CMA Final – Paper 18 – Amendments applicable for June 2020 as stated by ICMAI based on

Supplementary issued for Paper 18 of CMA Final students.

GST – Amendments made in Sections, Rules

Sl. Amendment What is the amendment?

No. In?
1 Section 7 ✓ Section 7(1)(d) has been omitted.

✓ Section 7(1A) has been inserted with retrospective effect in order to state that,
if only and only if the activity or transaction is a supply as per section 7(1),
classification is to be done as per schedule II and not other wise.
2 Section 7 ✓ Exercise of powers under sub-section (2) [To notify supplies to be treated as
neither supply of goods nor service] – Grant of alcoholic liquor license by SG
in which they are engaged as public authorities.
3 Schedule I ✓ Import of services by a taxable person from a related person or from any of
his other establishments outside India, in the course or furtherance of
business.
4 Section 9(1) ✓ Notification No: 2/2019 – On first 50 lakhs of supplies pay tax at the rate of
6% on all outward supplies [Stress on conditions of Availing this benefit]

✓ This notification is mutually exclusive of section 10.

✓ Aerated water not restricted.

✓ Compliance is to be done as per section 10

✓ Lapsing of credit as per section 18(4)

5 Section 9(3) New Notified RCM:

✓ Renting of Motor Vehicle+5% to Any person other than BC

✓ TDR
✓ Long term lease
✓ Author, Music composer, photographer + Transfer of IPR

6 Section 9(4) RCM on notified supplies received by notified person:

Notified Person: Promoter

Notified Supplies:

1. Input and Input service minus TDR, LTL, FSI – if falls short of 80%
then differential under RCM @ 18%.
2. Cement
3. Capital Goods.

1
CMA Final – Paper 18 – Amendments applicable for June 2020 as stated by ICMAI based on
Supplementary issued for Paper 18 of CMA Final students.

7 Section 10 ✓ Turnover limit enhanced to 1.5crore from existing 1 crore

✓ Aerated water inserted

New forms:
CMP – 08 (Quarterly – 18th)
GSTR 4 – (Annually – 30th April)
8 Section 11 Exemptions:

✓ The service provided by CG/SG/LA to BE with AT upto such amount as is

eligible for exemption from registration. Thus, the 20Lakhs criteria has been
removed

✓ Same amendment is for Arbitral Tribunal, firm of advocates, individual

advocates, senior advocares

✓ Service by or to Women’s FIFA 2020 directly or indirectly

✓ Entry tickets to Women’s FIFA 2017 and 2020

✓ Declared Value has been replaced with value in the case of service by hotels,
inn, guest house, for residential or lodging purpose

✓ Transportation of goods by air, vessel from custom station to a place outside

India has been exempted till 30.09.2020

✓ Hire service of EOV more than 12 passenger to LA.

✓ Services by way of storage or warehousing of cereals, pulses, fruits, nuts and

vegetables, spices, copra, sugarcane, jaggery, raw vegetable fibres such as
cotton, flax, jute etc., indigo, unmanufactured tobacco, betel leaves, tendu
leaves, coffee and tea. [Earlier only rice was covered]

✓ Services provided by a banking company to Basic Saving Bank Deposit

(BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY).

✓ Services of life insurance provided or agreed to be provided by the Naval

Group Insurance Fund to the personnel of Coast Guard under the Group
Insurance Schemes of the Central Government.

✓ Services of life insurance provided or agreed to be provided by the Central

Armed Police Forces (under Ministry of Home Affairs) Group Insurance
Funds to their members under the Group Insurance Schemes of the
concerned Central Armed Police Force.

✓ Service of intermediary where LOS of Supplier and Recipient is outside India.

2
CMA Final – Paper 18 – Amendments applicable for June 2020 as stated by ICMAI based on
Supplementary issued for Paper 18 of CMA Final students.

✓ Service whose POS is in Nepal and Bhutan - Withdrawn

✓ Service by way of transfer of development rights (herein refer TDR) or Floor

Space Index (FSI) (including additional FSI) on or after 1st April, 2019 for
construction of residential apartments by a promoter in a project, intended
for sale to a buyer, wholly or partly, except where the entire
consideration has been received after issuance of completion
certificate, where required, by the competent authority or after its first
occupation, whichever is earlier.

