Western India Regional Council of
The Institute of Chartered Accountants of India

Law Update Details

March 2019 CA. Rajiv Luthia

CBIC vide Notification No. 1/2019-CT dated 15th January, 2019 has inserted condition against serial number 1 of column 2 of notification 48/2017-CT dated 18th October, 2017 that a registered person who has supplied goods against advance authorization needs to obtain certificate from CA & submit the same to jurisdictional commissioner of GST within 6 month of such export if ITC has been availed on inputs used in manufacture & supply of such taxable goods meant for exports.

Further, Condition of “Pre-import basis” has been removed from definition of Advance authorization.

CBIC vide Notification No. 2/2019-CT dated 29th January, 2019 appoints 1st February, 2019 as date on which the provision of CGST (Amendment) Act, 2018 shall come into force except following

Clause of CGST (Amendment) Act, 2018

Corresponding Section No. of CGST Act, 2017




39(1), 39(7) & 39(9)






Explanation 1 to 140


Explanation 2 to 140

CBIC vide Notification No. 3/2019-CT dated 29th January, 2019 made following amendment in CGST Rule, 2017 w.e.f. 1st February, 2019

Rule 7 is amended to expand the scope & coverage of composition levy to Taxable supply of service also besides supply goods.

Rule 8 required that units in SEZ or SEZ developer shall make separate application for registration as a business vertical distinct from its other unit outside the SEZ within same state. Correspondingly, second Provision is inserted to section 25(1) whereby separate registration to be obtained by entity for its SEZ unit/ SEZ Developer as well for unit located outside same state or union territory.

Rule 11 has been substituted thereby separate registration is permitted to assessee for each place of business within a state or union territory subject following condition

1) Assessee will not be permitted to discharge tax under composition scheme for each registration provided he is paying tax under section 9 (Normal Levy) for any other POB.

2) Such assessee has more than 1 place of business as defined in Section 2(85).

Correspondingly proviso to section 25(2) is substituted for giving effect of above amendment.

Further Rule 41A has been inserted whereby unutilised ITC of assessee having common registration in a state & opted for multiple registration, may transfer unutilised ITC to new registered entities in the ratio of asset held by them at the time of registration.

Rule 21A has been inserted where registered person applied for cancellation of registration , the registration shall deemed to be suspended from the date of application for cancellation or date from which cancellation is sought whichever is later, subject to completion of proceeding under Rule 22.

Proper officer having reason to believe that registration of person is liable to be cancelled then he may after giving reasonable opportunity of being heard suspend the registration from the date determined by him subject to completion of proceeding under Rule 22.

Further, where registration has been suspended, registered person shall not make any taxable supply during the period of suspension.

The suspension of registration shall deemed to be revoked on completion of proceeding under rule 22 & revocation shall have effect from date of suspension.

Explanation to Rule 42 & 43 is amended thereby for the purpose of aggregate turnover, any taxes or duties on goods or services other than newspaper as covered under entry 92A list I to schedule VII of constitution of India shall be excluded.

Rule 53 has been amended for rationalising the particulars required to be filled in Revised Invoice & Debit and credit note.

Rule 80 has been amended to provide that Annual return is not required to be filed by any department of the CG/SG/local authority, whose books of account are subject to audit by the CAG or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force.

Rule 85 & 86 has been amended to provide the manner of Utilisation of ITC as stated in Section 49A & 49B. The ITC of IGST has to be mandatorily utilised first towards discharge of liability in the order of IGST, CGST, SGST or UGST.

Rule 89(2)(f) regarding refund of GST has been substituted whereby declaration to be submitted by the person claiming refund that he has not collected any tax from SEZ or SEZ developer. Correspondingly Section 54(8)(a) is amended thereby refund claim for supplies to SEZ unit/developer would be subject to principal of unjust enrichment.

Main heading of Rule 96A has been amended from “Refund of IGST on export of goods or service under Bond or LUT” to “Export of goods or service under bond or LUT”.

CBIC vide Notification No. 5/2019-CT dated 29th January, 2019 amended notification 8/2017-CT dated 27th June, 2017 whereby rate of composition scheme w.e.f. 1st Feb, 2019 is notified as specified in Rule 7. Correspondingly section 10 is amended suitably


Rate of Central Tax


0.5% of Turnover in State or UT

Restaurant Service

2.5% of turnover in state or UT

Other than supplier eligible for Composition levy

0.5% of taxable supplies of goods or services in state or UT

CBIC vide Notification No. 7/2019-CT dated 31st January, 2019 has extended the due date for furnishing FORM GSTR 7 (Return by person required to deduct TDS) for month of October, 2018 to December, 2018 till 28th February, 2019.

CBIC vide Notification No. 1/2019-CT (Rate) dated 29th January, 2019 rescind notification 8/2017-CT (Rate) dated 28th June, 2017 (exemption from RCM on supplies by unregistered person) in order to bring the effect of amendment made in CGST (Amended) Act, 2018.

CBIC vide circular no. 85/04/2019-GST dated 1st January, 2019 has clarified that Supply of food and beverages by an educational institution to its students, faculty and staff, where such supply is made by the educational institution itself, is exempt under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 under Sl. No. 66.

However, such supply of food and beverages by any person other than the educational institutions based on a contractual arrangement with such institution is leviable to GST@ 5%.

CBIC vide circular no. 87/06/2019-GST dated 2nd January, 2019 has clarified that CENVAT credit of service Tax paid under Section 66B of Finance Act, 1994 is available under transitional credit under section 140(1) of CGST Act & was never intended to be disallowed. The word amendment in provisions of section 140(1) and the explanations to section 140 need to be read harmoniously such that neither any provision of the amendment becomes otiose nor does the legislative intent of the amendment get defeated. The word “duties” is used interchangeably with the word “taxes” and in the present context, the two words should not be read in a disharmonious manner.


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