Amendments carried out through the Finance (No. 2) Bill, 2019 come into effect on the date of its enactment, unless otherwise specified. Am...
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.
Note:
a. CGST Act means Central Goods and Services Tax Act, 2017
b. IGST Act means Integrated Goods and Services Tax Act, 2017
c. UTGST Act means Union Territory Goods and Services Tax Act, 2017
Bimal Jain
FCA, FCS, LLB, B.Com (Hons)
[TDS related provisions] [Changes in Customs and Service Tax] [Changes in CGST and IGST] [Changes in Central excise] [Budget-Speech] [Key-highlights]
Proposed Amendments in the CGST
Act, 2017
Current provisions
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Proposed provisions
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Effect
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Section 2(4) – Definition of Adjudicating Authority
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“adjudicating
authority” means any authority, appointed or authorised to pass any order or
decision under this Act, but does not include the Central Board of Indirect
Taxes and Customs, the Revisional Authority, the Authority for Advance
Ruling, the Appellate Authority for Advance Ruling, the Appellate Authority,
the Appellate Tribunal and the Authority referred to in subsection (2) of
section 171.
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“adjudicating
authority” means any authority, appointed or authorised to pass any order or
decision under this Act, but does not include the Central Board of Indirect
Taxes and Customs, the Revisional Authority, the Authority for Advance
Ruling, the Appellate Authority for Advance Ruling, the
National Appellate Authority for Advance Ruling, the Appellate
Authority, the Appellate Tribunal and the Authority referred to in subsection
(2) of section 171.
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The
definition of “adjudicating authority” in clause (4) of section 2 of the CGST
Act is being 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”.
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Second proviso to section 10 – Composition Scheme
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Second
proviso to section 10(1):
“Provided
further that a person who opts to pay tax under clause (a) or clause (b) or
clause (c) may supply services (other than those referred to in clause (b) of
paragraph 6 of Schedule II), of value not exceeding ten per cent. Of turnover
in a State or Union territory in the preceding financial year or five lakh
rupees, whichever is higher.”;
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Second
proviso to section 10 (1):
“Provided
further that a person who opts to pay tax under clause (a) or clause (b) or
clause (c) may supply services (other than those referred to in clause (b) of
paragraph 6 of Schedule II), of value not exceeding ten per cent. Of turnover
in a State or Union territory in the preceding financial year or five lakh
rupees, whichever is higher.”;
Explanation: For the purposes of second proviso, the value of
exempt supply 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 shall not be taken into account for determining the value of
turnover in a State or Union territory.”;
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A new sub-section (2A) is being 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 up
to 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.
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Section
10(2)(d):
The registered person shall be eligible to opt
under sub-section (1), if––
(d) he is not engaged in making any supply of
goods through an electronic commerce operator who is required to collect tax
at source under section 52; and
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Section
10(2)(d):
The registered person shall be eligible to opt
under sub-section (1), if––
(d) he is not engaged in making any supply of
goods through an electronic commerce operator who is required to collect tax
at source under section 52;
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Section
10(2)(e):
The registered person shall be eligible to opt
under sub-section (1), if––
(e) he is not a manufacturer of such goods as may
be notified by the Government on the recommendations of the Council:
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Section
10(2)(e):
The registered person shall be eligible to opt
under sub-section (1), if––
(e) he is not a manufacturer of such goods as may
be notified by the Government on the recommendations of the Council; and
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After
Clause (e) of Section 10(2):
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After
Clause (e) of Section 10(2), the following clause (f) shall be inserted:
The registered person shall be eligible to opt
under sub-section (1), if––
“(f) he is neither a casual taxable
person nor a non-resident taxable person:”
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After
sub section 10(2):
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After
sub section 10(2), the following sub-section 2A shall be inserted:
“(2A) Notwithstanding anything to the
contrary contained in this Act, but subject to the provisions
of sub-sections (3) and (4) of section
9, a registered person, not eligible to opt to pay tax under sub-section (1)
and sub-section (2), whose aggregate turnover in the preceding financial year
did not exceed fifty lakh rupees, may opt to pay, in lieu of the tax payable
by him under sub-section (1) of section 9, an amount of tax calculated at
such rate as may be prescribed, but not exceeding three per cent. of the
turnover in State or turnover in Union territory, if he is not––
(a) engaged in making any supply of
goods or services which are not leviable to tax under this Act;
(b) engaged in making any inter-State
outward supplies of goods or services;
(c) engaged in making any supply of
goods or services through an electronic commerce
operator who is required to collect tax
at source under section 52;
(d) a manufacturer of such goods or
supplier of such services as may be notified by the Government on the
recommendations of the Council; and
(e) a casual taxable person or a
non-resident taxable person.
