CENTRAL GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018
Section 5 - Amendment of section 10
Amendment to Section 10: Changes in Tax Calculation and Service Supply Limits
The amendment to Section 10 involves modifications to the principal Act concerning tax calculations and service supply limits. Firstly, in sub-section (1), the wording has been updated to specify that the tax payable will be calculated under sub-section (1) of Section 9, rather than a general tax payable. Additionally, the monetary limit in the proviso has been increased from one crore rupees to one crore and fifty lakh rupees. A new proviso has been added allowing individuals who opt to pay tax under specific clauses to supply services, excluding certain types, up to a value of 10% of their turnover in a State or Union territory in the previous financial year or five lakh rupees, whichever is greater. In sub-section (2), clause (a) has been revised to clarify that, except as provided in sub-section (1), the individual is not engaged in the supply of services. These changes aim to refine the tax calculation process and set clearer limits on service supply for those opting into the specified tax payment method.
Note: It is an AI generated summary for reference purpose only.
(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;”.
