Finance Bill, 2025 visavis GSTCA. Satyadev Purohit

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The Tax Publishers GST--Finance Bill, 2025 Finance Bill, 2025 vis-a-vis GST CA. Satyadev Purohit The learned author seeks to make an overview of various amendments proposed to be made by the Finance Bill, 2025 vis--vis GST regime. 1. Introduction In the 55th GST Council meeting held on 21-12-2024, the GST Council had recommended to make various changes in the substantive as well as procedural provisions relating to GST. Pursuant to the recommendation of the GST Council, the Finance Bill, 2025, as presented by Hon`ble Finance Minister Mrs. Nirmala Sitaraman in the Lok Sabha on 1st February, 2025, proposes to make various amendments in the Central Goods and Services Tax Act, 2017 (in short "the CGST Act"). The nature and scope of the amendments and their implications are being discussed in what follows. 2. Amendment to definition of Input Service Distributor As per clause (61) of section 2 of the CGST Act, 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 of the said Act, is regarded as "Input Service Distributor". The Finance Bill, 2025 has proposed to amend clause (61) of section 2, effective from 1-4-2025, so as to provide that an office who receives tax invoices in respect of services liable to tax on reverse charge basis under sub-section (3) or sub-section (4) of section of IGST Act, shall also be regarded as input service distributor. 3. Amendment to definition of local authority Presently, as per sub-clause (c) of clause (69) of section 2 of the CGST Act, a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund, is regarded as a "local authority". SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Finance Bill, 2025

Finance Bill, 2025 vis-a-vis GST

CA. Satyadev Purohit

The learned author seeks to make an overview of various amendments proposed to be made by the Finance Bill, 2025 vis--vis GST regime.

1. Introduction

In the 55th GST Council meeting held on 21-12-2024, the GST Council had recommended to make various changes in the substantive as well as procedural provisions relating to GST.

Pursuant to the recommendation of the GST Council, the Finance Bill, 2025, as presented by Hon`ble Finance Minister Mrs. Nirmala Sitaraman in the Lok Sabha on 1st February, 2025, proposes to make various amendments in the Central Goods and Services Tax Act, 2017 (in short "the CGST Act"). The nature and scope of the amendments and their implications are being discussed in what follows.

2. Amendment to definition of Input Service Distributor

As per clause (61) of section 2 of the CGST Act, 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 of the said Act, is regarded as "Input Service Distributor".

The Finance Bill, 2025 has proposed to amend clause (61) of section 2, effective from 1-4-2025, so as to provide that an office who receives tax invoices in respect of services liable to tax on reverse charge basis under sub-section (3) or sub-section (4) of section of IGST Act, shall also be regarded as input service distributor.

3. Amendment to definition of local authority

Presently, as per sub-clause (c) of clause (69) of section 2 of the CGST Act, a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund, is regarded as a "local authority".