services;
or
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(b) a supply of
services and not as
a supply of goods.

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Section 9(4) – The central tax in Completely changed Before such
Reverse charge respect of the Sub-section: amendment,
on inward supply of taxable The Government every registered
supply from goods or services or may, on the person has to pay
unregistered both by a supplier, recommendations of GST under
persons who is not the Council, by reverse charge on
registered, to a notification, specify a procurement of
registered person class of registered inward supply
shall be paid by persons who shall, in from unregistered
such person on respect of supply of person, subject to
reverse charge basis specified categories monetary limit of
as the recipient and of goods or services INR 5,000 per day.
all the provisions of or both received from W.e.f. 13.10.2017,
this Act shall apply an unregistered govt. had
to such recipient as supplier, pay the tax suspended the
if he is the person on reverse charge applicability of
liable for paying the basis as the recipient this subsection till
tax in relation to the of such supply of 30.09.2019.
supply of such goods or services or
goods or services or both, and all the Now reverse
both. provisions of this Act charge on receipt
shall apply to such of inward supplies
recipient as if he is from an
the person liable for unregistered
paying the tax in supplier will be
relation to such applicable only to
supply of goods or
1. certain class of
services or both”.
registered
persons

2. on purchase of
certain goods or
services,

Such class of
persons and
category of goods
& services is yet
to be notified.

Respective
amendments has
also been made
in Section 5(4) of
IGST Act.

Section 10 – (1) Notwithstanding (1) Notwithstanding This amendment

Composition anything to the anything to the give effect to the
Levy contrary contained contrary contained in recommendations
in this Act but this Act but subject to of GST Council to
subject to the the provisions of sub- increase the
provisions of sub- sections (3) and (4) of ceiling limit for
sections (3) and (4) section 9, a registered opting

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of section 9, a person, whose composition
registered person, aggregate turnover in scheme from
whose aggregate the preceding financial 1crore to 1.50
turnover in the year did not exceed crore.
preceding financial fifty lakh rupees, may Further, the
year did not exceed opt to pay, in lieu of the manufacturer and
fifty lakh rupees, tax payable by him traders can opt
may opt to pay, in under sub-section (1) for composition
lieu of the tax of section 9, an scheme even if
payable by him, an amount of tax they supply
amount calculated calculated at such rate services, provided
at such rate as may as may be prescribed, that the value of
be prescribed, but but not exceeding,–– such service
not exceeding, –– (a) one per cent of the should not exceed
(a) one per cent. of turnover in State or 5 lakh or 10% of
the turnover in turnover in Union turnover in the
State or turnover in territory in case of a preceding FY,
Union territory in manufacturer, whichever is high.
case of a
manufacturer, (b) two and a half per This amendment
cent. of the turnover in is directed to
(b) two and a half State or turnover in solve the problem
per cent. of the Union territory in case of small
turnover in State or of persons engaged in businesses who
turnover in Union making supplies were earlier
territory in case of referred to in clause (b) unable to opt for
persons engaged in of paragraph 6 of composition in
making supplies Schedule II, and lieu of very small
referred to in clause income of service
(b) of paragraph 6 (c) half per cent. of the nature (like
of Schedule II, and turnover in State or commercial rent,
turnover in Union commission etc)
(c) half per cent. of territory in case of
the turnover in other suppliers, subject
State or turnover in to such conditions and
Union territory in restrictions as may be
case of other prescribed:
suppliers, subject to
such conditions and Provided that the
restrictions as may Government may, by
be prescribed: notification, increase
the said limit of fifty
Provided that the lakh rupees to such
Government may, higher amount, not
by notification, exceeding one crore
increase the said and fifty lakh rupees,
limit of fifty lakh as may be
rupees to such recommended by the
higher amount, not Council.
exceeding one crore
rupees, as may be “Provided further
recommended by that a person who
the Council. opts to pay tax under
clause (a) or clause (b)
(2) The registered or clause (c) may
person shall be supply services (other
eligible to opt under than those referred
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sub-section (1), if: — to in clause (b) of
paragraph 6 of
(a) he is not Schedule II), of value
engaged in the not exceeding ten per
supply of services cent. of turnover in a
other than supplies State or Union
referred to in clause territory in the
(b) of paragraph 6 preceding financial
of Schedule II; year or five lakh
rupees, whichever is
(b) he is not
higher.”;
engaged in making
any supply of goods (2) The registered
which are not person shall be eligible
leviable to tax to opt under sub-
under this Act; section (1), if—