Provided that where more than one
registered person are having the same Permanent Account Number issued under
the Income-tax Act, 1961, the registered person shall not be eligible to opt
for the scheme under this sub-section unless all such registered persons opt
to pay tax under this sub-section.”;
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Section
10(3):
The option availed of by a registered person under
sub-section (1) shall lapse with effect from the day on which his aggregate
turnover during a financial year exceeds the limit specified under
sub-section (1).
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Section
10(3):
The option availed of by a registered person under
sub-section (1) or sub-section (2A), as the case may
be, shall lapse with effect from the day on which his aggregate turnover
during a financial year exceeds the limit specified under sub-section (1) or sub-section (2A), as the case may be.
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Section
10(4):
A taxable person to whom the provisions of
sub-section (1) apply shall not collect any tax from the recipient on
supplies made by him nor shall he be entitled to any credit of input tax.
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Section
10(4):
A taxable person to whom the provisions of
sub-section (1) or as the case may be, sub-section
(2A), apply shall not collect any tax from the recipient on supplies
made by him nor shall he be entitled to any credit of input tax.
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Section
10(5):
If the proper officer has reasons to believe that
a taxable person has paid tax under sub-section (1) despite not being
eligible, such person shall, in addition to any tax that may be payable by
him under any other provisions of this Act, be liable to a penalty and the
provisions of section 73 or section 74 shall, mutatis mutandis, apply for
determination of tax and penalty.
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Section
10(5):
If the proper officer has reasons to believe that
a taxable person has paid tax under sub-section (1) or
sub-section (2A), as the case may be, despite not being eligible, such
person shall, in addition to any tax that may be payable by him under any
other provisions of this Act, be liable to a penalty and the provisions of
section 73 or section 74 shall, mutatis mutandis, apply for determination of
tax and penalty.
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After
sub-section (5) of section 10:
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After
sub-section (5) of section 10, the following Explanations shall be inserted:
Explanation 1.–– For the purposes of computing aggregate turnover
of a person for determining his eligibility to pay tax under this section,
the expression “aggregate turnover” shall include the value of supplies made
by such person from the 1st day of April of a financial year upto the date
when he becomes liable for registration under this Act, but shall not include
the value of exempt supply 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.
Explanation 2.–– For the purposes of determining the tax payable
by a person under this section, the expression “turnover in State or turnover
in Union territory” shall not include the value of following supplies,
namely:––
(i) supplies from the first day of April
of a financial year up to the date when such person becomes liable for
registration under this Act; and
(ii) exempt supply 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.’.
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Second Proviso after sub-section (1) of Section 22: Persons
liable for registration
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In
sub-section (1) of Section 22, after the second proviso:
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In
sub-section (1) of Section 22, after the second proviso, the following
proviso shall be inserted:
“Provided also that the Government may,
at the request of a State and on the recommendations of the Council, enhance
the aggregate turnover from twenty lakh rupees to such amount not exceeding
forty lakh rupees in case of supplier who is engaged exclusively in the
supply of goods, subject to such conditions and limitations, as may be
notified.
Explanation.–– For the purposes of this sub-section, a person
shall be considered to be engaged exclusively in the supply of goods even if
he is engaged in exempt supply 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.”.
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A proviso and an explanation is being 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.
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After sub-section (6) of Section 25: Procedure for registration
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After
sub-section (6) of Section 25:
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After
sub-section (6) of Section 25 the following sub-sections 6A, 6B, 6C, 6D shall
be inserted:
“6(A) Every registered person shall
undergo authentication, or furnish proof of possession of Aadhaar number, in
such form and manner and within such time as may be prescribed:
Provided that if an Aadhaar number is
not assigned to the registered person, such person shall be offered alternate
and viable means of identification in such manner as Government may, on the
recommendations of the Council, prescribe:
Provided further that in case of failure
to undergo authentication or furnish proof of possession of Aadhaar number or
furnish alternate and viable means of identification, registration allotted
to such person shall be deemed to be invalid and the other provisions of this
Act shall apply as if such person does not have a registration.
(6B) On and from the date of
notification, every individual shall, in order to be eligible for grant of registration,
undergo authentication, or furnish proof of possession of Aadhaar number, in
such manner as the Government may, on the recommendations of the Council,
specify in the said notification:
Provided that if an Aadhaar number is
not assigned to an individual, such individual shall be offered alternate and
viable means of identification in such manner as the Government may, on the
recommendations of the Council, specify in the said notification.
