Cenvat Credit:

          • Service tax paid under full reverse charge: the condition to pay invoice value to the service provider for availing credit of tax paid, to be omitted [change to have immediate effect].

          • Re-credit of Cenvat credit reversed on account of non-receipt of export proceeds within the specified period, to be allowed, if such export proceeds are received within one year from the specified period on the basis of documentary evidence of receipt of payment [change to have immediate effect].

          • Rent-a-cab operator and tour operator: service tax paid by sub-contractor in the same line of business would be allowed as eligible credit to the main service provider to avoid double taxation, subject to certain conditions [with effect from 1st October 2014]. Refer amendment in Notification No.26/2012-ST.

          • GTA service: service receiver may avail abatement, without having to obtain non-availment of Cenvat Credit certificate from service provider [change to have immediate effect]. Refer amendment in Notification No.26/2012- ST.

          • Time limit for taking credit on input and input services: credit shall be taken within six months from the date of the invoice or challans or other documents specified [change to have effect from 1st September, 2014].

Cenvat Credit changes remove invoice payment requirement for reverse charge credit and ease re credit and sectoral eligibility rules. Cenvat Credit amendments remove the invoice payment condition for credit under full reverse charge, allow re credit of reversed credit where export proceeds are received within one year on documentary proof, and prescribe a six month time limit for taking credit from the date of the invoice or other specified document; sectoral provisions permit subcontractor paid credit for rent a cab and tour operators under conditions and allow goods transport agency abatement without a non availment certificate.