The Finance Bill 2024 proposes several crucial amendments to the Goods and Services Tax (GST) laws in India. These changes are aimed at simplifying tax procedures, enhancing compliance, and addressing various issues faced by taxpayers. This article highlights the major changes proposed in the Finance Bill 2024, analyzing their potential impact on businesses and individuals.
| S. No. | Section CGST | New Proposed Amendment | Analysis |
| 1 | 9(1) | Items un-denatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquor, for human consumption are proposed to add on which supply tax shall not be levied | |
| 2 | 16 | New sub-section (5) is proposed to be inserted after sub-section (4) – Notwithstanding anything contained in sub-section
(4), in respect of an invoice or debit note for supply of goods or services or both pertaining to 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 thirtieth day of November, 2021. |
Now, the registered person shall be entitled to avail ITC against invoice or debit note pertaining to any year from 2017-18 to 2020-21, if he had claimed in any return which had been filed upto 30-11-2021. |
| 3 | 16 | New sub-section (6) is proposed to be inserted for the registered person whose registration is revoked by any order. | ITC may be availed by the registered person whose registration has been revoked against such invoices whose date i.e. 30th November has been exhausted according to section 16(4) and subject to the condition – that the return is filed within thirty days from the date of order of revocation of cancellation of registration. For example. the registration was cancelled on 22-07-2023 and it had been revoked on 18-01-2024. The person is eligible in this case to avail input tax credit against those invoices pertaining to the year 2022-23 if the return had been filed within 30 days from the date or order of revocation. |
| 4 | 39 | Sub-section 3 of section 39 replaced. – Regarding TDS Return | Now, the said registered person shall furnish a return for every calendar month whether or not 4any deductions have been made during the said month |
| 5 | 70 | New sub-section 1A is proposed to be inserted | All persons summoned under sub-section (1) shall be bound to attend, either in person or by an authorised representative, as such officer may direct, and the person so appearing shall state the truth during examination or make statements or produce such documents and other things as may be required. statements or produce such documents and other things as may be required. |
| 6 | 73 & 74 | The provisions of these sections shall be applicable for determination of tax pertaining to the period upto Financial Year 2023-24. | |
| 7 | 74A | New Section inserted applicable for financial year 2024-25 and onwards. | This is a new section in place of section 73 and 74. Section 74A will be a combination of both sections 73 & 74. |
| 8 | 107 | Maximum limit to deposit the disputed amount of tax before filing the appeal has been reduced to 20 crores. (at present it is 25 crores) | |
| 9 | 112 | Appeal before the Appellate Tribunal – Twenty percent replaced with ten percent of the disputed tax to be deposited before filing the appeal subject to maximum twenty crore (at present it is fifty crore) | |
| 10 | 128A | Waiver of Interest and Penalty – Insertion of new section
(Applicable for period from 1st July, 2017 to 31st March 2020, or a part thereof) |
Conditions proposed in the Notice –
1. Interest and Penalty relating to the a. Notice issued u/s 73 or b. Order passed u/s 73 or c. Order passed under section 107 in appeal or d. Order passed by the revisional authority under section 108 and no order u/s 113 (Appellate Tribunal) has been passed. 2. Full amount of tax should be paid. 3. Amount of tax rectified by order of Appellate Authority, Appellate Tribunal, High Court or Supreme Court after filing the appeal by the department, the additional amount of tax payable shall be paid within three months of the date of order. 4. Already paid amount of interest and penalty shall not be refunded. 5. Not applicable to the case of erroneous refund. 6. Not applicable where appeal or writ petition is pending and has not been withdrawn by the said person on or before the date notified. |
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