(6C) On and from the date of
notification, every person, other than an individual, shall, in order to be
eligible for grant of registration, undergo authentication, or furnish proof
of possession of Aadhaar number of the Karta, Managing Director, whole time
Director, such number of partners, Members of Managing Committee of
Association, Board of Trustees, authorised representative, authorised
signatory and such other class of persons, in such manner, as the Government
may, on the recommendation of the Council, specify in the said notification:
Provided that where such person or class
of persons have not been assigned the Aadhaar Number, such person or class of
persons shall be offered alternate and viable means of identification in such
manner as the Government may, on the recommendations of the Council, specify
in the said notification.
(6D) The provisions of sub-section (6A)
or sub-section (6B) or sub-section (6C) shall not apply to such person or
class of persons or any State or Union territory or part thereof, as the
Government may, on the recommendations of the Council, specify by
notification.
Explanation.—For the purposes of this section, the expression
“Aadhaar number” shall have the same meaning as assigned to it in clause (a)
of section 2 of the Aadhaar (Targeted Delivery of Financial and Other
Subsidies, Benefits and Services) Act, 2016.”.
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A New sub-section is being inserted 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.
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Insertion of New Section 31A: Facility of digital payment to
Recipient.
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After
Section 31:
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After
section 31, Section 31A shall be inserted:
“31A. The Government may, on the
recommendations of the Council, prescribe a class of registered persons who
shall provide prescribed modes of electronic payment to the recipient of
supply of goods or services or both made by him and give option to such
recipient to make payment accordingly, in such manner and subject to such
conditions and restrictions, as may be prescribed.”.
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A new section 31A is being 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 of goods or
services.
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Section 39: Furnishing of Return
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Sub
Section (1) of section 39:
Every registered person, other than an Input
Service Distributor or a non-resident taxable person or a person paying tax
under the provisions of section 10 or, section 51 or section 52 shall, for
every calendar month or part thereof, furnish, in such form, manner and
within such time as may be prescribed, a return, electronically, of inward
and outward supplies of goods or services or both, input tax credit availed,
tax payable, tax paid and such other particulars as may be prescribed.
Provided that the Government may, on the
recommendations of the Council, notify certain classes of registered persons
who shall furnish return for every quarter or part thereof, subject to such
conditions and safeguards as may be specified therein.
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Sub
Section (1) of section 39:
‘‘(1) Every registered person, other
than an Input Service Distributor or a non-resident taxable person or a
person paying tax under the provisions of section 10 or section 51 or section
52 shall, for every calendar month or part thereof, furnish, a return,
electronically, of inward and outward supplies of goods or services or both,
input tax credit availed, tax payable, tax paid and such other particulars,
in such form and manner, and within such time, as may be prescribed:
Provided that the Government may, on the
recommendations of the Council, notify certain class of registered persons
who shall furnish a return for every quarter or part thereof, subject to such
conditions and restrictions as may be specified therein.”
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Section 39 of the CGST Act is being 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.
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Sub
Section (2) of section 39:
A registered person paying tax under the
provisions of section 10 shall, for each quarter or part thereof, furnish, in
such form and manner as may be prescribed, a return, electronically, of
turnover in the State or Union territory, inward supplies of goods or
services or both, tax payable and tax paid within eighteen days after the end
of such quarter.
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Sub
Section (2) of section 39:
A registered person paying tax under the
provisions of section 10, shall, for each financial year or part thereof,
furnish a return, electronically, of turnover in the State or Union
territory, inward supplies of goods or services or both, tax payable, tax
paid and such other particulars in such form and manner, and within such
time, as may be prescribed.’’
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Sub
Section (7) of section 39:
Every registered person, who is required to
furnish a return under sub-section (1) or sub-section (2) or sub-section (3)
or sub-section (5), shall pay to the Government the tax due as per
such return not later than the last date on which he is required to furnish
such return.
Provided that the Government may, on the
recommendations of the Council, notify certain classes of registered persons
who shall pay to the Government the tax due or part thereof as per the return
on or before the last date on which he is required to furnish such return,
subject to such conditions and safeguards as may be specified therein.
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Sub
Section (7) of section 39:
Every registered person who is required
to furnish a return under sub-section (1), other than the person
referred to in the proviso thereto, or sub-section (3) or sub-section (5),
shall pay to the Government the tax due as per such return not later than the
last date on which he is required to furnish such return:
Provided that every registered person
furnishing return under the proviso to sub-section (1) shall pay to the
Government, the tax due taking into account inward and outward supplies of
goods or services or both, input tax credit availed, tax payable and such
other particulars during a month, in such form and manner, and within such
time, as may be prescribed:
Provided further that every registered
person furnishing return under sub-section (2) shall pay to the Government
the tax due taking into account turnover in the State or Union territory,
inward supplies of goods or services or both, tax payable, and such other
particulars during a quarter, in such form and manner, and within such time,
as may be prescribed.”.
