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Goods and Services Tax – Budget 2019

Good and Service Tax
  • Author

    Vatsaraj & Co.

  • Date

    August 17, 2019

  1. CGST Act means Central Goods and Services Tax Act, 2017
  2. IGST Act means Integrated Goods and Services Tax Act, 2017
  3. UTGST Act means Union Territory Goods and Services Tax Act, 2017
  4. Amendments carried out through the Finance (No. 2) Bill, 2019 come into effect on the date of its enactment, unless otherwise specified.


Amendments carried out in the Finance Bill, 2019 will come into effect from the date when the same will be notified, concurrently with the corresponding amendments to the Acts passed earlier by the States & Union territories with legislature.

Proposed Amendments in the CGST Act, 2017:

SR. NO.
AMENDMENT
1 The definition of “adjudicating authority” in clause (4) of section 2 of the CGST Act is proposed to be amended so as to exclude “the National Appellate Authority for Advance Ruling” (which is being created by various amendments in Chapter XVII of the CGST Act) from the definition of “adjudicating authority”.
2 A new sub-section is proposed to be inserted in section 10 of the CGST Act to bring in an alternative composition scheme for supplier of services or mixed suppliers (not eligible for the earlier composition scheme) having an annual turnover in preceding financial year upto Rs 50 lakhs. Further, explanation is being added to section 10 to clarify that:
i. for computing the aggregate turnover to determine eligibility for the composition scheme, value of exempt supplies services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount shall not be taken into account; and
ii. for determining the value of turnover in a State or Union territory to calculate tax payable, value of exempt supplies of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount; and value of the first supplies from 1st of April till the date when the taxpayer becomes liable for registration shall not be taken into account
3 A proviso and an explanation is proposed to be inserted in section 22 of the CGST Act so as to provide for higher threshold exemption limit from Rs. 20 lakhs to such amount not exceeding Rs. 40 lakhs in case of supplier who is engaged in exclusive supply of goods.
4 New sub-sections are being proposed to be in section 25 of the CGST Act to make Aadhaar authentication mandatory for specified class of new taxpayers and to prescribe the manner in which certain class of registered taxpayers are required to undergo Aadhaar authentication.
5 A new section 31A is being proposed to be inserted in the CGST Act so that specified suppliers shall have to mandatorily give the option of specified modes of electronic payment to their recipients.
6 Section 39 of the CGST Act is being proposed to be amended so as to allow the composition taxpayers to furnish annual return along with quarterly payment of taxes; and other specified taxpayers may be given the option for quarterly or monthly furnishing of returns and payment of taxes under the proposed new return system.
7 New provisos are being proposed to be inserted in sub-section (1) of section 44 of the CGST Act so as to empower the Commissioner to extend the due date for furnishing Annual return (prescribed FORM GSTR-9/9A) and reconciliation statement (prescribed FORM GSTR-9C).
8 New sub-sections are being proposed to be inserted in section 49 of the CGST Act to provide a facility to the registered person to transfer an amount from one (major or minor) head to another (major or minor) head in the electronic cash ledger
9 New proviso in sub-sections (1) is being proposed to be inserted in section 50 of the CGST Act so as to provide for charging interest only on the net cash tax liability, except in those cases where returns are filed subsequent to initiation of any proceedings under section 73 or 74 of the CGST Act.
10 New provisos are being proposed to be inserted in sub-sections (4) and (5) of section 52 of the CGST Act so as to empower the Commissioner to extend the due date for furnishing of monthly and annual statement by the person collecting tax at source.
11 A new section 53A is being proposed to be inserted in the CGST Act so as to provide for transfer of amount between Centre and States consequential to amendment in section 49 of the CGST Act allowing transfer of an amount from one head to another head in the electronic cash ledger of the registered person.
12 New sub-section (8A) is being proposed to be inserted in section 54 of the CGST Act so as to provide that the Central Government may disburse refund amount to the taxpayers in respect of refund of State taxes as well.
13 New clause (f) is being proposed to be inserted in section 95 of the CGST Act to define the “National Appellate Authority for Advance Ruling”.
14 New sections 101A, 101B and 101C are being proposed to be inserted in the CGST Act so as to provide for constitution, qualification, appointment, tenure, conditions of services of the National Appellate Authority for Advance Ruling; to provide for procedures to be followed for hearing appeals against conflicting advance rulings pronounced on the same question by the Appellate Authorities of two or more States or Union territories in case of distinct persons; and to provide that the National Appellate Authority shall pass order within a period of ninety days from the date of filing of the appeal respectively.
15 Section 102 of the CGST Act is being proposed to be amended so as to allow the National Appellate Authority to amend any order passed by it so as to rectify any error apparent on the face of the record, within a period of six months from the date of the order, except under certain specified circumstances.
16 Section 103 of the CGST Act is being proposed to be amended so as to provide that the advance ruling pronounced by the National Appellate Authority shall be binding, unless there is a change in law or facts, on the applicants, being distinct person and all registered persons having the same Permanent Account Number and on the concerned officers or the jurisdictional officers in respect of the said applicants and the registered persons having the same Permanent Account Number.
17 Section 104 of the CGST Act is being proposed to be amended so as to provide that advance ruling pronounced by the National Appellate Authority shall be void where the ruling has been obtained by fraud or suppression of material facts or misrepresentation of facts.
18 Section 104 of the CGST Act is being proposed to be amended so as to provide that advance ruling pronounced by the National Appellate Authority shall be void where the ruling has been obtained by fraud or suppression of material facts or misrepresentation of facts.
19 Section 106 of the CGST Act is being proposed to be amended so as to provide that the National Appellate Authority shall have power to regulate its own procedure.
20 Consequent to the proposed amendments in section 44 and section 52 of the CGST Act, section 168 is being amended so as to specify that in respect of sub-section (1) of section 44 and subsections (4) and (5) of section 52, Commissioner or Joint Secretary shall exercise the powers specified in the said sections with the approval of the Board.
21 Section 171 of the CGST Act is being proposed to be amended so as to empower the National Antiprofiteering Authority (under sub-section (2) of section 171 of the Act) to impose penalty equivalent to 10% of the profiteered amount.