(c) he is not (a) save as provided in

engaged in making sub-section (1), he is
any inter-State not engaged in the
outward supplies of supply of services,
goods; other than supplies
referred to in clause
(d) he is not
(b) of paragraph (6) of
engaged in making
Schedule II save as
any supply of goods
provided in sub-
through an
section (1)(b) of
electronic
paragraph 6 of
commerce operator
Schedule II;
who is required to
collect tax at source (b) he is not engaged in
under section 52; making any supply of
and goods which are not
leviable to tax under
(e) he is not a
this Act;
manufacturer of
such goods as may (c) he is not engaged in
be notified by the making any inter-State
Government on the outward supplies of
recommendations goods;
of the Council:
(d) he is not engaged in
Provided that where making any supply of
more than one goods through an
registered persons electronic commerce
are having the same operator who is
Permanent Account required to collect tax
Number (issued at source under section
under the Income- 52; and
tax Act, 1961), the
registered person (e) he is not a
shall not be eligible manufacturer of such
to opt for the goods as may be
scheme under sub- notified by the
section (1) unless all Government on the
such registered recommendations of
the Council:

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persons opt to pay Provided that where
tax under that sub- more than one
section. registered persons are
having the same
(3) The option Permanent Account
availed of by a Number (issued under
registered person the Income-tax Act,
under sub-section 1961), the registered
(1) shall lapse with person shall not be
effect from the day eligible to opt for the
on which his scheme under sub-
aggregate turnover section (1) unless all
during a financial such registered
year exceeds the persons opt to pay tax
limit specified under that sub-section.
under sub-section
(1). (3) The option availed
of by a registered
(4) A taxable person person under sub-
to whom the section (1) shall lapse
provisions of sub- with effect from the
section (1) apply day on which his
shall not collect any aggregate turnover
tax from the during a financial year
recipient on exceeds the limit
supplies made by specified under sub-
him nor shall he be section (1).
entitled to any
credit of input tax. (4) A taxable person to
whom the provisions of
(5) If the proper sub-section (1) apply
officer has reasons shall not collect any tax
to believe that a from the recipient on
taxable person has supplies made by him
paid tax under sub- nor shall he be entitled
section (1) despite to any credit of input
not being eligible, tax.
such person shall, in
addition to any tax (5) If the proper officer
that may be payable has reasons to believe
by him under any that a taxable person
other provisions of has paid tax under sub-
this Act, be liable to section (1) despite not
a penalty and the being eligible, such
provisions of person shall, in
section 73 or addition to any tax that
section 74 shall, may be payable by him
mutatis mutandis, under any other
apply for provisions of this Act,
determination of be liable to a penalty
tax and penalty. and the provisions of
section 73 or section 74
shall, mutatis
mutandis, apply for
determination of tax
and penalty.

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Section 17(3) – (3) The value of (3) The value of exempt By adding an
Apportionment exempt supply supply under sub- explanation to
of credit under sub-section section (2) shall be such section 17(3), it is
(2) shall be such as as may be prescribed clarified that no
may be prescribed and shall include reversal of ITC
and shall include supplies on which the shall be required
supplies on which recipient is liable to pay in case of supply
the recipient is tax on reverse charge of transactions
liable to pay tax on basis, transactions in specified in
reverse charge securities, sale of land Schedule III (other
basis, transactions and, subject to clause than sale of land
in securities, sale of (b) of paragraph 5 of as mentioned in
land and, subject to Schedule II, sale of point 5(b) of
clause (b) of building. schedule II)
paragraph 5 of ‘Explanation.—For the
Schedule II, sale of purposes of this sub-
building. 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.

Section 17(5) (5) Notwithstanding (5) Notwithstanding Following are the

(a) – Blocked anything contained anything contained in take-aways from
credit in sub-section (1) of sub-section (1) of this amendment:
section 16 and section 16 and sub- 1. ITC can only be
subsection (1) of section (1) of section availed on motor
section 18, input tax 18, input tax credit vehicles having
credit shall not be shall not be available in approved seating
available in respect respect of the capacity of more
of the following, following, namely: — than 13 persons.
namely: — (a) motor vehicles and
(a) motor vehicles other conveyances 2. The confusion
and other for transportation of regarding
conveyances except persons having availment of ITC
when they are approved seating in relation to
used–– capacity of not more work-trucks, fork
than thirteen persons lifts, cranes, etc.
(i) for making the (including the driver), has been clarified.
following taxable except when they are The word ‘other
supplies, namely: — used for making the conveyance’ has
following taxable been removed to
(A) further supply of clarify the
supplies, namely: —
such vehicles or intention in this
conveyances; or (A) further supply of regard.
such motor vehicles or
(B) transportation of 3. This
conveyances; or
passengers; or amendment
disallows ITC of
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(C) imparting (B) transportation of services w.r.t.
training on driving, passengers; or general insurance,
flying, navigating repair &
such vehicles or (C) imparting training maintenance of
conveyances; on driving, such motor such motor
vehicle; vehicles, vessel
(ii) for and/or aircraft of
transportation of (aa) vessels and
which ITC perse is
goods; aircraft except when
not allowed.
they are used –
4. The ever-asking
(i) for making the
question of
following taxable
availability of ITC
supplies, namely: —
w.r.t. motor-
(A) further supply of vehicles and/or its
such vessels or repair &
aircraft; or maintenance
including
(B) transportation of insurance, is
passengers; or answered finally
that no credit of
(C) imparting training such expenditure
on navigating such shall be allowed.
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;

