The Central Government last day released a list of draft proposals to amend Goods and Services Tax ( GST ) Laws. The draft contains 46 amendments in the present CGST, IGST, and SGST/UTGST and Compensation of Sales Acts. The public can raise their suggestions and concerns till 15th July, the Government said in a statement.
The draft proposals include amendment in Central Goods and services tax Act wherein the Government will allow the employers to claim input tax credit on food, transport and insurance facilities provided to the employees under any law.
Recently, there were controversies following some Advance Rulings delivered by different States wherein these authorities took a stand not favouring the employee/employees. Hence, this was a much needed amendment.
The amendments, among other things, provide for modification of reverse charge mechanism, separate registration for companies having different business verticals, cancellation of registration, new return filing norms and issuance of consolidated debit/credit notes covering multiple invoices.
Through the amendments, the government seeks to clarify that, but for the specific exemptions, ITC will not be available on supply of food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, renting or hiring of motor vehicles, vessels and aircraft, life insurance and health insurance.
Similarly, it would also not be available on membership of a club, health and fitness centre, and travel benefits extended to employees on vacation such as leave or home travel concession.
“Provided that the input tax credit in respect of such goods or services or both shall be available, where the provision of such goods or services or both is obligatory for an employer to provide to its employees under any law for the time being in force,” the draft amendments said.
It further said that ITC will be available on motor vehicles with a capacity of over 13 passengers.
The draft proposals also contains that the e-commerce companies will not have to seek registration under GST provided their annual turnover is less than Rs 20 lakh and are not required to collect tax at source under Section 52.
“This is a taxpayer-friendly measure. Small e-commerce operators who are not required to collect tax at source under section 52 would now be eligible for availing the threshold exemption limit benefit for registration purposes,” the government had said while giving rationale for the amendment.
Once the amendments are finalised by the revenue department, they will be moved to the GST Council for approval, following which, they will be placed before Parliament and state legislatures for amending the GST law.
