Effect of Notification 49/2020-Central Tax dated 24th June, 2020– Central Government appoints 30th June, 2020 as the date on which the amendment in Section 2(114), Section 109(6), Section 168(2) and Section 172(1) of of CGST Act, 2017  i.e. Section 118, 125,129 and 130 of the Finance Act, 2020  shall come into force. These amendments were notified vide finance Act, 2020 with a provision that the same will come into force from the date the Central Government notify in the behalf. 

1. Section 118 of the Finance Act, 2020  (Amendment in Section 2(114) of CGST Act, 2017)

The section 118 of the Finance Act, 2020 amended the list of Union Territories as mentioned in Section 2(114) of the CGST Act, 2017. The said amendment is prescribed to give effect of Jammu and Kashmir Reorganisation Act, 2019 and Dadra and Nagar Haveli and Daman And Diu( Merger of Union Teritories ) Act, 2019. After giving effect of the said amendment, the list of union territories are as under:

Section Old List of Union Teritories New List of Union Teritories
Section 2(114) of the CGST Act, 2017 (a) the Andaman and Nicobar Islands;

(b) Lakshadweep;

(c) Dadra and Nagar Haveli;

(d) Daman and Diu;

(e) Chandigarh;

(a) the Andaman and Nicobar Islands;

(b) Lakshadweep;

(c) Dadra and Nagar Haveli and Daman and Diu;

(d) Ladakh;

(e) Chandigarh;

2. Section 125 of the Finance Act, 2020 (Amendment in Section 109(6) of CGST Act, 2017)

Section 125 of the Finance Act, 2020 amends Section 109(6) of the CGST Act, 2017. This amendment is intended to bring a Bench of Appellate Tribunal in  Jammu & Kashmir and Ladakh. The details of the amendment is as follows:

Section Old Provision New Provision
Section 109(6) The Government shall, by notification, specify for each State or Union territory[ except for the State of Jammu & Kashmir], a Bench of the Appellate Tribunal (hereafter in this Chapter, referred to as “State Bench”) for exercising the powers of the Appellate Tribunal within the concerned State or Union territory:

Provided that for the State of Jammu and Kashmir, the State Bench of the Goods and Services Tax Appellate Tribunal constituted under this Act shall be the State Appellate Tribunal constituted under the Jammu and Kashmir Goods and Services Tax Act, 2017:

The Government shall, by notification, specify for each State or Union territory, a Bench of the Appellate Tribunal (hereafter in this Chapter, referred to as “State Bench”) for exercising the powers of the Appellate Tribunal within the concerned State or Union territory:

3. Section 129 of the Finance Act, 2020 (Amendment in Section 168(2) of CGST Act, 2017)

Section 168 of the CGST Act is being amended to make provisions for enabling the jurisdictional commissioner to exercise powers under sub-section (5) of section 66 and second proviso to sub-section (1) of section 143

Section Old Provision New Provision
168(2) 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. 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 143,except second proviso thereof, 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.

4. Section 130 of the Finance Act, 2020 (Amendment in Section 172(1) of CGST Act, 2017)

Section 172 of the CGST Act, 2017 is being amended to empower the GST Council to issue Removal of Difficulties order till 30th June, 2022.

Section Old Provision New Provision
172 If any difficulty arises in giving effect to any provisions of this Act, the Government may, on the recommendations of the Council, by a general or a special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or regulations made thereunder, as may be necessary or expedient for the purpose of removing the said difficulty:

Provided that no such order shall be made after the expiry of a period of three years from the date of commencement of this Act

If any difficulty arises in giving effect to any provisions of this Act, the Government may, on the recommendations of the Council, by a general or a special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or regulations made thereunder, as may be necessary or expedient for the purpose of removing the said difficulty:

Provided that no such order shall be made after the expiry of a period of five years from the date of commencement of this Act

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