CGST Amendment Act 2018: Sections 24, 25, 29, 34, 35 and 39
The Central Goods and Services Tax (Amendment) Act, 2018 made important changes to the Central Goods and Services Tax Act, 2017 in relation to compulsory registration, separate GST registration, cancellation or suspension of registration, credit and debit notes, accounts and records, and furnishing of returns.
Overview of the 2018 amendments
| CGST Act provision | Subject | 2018 amendment in brief |
|---|---|---|
| Section 24 | Compulsory registration | Restricted the relevant electronic commerce operator category to an operator required to collect tax at source under Section 52. |
| Section 25 | Procedure for registration | Provided for separate SEZ registration and enabled separate registration for multiple places of business, subject to prescribed conditions. |
| Section 29 | Cancellation or suspension | Introduced statutory provision for suspension of registration while cancellation proceedings are pending. |
| Section 34 | Credit and debit notes | Permitted one or more credit or debit notes in relation to supplies made during a financial year. |
| Section 35 | Accounts and records | Inserted an audit-related proviso for specified Government departments and local authorities. Subsequent amendments to Section 35 should be checked for the current position. |
| Section 39 | Furnishing of returns | Enabled greater flexibility in prescribing return filing periods, timelines and related tax-payment requirements. |
Amendment of Section 24 - Compulsory GST Registration
Section 24 of the CGST Act deals with categories of persons who are required to obtain GST registration notwithstanding the general turnover-based registration provisions contained in Section 22, subject to the statutory provisions and exemptions applicable from time to time.
Section 12 of the Central Goods and Services Tax (Amendment) Act, 2018 amended clause (x) of Section 24.
Effect of the amendment
The amendment linked the compulsory-registration provision applicable to an electronic commerce operator under clause (x) with the obligation to collect tax at source under Section 52 of the CGST Act.
Amendment of Section 25 - Procedure for GST Registration
Section 25 of the CGST Act prescribes the statutory procedure for registration of persons who are liable, or who elect voluntarily, to obtain registration under GST.
Section 13 of the CGST (Amendment) Act, 2018 made two significant changes to Section 25.
Separate registration for an SEZ unit or SEZ developer
In sub-section (1), the following proviso was inserted:
"Provided further that a person having a unit, as defined in the Special Economic Zones Act, 2005, in a Special Economic Zone or being a Special Economic Zone developer shall have to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the same State or Union territory."
The amendment therefore requires the SEZ establishment to have a registration distinct from the person's place of business situated outside the SEZ in the same State or Union territory.
Separate registration for multiple places of business
In sub-section (2), the proviso was substituted to provide:
"Provided that a person having multiple places of business in a State or Union territory may be granted a separate registration for each such place of business, subject to such conditions as may be prescribed."
This broadened the statutory facility for obtaining separate registrations for multiple places of business within the same State or Union territory, subject to the applicable CGST Rules.
Amendment of Section 29 - Cancellation or Suspension of Registration
Section 29 of the CGST Act governs cancellation or suspension of GST registration. The 2018 Amendment Act expressly introduced the concept of suspension of registration while cancellation proceedings are pending.
Section 14 of the CGST (Amendment) Act, 2018 first amended the marginal heading by adding the words "or suspension" after "Cancellation".
Suspension where cancellation is sought by the registered person
The following proviso was inserted in Section 29(1):
"Provided that during pendency of the proceedings relating to cancellation of registration filed by the registered person, the registration may be suspended for such period and in such manner as may be prescribed."
Suspension during cancellation proceedings by the proper officer
The following further proviso was inserted in Section 29(2):
"Provided further that during pendency of the proceedings relating to cancellation of registration, the proper officer may suspend the registration for such period and in such manner as may be prescribed."
The practical effect was to create an express statutory basis for suspension while cancellation proceedings remain pending. The detailed procedure must be read with the applicable CGST Rules.
Amendment of Section 34 - Credit Notes and Debit Notes
Section 34 of the CGST Act governs credit notes and debit notes. These documents are relevant where the taxable value or tax charged in an invoice requires adjustment or where other circumstances specified by the Act arise.
Section 15 of the CGST (Amendment) Act, 2018 modified the language of Section 34 to facilitate the issue of one or more credit or debit notes in relation to supplies made during a financial year.
Changes relating to credit notes
In Section 34(1):
(i) the words "Where a tax invoice has" were substituted by "Where one or more tax invoices have"; and
(ii) the words "a credit note" were substituted by "one or more credit notes for supplies made in a financial year".
Changes relating to debit notes
In Section 34(3):
(i) the words "Where a tax invoice has" were substituted by "Where one or more tax invoices have"; and
(ii) the words "a debit note" were substituted by "one or more debit notes for supplies made in a financial year".
The amendment reduced the need to treat each invoice as necessarily requiring an individually corresponding credit or debit note and expressly contemplated one or more such notes for supplies made in a financial year.
Amendment of Section 35 - Accounts and Other Records
Section 35 of the CGST Act concerns the maintenance of accounts and other records by registered persons. The detailed record-keeping requirements are supplemented by the CGST Rules.
Section 16 of the CGST (Amendment) Act, 2018 inserted the following proviso in the then-existing Section 35(5):
"Provided that nothing contained in this sub-section shall apply to any department of the Central Government or a State Government or a local authority, whose books of account are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force."
Amendment of Section 39 - Furnishing of GST Returns
Section 39 of the CGST Act deals with furnishing GST returns by registered persons and related statutory requirements. The forms, manner, periodicity and due dates operate together with the CGST Rules and notifications issued from time to time.
Section 17 of the CGST (Amendment) Act, 2018 made several changes to Section 39.
Section 39(1) - Time and periodicity of returns
In sub-section (1):
(i) the words "in such form and manner as may be prescribed" were substituted by the words "in such form, manner and within such time as may be prescribed";
(ii) the words referring to filing "on or before the twentieth day of the month succeeding such calendar month or part thereof" were omitted; and
(iii) a proviso was inserted enabling the Government, on the recommendations of the GST Council, to notify specified classes of registered persons to furnish returns for every quarter or part thereof, subject to specified conditions and safeguards.
Section 39(7) - Payment of tax
A proviso was inserted empowering the Government, on the recommendations of the GST Council, to notify classes of registered persons who would pay the tax due, or part thereof, within the prescribed framework and subject to specified conditions and safeguards.
Section 39(9) - Rectification of omissions or incorrect particulars
The amendment changed the statutory wording concerning the manner in which an omission or incorrect particulars in a return could be rectified and clarified the reference to the financial year to which the relevant details pertain.
When did these amendments take effect?
The relevant provisions of the Central Goods and Services Tax (Amendment) Act, 2018 were brought into force with effect from 1 February 2019. The amendments on this page should therefore be understood as part of the legislative history of the CGST Act as well as the source of several provisions that became part of the consolidated statute.
Current law and the 2018 Amendment Act
A reader researching a transaction or compliance obligation today should distinguish between the text of the CGST (Amendment) Act, 2018 and the current consolidated CGST Act, 2017. An amendment Act records the legislative changes made at a particular point in time, whereas the consolidated principal Act incorporates amendments that have come into force over successive years.
Accordingly, this page preserves and explains the 2018 amendments while directing readers to current official sources for the law presently in force.