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Section 44: Annual Return
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Sub
Section (1) of section 44:
Every registered person, other than an Input
Service Distributor, a person paying tax under section 51 or section 52, a
casual taxable person and a non-resident taxable person, shall furnish an
annual return for every financial year electronically in such form and manner
as may be prescribed on or before the thirty-first day of December following
the end of such financial year.
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After
Sub Section (1) of section 44, the following proviso shall be inserted:
Every registered person, other than an Input
Service Distributor, a person paying tax under section 51 or section 52, a
casual taxable person and a non-resident taxable person, shall furnish an
annual return for every financial year electronically in such form and manner
as may be prescribed on or before the thirty-first day of December following
the end of such financial year.
“Provided that the Commissioner may, on
the recommendations of the Council and for reasons to be recorded in writing,
by notification, extend the time limit for furnishing the annual return for
such class of registered persons as may be specified therein:
Provided further that any extension of
time limit notified by the Commissioner of State tax or the Commissioner of
Union territory tax shall be deemed to be notified by the Commissioner.”.
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New
provisos are being 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).
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Section 49: Payment of tax, interest, penalty and other amounts.
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Sub
Section (9) of section 49:
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After
Sub Section (9) of section 49 the following sub section (10) and (11) shall
be inserted:
“(10) A registered person may, on the
common portal, transfer any amount of tax, interest, penalty, fee or any
other amount available in the electronic cash ledger under this Act, to the
electronic cash ledger for integrated tax, central tax, State tax, Union
territory tax or cess, in such form and manner and subject to such conditions
and restrictions as may be prescribed and such transfer shall be deemed to be
a refund from the electronic cash ledger under this Act.
(11) Where any amount has been transferred
to the electronic cash ledger under this Act, the same shall be deemed to be
deposited in the said ledger as provided in sub-section (1).”.
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New
sub-sections are being 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.
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Section 50: Interest on delayed payment of tax.
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Sub
Section (1) of section 50:
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Sub
Section (1) of section 50, the following proviso shall be inserted:
“Provided that the interest on tax
payable in respect of supplies made during a tax period and declared in the
return for the said period furnished after the due date in accordance with
the provisions of section 39, except where such return is furnished after
commencement of any proceedings under section 73 or section 74 in respect of
the said period, shall be levied on that portion of the tax that is paid by
debiting the electronic cash ledger.”.
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New
proviso in sub-sections (1) is being 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.
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Section 52: Collection of tax at source.
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After
Sub section (4) of section 52:
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After
Sub section (4) of section 52, the following proviso shall be inserted:
“Provided that the Commissioner may, for
reasons to be recorded in writing, by notification, extend the time limit for
furnishing the statement for such class of registered persons as may be
specified therein:
Provided further that any extension of
time limit notified by the Commissioner of State tax or the Commissioner of
Union territory tax shall be deemed to be notified by the Commissioner.”;
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New
provisos are being 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.
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After
Sub section (5) of section 52:
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After
Sub section (5) of section 52, the following proviso shall be inserted:
“Provided that the Commissioner may, on
the recommendations of the Council and for reasons to be recorded in writing,
by notification, extend the time limit for furnishing the annual statement for
such class of registered persons as may be specified therein:
Provided further that any extension of
time limit notified by the Commissioner of State tax or the Commissioner of
Union territory tax shall be deemed to be notified by the Commissioner.”.
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Insertion of New Section 53A: Transfer of certain Amounts
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After
section 53:
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New
Section 53A was inserted after section 53:
Where any amount has been transferred
from the electronic cash ledger under this Act to the electronic cash ledger
under the State Goods and Services Tax Act or the Union territory Goods and
Services Tax Act, the Government shall, transfer to the State tax account or
the Union territory tax account, an amount equal to the amount transferred
from the electronic cash ledger, in such
manner and within such time as may be
prescribed.”.
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A
new section 53A is being 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.
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Section 54: Refund of Tax
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After
Sub section (8) of section 54:
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After
Sub section (8) of section 54 the following sub section 54A shall be
inserted:
The Government may disburse the refund
of the State tax in such manner as may be prescribed.”.
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New
sub-section (8A) is being 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.
