GST Updates

Notes on Clauses for CGST Act Amendment -Budget 2019

                                                Notes on Clauses for CGST Act Amendment -Budget 2019

 

CA Arpit Haldia

Clause 91 of the Bill seeks to amend clause (4) of section 2 of the Central Goods and Services Tax Act to insert the words “the National Appellate Authority for Advance Ruling” in the definition of “adjudicating authority” so as to exclude that authority from the definition of adjudicating authority.

 

Clause 92 of the Bill seeks to amend section 10 of the Central Goods and Services Tax Act so as to provide 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 rupees fifty lakhs

 

Clause 93 of the Bill seeks to amend section 22 of the Central Goods and Services Tax Act so as to provide for higher threshold exemption limit from rupees twenty lakhs to such amount not exceeding rupees forty lakhs in case of supplier who is engaged exclusively in the supply of goods.

 

Clause 94 of the Bill seeks to amend section 25 of the Central Goods and Services Tax Act so as to provide for mandatory Aadhaar submission or authentication for persons who intend to take or have taken registration under the said Act in such manner as may be notified by the Government on the recommendations of the Council.

 

Clause 95 of the Bill seeks to insert a new section 31A in the Central Goods and Services Tax Act, to provide that supplier shall mandatorily offer facility for digital payments to his recipient.

 

Clause 96 of the Bill seeks to amend section 39 of the Central Goods and Services Tax Act so as to provide for furnishing of annual returns and for quarterly payment of tax by taxpayer who opts for composition levy and to provide for certain other category of tax payers, an option for quarterly and monthly payments under the proposed new return filing system.

 

Clause 97 of the Bill seeks to amend section 44 of the Central Goods and Services Tax Act so as to empower the Commissioner to extend the due date for furnishing Annual return and reconciliation statement.

 

Clause 98 of the Bill seeks to amend section 49 of the Central Goods and Services Tax Act so as to provide facility to the taxpayer to transfer an amount from one head to another in the electronic cash ledger.

 

Clause 99 of the Bill seeks to amend section 50 of the Central Goods and Services Tax Act so as to provide for charging interest only on the net cash tax liability, except in those cases where tax is paid subsequent to initiation of any proceedings under section 73 or 74 of the Act.

 

Clause 100 of the Bill seeks to amend section 52 of the Central Goods and Services Tax 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.

 

Clause 101 of the Bill seeks to insert a new section 53A in the Central Goods and Services Tax Act so as to provide for transfer of amount in the electronic cash ledger between the Centre and States as a consequence of the new facility given to the tax payer under section 49.

 

Clause 102 of the Bill seeks to amend section 54 of the Central Goods and Services Tax Act so as to empower the Central Government to disburse refund amount to the taxpayers in respect of refund of State taxes.

 

 

Clause 103 of the Bill seeks to amend clause (a) of section 95 of the Central Goods and Services Tax Act so as to include “the National Appellate Authority for Advance Ruling” in the definition of “advance ruling”. It also seeks to insert clause (f) in section 95 of the Central Goods and Services Tax Act to define “National Appellate Authority”.

 

Clause 104 of the Bill seeks to insert new sections 101A, 101B and 101C in the Central Goods and Services Tax Act. The proposed new section 101A seeks to provide for constitution of the National Appellate Authority for Advance Ruling. It also provides for qualification, appointment, tenure, conditions of services and manner of removal of the President and Members of the National Appellate Authority. The proposed new section 101B seeks to provide for filing of appeals and the procedure 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 or both under sub-section (1) of section 101 or subsection (3) of section 101 of the Act. The proposed new section 101C seeks to provide that the National Appellate Authority shall pass order within a period of ninety days from the date of filing of the appeal. It also provides that where the members differ on any point, it shall be decided by majority.

 

Clause 105 of the Bill seeks to amend section 102 of the Central Goods and Services Tax Act so as to bring the National Appellate Authority within the ambit of that section to empower it to rectify its advance ruling.

 

Clause 106 of the Bill seeks to amend section 103 of the Central Goods and Services Tax Act so as to provide that the advance ruling pronounced by the National Appellate Authority shall be binding on the applicants, being distinct persons 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. It also provides that the ruling shall be binding unless there is a change in law or facts.

 

Clause 107 of the Bill seeks to amend section 104 of the Central Goods and Services Tax Act 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.

 

Clause 108 of the Bill seeks to amend section 105 of the Central Goods and Services Tax Act to provide that the National Appellate Authority shall have all the powers of a civil court under the Code of Civil Procedure, 1908 for the purpose of exercising its powers under the Act.

 

Clause 109 of the Bill seeks to amend section 106 of the Central Goods and Services Tax Act to provide that the National Appellate Authority shall have power to regulate its own procedure.

 

Clause 110 of the Bill seeks to amend section 168 of the Central Goods and Services Tax Act to include sub-section (1) of section 44 and sub-sections (4) and (5) of section 52, within the ambit of that section so that the Commissioner or Joint Secretary shall exercise the powers specified in the said sections with the approval of the Board.

 

Clause 111 of the Bill seeks to amend section 171 of the Central Goods and Services Tax Act to insert new sub-section (2A) therein so as to empower the Authority specified under sub-section (2) thereof to impose penalty equivalent to ten per cent. of the profiteered amount.

 

Clause 112 of the Bill seeks to amend the notification number G.S.R. 674(E), dated the 1st July, 2017, issued under sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017,so as to give retrospective exemption to “Uranium Ore Concentrate” from the levy of central tax from 1st July, 2017 to 14th November, 2017.

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