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 (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,
Section 17(5) (b) the following (b) the following supply ITC on leasing and
vessels or aircraft
(b) – Blocked supply of goods or of goods or services or hiring of motor
insured by him;
credit services or both— both— vehicles, vessel &
(i) food and (i) food and beverages, aircrafts is
beverages, outdoor outdoor catering, restricted to only
catering, beauty beauty treatment, such cases when
treatment, health health services, they are used for
services, cosmetic cosmetic and plastic the specific
and plastic surgery surgery, leasing, purpose as
except where an renting or hiring of mentioned in
inward supply of motor vehicles, clause (a) or (aa).
goods or services or vessels or aircraft Earlier the Govt.
both of a particular referred to in clause was to notify such
category is used by (a) or clause (aa) services which
a registered person except when used for were obligatory
for making an the purposes for an employer
outward taxable specified therein, life to provide to its
supply of the same insurance and health employees and
category of goods insurance: ITC of such
or services or both services shall be
or as an element of Provided that the allowed, however
a taxable composite input tax credit in via this
or mixed supply; respect of such goods amendment Govt.
or services or both has notified such
(ii) membership of a shall be available services in the
club, health and where an inward section itself
fitness centre; supply of such goods wherein ITC can
or services or both is be availed on food
(iii) rent-a-cab, life used by a registered beverages,
insurance and person for making an outdoor catering,
health insurance outward taxable health insurance,
except where–– supply of the same rent-a-cab etc.
category of goods or (services of
(A) the Government
services or both or as personal nature)
notifies the services
an element of a if the same is
which are obligatory
taxable composite or obligatory for an
for an employer to
mixed supply; employer to
provide to its
employees under provide to its
(ii) membership of a
any law for the time employees under
club, health and fitness
being in force; or any law for the
centre; and
time being in
(B) such inward (iii) rent-a-cab, life force.
supply of goods or insurance and health
services or both of insurance except
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a particular where–
category is used by
a registered person (A) the Government
for making an notifies the services
outward taxable which are obligatory
supply of the same for an employer to
category of goods provide to its
or services or both employees under any
or as part of a law for the time being
taxable composite in force; or
or mixed supply;
(B) such inward
and
supply of goods or
(iv) travel benefits services or both of a
extended to particular category is
employees on used by a registered
vacation such as person for making an
leave or home outward taxable
travel Concession; supply of the same
category of goods or
services or both or as
part of a taxable
composite or mixed
supply; 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.

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Section 22(1) – 22 (1) Every supplier 22 (1) Every supplier By inserting a
Persons liable shall be liable to be shall be liable to be proviso, Govt. has
for registration registered under registered under this enabled itself, if
this Act in the State Act in the State or required upon
or Union territory, Union territory, other request received
other than special than special category from any special
category States, States, from where he category state, to
from where he makes a taxable supply increase
makes a taxable of goods or services or threshold limit for
supply of goods or both, if his aggregate obtaining GST
services or both, if turnover in a financial registration in
his aggregate year exceeds twenty such, from 10 lakh
turnover in a lakh rupees: to 20 lakhs.
financial year Provided that where
exceeds twenty lakh such person makes
rupees: taxable supplies of
Provided that where goods or services or
such person makes both from any of the
taxable supplies of special category States,
goods or services or he shall be liable to be
both from any of registered if his
the special category aggregate turnover in a
States, he shall be financial year exceeds
liable to be ten lakh rupees.
registered if his
aggregate turnover Provided further that
in a financial year the Government may,
exceeds ten lakh at the request of a
rupees. 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.

