GST Bills with proposed amendment to the GST laws

The Finance bills have been passed by the Lok Sabha proposing amendments in the GST laws and are pending President’s assent.  Please find below the key amendments relevant to the Technology sector which were raised by NASSCOM as part of our engagements with the Government on proposed amendments. The bills passed are attached herewith for your reference.


  • SEZ Registration – An amendment by way of insertion of proviso in Section 25(1) is proposed.  This proviso allows SEZ units to obtain a registration separate from other DTA units in the same State/ UT.  It may be recalled that the GST amendment proposals published on the CBIC website contained another proviso which had an inference of separate registration for each SEZ unit in a state without any option to do otherwise.  NASSCOM raised the issue requesting that it should come through as an option and we are glad it has been accepted.


  • Issuance of consolidated credit notes – An amendment to Section 34 of the CGST Act is proposed to provide option to the supplier to issue consolidated credit notes for multiple invoices. 


  • Rectification of returns – Section 39(9) of the CGST Act to be amended to provide for rectification of omission in a return.  


  • Credit in respect of KKC – Amendment to Section 140(1) of the CGST Act with retrospective effect from July 1, 2017.  As a result, closing balance of KKC as on June 30, 2017 will not qualify as “eligible credit” for transition into GST. 


  • High sea sales and bonded warehouse sales – Schedule III (Activities to be neither treated as supply of goods or services) is proposed to be amended to include within its purview, the high sea sales and bonded warehouse sales.  As a result such transactions will not qualify as “exempt” supplies and no reversal of input tax credit is therefore required. 


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