India: GST Amendments 1st February 2019

The Government has stated that from the 1st February 2019 various amendments to the GST statutes have come into force (with the exception of some specified provisions).

Some of the major amendments which will come into effect are summarised below.

• Assessees will be able to obtain multiple registrations in the same State for separate places of business, which was previously possible only for separate business verticals. The concept of business verticals for separate registrations has been done away with.
• The definition of supply has been retrospectively amended to provide that the activities listed in schedule II will be taxable only if there is an underlying supply, and the schedule is relevant only for classifying the supply between goods or services.
• The transactions of high sea sale, merchant trade, the supply of warehoused goods before clearance for home consumption and sale of actionable claims etc. will not require any reversal of common credits.
• Credit restrictions on motor vehicles relaxed to allow credit on motor vehicles for the transport of passengers having a seating capacity of 13+ persons, also on special purpose vehicles such as dumpers etc. Specific restrictions on credits pertaining to insurance, servicing & repair and maintenance for vehicles, vessels or aircraft ineligible for credit have been introduced. (This excludes the credits on in-warranty maintenance expense by manufacturers as well as credits on repairs etc. of vehicles by general insurance companies).
• A single credit/ debit note can be issued pertaining to multiple invoices.
• Transition credit of cesses has been specifically restricted.
• A service can be said to be exported, even if the consideration is received in Indian rupees wherever permitted by the Reserve Bank of India if other conditions for treating service as an export of services are fulfilled.
• The place of supply of services of transportation of goods, where the transportation of goods is to a place outside India, will be the place of destination of such goods when the location of the supplier and recipient of services are in India.

For further information on GST regulations in India, and how they may impact your business, contact our team today.

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