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Section 95: Definition of Advance Ruling
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In
clause (a) of Section 95:
In this Chapter, unless the context otherwise
requires, ––
(a) “advance ruling” means a decision provided by
the Authority or the Appellate Authority to an applicant on matters or on
questions specified in sub-section (2) of section 97 or sub-section (1) of
section 100, in relation to the supply of goods or services or both being
undertaken or proposed to be undertaken by the applicant;
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In
clause (a) of Section 95:
In this Chapter, unless the context otherwise
requires, ––
(a) “advance ruling” means a decision provided by
the Authority or the Appellate Authority “or the
National Appellate Authority” to an applicant on matters or on
questions specified in sub-section (2) of section 97 or sub-section (1) of
section 100 “or of section 101C”, in relation
to the supply of goods or services or both being undertaken or proposed to be
undertaken by the applicant;
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New
clause (f) is being inserted in section 95 of the CGST Act to define the
“National Appellate Authority for Advance Ruling”.
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After
clause (e) of section 95:
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After
clause (e) of section 95, the following clause (f) shall be inserted:
“(f) “National Appellate Authority”
means the National Appellate Authority for Advance Ruling referred to in
section 101A.”.
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Section 101A: Constitution of National Appellate Authority for
Advance Ruling.
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After
section 101:
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Insertion
of Section 101A:
(1) The Government shall, on the
recommendations of the Council, by notification, constitute, with effect from
such date as may be specified therein, an Authority known as the National
Appellate Authority for Advance Ruling for hearing appeals made under section
101B.
(2) The National Appellate Authority
shall consist of—
(i) the President, who has been a Judge
of the Supreme Court or is or has been the Chief Justice of a High Court, or
is or has been a Judge of a High Court for a period not less than five years;
(ii) a Technical Member (Centre) who is
or has been a member of Indian Revenue (Customs and Central Excise) Service,
Group A, and has completed at least fifteen years of service in Group A;
(iii) a Technical Member (State) who is
or has been an officer of the State Government not below the rank of
Additional Commissioner of Value Added Tax or the Additional Commissioner of
State tax with at least three years of experience in the administration of an
existing law or the State Goods and Services Tax Act or in the field of
finance and taxation.
(3) The President of the National
Appellate Authority shall be appointed by the Government after consultation
with the Chief Justice of India or his nominee:
Provided that in the event of the
occurrence of any vacancy in the office of the President by reason of his
death, resignation or otherwise, the senior most Member of the National
Appellate Authority shall act as the President until the date on which a new
President, appointed in accordance with the provisions of this Act to
fill such vacancy, enters upon his office:
Provided further that where the
President is unable to discharge his functions owing to absence, illness or
any other cause, the senior most Member of the National Appellate Authority
shall discharge the functions of the President until the date on which the
President resumes his duties.
(4) The Technical Member (Centre) and
Technical Member (State) of the National Appellate Authority shall be
appointed by the Government on the recommendations of a Selection Committee consisting
of such persons and in such manner as may be prescribed.
(5) No appointment of the Members of the
National Appellate Authority shall be invalid merely by the reason of any
vacancy or defect in the constitution of the Selection Committee.
(6) Before appointing any person as the
President or Members of the National Appellate Authority, the Government
shall satisfy itself that such person does not have any financial or other
interests which are likely to prejudicially affect his functions as such
President or Member.
(7) The salary, allowances and other
terms and conditions of service of the President and the Members of the
National Appellate Authority shall be such as may be prescribed:
Provided that neither salary and
allowances nor other terms and conditions of service of the President or
Members of the National Appellate Authority shall be varied to their
disadvantage after their appointment.
(8) The President of the National
Appellate Authority shall hold office for a term of three years
from the date on which he enters upon
his office, or until he attains the age of seventy years, whichever is earlier
and shall also be eligible for reappointment.
(9) The Technical Member (Centre) or
Technical Member (State) of the National Appellate Authority
shall hold office for a term of five
years from the date on which he enters upon his office, or until he
attains the age of sixty-five years,
whichever is earlier and shall also be eligible for reappointment.
(10) The President or any Member may, by
notice in writing under his hand addressed to the Government, resign from his
office:
Provided that the President or Member
shall continue to hold office until the expiry of three months from the date
of receipt of such notice by the Government, or until a person duly appointed
as his successor enters upon his office or until the expiry of his term of
office, whichever is the earliest.
