TLDR;
This video provides a rapid review of key GST amendments relevant for the CA Inter exams. It covers changes in definitions, negative list inclusions, reverse charge mechanism, place of supply rules, exemptions, ITC amendments, tax invoice rules, e-way bill rules, and time of supply provisions. The speaker emphasises the importance of these amendments for scoring well in the exam and directs students to additional resources for detailed understanding.
- Updates to the definition of GST to include pure form of liquor.
- Inclusion of co-insurance and re-insurance in the negative list under Schedule III.
- Changes in reverse charge applicability for sponsorship services and renting of commercial properties.
- Amendments related to Input Tax Credit (ITC) for automobile dealers.
- Modifications in e-way bill rules for unregistered persons.
GST Definition Amendment [1:23]
The definition of GST has been updated to include "pure form of liquor," specifically undenatured extra neutral alcohol and rectified spirit. GST is not applicable if these are used in the manufacturing of alcoholic liquor for human consumption; however, GST will apply if used for industrial purposes. This amendment clarifies the tax treatment of these substances based on their end use.
Negative List Amendments: Schedule III [2:19]
Amendments to Schedule III, specifically the addition of paragraphs 9 and 10, address co-insurance and re-insurance scenarios. The key point is that GST is not applicable on premiums in co-insurance cases where the lead insurer has already paid GST on the full premium. Similarly, GST is not applicable on seeding commissions in re-insurance arrangements, as these are now covered under Schedule III.
Reverse Charge Mechanism Amendments [5:01]
The reverse charge mechanism has been amended for sponsorship services. Previously, it applied to any person providing sponsorship services. Now, if a body corporate provides sponsorship services, forward charge applies; otherwise, reverse charge applies when a non-body corporate provides services to a body corporate or partnership firm. Additionally, for renting commercial properties, reverse charge applies when an unregistered person rents to a registered person, excluding those under Section 10 (composition scheme).
DDA as Local Authority [6:01]
The Delhi Development Authority (DDA) is not to be treated as a local authority under GST. This clarification means that any case studies involving DDA should exclude it from the local authority definition, affecting its GST treatment.
Place of Supply Amendment for Online Services [6:18]
For online shopping, if the customer is unregistered, the invoice must include the customer's state. The place of supply will be the customer's state as mentioned on the invoice, and GST will be applied accordingly. This amendment ensures proper state-wise taxation for online services to unregistered customers.
Exemption Amendments [6:57]
Several minor amendments have been made to exemptions. A new service has been added, exempting services provided by trainers or partners approved by the National Skill Development Corporation, such as mobile repair, tailoring, and beauty treatment services. Additionally, money going into an accident fund from insurance premiums is now GST exempt, while the remaining premium is still taxable.
Municipal Corporation Services [8:45]
Services taken by Municipal Corporations for office maintenance (housekeeping, building maintenance, furniture) are subject to GST. However, services related to municipal functions like garbage collection, water supply, street lighting, and slum improvement are GST exempt.
ITC Amendment for Automobile Dealers [9:27]
For automobile dealers, Input Tax Credit (ITC) can be claimed when goods are handed over to the transporter at the factory gate, not upon receipt. However, ITC is blocked if the vehicle is used for non-business purposes or if goods are lost, stolen, destroyed, or disposed of as gifts or free samples.
Tax Invoice Amendment [10:31]
A new rule, 47A, has been inserted regarding self-invoicing under reverse charge. If the supplier is unregistered, the receiver must issue a self-invoice within 30 days from the date of service receipt. This amendment specifies the time limit for issuing self-invoices in reverse charge scenarios.
E-way Bill Amendment for Unregistered Persons [11:26]
The amendment mandates that unregistered persons transporting goods, including handicraft goods, must issue an e-way bill. A unique enrolment number will be generated for tracking the goods. This applies to both categories, making e-way bill issuance compulsory for all unregistered persons transporting goods.
Return Filing: GSTR-7 Amendment [12:49]
GSTR-7 must now be filed every month, even if no Tax Deducted at Source (TDS) was deducted. Previously, filing was required only if TDS was deducted. The due date remains the 10th of the following month, and filing can be done through the GST portal or GST Facilitation Centres.
Time of Supply Amendment [14:13]
For reverse charge cases where the receiver issues a self-invoice, the time of supply is the earlier of the date of payment or the date of invoice. This replaces the previous rule of payment date or 61st day, simplifying the determination of the time of supply in such cases.
Registration Amendments [15:48]
Even without Aadhaar authentication, GST registration is possible if certain documents are provided, including PAN card, passport-size photo, rent agreement, partnership deed, bank statement, and authorisation letter. Additionally, a temporary identification number can be granted to persons liable to pay GST but not liable for registration, such as in import or reverse charge cases. This number, issued in form GST REG-12 Part B, allows them to pay GST without normal compliance requirements.
