Major Amendments laws effective from 1st April 2019

1)    Upper limit of turnover for composition scheme  to be raised from 1 Crore to Rs 1.5 Crore.

2)    Composition dealers will now be allowed to supply services upto value not not exceeding 10% of turnover of the preceding financial year or Rs 5 Lakh whichever is higher.

3)    The threshold exemption limit for registration in the states of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim & Uttarkhand  has been raised from Rs 10 Lakhs to Rs 20 Lakhs. Other states have been given the option to raise the limit to Rs 40 Lakhs.

4)    Taxpayers can opt for multiple registrations within the same state/ Union Territory for multiple places of business. Further at the option of the taxpayer the unutilized Input Tax credit in the existing registration can be transferred to the newly registered places of business. For this  Form GST ITC-02A is required to be furnished within 30 days of obtaining such separate registrations.

5)    Mandatory registration is required in case of e-commerce operators  who are required to collect TCS.

6)    Registration to remain temporarily suspended while cancellation of registration is under process so that taxpayer is relieved of continued compliance under the law.

7)    Widened scope of Input tax credit:

A) Motor Vehicles for transportation of persons having seating capacity more than 13 persons including driver, vessel and aircraft

b) Motor Vehicles for transportation of money by a Banking Company or Financial Institutions

c) Service of general insurance, repairs and maintenance in respect of motor vehicles, vessels and aircrafts on which credit is available.

d) Goods and Services which are obligatory for an employer to provide to its employees under law for time being in force.

8)    Commissioner has been empowered to extend time limit for return of inputs  and capital sent on job work up to a period of two years .

9)    Supply of services will qualify as exports even if payment is received in Indian rupees which are permitted by the RBI.

10) Place of supply in case of job work of any treatment or processes done on goods temporarily imported into India and then exported without putting them to any other use in India.

11) Changes in Real estate sector

    a) Under Construction House property

        i) GST can be charged at a rate of 8% if following conditions are satisfied:

·         80% of materials are purchased from registered dealers.

·         Cement if purchased from unregistered dealers then R.C.M has to be paid at 28%

·         No input tax credit is allowed.

        ii)GST can be charged at a rate of 12% along with availing input tax credit.

b) Affordable housing scheme projects with

Ø  Area of 60 sq.m in metro cities and 90 sq.m in non-metro areas and

Ø  With a value equal to or below rs 45 Lakhs

Will be charged GST at a rate of 1% with no claim of input tax credit.

(Earlier it was 5% with Input Tax Credit)

Calamity Cess

§  Dealers under composition scheme are not liable to levy calamity cess.

§  0.25 % flood cess to be levied on goods under fifth schedule including gold, silver and platinum.

§  1% flood cess to be levied on all supply of goods covered under GST rates 12%,18% & 28%

§  1% of flood cess to be levied on all services

§  The cess is to be calculated on value of supply.

§  Cess would be applicable on intra state supplies

§  Cess to be levied on last supply point that B2C transaction.

§  The effective date its implementation is yet to be announced

Courtesy : CA. Thomas K George B Sc, FCA