(11) The Government may, after
consultation with the Chief Justice of India, remove from the office such
President or Member, who—
(a) has been adjudged an insolvent; or
(b) has been convicted of an offence
which, in the opinion of such Government involves moral turpitude; or
(c) has become physically or mentally
incapable of acting as such President or Member; or
(d) has acquired such financial or other
interest as is likely to affect prejudicially his functions as such President
or Member; or
(e) has so abused his position as to
render his continuance in office prejudicial to the public
interest:
Provided that the President or the
Member shall not be removed on any of the grounds specified in clauses (d)
and (e), unless he has been informed of the charges against him and has been
given an opportunity of being heard.
(12) Without prejudice to the provisions
of sub-section (11), the President and Technical Members of the National
Appellate Authority shall not be removed from their office except by an order
made by the Government on the ground of proven misbehaviour or incapacity
after an inquiry made by a Judge of the Supreme Court nominated by the Chief
Justice of India on a reference made to him by the Government and such President
or Member had been given an opportunity of being heard.
(13) The Government, with the
concurrence of the Chief Justice of India, may suspend from office, the
President or Technical Members of the National Appellate Authority in respect
of whom a reference has been made to the Judge of the Supreme Court under
sub-section (12).
(14) Subject to the provisions of
article 220 of the Constitution, the President or Members of the National
Appellate Authority, on ceasing to hold their office, shall not be eligible
to appear, act or plead before the National Appellate Authority where he was
the President or, as the case may be, a Member.
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New
sections 101A, 101B and 101C are being 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.
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Section 101B: Appeal to National Appellate Authority
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Insertion
of Section 101B:
(1) Where, in respect of the questions
referred to in sub-section (2) of section 97, conflicting advance rulings are
given by the Appellate Authorities of two or more States or Union territories
or both under sub-section (1) or sub-section (3) of section 101, any officer
authorised by the Commissioner or an applicant, being distinct person
referred to in section 25 aggrieved by such advance ruling, may prefer an
appeal to National Appellate Authority:
Provided that the officer shall be from
the States in which such advance rulings have been given.
(2) Every appeal under this section
shall be filed within a period of thirty days from the date on which the
ruling sought to be appealed against is communicated to the applicants,
concerned officers and jurisdictional officers:
Provided that the officer authorised by
the Commissioner may file appeal within a period of ninety days from the date
on which the ruling sought to be appealed against is communicated to the
concerned officer or the jurisdictional officer:
Provided further that the National
Appellate Authority may, if it is satisfied that the appellant was prevented
by a sufficient cause from presenting the appeal within the said period of
thirty days, or as the case may be, ninety days, allow such appeal to be
presented within a further period not exceeding thirty days.
Explanation.–– For removal of doubts, it is clarified that the
period of thirty days or as the case may be, ninety days shall be counted from
the date of communication of the last of the conflicting rulings sought to be
appealed against.
(3) Every appeal under this section
shall be in such form, accompanied by such fee and verified in such manner as
may be prescribed.
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Section 101C: Order of National Appellate Authority
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Insertion
of Section 101C:
(1) The National Appellate Authority
may, after giving an opportunity of being heard to the applicant, the officer
authorized by the Commissioner, all Principal Chief Commissioners, Chief
Commissioners of Central tax and Chief Commissioner and Commissioner of State
tax of all States and Chief Commissioner and Commissioner of Union territory
tax of all Union territories, pass such order as it thinks fit, confirming or
modifying the rulings appealed against.
(2) If the members of the National
Appellate Authority differ in opinion on any point, it shall be
decided according to the opinion of the
majority.
(3) The order referred to in sub-section
(1) shall be passed as far as possible within a period of ninety days from
the date of filing of the appeal under section 101B.
(4) A copy of the advance ruling
pronounced by the National Appellate Authority shall be duly signed by the
Members and certified in such manner as may be prescribed and shall be sent
to the applicant, the officer authorised by the Commissioner, the Board, the
Chief Commissioner and Commissioner of State tax of all States and Chief
Commissioner and Commissioner of Union territory tax of all Union territories
and to the Authority or Appellate Authority, as the case may be, after such
pronouncement.”.
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Section 102 – Rectification of Advance Ruling
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The
Authority or the Appellate Authority may amend any order passed by it under
section 98 or section 101, so as to rectify any error apparent on the face of
the record, if such error is noticed by the Authority or the Appellate
Authority on its own accord, or is brought to its notice by the concerned
officer, the jurisdictional officer, the applicant or the appellant within a
period of six months from the date of the order:
Provided
that no rectification which has the effect of enhancing the tax liability or
reducing the amount of admissible input tax credit shall be made unless the
applicant or the appellant has been given an opportunity of being heard.
