The GST Council has released a set of draft amendments in the CGST Act, IGST Act and GST (Compensation to States) Act for public comments, which are requested to be submitted by 15 July, 2018. The significant amendments proposed and its impact are described in this tax insight.
Amendments in definitions
It is a welcome step to invite public comments for the proposed amendments in the GST law. The amendments such as amendment in definition of supply, widening of credits on vehicles and restricting reverse charge liability for procurements from unregistered vendors to specified set of persons are welcome. The industry will be disappointed on provisions relating to restriction on transfer of credit balance. The proposed amendments do not include some of the amendments which were already highlighted to the GST Council such as the taxability of services deemed to be provided by the branch offices to foreign offices/ parent entity. It would be interesting to see which provisions are proposed to be given retrospective effect and which come into force prospectively.
Bildquelle: Katharina Wieland Müller / Pixelio.de