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Section 22 Explanation (iii) to Explanation (iii) to The amended in
(Explanation) section 22 the section 22 the explanation has
– expression “special expression “special led to an increase
Person liable category States” category States” shall in threshold limit
to registration shall mean the mean the States as for obtaining GST
States as specified specified in sub-clause registration in the
in sub-clause (g) of (g) of clause (4) of state of Arunachal
clause (4) of article article 279A of the Pradesh, Assam,
279A of the Constitution except the Himachal
Constitution except State of Jammu and Pradesh,
the State of Jammu Kashmir and States of Meghalaya,
and Kashmir. Arunachal Pradesh, Sikkim and
Assam, Himachal Uttarakhand from
Pradesh, Meghalaya, earlier 10 lakhs to
Sikkim and now 20 lakhs.
Uttarakhand.

Section 24 – (x) every electronic (x) every electronic This amendment

Compulsory commerce commerce operator enables the small
Registration operator. who is required to e-commerce
collect tax at source operators to avail
under section 52. the benefit of
threshold limit for
obtaining GST
registration.

Section 25 – 25 (1) Every person 25 (1) Every person By inserting

Procedure for who is liable to be who is liable to be proviso in sub-
Registration registered under registered under section (1), it is
section 22 or section 22 or section 24 now made
section 24 shall shall apply for mandatory for a
apply for registration in every SEZ unit or
registration in every such State or Union developer to
such State or Union territory in which he is obtain separate
territory in which he so liable within thirty GST registrations
is so liable within days from the date on for unit in SEZ
thirty days from the which he becomes area and unit
date on which he liable to registration, in located outside
becomes liable to such manner and SEZ area even
registration, in such subject to such when both such
manner and subject conditions as may be units are within a
to such conditions prescribed: same state.
as may be Provided that a casual Amendment in
prescribed: taxable person or a second proviso to
Provided that a non-resident taxable sub-section (2),
casual taxable person shall apply for allows the users
person or a non- registration at least five to take separate
resident taxable days prior to the registrations for
person shall apply commencement of each place of
for registration at business. business within
least five days prior same state. The
to the Provided further that earlier
commencement of a person having a requirement of
business. unit, as defined in the having separate
Special Economic business vertical
Explanation. — Zones Act, 2005, in a to obtain separate
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Every person who Special Economic registration has
makes a supply Zone or being a been done away
from the territorial Special Economic with.
waters of India shall Zone developer shall
obtain registration have to apply for a
in the coastal State separate registration,
or Union territory as distinct from his
where the nearest place of business
point of the located outside the
appropriate Special Economic
baseline is located. Zone in the same
State or Union
(2) A person seeking territory.
registration under
this Act shall be Explanation. — Every
granted a single person who makes a
registration in a supply from the
State or Union territorial waters of
territory: India shall obtain
registration in the
Provided that a coastal State or Union
person having territory where the
multiple business nearest point of the
verticals in a State appropriate baseline is
or Union territory located.
may be granted a
separate (2) A person seeking
registration for each registration under this
business vertical, Act shall be granted a
subject to such single registration in a
conditions as may State or Union
be prescribed. territory:

Provided that a person

having multiple
business vertical
places of business in a
State or Union territory
may be granted a
separate registration
for each such business
vertical place of
business, subject to
such conditions as may
be prescribed.

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Section 29 – 29(1)….. 29(1)….. By inserting this
Cancellation or (a)…. (a)…. proviso, govt. has
Suspension of extended relief to
Registration (b)…. (b)…. a taxpayers
applying for
(c) the taxable (c) the taxable person,
surrender of GST
person, other than other than the person
registration from
the person registered under
regular
registered under subsection (3) of
compliance
sub-section (3) of section 25, is no longer
during the period
section 25, is no liable to be registered
from such
longer liable to be under section 22 or
application till
registered under section 24.
order of
section 22 or
Provided that during surrender.
section 24.
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.

