CGST Amendment Act 2018- Series 6


Following are the Key amendments in Section 16, 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.

 Amendment in Explanation to Section 16 (2)(b) on Eligibility and conditions for taking input tax credit

“Explanation.—For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services––

(i) where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods,either by way of transfer of documents of title to goods or otherwise;

(ii) where the services are provided by the supplier to any person on the direction of and on account of such registered person.”;

With this amendment the facility of deemed receipt is extended to the services also. Where the services are provided to any person on direction of the recipient, then the same is deemed to be have been received by the recipient and input tax credit can be claimed. Earlier this was limited to goods only.

Further Section 16(2)(C) amended to add new set of provisions under section 43A to facilitate filing of returns, the input tax credit is made subject to filing of the return under said new provision.


Posted on 29/01/2019
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