Proposed Amendment in the IGST Act, 2017:

SR. NO.
AMENDMENT
1 A new section 17A is being proposed to be inserted in the IGST Act so as to bring into the Act, provisions for transfer of amount between Centre and States consequential to amendment in section 49 of the CGST Act allowing transfer of an amount from one head to another head in the electronic cash ledger of the registered person.

Retrospective Amendment of GST rate notifications:

SR. NO.
AMENDMENT
1 A new section 17A is being proposed to be inserted in the IGST Act so as to bring into the Act, provisions for transfer of amount between Centre and States consequential to amendment in section 49 of the CGST Act allowing transfer of an amount from one head to another head in the electronic cash ledger of the registered person. Notification No. 2/2017-Central Tax (Rate) dated the 28th June, 2017, issued under subsection (1) of section 11 of the Central Goods and Services Tax Act, 2017, is being amended retrospectively so as to exempt “Uranium Ore Concentrate” from the levy of Central Tax from proposed to be 1st July, 2017 to 14th November, 2017.
2 Notification No. 2/2017-Integrated Tax (Rate) dated the 28th June, 2017, issued under subsection (1) of section 6 of the Integrated Goods and Services Tax Act, 2017, is being proposed to be amended retrospectively so as to exempt “Uranium Ore Concentrate” from the levy of Integrated Tax from 1st July, 2017 to 14th November, 2017.
3 Notification No. 2/2017-Union Territory Tax (Rate) dated the 28th June, 2017, issued under sub-section (1) of section 8 of the Union Territory Goods and Services Tax Act, 2017, is being proposed to be amended retrospectively so as to exempt “Uranium Ore Concentrate” from the levy of Union Territory Tax from 1st July, 2017 to 14th November, 2017.

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