RCM applicable on un-sold units as on the date of OC or First Occupancy.

TOS on date of Completion or First Occupany

Rate: 1% in case of affordable residential apartments and 5% in case of

residential Apartments other than affordable residential apartment

TOS: on the date of issue of completion certificate or first occupation of the

project, as the case may be

✓ Upfront amount (called as premium, salami, cost, price, development charges

or by any other name) payable in respect of service by way of granting of long
term lease of thirty years, or more, on or after 01.04.2019, for construction of
residential apartments by a promoter in a project, intended for sale to a
buyer, wholly or partly, except where the entire consideration has been
received after issuance of completion certificate, where required, by the
competent authority or after its first occupation, whichever is earlier.
(Same as TDR)

RCM applicable on un-sold units as on the date of OC or First Occupancy.

TOS on date of Completion or First Occupany

Rate: 1% in case of affordable residential apartments and 5% in case of

residential Apartments other than affordable residential apartment

TOS: on the date of issue of completion certificate or first occupation of the

project, as the case may be

✓ The entry relating to IIM has been deleted (Sl. 67), now the same is covered
under Sl. No 66 as they are covered under the definition of “Educational
Service”

[Comment: The circular issued states that IIM is an educational institution, if

that be so why there was two separate entries in exemption notification?, this is
incorrect in law.]

3
CMA Final – Paper 18 – Amendments applicable for June 2020 as stated by ICMAI based on
Supplementary issued for Paper 18 of CMA Final students.

Periods Courses of IIM Taxability

1st July, i. two-year full time Post Graduate Exempt
2017 to Programmes in Management for the Post from GST
30th Graduate Diploma in Management, to
January, which admissions are made on the basis
2018 of Common Admission Test (CAT)
conducted by the Indian Institute of
Management,

ii. fellow programme in management,

iii. five years integrated programme in

Management.
i. One- year Post Graduate Programs for Not
Executives, exempt
from GST
ii. Any programs other than those
mentioned at Sl. No. 67 of notification
No. 12/2017- Central Tax (Rate), dated
28.06.2017.

iii. All short duration executive

development programs or need based
specially designed programs (less than
one year).
31st All long duration programs (one year or Exempt
January, more) conferring degree/ diploma as from GST
2018 recommended by Board of Governors as
onwards per the power vested in them under the
IIM Act, 2017 including one- year Post
Graduate Programs for Executives.
All short duration executive development Not
programs or need based specially exempt
designed programs (less than one year) from GST
which are not a qualification recognized
by law.
9 Section 22 Exclusive Supply of Goods: (Interest and Discount to be ignored)
MMNT: 10 lacs
UMSAPT: 20 lacs
ROI: 40 lcas

Goods + Services:

4
CMA Final – Paper 18 – Amendments applicable for June 2020 as stated by ICMAI based on
Supplementary issued for Paper 18 of CMA Final students.

MMNT: 10 lacs
ROI: 20 Lacs

10 Rule 10A – To furnish bank account details within 45 days from the date of registration else
Registration liable to be cancelled as per rule 21.
11 Rule 12(1A) TDS Deductor not having physical presence:
– TDS Part A of REG 07: Name of State
Registration Part B of REG 07: Name of POB State (It may be different)
12 Rule 21A: Suspension Period: From date of application of cancellation to the date of
Suspension order of cancellation.
of
Registration Compliance: NO tax Invoice is to be raised. (not to make taxable supply)

Revocation of suspension: Revised Tax Invoice + First Return (for period

under suspension)
13 Rule 36 (4) – ITC to be claimed:
Restriction
on availment [Total ITC as per GSTR 2A (-) Ineligible ITC] x 120% subject to maximum as
of ITC per Books.

Note: The corresponding enabling section is 43A which is yet to be notified.

14 Section 49 The balances under Electronic cash ledger can be transferred from one head to
another.
15 Section 50 Interest on delayed payment is to be calculated @ 18% on net liability i.e Output
Tax liability (-) ITC

Case Law:
Commercial Steel Engineering vs State of Bihar (Patna HC) – No Interest on
ITC reversal if the same has been reversed without utilisation.