Section 34 – 34 (1) Where a tax 34(1) Where a tax The amendment

Debit and invoice has been invoice has one or is to provide a big
Credit Notes issued for supply of more tax invoices relief to taxpayers
any goods or have been issued for enabling them to
services or both supply of any goods or issue single
and the taxable services or both and debit/credit note
value or tax charged the taxable value or tax against multiple
in that tax invoice is charged in that tax invoices issued in
found to exceed the invoice is found to a Financial Year.
taxable value or tax exceed the taxable Practical problem
payable in respect value or tax payable in of linking each
of such supply, or respect of such supply, debit/note to
where the goods or where the goods particular invoice
supplied are supplied are returned has been
returned by the by the recipient, or resolved.
recipient, or where where goods or
goods or services or services or both
both supplied are supplied are found to
found to be be deficient, the
deficient, the registered person, who
registered person, has supplied such
who has supplied goods or services or
such goods or both, may issue to the
services or both, recipient a credit note
may issue to the one or more credit
recipient a credit notes for supplies
note containing made in a financial
such particulars as year containing such
may be prescribed. particulars as may be
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(2) Any registered prescribed.
person who issues a (2) Any registered
credit note in person who issues a
relation to a supply credit note in relation
of goods or services to a supply of goods or
or both shall services or both shall
declare the details declare the details of
of such credit note such credit note in the
in the return for the return for the month
month during which during which such
such credit note has credit note has been
been issued but not issued but not later
later than than September
September following the end of
following the end of the financial year in
the financial year in which such supply was
which such supply made, or the date of
was made, or the furnishing of the
date of furnishing relevant annual return,
of the relevant whichever is earlier,
annual return, and the tax liability
whichever is earlier, shall be adjusted in
and the tax liability such manner as may
shall be adjusted in be prescribed:
such manner as
may be prescribed: Provided that no
reduction in output tax
Provided that no liability of the supplier
reduction in output shall be permitted, if
tax liability of the the incidence of tax
supplier shall be and interest on such
permitted, if the supply has been
incidence of tax and passed on to any other
interest on such person.
supply has been
passed on to any (3) Where a tax invoice
other person. has one or more tax
invoices have been
(3) Where a tax issued for supply of
invoice has been any goods or services
issued for supply of or both and the taxable
any goods or value or tax charged in
services or both that tax invoice is
and the taxable found to be less than
value or tax charged the taxable value or tax
in that tax invoice is payable in respect of
found to be less such supply, the
than the taxable registered person, who
value or tax payable has supplied such
in respect of such goods or services or
supply, the both, shall issue to the
registered person, recipient a debit note
who has supplied one or more debit
such goods or notes for supplies
services or both, made in a financial
shall issue to the
recipient a debit
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 note containing year containing such
such particulars as particulars as may be
may be prescribed. prescribed.

Section 35(5) – 35 (5) Every 35 (5) Every registered As per this

Accounts and registered person person whose turnover amendment,
other records whose turnover during a financial year those government
during a financial exceeds the prescribed departments
year exceeds the limit shall get his whose accounts
prescribed limit accounts audited by a are required to be
shall get his chartered accountant audited by CAG
accounts audited by or a cost accountant need not to get
a chartered and shall submit a copy their accounts
accountant or a of the audited annual audited by a
cost accountant and accounts, the Chartered
shall submit a copy reconciliation Accountant or
of the audited statement under sub- Cost Accountant
annual accounts, section (2) of section 44 under GST.
the reconciliation and such other
statement under documents in such
sub-section (2) of form and manner as
section 44 and such may be prescribed:
other documents in Provided that nothing
such form and contained in this sub-
manner as may be section shall apply to
prescribed. 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.

Section 39 – 39 (1) Every 39 (1) Every registered This amendment

Furnishing of registered person, person, other than an empowers the
returns other than an Input Input Service government to
Service Distributor Distributor or a non- notify class of
or a non-resident resident taxable such persons who
taxable person or a person or a person shall be to file
person paying tax paying tax under the their returns
under the provisions of section 10 quarterly. The
provisions of or section 51 or section amendment is to
section 10 or 52 shall, for every give effect to
section 51 or calendar month or part rollout the new
section 52 shall, for thereof, furnish, in return formats
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every calendar such form and from June 2019.
month or part manner as may be For the much
thereof, furnish, in prescribed in such awaited and
such form and form, manner and discussed issue
manner as may be within such time as w.r.t. provisions
prescribed, a may be prescribed, a for rectification of
return, return, electronically, errors or
electronically, of of inward and outward omission of any
inward and outward supplies of goods or data already filed
supplies of goods or services or both, input through returns,
services or both, tax credit availed, tax this amendment
input tax credit payable, tax paid and enables govt. to
availed, tax payable, such other particulars introduce
tax paid and such as may be prescribed, separate new
other particulars as on or before the form for
may be prescribed, twentieth day of the amendment in
on or before the month succeeding returns.
twentieth day of the such calendar month
month succeeding or part thereof.
such calendar Provided that the
month or part Government may, on
thereof. the
(2) …… recommendations of
the Council, notify
(3) …… certain classes of
registered persons
(4) ……
who shall furnish
(5) …… return for every
quarter or part
(6) …… thereof, subject to
such conditions and
(7) Every registered safeguards as may be
person, who is specified therein.
required to furnish
a return under sub- (2) ……
section (1) or sub-
section (2) or sub- (3) ……
section (3) or sub-
(4) ……
section (5), shall pay
to the Government (5) ……
the tax due as per
such return not (6) ……
later than the last
date on which he is 7) Every registered
required to furnish person, who is
such return. required to furnish a
return under sub-
(8) …… section (1) or sub-
section (2) or sub-
(9) Subject to the section (3) or sub-
provisions of section (5), shall pay to
sections 37 and 38, the Government the
if any registered tax due as per such
person after return not later than
furnishing a return the last date on which
under sub-section he is required to
(1) or sub-section (2) furnish such return.
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or sub-section (3) or Provided that the
sub-section (4) or Government may, on
sub-section (5) the
discovers any recommendations of
omission or the Council, notify
incorrect particulars certain classes of
therein, other than registered persons
as a result of who shall pay to the
scrutiny, audit, Government the tax
inspection or due or part thereof as
enforcement per the return on or
activity by the tax before the last date
authorities, he shall on which he is
rectify such required to furnish
omission or such return, subject
incorrect particulars to such conditions
in the return to be and safeguards as
furnished for the may be specified
month or quarter therein.
during which such
omission or (8) ……
incorrect particulars
(9) Subject to the
are noticed, subject
provisions of sections
to payment of
37 and 38, if any
interest under this
registered person after
Act:
furnishing a return
Provided that no under sub-section (1)
such rectification of or sub-section (2) or
any omission or sub-section (3) or sub-
incorrect particulars section (4) or sub-
shall be allowed section (5) discovers
after the due date any omission or
for furnishing of incorrect particulars
return for the therein, other than as a
month of result of scrutiny,
September or audit, inspection or
second quarter enforcement activity by
following the end of the tax authorities, he
the financial year, shall rectify such
or the actual date of omission or incorrect
furnishing of particulars in the
relevant annual return to be
return, whichever is furnished for the
earlier. month or quarter
during which such
omission or incorrect
particulars are
noticed in such form
and manner as may
be prescribed, subject
to payment of interest
under this Act:

