Section 1, 2, 7, 9 and 10 of The Central Goods and Services Tax (Amendment) Act, 2018

Section 1. Short title and commencement

1. (1) This Act may be called the Central Goods and Services Tax (Amendment) Act, 2018.

(2) Save as otherwise provided, the provisions of this Act shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint:

Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.

Amendment of section 2 of Central Goods and Services Tax Act 2017

2. In section 2 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the principal Act),-

(a) in clause (4),-

(i) for the words "Central Board of Excise and Customs", the words "Central Board of Indirect Taxes and Customs" shall be substituted;

(ii) for the words "the Appellate Authority and the Appellate Tribunal", the words, brackets and figures "the Appellate Authority, the Appellate Tribunal and the Authority referred to in sub-section (2) of section 171" shall be substituted;

(b) in clause (17), for sub-clause (h), the following sub-clause shall be substituted, namely:-

"(h) activities of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club; and";

(d) in clause (35), for the word, brackets and letter "clause (c)", the word, brackets and letter "clause (b)" shall be substituted;

(e) in clause (69), in sub-clause (f), after the word and figures "article 371", the words, figures and letter "and article 371J" shall be inserted;

(f) in clause (102), the following Explanation shall be inserted, namely:-
'Explanation.-For the removal of doubts, it is hereby clarified that the expression "services" includes facilitating or arranging transactions in securities;'.

Amendment of section 7 of Central Goods and Services Tax Act 2017

3. In section 7 of the principal Act, with effect from the 1st day of July, 2017,-
(a) in sub-section (1), -

(i) in clause (b), after the words "or furtherance of business;", the word "and" shall be inserted and shall always be deemed to have been inserted;

(ii) in clause (c), after the words "a consideration", the word "and" shall be omitted and shall always be deemed to have been omitted;

(iii) clause (d) shall be omitted and shall always be deemed to have been omitted;

(b) after sub-section (1), the following sub-section shall be inserted and shall always be deemed to have been inserted, namely:-

"(1A) where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II.";

(c) in sub-section (3), for the words, brackets and figures "sub-sections (1) and (2)", the words, brackets, figures and letter "sub-sections (1), (1A) and (2)" shall be substituted.

Amendment of section 9 of Central Goods and Services Tax Act 2017

4. In section 9 of the principal Act, for sub-section (4), the following sub-section shall be substituted, namely:-

"(4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both.".

Amendment of section 10 of Central Goods and Services Tax Act 2017

5. In section 10 of the principal Act,-
(a) in sub-section (1) -
(i) for the words "in lieu of the tax payable by him, an amount calculated at such rate", the words, brackets and figures "in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate" shall be substituted;

(ii) in the proviso, for the words "one crore rupees", the words "one crore and fifty lakh rupees" shall be substituted;

(iii) after the proviso, the following proviso shall be inserted, namely:-

"Provided further that a person who opts to pay tax under clause (a) or clause (b) or clause (c) may supply services (other than those referred to in clause (b) of paragraph 6 of Schedule II), of value not exceeding ten per cent. of turnover in a State or Union territory in the preceding financial year or five lakh rupees, whichever is higher.";

(b) in sub-section (2), for clause (a), the following clause shall be substituted, namely:-

"(a) save as provided in sub-section (1), he is not engaged in the supply of services;".