Please note, Interest on ITC reversal after utilisation is 18% and not 24%, as the
enabling section 42 & 43 has been kept in abeyance.
16 Section 31A Class of Registered person shall give the option to the receipent to make
– Electronic payment using prescribed electronic mode.
mode of
payment & Multiplexes to issue E-tickets as per rule 46, barring name of unregistered
E-Tickets person.

Other movie theatres, at their option can also issue E-Tickets.

17 Returns Details of TDS and TCS Credit shall be made available only after filing GSTR 7
&8

Form GSTR 3B is a return u/s 39 [Rule 61(5) – Amended retrospectively]

Annual Return (GSTR 9) made optional for tax payers whose AT in PY does not
exceed 2 crore. It shall be deemed to be filed, if not filed within due date.

5
CMA Final – Paper 18 – Amendments applicable for June 2020 as stated by ICMAI based on
Supplementary issued for Paper 18 of CMA Final students.

GSTR 9C not to be filed by persons whose accounts are subject to audit by

CAG. (CG/SG/ Legislative Assembly)
18 Rule 95A – Refund of taxes to outlets of an international airport beyond immigration
Refunds counter making tax free supply to outgoing international tourist:

Outgoing international tourist (OIT): NOR + Stay < 6months for ‘legitimate
immigration purpose’

Compliance: RFD 10B + Self-certified + Statement of Invoice

Frequency: Monthly/ Quarterly
Conditions: Inward Supply from Registered person with tax invoice + outward
supply without tax + Name and GSTIN of claimant on tax Invoice

[Un-addressed area: How to determine OIT? What is ‘legitimate immigration

purpose’? Inward supply is used both for OIT and Indian – How to calculate
refund amount?]

19 Sec 73(1) & DRC 01A – Before service of SCN in DRC 01

74 (1)
Part A: Intimation of Demand
Part B: Intimation of Partial Payment + Submission to be made

[Issue: Same submission to be made once with DRC 01A and again with DRC
01?]
20 101A National Appellate Authority of Advance Ruling (NAAAR):

Composition: President, TM(C), TM (S)

Qualification:
President: J-SC, CJ-HC, J-HC(min 5 yrs)
TM (C): IRS - CCEx (Group A) + 15 years of work experience
TM (S) : Officer not below the rank of Additional Commissioner of VAT, or
Addl. Comm of State Tax + 3 year work experience in existing law, SGST,
Finance and Taxation

Appointment:
President: GOI in-consultation with CJI or his nominee
TM (C): GOI on recommendation of Selection Committee
TM (S) : GOI on recommendation of Selection Committee

Tenure:
President: 3 years or 70 years WEL, re-appointment
TM (C): 5 years or 65 years WEL, re-appointment
TM (S) : 5 years or 65 years WEL, re-appointment

6
CMA Final – Paper 18 – Amendments applicable for June 2020 as stated by ICMAI based on
Supplementary issued for Paper 18 of CMA Final students.

Resignation, removal, casual vacancy same as that of NCLT/NCLAT of

Companies Act, 2013.

21 101B Appeal Procedure:

Question only of section 97(2)

Appealable orders: section 101(1) & (3)

Appellant:
Revenue: Officer authorized by Commissioner of the State
Applicant: Being Distinct person u/s 25

Time Limit:
Revenue: 90days + 30 days
Applicant: 30days + 30 days
To be counted from the date of last conflicting advance ruling
22 101C Order of NAAAR:

ROOBH to A, O, PCC, CC(CT+ST), C(CT+ST)

Time limit: 90 days from the date of filing of appeal.

Incase of conflict, Majority rule.

Binding nature: Same as AAAR and AAR

[Please note, no adjournment can be taken before NAAAR]

23 Rule 128 – St. Committee to examine application within 2m+1m (reasons to be
Examination recorded in writing)
of
application Matters of local nature + Forwarded by St. Committee
by the St.
Comm & Sc. 2m+1m
Committee State Level Screening Committee + Screening Committe

Director General of Anti-Profiteering (erstwhile ‘Safegaurds’), who is to

complete investigation within 6 months+ 3months

National Anti-profiteering authority