CGST Amendment Act 2018- Series 4

Following are the Key amendments in Section 10, of the CGST Act 2017, amended vide CGST Amendment Act 2018 for which assent was given by President of India on 30th August 2018, but the provisions are expected to be notified on 1st February 2019.

1. New Insertions in Sub section (1) to make composition levy applicable only to output supplies as per Section 9(1). The object of this amendment may be make this clear.

2. Proviso to Sub section (1) amended to increase the aggregate turnover limit of for become eligible for Composition levy to Rs 1.50 Crores.

3. New Proviso to Subsection (1) inserted

“Provided further that a person who opts to pay tax under clause (a) or clause (b) or clause (c) may supply services (other than those referred to in clause (b) of paragraph 6 of Schedule II), of value not exceeding ten per cent. of turnover in a State or Union territory in the preceding financial year or five lakh rupees, whichever is higher.”;

By this amendment Composition levy is made applicable to Service providers also (other than Restaurant Services.) However it is limited only to the highest of the following:

1. The value of such services in the preceding financial year is less than 10% of the Turnover of preceding year in that state or
2.  Rs 5,00,000.

It can be inferred that, this amendment is applicable only for those supplies, which are either composite supplies or Mixed supplies, whose tax liability has to determined in accordance with the provisions of Section 8.