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The
Authority or the Appellate Authority, “or the
National Appellate Authority” may amend any order passed by it under
section 98 or section 101 “or section 101C,
respectively”, so as to rectify any error apparent on the face of the
record, if such error is noticed by the Authority or the Appellate Authority,
“National Appellate Authority” on its own
accord, or is brought to its notice by the concerned officer, the
jurisdictional officer, the applicant “, appellant,
the Authority or the Appellate Authority” within a period of six
months from the date of the order:
Provided
that no rectification which has the effect of enhancing the tax liability or
reducing the amount of admissible input tax credit shall be made unless the
applicant or the appellant has been given an opportunity of being heard.
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Section
102 of the CGST Act is being 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.
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Section 103 – Applicability of Advance Ruling
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After sub section (1) of section
103:
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After sub section (1) of section
103, the following sub-section 1(A) shall be inserted:
(1A) The advance ruling pronounced by the National Appellate
Authority under this Chapter shall be binding on—
(a) the applicants, being distinct persons, who had sought the
ruling under sub-section (1) of section 101B and all registered persons
having the same Permanent Account Number issued under the Income-tax Act,
1961;
(b) the concerned officers and the jurisdictional officers in
respect of the applicants referred
to in clause (a) and the registered persons having the same
Permanent Account Number issued under the Income-tax Act, 1961.”;
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Section 103 of the CGST Act is being 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.
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Sub
Section (2) of section 103:
The advance ruling referred to in sub-section (1)
shall be binding unless the law, facts or circumstances supporting the
original advance ruling have changed.
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Sub
Section (2) of section 103:
The advance ruling referred to in sub-section (1) “and sub-section (1A)” shall be binding unless the
law, facts or circumstances supporting the original advance ruling have
changed.
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Section 104 - Advance ruling to be void in certain circumstances
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Sub section (1) of section 104:
Where
the Authority or the Appellate Authority finds that advance ruling pronounced
by it under sub-section (4) of section 98 or under sub-section (1) of section
101 has been obtained by the applicant or the appellant by fraud or
suppression of material facts or misrepresentation of facts, it may, by
order, declare such ruling to be void ab-initio and thereupon all the
provisions of this Act or the rules made thereunder shall apply to the
applicant or the appellant as if such advance ruling had never been made:
Provided
that no order shall be passed under this sub-section unless an opportunity of
being heard has been given to the applicant or the appellant.
Explanation.––The period beginning with the date of such advance ruling and
ending with the date of order under this sub-section shall be excluded while
computing the period specified in sub-sections (2) and (10) of section 73 or
sub-sections (2) and (10) of section 74.
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Sub section (1) of section 104:
Where
the Authority or the Appellate Authority “or the
National Appellate Authority” finds that advance ruling pronounced by
it under sub-section (4) of section 98 or under sub-section (1) of section
101 “or under section 101C” has been obtained
by the applicant or the appellant by fraud or suppression of material facts
or misrepresentation of facts, it may, by order, declare such ruling to be
void ab-initio and thereupon all the provisions of this Act or the rules made
thereunder shall apply to the applicant or the appellant as if such advance
ruling had never been made:
Provided
that no order shall be passed under this sub-section unless an opportunity of
being heard has been given to the applicant or the appellant.
Explanation.––The period beginning with the date of such advance ruling and
ending with the date of order under this sub-section shall be excluded while
computing the period specified in sub-sections (2) and (10) of section 73 or
sub-sections (2) and (10) of section 74.
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Section 104 of the CGST Act is being 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.
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Section 105 - Powers of Authority and Appellate Authority “and National Appellate Authority”
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Sub section (1) of section 105:
The
Authority or the Appellate Authority shall, for the purpose of exercising its
powers regarding-
(a)
discovery and inspection;
(b)
enforcing the attendance of any person and examining him on oath;
(c)
issuing commissions and compelling production of books of account and other
records, have all the powers of a civil court under the Code of Civil
Procedure, 1908 (5 of 1908).
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Sub section (1) of section 105:
The
Authority or the Appellate Authority “or the National
Appellate Authority” shall, for the purpose of exercising its powers
regarding-
(a)
discovery and inspection;
(b)
enforcing the attendance of any person and examining him on oath;
(c)
issuing commissions and compelling production of books of account and other
records, have all the powers of a civil court under the Code of Civil
Procedure, 1908 (5 of 1908).
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Section 105 (1) of the CGST Act is being amended
so as 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.
