BEFORE
Part of Supply Definition
AFTER
Certain activities or transactions, when constituting a supply in accordance with the provisions of sub-section (1), shall be treated either as supply of goods or supply of services as referred to in Schedule II.
EFFECT
The intent of the Act was only for classification between goods or services once it was held to be a supply as per the first three clauses. To carry out this intention, a retrospective amendment was made in the definition of supply with effect from 1st July 2017
BEFORE
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.
AFTER
Import of services by a person from a related person or from any of his other establishments outside India, in the course or furtherance of business.
EFFECT
The provision has been amended so as to bring any unregistered person involved in import of services under the purview of GST if carried out in the course or furtherance of business from a related person or an or any of their other establishments outside India. Such person is now liable to register and pay taxes on such import of services
BEFORE
Clause 1-6
AFTER
1) Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into the taxable territory.
2) (a) Supply of warehoused goods to any person before clearance for home consumption.
(b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption.
EFFECT
Earlier, these transactions were covered vide the definition of supply. However, they were not leviable to tax under the IGST Act which requires the chargeability only as per the Customs law. So, they were considered as Non-GST supply.
These resulted in reversal of input tax credit as the outward supply was considered as exempt in nature (exempt covers Non-GST supply)
BEFORE
The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
AFTER
The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of taxable goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
EFFECT
Only a notified class of registered taxpayers are purported to be covered by this substituted section now. This will bring a huge sigh of relief to those registered taxpayers who will now be outside the scope of this section.
Limit
- Enhanced threshold of INR 1.5 crores and
Scope
Provided further that a person who opts to pay tax under Compositionmay supply services of value not exceeding ten percent (10%) of turnover in the preceding financial year in a State or Union territory or five lakh rupees,
whichever is higher.
Time of Supply of goods and services
To ensure that the invoice is required before removal of goods in all possible situations envisaged in Section 31 and not just 31(1) or 31(2) 12(2) & 13(2) of the CGST Act.