July 21, 2018
Recommendations made during the 28thmeeting of the GST Council held in
New Delhi on 21st July, 2018
Amendments to the CGST Act, 2017, IGST Act, 2017, UTGST Act2017, and GST
(Compensation to States) Act, 2017
1. The GST Council in its 28th meeting held today at New Delhi has recommended
certain amendments in the CGST Act, IGST Act, UTGST Act and the GST
(Compensation to States) Act.
2. The major recommendations are as detailed below:
1. Upper limit of turnover for opting for composition scheme to be raised from Rs. 1
crore to Rs. 1.5 crore. Present limit of turnover can now be raised on the
recommendations of the Council.
2. Composition dealers to be allowed to supply services (other than restaurant
services), for upto a value not exceeding 10% of turnover in the preceding
financial year, or Rs. 5 lakhs, whichever is higher.
3. Levy of GST on reverse charge mechanism on receipt of supplies from
unregistered suppliers, to be applicable to only specified goods in case of certain
notified classes of registered persons, on the recommendations of the GST
4. The threshold exemption limit for registration in the States of Assam, Arunachal
Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand to be increased
to Rs. 20 Lakhs from Rs. 10 Lakhs.
5. Taxpayers may opt for multiple registrations within a State/Union territory in
respect of multiple places of business located within the same State/Union
6. Mandatory registration is required for only those e-commerce operators who are
required to collect tax at source.
7. Registration to remain temporarily suspended while cancellation of registration is
under process, so that the taxpayer is relieved of continued compliance under the
8. The following transactions to be treated as no supply (no tax payable) under
a. Supply of goods from a place in the non-taxable territory to another place
in the non-taxable territory without such goods entering into India;
b. Supply of warehoused goods to any person before clearance for home
c. Supply of goods in case of high sea sales.
9. Scope of input tax credit is being widened, and it would now be made available in
respect of the following:
a. Most of the activities or transactions specified in Schedule III;
b. Motor vehicles for transportation of persons having seating capacity of
more than thirteen (including driver), vessels and aircraft;
c. Motor vehicles for transportation of money for or by a banking company or
d. Services of general insurance, repair and maintenance in respect of motor
vehicles, vessels and aircraft on which credit is available; and
e. Goods or services which are obligatory for an employer to provide to its
employees, under any law for the time being in force.
10. In case the recipient fails to pay the due amount to the supplier within 180 days
from the date of issue of invoice, the input tax credit availed by the recipient will
be reversed, but liability to pay interest is being done away with.
11. Registered persons may issue consolidated credit/debit notes in respect of multiple
invoices issued in a Financial Year.
12. Amount of pre-deposit payable for filing of appeal before the Appellate Authority
and the Appellate Tribunal to be capped at Rs. 25 Crores and Rs. 50 Crores,
13. Commissioner to be empowered to extend the time limit for return of inputs and
capital sent on job work, upto a period of one year and two years, respectively.
14. Supply of services to qualify as exports, even if payment is received in Indian
Rupees, where permitted by the RBI.
15. 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, to be outside India.
16. Recovery can be made from distinct persons, even if present in different
17. The order of cross-utilisation of input tax credit is being rationalised.
3. These amendments will now be placed before the Parliament and the legislature of
State and Union territories with legislatures for carrying out the amendments in the
respective GST Acts.