Finance Bill, 2024 visavis GSTCA. Satyadev Purohit

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The Tax Publishers GST--Finance Bill, 2024 Finance Bill, 2024 vis-a-vis GST CA. Satyadev Purohit The learned author seeks to make an overview of the amendments made by the Finance Act, 2024 under the Goods and Service Tax law. 1. Substitution of definition of "input Service Distributor" (i) Existing definition Clause (61) of section 2 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") defines the term "Input Service Distributor" as under: (61) "Input Service Distributor" means an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office; (ii) New Definition The Finance Act, 2024 has substituted clause (61) of section 2 of the CGST Act, with the following new definition, namely; '(61) "Input Service Distributor" means an office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25, and liable to distribute the input tax credit in respect of such invoices in the manner provided in section 20;" (iii) Implication of the amendment As per the new definition, the invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of the distinct persons would be also be eligible for distribution under section 20 of the CGST Act. 2. New manner of distribution of credit by Input Service Distributor (i) Old provisions The old provisions for distribution of input tax credit as specified under section 20 of the CGST Act read as under: 20. Manner of distribution of credit by Input Service Distributor.--(1) The Input Service Distributor shall distribute the credit of central tax as central tax or integrated tax and integrated tax as integrated tax or central tax, by way of issue of a document containing the amount of input tax credit being distributed in such manner as may be prescribed. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Finance Bill, 2024

Finance Bill, 2024 vis-a-vis GST

CA. Satyadev Purohit

The learned author seeks to make an overview of the amendments made by the Finance Act, 2024 under the Goods and Service Tax law.

1. Substitution of definition of "input Service Distributor"

(i) Existing definition

Clause (61) of section 2 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") defines the term "Input Service Distributor" as under:

(61) "Input Service Distributor" means an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office;

(ii) New Definition

The Finance Act, 2024 has substituted clause (61) of section 2 of the CGST Act, with the following new definition, namely;

'(61) "Input Service Distributor" means an office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25, and liable to distribute the input tax credit in respect of such invoices in the manner provided in section 20;"

(iii) Implication of the amendment

As per the new definition, the invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of the distinct persons would be also be eligible for distribution under section 20 of the CGST Act.

2. New manner of distribution of credit by Input Service Distributor

(i) Old provisions

The old provisions for distribution of input tax credit as specified under section 20 of the CGST Act read as under:

20. Manner of distribution of credit by Input Service Distributor.--(1) The Input Service Distributor shall distribute the credit of central tax as central tax or integrated tax and integrated tax as integrated tax or central tax, by way of issue of a document containing the amount of input tax credit being distributed in such manner as may be prescribed.