GST UPDATE ON KEY POINTS RELATING TO CHANGES MADE IN GST LAW

It appears that the Budget, 2019 seeks to make all required amendments in the CGST Act and UTGST Act that were pending since long time. GST Council had made several recommendations which were pending for implementation as it required change in CGST Act, 2017. This update seeks to provide summary of the major changes made in the Finance Bill, 2019 with respect to GST Laws as follows:-

Insertion of sub-section 2A in section 10 of the CGST Act, 2017 pertaining to composition scheme:-As we all know that new composition scheme for service providers was introduced vide notification no. 2/2019-Central Tax (Rate) dated 7.3.2019 which is applicable if the aggregate turnover in the preceding financial year upto Rs. 50 Lakhs. This section contains legal backing for the said notification which was issued by exercising powers under section 11 of the CGST Act, 2017.
Amendment in section 22 of CGST Act, 2017 so as to provide enhanced limit of Rs. 40 lakhs for registration requirement:-This notification is in line with the enhanced limit of Rs. 40 Lakhs granted to supplier exclusively engaged in supply of goods as regards liability to get registration under GST Law. It also clarifies that the interest income earned on account of deposits/loans and advances will not hinder any assessee from claiming benefit of this enhanced limit.
Amendment in section 25 pertaining to procedure for registration:-It is provided that every registered person shall undergo authentication or furnish proof of possession of Aadhaar number. Further, if Aadhaar number is not assigned to the registered person, an alternate identification as prescribed by GST Council would be required to be furnished. On failure to provide such authentication, registration allotted to such person shall be deemed to be invalid.
New Section 31A regarding facility of digital payment to the recipient:-The government on the recommendations of the Council will prescribe a class of registered persons who shall provide prescribed modes of electronic payment to the recipient of supply of goods or services and give option to such recipient to make payment accordingly. This is initiative taken for promoting digitisation.
Amendment in section 39 pertaining to returns:-The reference of last dates for filing return has been omitted with the general clause of furnishing returns in such form and manner and within such time as may be prescribed. Proviso inserted in sub-section 7 of section 39 to clarify that tax shall be paid by the registered person furnishing the return after taking into account input tax credit availed.
Amendment in section 49 pertaining to payment of tax, interest and penalty:- Taxpayers have been granted the facility to transfer any amount of tax, interest, penalty or fee available in the electronic cash ledger for IGST/CGST/SGST/UTGST subject to such conditions and restrictions as may be prescribed.
Amendment in section 50 pertaining to interest:- The most awaited amendment has been done specifying that interest on tax payable is to be levied on portion of the tax that is paid by debiting electronic cash ledger (after considering input tax credit available). However, this provision will not be applicable where return is being filed after initiation of proceedings under section 73 or 74 of the Act.
New sections introduced with respect to National Appellate Authority for Advance Ruling (NAAAR):-Section 101A for constitution of NAAAR, 101B for Appeal to NAAAR and 101C for Order of NAAAR have been inserted. NAAAR would entertain contrary decisions rendered by AAAR on same issue.
New sub-section (3A) inserted in section 171 pertaining to Anti Profiteering Measure:-This sub-section states that where Anti Profiteering Authority has concluded that the registered person has profiteered, such person shall be liable to pay penalty equal to 10% of the amount profiteered. However, no penalty is leviable if the profiteered amount is deposited within 30 days of the date of passing of order by the authority.
Retrospective exemption to Uranium Ore Concentrate:- The retrospective exemption has been granted by amending the notification no. 2/2017-Central Tax (Rate) dated 28.06.2017 wherein exemption is being granted to Uranium Ore Concentrate. However, it is specifically mentioned that no refund shall be shall be given of tax collected by the assessee on this product.

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GST UPDATE ON KEY POINTS RELATING TO CHANGES MADE IN GST LAW

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