Provided that no such

rectification of any
omission or incorrect
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 particulars shall be
allowed after the due
date for furnishing of
return for the month of
September or second
quarter following the
end of the financial
year the end of the
financial year to
which such details
pertain, or the actual
date of furnishing of
relevant annual return,
whichever is earlier.

Section 43A – New Section (1) Notwithstanding New Section

Procedure for anything contained in provides for the
furnishing sub-section (2) of procedure for
return and section 16, section 37 availing ITC in
availing input or section 38, every parity with the
tax credit registered person new return
shall in the returns procedures (to be
furnished under sub- announced) from
section (1) of section June 2019.
39 verify, validate, The supplier and
modify or delete the the recipient are
details of supplies jointly and
furnished by the severally made
suppliers. liable to pay tax
(2) Notwithstanding for details
anything contained in furnished/ not
section 41, section 42 furnished by the
or section 43, the supplier in his
procedure for availing respective GSTR-1
of input tax credit by but the return
the recipient and (GSTR 3B) has not
verification thereof been furnished.
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

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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.

(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

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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.”.

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Sec 49 (5)(c) & 49 (5) The amount 49 (5) The amount of This amendment
(d) – Payment of input tax credit input tax credit has provided new
of Tax available in the available in the procedure of
electronic credit electronic credit ledger settlement of
ledger of the of the registered IGST/CGST/SGST
registered person person on account of tax amount.
on account of–– –– Credit of SGST/
(a)…. (a)…. UTGST can be
utilized for
(b)…. (b)…. payment of IGST
only when the
(c) the State tax (c) the State tax shall
balance of the
shall first be utilised first be utilized towards
input tax credit on
towards payment of payment of State tax
account of CGST
State tax and the and the amount
is not available for
amount remaining, remaining, if any, may
payment of IGST.
if any, may be be utilized towards
utilised towards payment of integrated
payment of tax;
integrated tax;
Provided that the
(d) the Union input tax credit on
territory tax shall account of State tax
first be utilised shall be utilised
towards payment of towards payment of
Union territory tax integrated tax only
and the amount where the balance of
remaining, if any, the input tax credit
may be utilised on account of central
towards payment of tax is not available
integrated tax. for payment of
integrated tax;”;

(d) the Union territory

tax shall first be utilized
towards payment of
Union territory tax and
the amount remaining,
if any, may be utilized
towards payment of
integrated tax;

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.

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Section 49A – New Section Notwithstanding The taxpayer can
Utilisation of anything contained in utilize credit of
input tax credit section 49, the input CGST/UGST only
subject to tax credit on account after utilizing all
certain of central tax, State credit of IGST
conditions tax or Union territory available.
tax shall be utilised Earlier CGST/SGST
towards payment of ITC was used to
integrated tax, set-off CGST
central tax, State tax /SGST liability, as
or Union territory tax, the case may be,
as the case may be, but now IGST
only after the input Credit has to be
tax credit available 1st utilised fully
on account of for payment of
integrated tax has IGST then for
first been utilised CGST and then for
fully towards such SGST liability as
payment. the case may be,
even before
utilisation of ITC
of CGST or SGST.

