GST DUNIYA. (Part – 9)

GST DUNIYA. (Part – 9)

Hope you had read the previous parts of the GST Duniya series, if not, then read it from here:

Part 1  Part 2 Part 3 Part 4 Part 5 Part 6 Part 7 Part 8

Today we will discuss about the Amendments in GST.


As we all know GST has been rolled out from july 1,2017. So for its better implementation, various meetings had taken place and some important decisions which were taken in these meetings are explained below:

  • Update About Composition Scheme :

Composition Levy (SECTION 10)

In terms of section 10(1), a registered person whose aggregate turnover in the preceeding financial year did not exceed rs.75 lakhs may opt to pay amount(note that it is not a tax which a person is required to pay),in lieu of tax payable in normal scenario but is shall not exceed following % of turnover in state or in union territory:

  1. 2% of turnover in case of manufacturer
  2. 5% of turnover in case of restaurant services (excluding alcohol)
  3. 1%in case of others.


Previously in part 4 of GST Series ,we mentioned that above threshold limit was Rs 50 lakhs.For giving relief to traders, now this limit has been increased to Rs 75 lakhs Which means if a registered person is having turnover of Rs 75 lakhs in previous year,may opt for composition scheme.

Please Note: The lower limit of Rs. 50 Lakh is applicable for the states of Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim & Himachal Pradesh.

The above mentioned Composition scheme shall not be granted to a taxable person

  1. Who is engaged in supply of taxable services except restaurant services
  2. Who supplies any goods which are not leviable to tax under CGST act
  3. Who makes any inter state outward supply of goods.It means businesses having only intra state supply of goods are eligible.
  4. Who makes any supply of goods through an electronic commerce operator and that operator is required to collect tax at source.(for e.g. if M/S XYZ is making sales through Snapdeal, then M/S XYZ is not eligible for this scheme)
  • HSN Codes-Notification 12/2017: Next Important update is about HSN codes:

Every registered person with turnover more than 1.5 crores must mention the HSN Codes in each and every invoice.

However, the numbers of digits to be mentioned in the Invoice depends on the annual turnover in the preceding financial year.

If turnover in previous year is upto rs 1.5 crores,then no HSN required

If turnover in previous year is more than 1.5 crores but upto rs 5 crores, then 2 digits HSN is required.

If turnover is more than rs 5 crore,then 4 digits HSN is required.

This is effective from 1st July, i.e., all invoices from 1st July must be GST compliant and have details of HSN codes.

The same notifications have also been made under IGST.


  • Employer’s Gifts to Employee Will No Longer be Taxed under GST:

Earlier when employer gives any goods to employee without consideration,means if employer provides any gift to employee then it was considered as supply of goods and accordingly,gst levied.But after amendment if employer is giving any gift to any particular employee upto rs 50,000,then it shall be exempt and if gift exceed rs 50,000 then gst shall be levy.

  • UTGST: Union Territory Goods and Service Tax

Earlier in GST regime, Three kinds of taxes are involved i.e.

  1. CGST : Central Goods and Service Tax
  2. SGST: State Goods and Service Tax
  3. IGST: Integrated Goods and Service Tax

But now another kind of tax comes into force i.e. UGST

So, As per GST law;Now total four kind of taxes are there in this regime:

  1. CGST : Central Goods and Service Tax
  2. SGST: State Goods and Service Tax
  3. IGST: Integrated Goods and Service Tax
  4. UTGST: Union Territory Goods and Service Tax

As we know that CGST and SGST levy on Intra state supply and IGST levy on Inter State Supply. And we know that In India, A union territory is directly under the governance of the Central Government. This differentiates them from the states, which have their own elected governments. Currently, there are 7 union territories in India:

  1. Chandigarh
  2. Lakshadweep
  3. Daman and Diu
  4. Dadra and Nagar Haveli
  5. Andaman and Nicobar Islands
  6. Delhi
  7. Pondicherry

Among these, Delhi and Pondicherry have their own legislature, with elected members and a Chief Minister. Hence, they function as semi-states.

But there was a point that what will then apply on supplies in union territory. Here is the answer:

If Supply between two states: IGST shall apply

If supply is within a state: CGST plus SGST shall apply

If supply is within a union territory, then UTGST plus CGST shall apply.

For example: If a seller of Daman and Diu is supplying goods in Daman and Diu,then UTGST will apply. Provisions of UTGST are same as SGST.

GSTIN must be displayed on sign boards:

Traders and businesses will have to display the goods and services tax (GST) registration number on their business sign boards and the registration certificate on the premises.

Also, composition dealers will have to mention that they are availing the composite scheme and are not entitled to collect taxes from people. “Every taxable person is required to display his Goods and Services Taxpayer Identification Number (GSTIN) on name board or sign board of business and is also required to display his registration certificate in business premises so that a citizen can easily find out whether a person is registered or not,” a tax official said.

Here Part 9 of GST series ends. For more information regarding GST, stay connected with us.

In case of any query related to above article, the questions can be asked by commenting in the comment box or the author can be contacted personally at or 

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