Following key amendments are being proposed in Goods and Service Tax Act, 2017 under Finance (No. 2) Act, 2019 i.e. Union Budget 2019:-
1. A Proviso has been inserted to clarify that interest for late payment of tax shall be levied only on that portion of tax which has been paid by debiting the electronic cash ledger. Earlier there was a confusion among taxpayers on this issue whether such interest would be charged on gross tax liability or only on net tax liability.
However, there is one exception to this rule wherein interest shall be levied on gross tax liability. Where returns are filed subsequent to initiation of any proceedings under GST Act, the interest shall be levied on the gross tax liability.
2. Every registered person shall authenticate, or furnish proof of possession of Aadhaar number. If an Aadhaar number is not assigned to the registered person, such person shall be offered an alternate and viable means of identification. 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.
3. Now a registered person can transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger to the electronic cash ledger for Integrated Tax, Central Tax, State Tax, Union Territory Tax or Cess through a new Form PMT-09 subject to the conditions and restrictions prescribed under GST Act. Such transfer shall be deemed to be a refund from the electronic cash ledger.
4. The Central Government has been authorized to pay the amount of refund towards State taxes to the taxpayers.
5. The Government shall constitute an Authority ‘National Appellate Authority for Advance Ruling (NAAAR)’ for hearing appeals. It shall pass an order within 90 days from the date of filing of appeal.
6. The value of exempt supply of services provided by way of extending deposits, loans or advances (where consideration is received in form of interest or discount) shall not be considered for determining turnover under Composition Scheme.
7. Simplified return forms to be implemented soon. Composition registered dealers are required to pay tax quarterly and file return on annual basis.
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