Section 49B – New Section 49B. Notwithstanding This section is to

Order of anything contained in give power to
utilisation of this Chapter and government to
input tax credit subject to the specify any order
provisions of clause for utilization of
(e) and clause (f) of ITC, on
sub-section (5) of recommendation
section 49, the of GST Council.
Government may, on
the
recommendations of
the Council, prescribe
the order and
manner of 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.

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Section 54(8) (a) refund of tax (a) refund of tax paid This amendment
(a) – Refunds paid on zero-rated on zero-rated supplies is in consonance
supplies of goods or export and exports of of the concept of
services or both or goods or services or unjust
on inputs or input both or on inputs or enrichment.
services used in input services used in Thereby, taxpayer
making such zero- making such zero- is not eligible to
rated supplies; rated supplies claim refund of
exports; tax paid on
supplies made to
SEZ unit or SEZ
developer.

Section 54 (e) in the case of (e) in the case of refund Maximum period
Explanation refund of unutilised of unutilised input tax of 2 years for
(2)(e) – input tax credit credit under clause (ii) claiming refund
Relevant date under sub-section of first proviso to sub- shall be counted
for filing (3), the end of the section (3), the end of the date of
refunds in case financial year in the financial year due furnishing return
of inverted which such claim date for furnishing of under section 39
duty structure for refund arises. return under section in the case of
39 for the period in refund on account
which such claim for of inverted duty
refund arises. structure.
Earlier such
relevant date was
from end of FY to
which such
refund relates.

Section 79(4) – 79 (4) Where the 79 (4) Where the With a major
Recovery of tax amount recovered amount recovered consequence
under sub-section under sub-section (3) is involved, in case
(3) is less than the less than the amount of any recovery is
amount due to the due to the Central due from one unit
Central Government and State in a particular
Government and Government, the state this
State Government, amount to be credited amendment
the amount to be to the account of the empowers
credited to the respective authority to
account of the Governments shall be recover such due
respective in proportion to the amount from
Governments shall amount due to each another unit of
be in proportion to such Government. same person
the amount due to Explanation. –– For located in
each such the purposes of this different state
Government. section, the word also.
person shall include
“distinct persons” as
referred to in sub-
section (4) or, as the
case may be, sub-
section (5) of section
25.

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Section 107(6) (b) a sum equal to (b) a sum equal to ten Law has restricted
(b) – Appeal to ten per cent. of the per cent. of the the maximum
Appellate remaining amount remaining amount of ceiling of pre-
Authority of tax in dispute tax in dispute arising deposit in case of
arising from the from the said order appeals to
said order, in subject to a Appellate
relation to which maximum of twenty- Authority to 25
the appeal has been five crore rupees, in crores.
filed. relation to which the Earlier there was
appeal has been filed. no ceiling limit.

Section 112(8) b) a sum equal to (b) a sum equal to Law has restricted
(b) – Appeal to twenty per cent. of twenty per cent. of the the maximum
Appellate the remaining remaining amount of ceiling of pre-
Tribunal amount of tax in tax in dispute, in deposit in case of
dispute, in addition addition to the amount appeals to
to the amount paid paid under sub-section Appellate Tribunal
under sub-section (6) of section 107, to 50 crores.
(6) of section 107, arising from the said Earlier there was
arising from the order subject to a no ceiling limit.
said order, in maximum of fifty
relation to which crore rupees, in
the appeal has been relation to which the
filed. appeal has been filed.

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Section 129(6) 129 (6) Where the 129 (6) Where the In case of seizure
– Detention, person transporting person transporting of goods, time
seizure and any goods, or the any goods, or the limit for initiating
release of owner of the goods owner of the goods proceedings
goods and fails to pay the fails to pay the amount under section 130
conveyances in amount of tax and of tax and penalty as has been
transit penalty as provided provided in sub-section increased from
in sub-section (1) (1) within seven days seven days to
within seven days of fourteen days of such fourteen days.
such detention or detention or seizure,
seizure, further further proceedings
proceedings shall shall be initiated in
be initiated in accordance with the
accordance with the provisions of section
provisions of 130:
section 130: Provided that where
Provided that where the detained or seized
the detained or goods are perishable
seized goods are or hazardous in nature
perishable or or are likely to
hazardous in nature depreciate in value
or are likely to with passage of time,
depreciate in value the said period of
with passage of seven days fourteen
time, the said days may be reduced
period of seven by the proper officer.
days may be
reduced by the
proper officer.

