Section 148 of GST – Special procedure for certain processes
Statutory provision The Government may, on the recommendations of the Council, and subject to such conditions and safeguards as may be prescribed, notify certain classes of registered persons, and the special procedures to be followed by such persons including those with regard to registration, furnishing of return, payment of tax and administration of such persons.
Analysis and Updates
Introduction This section deals with notification of certain classes of registered persons, who would be required to follow certain special procedures. Analysis The Government can notify such persons upon recommendation of the GST Council. Such notified persons would be required to follow certain special procedures inter-alia relating to registration, returns, tax payment and administration aspects. In other words, even though there may be a requirement to the CGST Act, by exercise of powers under section 148, the Government can alter the said requirement on matters relating to registration, filing of returns, tax payment and other administrative matters. The powers to vary the general prescription in these areas applies only in respect of categories of registered persons notified here. It is very interesting that, say, provisions regarding filing of returns can be overruled, in relation t o persons notified under 148. The special procedures to be applied does not enjoy non obstante powers but considering that such special procedures would only be more favourable may not be questioned unless the ‘conditions’ and ‘safeguards’ are prescribed and adhered to. It is important to note that the power that is not delegated cannot be assumed to be vested with the delegatee. Power that is exercised by the Act itself, in relation to certain persons cannot be permitted to be exercised by any delegatee, in relation to certain other persons. And delegation cannot alter the nature of the compliance and any variation, at most, can be limited to matters that do not amount to substantive deviation, that is, require the same compliance but at lesser frequency or extended time for compliance. In exercise of this power, we find certain measures to have been taken by the Government and similar provisions are simultaneously required to be taken under the respective SGST / UTGST laws so as to be in harmony. And without issuing notifications afresh, 17/2017-UT dated 24 Oct, 2017 adopts CGST notifications mutatis mutandis in relation to matters of UT. Reference may also be had to the discussion in the context of section 168 where such deviation from standard procedures are permitted. 148.3 Analysis of the Notifications 148.3.1 Notification No 66/2017 – Central Tax dated 15th November, 2017 respectively 148.3.1.1 Class of persons notified · Registered Person (other than persons registered under composition scheme) having aggregate turnover of less than Rs. 1.5 crores in the preceding financial year or, · Registered Person (other than persons registered under composition scheme) whose aggregate turnover in the year of registration is likely to be less than Rs. 1.5 crores 148.3.1.2 Relaxations provided · The class of persons specified above will not be required to pay tax on advances received against supply of goods. The time of supply of goods shall be the date of issue of invoice or the last date on which the invoice is to be issued as per section 31(1). It is important to note that no special provisions have been notified in respect of time of supply of services and therefore tax would need to be paid on advances received against supply of services – Notification No 66/2017. The effective date of this provision is 15/11/2017. 148.3.2 Notification No 66/2017- Central Tax dated 15th November, 2017 148.3.2.1 Class of persons notified All Registered Persons other than persons registered under composition scheme 148.3.2.2 Relaxations provided The class of persons defined above will not be required to pay tax on advances received against supply of goods. The time of supply of goods shall be the date of issue of invoice or the last date on which the invoice is to be issued as per section 31(1). It is important to note that no special provisions have been notified in respect of time of supply of services and therefore tax would need to be paid on advances received against supply of services –The effective date of this provision is 15th November, 2017. Therefore, w.e.f 15th November, 2017 no tax needs to be paid on advances received by registered persons against goods supplied. W.e.f. 13th October, 2017 to 15th November, 2017, this benefit was available to suppliers having aggregate turnover less than Rs. 1.5 crores only. It must be understood that when a beneficial notification stands superseded it will be subject to certain conditions. For instance the notification 66/2017 dated 15.11.2017 provides for such a condition which reads “except as respects things done or omitted to be done before such supersession”. 148.3.3. Notification No. 04/2018 dated 25.01.2018: The notification specifies the time when the registered persons being the land owner and the developer should remit the tax on the supply of service viz., supply of works contract service by developer to the land owner and supply of development rights by the land owner to the developer inter-se. The notification specifies that the date when the possession / right in the constructed portion is transferred would be the date relevant for remittance of GST on such services. Recommended Articles –
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