Implications of Notification 01/2020-Central Tax dated 01-01-2020 on the various GST related provisions of Finance No. 2 Act 2019
Finance No. 2 Act 2019 was enacted on 01-08-2019. GST related amendments are contained in section 92 to section 116 of the Finance No. 2 Act 2019. As per section 1(2)(b) of the Finance No. 2 Act 2019, sections 92 to 112 and section 114 shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. Notification 01/2020-Central Tax dated 01-01-2020 has been issued which says that section 92 to section 112 except section 97,100, 103 to 110 shall come into force on 01-01-2020.
We are also attaching herewith copies of The Central Goods and Services Tax 2017 and Comparative insight into the amended CGST and IGST Acts applicable w.e.f. 01.01.2020 by CA Bimal Jain for your kind perusal.
Following are the implications of Notification 01/2020-Central Tax dated 01-01-2020
| Finance Act 2019 | CGST Act | Brief Description | Date of Applicability |
| 92 | 2(4) | The definition of “adjudicating authority” in clause (4) of section 2 of the CGST Act is being amended so as to exclude “the National Appellate Authority for Advance Ruling” (which is being created by various amendments in Chapter XVII of the CGST Act) from the definition of “adjudicating authority”. | Not Yet Notified |
| 93 | 10 | Exclusion of interest or discount on deposits, loans or advances for determining 5% of Turnover admissible for providing services by Composition Scheme persons | 01-01-2020 |
| 94 | 10 | Exclusion of
A. Interest or discount on deposits, loans or advances B. And turnover from 1st April to date of becoming liable for registration under Composition Scheme from turnover in a state for determining tax payable under Composition Scheme for goods as well as service suppliers |
01-01-2020 |
| 95 | 10 | Casual Taxable person or non-resident taxable person restricted from opting for Composition Scheme. | 01-01-2020 |
| 96 | 10 | Composition Scheme applicable to service providers, having turnover up to 50 lacs in preceding financial year, at prescribed rate not exceeding 6%. | 01-01-2020 |
| 97 | 22 | A proviso and an explanation is being inserted in section 22 of the CGST Act so as to provide for higher threshold exemption limit from Rs. 20 lakhs to such amount not exceeding Rs. 40 lakhs in case of supplier who is engaged in exclusive supply of goods. | 01-01-2020 |
| 98 | 25 | A New sub-section is being inserted in section 25 of the CGST Act to make Aadhaar authentication mandatory for specified class of new taxpayers and to prescribe the manner in which certain class of registered taxpayers are required to undergo Aadhaar authentication. | 01-01-2020 |
| 99 | 31A | Digital payment option to recipient by prescribed class of registered persons | 01-01-2020 |
| 100 | 39 | Section 39 of the CGST Act is being amended so as to allow the composition taxpayers to furnish annual return along with quarterly payment of taxes; and other specified taxpayers may be given the option for quarterly or monthly furnishing of returns and payment of taxes under the proposed new return system. | Not Yet Notified |
| 101 | 44 | New provisos are being inserted in sub-section (1) of section 44 of the CGST Act so as to empower the Commissioner to extend the due date for furnishing Annual return (prescribed FORM GSTR-9/9A) and reconciliation statement (prescribed FORM GSTR9C). | 01-01-2020 |
| 102 | 49 | New sub-sections are being inserted in section 49 of the CGST Act to provide a facility to the registered person to transfer an amount from one (major or minor) head to another (major or minor) head in the electronic cash ledger | 01-01-2020 |
| 103 | 50 | New proviso in sub-sections (1) is being inserted in section 50 of the CGST Act so as to provide for charging interest only on the net cash tax liability, except in those cases where returns are filed subsequent to initiation of any proceedings under section 73 or 74 of the CGST Act. | Not Yet Notified |
| 104 | 52 | New provisos are being inserted in sub-sections (4) and (5) of section 52 of the CGST Act so as to empower the Commissioner to extend the due date for furnishing of monthly and annual statement by the person collecting tax at source. | 01-01-2020 |
| 105 | 53A | A new section 53A is being inserted in the CGST Act so as to provide for transfer of amount between Centre and States consequential to amendment in section 49 of the CGST Act allowing transfer of an amount from one head to another head in the electronic cash ledger of the registered person. | 01-01-2020 |
| 106 | 54 | Disbursement New sub-section (8A) is being inserted in section 54 of the CGST Act so as to provide that the Central Government may disburse refund amount to the taxpayers in respect of refund of State taxes as well. | Not Yet Notified |
| 107 | 95 | New clause (f) is being inserted in section 95 of the CGST Act to define the “National Appellate Authority for Advance Ruling”. | Not Yet Notified |
| 108 | 101A | Constitution of National Appellate Authority for Advance Ruling. | Not Yet Notified |
| 101B | Appeal against conflicting decisions of Appellate Authorities for Advance rulings of two or more states/Uts. | Not Yet Notified | |
| 101C | Order of National Appellate Authority | Not Yet Notified | |
| 109 | 102 | Rectification of orders of National Appellate Authority | Not Yet Notified |
| 110 | 103 | Orders of National Appellate Authority to be binding on all distinct persons having same PAN and concerned officers | Not Yet Notified |
| 111 | 104 | Orders of National Appellate Authority to be void if obtained by fraud etc. | Not Yet Notified |
| 112 | 105 | Marginal Heading changed to include National Appellate authority. Section 105 provides for powers of advance ruling authorities. | Not Yet Notified |
| 113 | 106 | Marginal Heading changed to include National Appellate authority. Section 106 provides for procedure of advance ruling authorities. | Not Yet Notified |
| 114 | 168 | Commissioner in Board shall be the Commissioner empowered to extend the date of annual return u/s 44 and TCS monthly and annual return by E- Commerce operators u/s 52. | 01-01-2020 |
| 115 | 171 | 10% Penalty on profiteered amount in case of Anti Profiteering subject to payment of profiteered amount in 30 days. | 01-01-2020 |
| 116 | 2/2017- CTR | Uranium Ore Concentrate which was exempt from 14-11-17 under CGST has been granted retrospective exemption from 01-07-2017 without refund of already collected amount | 01-07-2017 |
| 117 | 17A (IGST) | Transfer of IGST to State tax account / UT Tax account on account of Inter head transfer | 01-01-2020 |
| 118 | 6 (IGST) | Uranium Ore Concentrate which was exempt from 14-11-17 under IGST has been granted retrospective exemption from 01-07-2017 without refund of already collected amount | 01-07-2017 |
| 119 | 8 (UTGST) | Uranium Ore Concentrate which was exempt from 14-11-17 under UTGST has been granted retrospective exemption from 01-07-2017 without refund of already collected amount | 01-07-2017 |
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