The government has proposed as many as 46 amendments to the Goods and Services Tax (GST) Law. Some of the issues for which amendments have been moved are 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.
The government has invited stakeholders comments on the draft proposals for amending GST Law by July 15, 2018.
Once the amendments are finalised by the revenue department, they will be moved to the GST Council for approval. After that, they will be placed before Parliament and state legislatures for amending the GST law. As per the draft amendments, employers will be allowed to claim input tax credit (ITC) for supply of food, beverages, health services, life insurance, travel benefits renting or hiring of motor vehicles, given to employees, provided it is obligatory for them under any law.
The tax credit will 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.As per the amendments, 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 said.
With inputs from PTI