Key GST Amendments in Finance Bill 2024

By Editor2 Goods and Services Tax Featured , Judiciary July 26, 2024 1 comment

The Finance (No. 2) Bill, 2024 proposes significant amendments to the GST framework, affecting the Central Goods and Services Tax Act (CGST), Integrated Goods and Services Tax Act (IGST), Union Territory Goods and Services Tax Act (UTGST), and Goods and Services Tax (Compensation to States) Act. Key changes include exempting Extra Neutral Alcohol used in liquor production from tax, introducing new provisions for the regularization of tax shortfalls, and adjusting input tax credit rules. Specific amendments address the time of supply for reverse charge transactions, input tax credit conditions for various financial years, and limitations on refund claims for export duties. The Bill also proposes reductions in pre-deposit requirements for appeals and updates procedures for tax determinations and appeals. These amendments are set to enhance compliance and streamline tax administration, with most changes effective from July 1, 2017, and certain updates applying from August 2024.

GOODS AND SERVICE TAX

Note: (a) CGST Act means Central Goods and Services Tax Act, 2017

(b) IGST Act means Integrated Goods and Services Tax Act, 2017

(d) Cess Act means Goods and Services Tax (Compensation to States) Act, 2017

Unless specified otherwise, amendments proposed in the Finance (No. 2) Bill, 2024, vide clause 110 to 153 will come into effect from a date when the same will be notified concurrently, as far as possible, with the corresponding amendments to the similar Acts passed by the States & Union territories with legislature.

I. Amendments In the CGST ACT, 2017:

S.
No.

Amendment

Clause of the
Finance(No. 2) Bill, 2024

Section 9 is being amended to take Extra Neutral Alcohol used in manufacture of alcoholic liquor for human consumption out of purview of central tax. Similar amendments are also proposed in IGST Act and UTGST Act.

[110]

Sub-section (5) of section 10 of the CGST Act is being amended, so as to incorporate a reference to the proposed new section 74A in the said subsection.

[111]

Section 11A is being inserted to empower the government to regularize non-levy or short levy of central tax due to any general practice prevalent in trade. Similar power is being proposed in IGST Act, UTGST Act and GST (Compensation to States) Act.

[112]

Amendment is proposed in sub section (3) of Section 13 of CGST Act to provide for time of supply of services where the invoice is required to be issued by the recipient of services in cases of reverse charge supplies.

[113]

Sub-section (5) is being inserted in section 16 of the CGST Act, so as to carve out an exception to the existing sub-section (4) and to provide that in respect of an invoice or debit note under the said subsection, for the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under section 39 which is filed upto the 30th day of November, 2021.