Recent GST Law Amendments

1. Scope of input tax credit has been widened, and it would now be made available in respect of the following
   • Most of the activities or transactions specified in Schedule III (Schedule III of CGST Act contains the items which are neither a supply of goods nor services. This schedule is the part of definition of Supply.)
   • Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft
   • Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available
   • Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force.
2. The order of cross-utilization of input tax credit has been rationalized.
3. Commissioner empowered to extend the time limit for return of inputs and capital sent on job work, up to a period of one year and two years, respectively.
4. Place of supply in case of job work of any treatment or process done on goods temporarily imported into India and then exported without putting them to any other use in India, would be outside India.
5. The following transactions to be treated as no supply (no tax payable) under Schedule III
   • Supply of goods from a place in the non-taxable territory to another place in the nontaxable territory without such goods entering into India
   • Supply of warehoused goods to any person before clearance for home consumption
   • Supply of goods in case of high sea sales.
6. Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year.
7. Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal capped at Rs. 25 Cr and Rs. 50 Cr respectively.
8. Recovery can be made from distinct persons, even if present in different State/Union territories.
9. Amount of IGST not apportioned to the Centre or the States/UTs may, for the time being, on the recommendations of the Council, be apportioned at the rate of 50% to the Central Government and 50% to the State Governments or the Union territories, as the case may be, on ad-hoc basis and this amount shall be adjusted against the amount finally apportioned.
10. 50% of such amount, as may be recommended by the Council, which remains unutilized in the Compensation Fund, at any point of time in any financial year during the transition period shall be transferred to the Consolidated Fund of India as the share of Centre, and the balance 50% Shall be distributed amongst the States in the ratio of their base year revenue.
11. In case of shortfall in the amount collected in the Fund against the requirement of compensation to be released for any two months‟ period, 50% of the same, but not exceeding the total amount transferred to the Centre and the States as recommended by the Council, shall be recovered from the Centre and the balance 50%. From the States in the ratio of their base year revenue.

Details of recent GST law amendments are elaborated in Central Board of Indirect Taxes and Customs official site

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