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Sub section (2) of section 105:
The
Authority or the Appellate Authority shall be deemed to be a civil court for
the purposes of section 195, but not for the purposes of Chapter XXVI of the
Code of Criminal Procedure, 1973 (2 of 1974), and every proceeding before the
Authority or the Appellate Authority shall be deemed to be a judicial
proceedings within the meaning of sections 193 and 228, and for the purpose
of section 196 of the Indian Penal Code (45 of 1860).
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Sub section (2) of section 105:
The
Authority or the Appellate Authority “or the National
Appellate Authority” shall be deemed to be a civil court for the
purposes of section 195, but not for the purposes of Chapter XXVI of the Code
of Criminal Procedure, 1973 (2 of 1974), and every proceeding before the
Authority or the Appellate Authority shall be deemed to be a judicial
proceedings within the meaning of sections 193 and 228, and for the purpose
of section 196 of the Indian Penal Code (45 of 1860).
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Section 105 (2) of the CGST Act is being amended
so as 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.
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Section 106 - Procedure of Authority and Appellate Authority “and National Appellate Authority”
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Section 106:
The
Authority or the Appellate Authority shall, subject to the provisions of this
Chapter, have power to regulate its own procedure.
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Section 106:
The
Authority or the Appellate Authority “or the National
Appellate Authority” shall, subject to the provisions of this Chapter,
have power to regulate its own procedure.
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Section 106 of the CGST Act is being amended so as
to provide that the National
Appellate Authority shall have power to regulate
its own procedure.
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Section 168 - Power to issue instructions or directions
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Sub section (2) of section 168:
The
Commissioner specified in clause (91) of section 2, sub-section (3) of
section 5, clause (b) of sub-section (9) of section 25, sub-sections (3) and
(4) of section 35, sub-section (1) of section 37, sub-section (2) of section
38, sub-section (6) of section 39, sub-section (5) of section 66, sub-section
(1) of section 143, sub-section (1) of section 151, clause (l) of sub-section
(3) of section 158 and section 167 shall mean a Commissioner or Joint
Secretary posted in the Board and such Commissioner or Joint Secretary shall
exercise the powers specified in the said sections with the approval of the
Board.
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Sub section (2) of section 168:
The
Commissioner specified in clause (91) of section 2, sub-section (3) of
section 5, clause (b) of sub-section (9) of section 25, sub-sections (3) and
(4) of section 35, sub-section (1) of section 37, sub-section (2) of section
38, sub-section (6) of section 39, “sub-section (1)
of section 44, sub-sections (4) and (5) of section 52,” sub-section
(5) of section 66, sub-section (1) of section 143, sub-section (1) of section
151, clause (l) of sub-section (3) of section 158 and section 167 shall mean
a Commissioner or Joint Secretary posted in the Board and such Commissioner
or Joint Secretary shall exercise the powers specified in the said sections
with the approval of the Board.
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Consequent to the 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.
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Section 171 - Anti-profiteering measure
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After sub-section (3) of section
171:
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After sub-section (3) of section
171 the following section 3A shall be inserted:
“Where the Authority referred to in sub-section (2) after holding
examination as required under the said sub-section comes to the conclusion
that any registered person has profiteered under sub- section (1), such
person shall be liable to pay penalty equivalent to ten per cent. of the
amount so profiteered:
Provided that no penalty shall be leviable if the profiteered
amount is deposited within thirty days of the date of passing of the order by
the Authority.
Explanation.— For the purposes of this section, the expression
“profiteered” shall mean the amount determined on account of not passing the
benefit of reduction in rate of tax on supply of goods or services or both or
the benefit of input tax credit to the recipient by way of commensurate
reduction in the price of the goods or services or both.”
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Section 171 of the CGST Act is being 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.
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Current
provisions
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Proposed
provisions
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Effect
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Insertion
of New Section 17A: Transfer of Certain Amounts
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After section 17, the following Section 17A shall be inserted:
“Where any amount has been transferred from the electronic
cash ledger under this Act to the electronic cash ledger under the State
Goods and Services Tax Act or the Union Territory Goods and Services Tax Act,
the Government shall transfer to the State tax account or the Union territory
tax account, an amount equal to the amount transferred from the electronic
cash ledger, in such manner and within such time, as may be prescribed.”
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A new section 17A is being 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.
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a. CGST Act means Central Goods and Services Tax Act, 2017
b. IGST Act means Integrated Goods and Services Tax Act, 2017
c. UTGST Act means Union Territory Goods and Services Tax Act, 2017
Bimal Jain
FCA, FCS, LLB, B.Com (Hons)
[TDS related provisions] [Changes in Customs and Service Tax] [Changes in CGST and IGST] [Changes in Central excise] [Budget-Speech] [Key-highlights]
COMMENTS