28 Jan 2019Posted By: Mudit Handa

GST (Amendment) Act 2018 to be effective from 1st February

The GST regime has indeed completed a successful year and has brought about remarkable fiscal consolidation besides great ease of doing business. During this financial year, the GST council had also proposed the Central government to make amendments the GST Acts with a view to revise certain provisions under GST and make them more lucid for the taxpayers having GST registration. These include the long-awaited new GST return filing procedure, the Reverse Charge Mechanism (RCM) which was “partially suspended” till 30th September 2019, availing of the Input Tax credit and so on.

The GST Council had successfully drafted 4 amendment bills to the CGST Act-2017,  IGST Act-2017, UTGST Act-2017 and GST (Compensation to States) Act-2017. These were tabled on 7th August 2018. The GST amendment bills are given below:

  • CGST (Amendment) Bill 2018
  • IGST (Amendment) Bill 2018
  • UTGST (Amendment) Bill 2018
  • GST (Compensation to States) Amendment Bill 2018


These 4 Amendment Bills have been passed as GST Amendment Acts and will be brought into effect from 1st February 2019.


#1. When will the amendments to the GST Act be made effective?

The 4 crucial amendment bills of GST law, that were proposed by the GST council were consented by the Honourable President of India on 29th August 2018. These were published in the official Gazette of India on 30th August 2018 as-

  • CGST (Amendment) Act 2018
  • IGST (Amendment) Act 2018
  • UTGST (Amendment) Act 2018
  • GST (Compensation to States) Amendment Act 2018

These 4 Amendment Acts will be implemented with effect from 1st February 2019. To enhance the ease of understanding of the taxpayers having GST registration, the 4 GST Amendment Acts have been summarized below.


#2. What are the amendments made in the CGST (Amendment) Act 2018?

The government has introduced a total 32 amendments in the CGST Act-2017. The crucial amendments are listed below-

  • Section 2(4): The “Central Board of Excise and Customs”, shall be renamed as “Central Board of Indirect Taxes and Customs.
  • Section 9(4): It seeks to revive the Reverse Charge Mechanism under GST. The government may specify the class of registered persons, who shall pay GST on reverse charge basis for the supplies received from registered suppliers.
  • Section 10(1): It seeks to raise the threshold limit of the annual turnover taxpayer for getting GST registration under the composition scheme to ₹1.5 crores from ₹1 crore. Additionally, it will enable the dealers having GST registration under composition scheme to render services (except restaurant) for value up to 10% of their turnover in the previous fiscal year, or ₹5 lakhs, whichever is more.
  • Section 29: This shall amend the phrase “Cancellation of GST registration”, wherein there will be an option for temporary suspension of GST registration upon application for cancellation of GST registration till final cancellation.

Refer to .



#3. What is special about IGST (Amendment) Act 2018?

4 amendments are made in the IGST Act 2017, which are given below:

  • Section 5: It seeks to notify categories of persons having GST registration who have to pay GST on RCM basis with regard to receipt of specific supplies from unregistered dealers (URD).
  • Section 12: It seeks to notify that in case goods are transported outside India, the place of destination of such goods shall be the place of the supply itself.
  • Section 17: It seeks to provide for the settlement of IGST balance amount equally under CGST & SGST heads.
  • Section 20: This states the correct amounts of pre-deposit payable for filing appeals before-
  • The Appellate Authority–– ₹50 crores
  • The Appellate Tribunal–– ₹100 crores.

Refer to 


#4. How is UTGST Act 2017 amended?

3 amendments have been made in IGST Act 2017, which are as follows:

  • Section 7: It seeks to notify classes of having GST registration who have to pay GST on RCM basis as regards receipt of specified supplies from URD.
  • Section 9: This shall provide that ITC on account of the UTGST shall be used for settlement of IGST liability only if the balance of input tax credit of CGST is not available for the same.
  • Besides, sections 9A and 9B have been introduced for “Utilization of input tax credit” and “Order of utilization of input tax credit” respectively.

Refer to .


#5. What is there in the GST (Compensation to States) Act 2018?

