GST: Sections not enacted: (Part:1/3)

CMA ANIL SHARMA 16 Aug 2021 6,129 Views 0 comment Print Goods and Services Tax | Articles

Since the Goods and Service Tax Acts have been introduced in the country, there have been many amendments in GST Acts itself through Annual Finance Acts. In this write up, we have compiled the various sections of CGST and IGST Acts, amended through different Finance Acts and have been passed in Parliament but have not been enacted yet, resulting have no impact on day to day activities of businesses.

Till now GST Acts have been amended through four Finance Acts i.e Finance Act, 2018, Finance (No 2) Act, 2019, Finance Act, 2020 and Finance Act 2021. From the sections of Annual Finance Acts, a few have been notified and implemented retrospectively while the others have been implemented prospectively. But there are some sections though passed in Finance Acts by the Parliament but have not been notified/enacted under GST Acts, hence are not implemented till date.

We have covered all the four Finance Acts in THREE parts and part ONE is as under.

1. Finance Act, 2018 and Central Goods and Services Tax (Amendment) Act, 2018 (31 of 2018) dt 30.08.2018.

Total Sections amended :32

Total Sections enacted :27

Total Sections pending for enactment :05

Notifications issued for enactment :02/2019 dt 29.01.2019 wef 01.02.2019

Though three years have gone but following sections have not been notified and enacted under CGST Act 2017 yet.

Section wise details are narrated as under:

Sr No	Central Goods and Services Tax (Amendment) Act, 2018 (31 of 2018), dt 30.08.2018	CGST ACT, 2017	Remarks
1	Section 8(b)	Section 16(c )	For amended section see note:01 (amendments have been underlined and are in bold text)
2	Section 17	Section 39(1), (7) & (9)	For amended section see note:02 (amendments have been underlined and are in bold text)
3	Section 18	Section 43A	New Section inserted as per note:03
4	Section 20(a)	Section 49(2)	For amended section see note:04 (amendments have been underlined and are in bold text)
5	Section 28(b)(i) & (c)(i)	Section 140 Explanation-1&2	Amendment wef 01.07.2017 For amended section see note:05 (amendments have been underlined and are in bold text)

Note:01 – Section 16(c ): subject to the provisions of section 41 or section 43A, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilisation of input tax credit admissible in respect of the said supply; and

Note: 02– Section 39. (1) Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52 shall, for every calendar month or part thereof, furnish, in such form, manner and within such time as may be prescribed, a return, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars as may be prescribed on or before the twentieth day of the month succeeding such calendar month or part thereof

“Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall furnish return for every quarter or part thereof, subject to such conditions and safeguards as may be specified therein.”;

(7) Every registered person, who is required to furnish a return under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return,

“Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall pay to the Government the tax due or part thereof as per the return on or before the last date on which he is required to furnish such return, subject to such conditions and safeguards as may be specified therein.”;

(9) Subject to the provisions of sections 37 and 38, if any registered person after furnishing a return under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (4) or sub-section (5) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in such form and manner as may be prescribed, subject to payment of interest under this Act:

Provided that no such rectification of any omission or incorrect particulars shall be allowed after the due date for furnishing of return for the month of September or second quarter following the end of the financial year to which such details pertain, or the actual date of furnishing of relevant annual return, whichever is earlier

Note:03- After Section 43, new section 43A inserted

Section 43A. (1) Notwithstanding anything contained in sub-section (2) of section 16, section 37 or section 38, every registered person shall in the returns furnished under sub-section (1) of section 39 verify, validate, modify or delete the details of supplies furnished by the suppliers.

(2) Notwithstanding anything contained in section 41, section 42 or section 43, the procedure for availing of input tax credit by the recipient and verification thereof shall be such as may be prescribed.

(3) The procedure for furnishing the details of outward supplies by the supplier on the common portal, for the purposes of availing input tax credit by the recipient shall be such as may be prescribed.

(4) The procedure for availing input tax credit in respect of outward supplies not furnished under sub-section (3) shall be such as may be prescribed and such procedure may include the maximum amount of the input tax credit which can be so availed, not exceeding twenty per cent. of the input tax credit available, on the basis of details furnished by the suppliers under the said sub-section.

(5) The amount of tax specified in the outward supplies for which the details have been furnished by the supplier under sub-section (3) shall be deemed to be the tax payable by him under the provisions of the Act.

(6) The supplier and the recipient of a supply shall be jointly and severally liable to pay tax or to pay the input tax credit availed, as the case may be, in relation to outward supplies for which the details have been furnished under sub-section (3) or sub-section (4) but return thereof has not been furnished.

(7) For the purposes of sub-section (6), the recovery shall be made in such manner as may be prescribed and such procedure may provide for non-recovery of an amount of tax or input tax credit wrongly availed not exceeding one thousand rupees.

(8) The procedure, safeguards and threshold of the tax amount in relation to outward supplies, the details of which can be furnished under sub-section (3) by a registered person,—

(i) within six months of taking registration;

(ii) who has defaulted in payment of tax and where such default has continued for more than two months from the due date of payment of such defaulted amount,

Note:04- Section 49 (2) The input tax credit as self-assessed in the return of a registered person shall be credited to his electronic credit ledger, in accordance with section 41 or section 43A, to be maintained in such manner as may be prescribed

Note:05 – Section 140

Explanation – 1 For the purposes of sub-sections (1), (3), (4) and (6), the expression “eligible duties” (w.e.f 01.07.2017)

Explanation 2— For the purposes of sub-section (1) and (5), the expression “eligible duties and taxes” means–– (w.e.f 01.07.2017)