Schedule I Paragraph 4. Paragraph 4. An entity, even

Import of services Import of services by a though not
by a taxable person taxable person from a registered under
from a related related person or from GST, if receives
person or from any any of his other services from
of his other establishments outside their related
establishments India, in the course or parties located
outside India, in the furtherance of outside India, in
course or business. course or
furtherance of furtherance of
business. business, falls
under an ambit of
GST.

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Schedule III New paragraphs 7. Supply of goods Reversal of
inserted from a place in the common ITC
non-taxable territory under Rue 42/43
to another place in is not required in
the non-taxable the case of High
territory without Seas Sale.
such goods entering Another disputed
into India. issue has been
8. (a) Supply of resolved with this
warehoused goods to amendment.
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.

Explanation. 1 — For
the purposes of
paragraph 2, the term
“court” includes District
Court, High Court and
Supreme Court.

Explanation 2. ––For
the purposes of
paragraph 8, the
expression
“warehoused goods”
shall have the same
meaning as assigned
to it in the Customs
Act, 1962.

Major Amendments under IGST Act:

Section Earlier Provision Amended Provisions from Analysis of

01.02.2019 changes

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Section 2(6) – 2 (6) “export of 6) “export of services” The
Definition of services” means the means the supply of any amendment
‘Export of supply of any service when, –– allows to avail
services’ service when, –– (i) the supplier of service is export
(i) the supplier of located in India; benefits to
service is located in such service
India; (ii) the recipient of service is providers who
located outside India; export
(ii) the recipient of services to
service is located (iii) the place of supply of
person
outside India; service is outside India;
located in
(iv) the payment for such Nepal, Bhutan
(iii) the place of
service has been received and
supply of service is
by the supplier of service in consideration
outside India;
convertible foreign is received in
(iv) the payment for exchange or in Indian INR.
such service has Rupees wherever
been received by permitted by the Reserve
the supplier of Bank of India; and
service in
convertible foreign (v) the supplier of service
exchange; and and the recipient of service
are not merely
(v) the supplier of establishments of a distinct
service and the person in accordance with
recipient of service Explanation 1 in section 8.
are not merely
establishments of a
distinct person in
accordance with
Explanation 1 in
section 8.

Section 12(8) 2 (8) The place of 12 (8) The place of supply of In order to
– Place of supply of services services by way of reduce export
supply of by way of transportation of goods, cost in case of
domestic transportation of including by mail or courier goods, the
services of goods, including by to, – proviso
transportation mail or courier to, (a) a registered person shall provides that
of goods –– be the location of such no GST shall
(a) a registered person; be chargeable
person shall be the on
location of such (b) a person other than a transportation
person; registered person, shall be of goods from
the location at which such a place in
(b) a person other goods are handed over for India to a
than a registered their transportation: place outside
person, shall be the India.
location at which Provided that where the
such goods are transportation of goods is
handed over for to a place outside India,
their transportation. the place of supply shall
be the place of
destination of such goods.

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Section 13(3) 13 (3) The place of 13 (3) The place of supply of No GST shall
– Place of supply of the the following services shall be chargeable
supply of following services be the location where the in case, goods
performance- shall be the location services are actually are imported
based where the services performed, namely: — in India for
services are actually (a) services supplied in treatment or
performed, namely: respect of goods which are any process
— required to be made and then
(a) services supplied physically available by the exported back
in respect of goods recipient of services to the out of India.
which are required supplier of services, or to a
to be made person acting on behalf of
physically available the supplier of services in
by the recipient of order to provide the
services to the services:
supplier of services,
or to a person Provided that when such
acting on behalf of services are provided from
the supplier of a remote location by way of
services in order to electronic means, the place
provide the services: of supply shall be the
location where goods are
Provided that when situated at the time of
such services are supply of services:
provided from a
remote location by Provided further that
way of electronic nothing contained in this
means, the place of clause shall apply in the
supply shall be the case of services supplied in
location where respect of goods which are
goods are situated temporarily imported into
at the time of India for repairs or for any
supply of services: other treatment or process
and are exported after such
Provided further repairs or treatment or
that nothing process without being put
contained in this to any other use in India,
clause shall apply in other than that which is
the case of services required for such repairs or
supplied in respect treatment or process.
of goods which are
temporarily
imported into India
for repairs and are
exported after
repairs without
being put to any
other use in India,
than that which is
required for such
repairs;

DISCLAIMER: The analysis given is strictly the view of author. The

contents of this article are solely for informational purpose. It does
not constitute professional advice or recommendation of author. The
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author is not responsible for any loss or damage of any kind arising
out of any information in this article.

(The author can be reached at parveen@bgmg.co.in)

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