The document summarizes key changes made to GST bills introduced in the Lok Sabha. Some of the key points include: - GST will not apply to the state of Jammu and Kashmir. Certain supplies by employers to employees up to Rs. 50,000 will also be exempt. - Sale of land and existing buildings will not be considered supply of goods or services except for under-construction buildings. - The upper limit of GST rates has been increased to 20% for CGST and 40% for IGST. - Composition scheme has been expanded to the restaurant sector at 2.5% and reduced rates for manufacturers and traders.

1. Page 1 Dewan P.N. Chopra & Co.| Chartered Accountants
Gist of changes in the GST bills introduced in Lok Sabha on March 27, 2017.
 GST Law is not applicable to the State of Jammu & Kashmir
 Any supply of goods or services by employer to his employees without any
consideration would not fall under GST ambit upto a limit of Rs. 50000/-
 Sale of land and, sale of building will neither be treated as a supply of goods
nor as a supply of services except the sale of under construction building.
 Actionable Claim, other than lottery, betting and gambling will neither be
treated as a supply of goods nor a supply of services.
 Upper cap of GST rate has been revised from 14% to 20% in case of CGST
Law, and from 28% to 40% in case of IGST Law.
 GST shall be levied on Reverse Charge in case of supply of taxable goods or
services or both by an unregistered dealer to a registered person.
 Restaurant Sector has now been covered under Composition Scheme with a
composition rate of 2.5%. Further, Composition rate has been reduced from
2.5% to 1% for manufacturers and from 1% to 0.50% for traders.
 Now, the Time of Supply of Services shall be earlier of following dates:
a) Earlier of the date of issue of invoices or the date of receipt of payment, f
the invoice is issued within the period prescribed,
b) Earlier of the date of provision of services, or the date of receipt of
payment, if the invoice is not issued within the period prescribed,
c) The date on which the recipient shows the receipt of services in his books
of accounts, in a case where aforesaid clause (a) or (b) does not apply.
 If a recipient fails to pay to the supplier of goods and / or services, the
amount towards the value of supply of goods or services along with taxes
thereon within a period of 180 days from the date of issue of invoice, ITC
availed thereon is required to be paid along with interest thereon. Further

2. Page 2 Dewan P.N. Chopra & Co.| Chartered Accountants
provision has also been made for reavailing the credit reversed earlier at the
time of actual payment.
 Credit of Rent-a-cab, life insurance, and health insurance allowed, if used
for making an outward taxable supply of same category or as a part of
taxable composite or mixed supply.
 The demand of centralized registration by large service providers seems to
be rejected and registration shall be required to be taken in every State from
where supply of goods and /or services is made.
 ITC on pipeline outside factory premises and telecommunication towers
shall not be available even if used in the course or furtherance of business.
 Now a registered person, whose aggregate turnover in the preceding
financial year did not exceed Rs. 50 Lakhs, may OPT to pay under
composition scheme without any requirement to seek permission from the
proper officer.
 The Compensation Law provides for levy of cess over and above the peak
rate on paan masala, tobacco, aerated waters, luxury cars and coal.