Central Goods and Services Tax (Amendment) Bill, 2018

Aug 08, 2018 | by Avantis RegTech Legal Research Team

The Central Goods and Services Tax Act, 2017 was enacted with a view to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government. The Act provides for certain provisions for smooth transition of existing taxpayers to new goods and services tax regime. However, the new tax regime had faced certain difficulties.

One of the major inconveniences caused to the taxpayers, especially small and medium enterprises, was the process of filing return and payment of tax under the Goods and Services Tax laws.

In this regard, the proposed new return filing system envisages quarterly filing of return and tax payment for small taxpayers along with minimum paperwork. In order to implement the new return filing system, and also to overcome the above difficulties, it is proposed to amend the Central Goods and Services Tax Act, 2017.

The proposed Central Goods and Services Tax (Amendment) Bill, 2018 is introduced in the Lok Sabha on August 07, 2018 and seeks to achieve the following objectives, namely:

(i)                  to amend Section 7 of the Act to clarify the scope of supply;

(ii)                to amend Section 9 of the Act empowering the Central Government to notify classes of registered persons to pay the tax on reverse charge basis in respect of receipt of supplies of certain specified categories of goods or services or both from unregistered suppliers;

(iii)               to amend Section 10 of the Act so as to enhance the limit of composition levy from one crore rupees to one crore and fifty lakh rupees;

(iv)              to amend Section 17 of the Act to specify the scope of input tax credit;

(v)                to amend Section 22 of the Act to enhance the exemption limit for registration in the special category States from ten lakh rupees to twenty lakh rupees;

(vi)               to amend Section 25 of the Act so as to facilitate tax payer to have the option to obtain multiple registrations for multiple places of business located within the same State or Union territory and to provide for separate registration for Special Economic Zone unit or developer;

(vii)             to amend Section 29 of the Act so as to insert a provision for temporary suspension of registration while cancellation of registration is under process;

(viii)           to insert a new Section 43A so as to provide for the new system of filing return and availing input tax credit;

(ix)               to amend sub-section (6) of Section 107 of the Act relating to Appeals so as to provide that the amount of pre-deposit payable for filing of appeal shall be capped at twenty five crore rupees;

(x)                to amend Section 129 of the Act so as to increase the period relating to detention or seizure of goods and conveyance in transit from seven days to fourteen days.

[Bill No. 143 of 2018]



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