Only 2 amendments are introduced in IGST Act 2017. These are given below:

  • Section 10(3A): New subsection is added to provide that any amount in the Compensation Fund that is unutilized shall be distributed between CGST & SGST heads anytime during FY.
  • Section 5: In case of any Compensation Fund deficit against the actual requirement, it shall be released u/s 7 for 2 months’ period anytime during the year at 50% of the requirement. However, this should not go beyond the total Compensation amount transferred to Centre & States.

This shall be recovered from the Centre and the balance 50% will be recovered from the States in proportion with the determined base year revenue.

Refer to  .


If you need any guidance on GST registration, or GST return filing procedure feel free to contact our business advisor at 8881-069-069.

Now you can also Download E-Startup Mobile App and Never miss the latest updates relating to your business.

Give a Reply

Fill up the form

E-startupIndia Mobile App


Download our free Android App and get realtime update on your order status.
Easily connect with our professionals handling your order over chat & mobile.
Never miss business compliances due date with advance notifications.

Get E-startupIndia in your mobile

Why Choose Us

e-startupindia member of GOOGLE

Serving business owners with an Average 4.8+ Google Rating.

e-startupindia certified #AxixBank

Trusted by Axis bank to cater its clients all licensing & compliance needs.

e-startupindia NG Alliance Partner

Providing lending solutions for business needs with NeoGrowth.

e-startupindia Google Partner

Open Neo bank account worldwide & provides cross-border remittance solutions.

e-startupindia member of CII

E-startupindia is a Proudly Member of Confederation of Indian Industry.The CII is a premier business association in India which works to create an environment.

e-startupindia certified #Etstartupindia

E-Startup India is duly certified under GOI's Startup India scheme and is renowned for our tech-driven solutions for business & legal services requirements for MSMEs.

e-startupindia Google Partner

E-Startup India is a Google Partner, which implies we are rigorously involved in assisting SME businesses to market their presence in the digital world.

Popular Services

Private Limited Company | Public Limited Company | One Person Company | Limited Liability Partnership | Partnership Firm | Sole Proprietorship Firm | Section 8 Company Registration | USA Company Registration | UK Company Registration | UAE Company Registration | Singapore Company Registration | Company Registration Hong Kong | Import Export Code | IEC Modification | AD Code Registration | Spice Board Registration | US FDA Certification | ISO 9001 2015 | ISO 14001 EMS | ISO 22000 FSMS | ISO 27001 ISMS | ISO 50001 Energy Management | ISO 45001 | ISO Surveillance | ISO Certification | MSME Registration | FSSAI Registration | Shop Establishment Registration | Barcode Registration | Coffee Board Registration | Startup India Certificate | ZED Certification | Trademark | Trademark Objection Reply | Trademark Opposition | Trademark Hearing | Trademark Formality Check Fail | Website Development | Patent | Copyright | Design Registration | Business Name Suggestion | Logo Designing | Trademark Assignment Service | GST Registration | GST Modification | GST Cancellation | GST Return Filing | GST Invoice Software | UIN Registration | Income Tax Return | Income Tax Notice | Income Tax Refund | Income Tax Assessment | TDS Return Filing | Form 15CA / CB | Professional Tax Registration | 12A and 80G Registration | FCRA Registration | CSR Registration | Project Report | Pitch Deck | Seed Fund Startup India | Accounting for Ecommerce | Virtual cfo services in india | Bookkeeping & Accounting | Private limited Company Annual Compliance | Form INC-22A | Form 15CA / CB | Company Strike Off | Commencement of Business | Fssai annual return | Online CA Consultancy | Income Tax Return Filling | LLP Annual Compliances | Form DIR-3 KYC | Virtual Office for Company Registration |


  • e-startupindia South Asia's Leading Multimedia News Agency
  • Business Standard
  • e-startupindia Outlook
  • e-startupindia Htmedia
  • e-startupindia Yahoo News
  • e-startupindia New Delhi Times
  • e-startupindia India.com
  • e-startupindia IBTN9