Notifications and Circulars:
• 6 Central Tax and One Central Tax(rate); 3 Integrated tax and one Integrated tax(rate); 1 UTGST and 1 UTGST(rate) Notifications issued
• One CBIC circular issued
• Consequent to the GST Amendment Acts coming into force w.e.f 1st February, 2019, corresponding changes in CGST Rules, 2017, earlier circulars and notifications made
Coming into force of the GST (Amendment) Act of 2018:
• The provisions of the CGST (Amendment) Act, 2018, except section 8(b), section 17, section 18, section 20(a), section 28(b)(i) and 28(c)(i) shall come into force- w.e.f 1st February, 2019
• Section 28(b)(i) and 28(c)(i)… pertain to Transition Credit ( Section 140 of the CGST Act, 2017)
• All provisions of IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2017 and GST (Compensation to State) Amendment Act, 2018 come into force w.e.f 1st February, 2019
Multiple Registrations:
• Separate registration requirement for SEZ unit or developer incorporated in the Act itself in section 25
• Earlier reference to requirement of separates business verticals for separate registration removed; Definition of Business Vertical in section 2(18) has been omitted
• Corresponding Changes made in the CGST Rules
• Conditions for separate registration specified in Rule 11 of the CGST Rules, 2017
• Rule 11 of the CGST Rules, 2017: Any person having multiple places of business within a State or a Union territory, requiring a separate registration for any such place of business to be granted separate registration
• Such person shall not pay tax under section 10 for any of his places of business if he is paying tax under section 9 for any other place of business
• Any place of business of a registered person that has been granted a separate registration becomes ineligible to pay tax under section 10, all other registered places of business of the said person shall become ineligible to pay tax under the said section
• Rule 41A inserted in CGST Rules, 2017
• A registered person who has obtained separate registration for multiple places of business in accordance with the provisions of rule 11 and who intends to transfer, either wholly or partly, the unutilised input tax credit lying in his electronic credit ledger to any or all of the newly registered place of business
• Input tax credit can be transferred to the newly registered entities in the ratio of the value of assets held by them at the time of registration
• Transferor needs to submit details in FORM GST ITC-02A with in 30 days of obtaining registration and the transferee has to accept the same
Suspension of registration:
• Section 29- During pendency of the proceedings relating to cancellation of registration, the registration may be suspended for such period and in such manner as may be prescribed.
• Where a registered person applies for cancellation of registration under rule 20, the registration shall be deemed to be suspended from the date of submission of the application or the date from which the cancellation is sought, whichever is later, pending the completion of proceedings for cancellation of registration
• In case of proceeding for cancellation initiated by dept, the proper officer, may, after giving hearing, suspend the registration w.e.f date to be determined by him
• No supply can be made during suspension period; No returns required to be filed
• The intent of the said amendment is to ensure that a taxpayer is freed from the routine compliances, including filing returns, under GST Act during the pendency of the proceedings related to cancellation
• Accordingly, the field formations may not issue notices for non- filing of return for taxpayers who have already filed an application for cancellation of registration under section 29 of the CGST Act. Further, the requirement of filing a final return, as under section 45 of the CGST Act, remains unchanged.
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