Notification No. 01/2020-CT notified the amendments to CGST Acts introduced by Finance (No. 2) Act, 2019 with effect from January 1st, 2020. It has notified amendments to Sections 10, 22, 25, 31A, 44, 49, 52, 53A, 168 and 17a of the CGST Act, 2017.

1. Provisions have been inserted to prescribe further rules for determination of the value of turnover of State/UT for the purpose of application of the scheme of composition levy. The registered persons not eligible to opt for Composition Levy under 10(1) and 10(2) now have an option to pay an amount of tax at a rate of 3% of the turnover for on fulfilment of certain conditions.

2. The process of authentication or furnishing of proof of possession of Aadhaar Number for every registered person has been introduced.

3. A registered person can now transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under the CGST Acts, to the electronic cash ledger for integrated tax, central tax, State tax, Union territory tax or cess in the manner to be prescribed. Further, the amount so transferred shall be transferred to the State tax account or UT account by the Government.

4. A penalty equal to 10% of the amount so profiteered has been prescribed where profiteering is detected by the Anti-Profiteering Authority (APA). In addition to the above penalty, the meaning of term ‘profiteered’ has also been inserted to 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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March 2024