THE FINANCE ACT, 2020 (NO. 12 OF 2020)
There are sixteen sections of CGST Act, 2017 got amended through Finance Act, 2020 and the same have been enacted by different notifications from different dates. Section 118 to Section 133 under Chapter-IV of said Act, deal with the amended provisions of Central Goods and Service Tax (CGST) Act. All sixteen section of CGST Act, 2017 have been enacted except sections 132 and 133 so far.
Total Sections amended :16
Total Sections enacted :14
Total Sections pending for enactment :02
Notifications issued for enactment :43/2020 dt 16.05.2020 (wef 18.05.2020)
:49/2020 dt 24.06.2020 (wef 30.06.2020)
:92/2020 dt 22.12.2020 (wef 01.01.2021)
Sections enacted W.E.F 27.03.2020 :
| Sr No | Finance Act, 2020 (12 of 2020) | CGST ACT, 2017 | Remarks |
| 1 | Section 132 | Section 9(1) | For amended section see note:01
(amendments have been underlined and are in bold text) |
| Section 133 | Section 54(3)(ii) CGST Act &
Section 9(2) GST (Compensation to States) Act, 2017 |
Notification no G.S.R. 708(E), dated the 30th September, 2019 enacted retrospectively wef 01.07.2017 | |
Note: 01- Section 9(1)
(i) no central tax shall be levied or collected in respect of supply of fishmeal (falling under heading 2301), during the period commencing from the 1st day of July, 2017 and ending with the 30th day of September, 2019 (both days inclusive);
(ii) central tax at the rate of six per cent. shall be levied or collected in respect of supply of pulley, wheels and other parts (falling under heading 8483) and used as parts of agricultural machinery (falling under headings 8432, 8433 and 8436), during the period commencing from the 1st day of July, 2017 and ending with the 31st day of December, 2018 (both days inclusive).
(2) No refund shall be made of all such tax which has been collected, but which would not have been so collected, had sub-section (1) been in force at all material times.
3A. Finance Act, 2020– Integrated Goods and Service Tax Act, 2017
All Section enacted.
THE FINANCE ACT, 2021 (NO. 13 OF 2020)
Government enacted Finance Act 2021 (NO. 13 OF 2020) wef 28.03.2021. Through this act, GST Council got amended as many as 14 Sections and Schedule-II of CGST Act 2017. But as of now only Section 110, 111 and Section 112 have been enacted under CGST Act, 2017.
Total Sections amended :14
Total Sections enacted :03
Total Sections pending for enactment :11
Notifications issued for enactment :Notification 16/2021 dt 01.06.2021
:Notification 29/2021 dt 30.07.2021
The details of sections not enacted under CGST Act are as under:
| Sr No | Finance Act, 2021 (13 of 2020) | CGST ACT, 2017 | Remarks |
| 1 | Section 108
Section 122 |
Section 07 (1)
Schedule-II (Para-07) |
New clause (aa) inserted w.e.f 01.07.2017. |
| 2 | Section 109 | Section 16(2)(aa) | New clause (aa) inserted |
| 3 | Section 113 | Section 74-
Explanation-1(ii) |
For amended section see note:03
(amendments have been underlined and are in bold text) |
| 4 | Section 114 | Section-75(12)
Explanation |
Explanation inserted.
See note:04 |
| 5 | Section 115 | Section- 83(1) | For amended section see note:05
(amendments have been underlined and are in bold text) |
| 6 | Section 116 | Section 107(6) | proviso inserted.
See note 06 |
| 7 | Section 117 | Section 129(1)(a) & (b), (2), (3), (4), & (6) | For amended section see note:07
(amendments have been underlined and are in bold text) |
| 8 | Section 118 | Section 130(1), (2) | For amended section see note:08
(amendments have been underlined and are in bold text) |
| 9 | Section 119 | Section 151 | For amended section see note:09
(amendments have been underlined and are in bold text) |
| 10 | Section 120 | Section 152 | For amended section see note:10
(amendments have been underlined and are in bold text) |
| 11 | Section 121 | Section 168(2) | For amended section see note:11
(amendments have been underlined and are in bold text) |
Note:01- Section 7(1)
(aa) the activities or transactions, by a person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration.
Explanation – For the purposes of this clause, it is hereby clarified that, notwithstanding anything contained in any other law for the time being in force or any judgment, decree or order of any Court, tribunal or authority, the person and its members or constituents shall be deemed to be two separate persons and the supply of activities or transactions inter se shall be deemed to take place from one such person to another;
Schedule –II : Para:07 – omitted w.e.f 01.07.2017
Note: 02- Section 16(2)(aa)
“(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37;”.
Note:03- Section 74-Explanation-1(ii)
where the notice under the same proceedings is issued to the main person liable to pay tax and some other persons, and such proceedings against the main person have been concluded under section 73 or section 74, the proceedings against all the persons liable to pay penalty under sections 122 and 125 are deemed to be concluded.
Note:04- Section 75(12)-Explanation
Explanation. – For the purposes of this sub-section, the expression “self-assessed tax” shall include the tax payable in respect of details of outward supplies furnished under section 37, but not included in the return furnished under section 39
Note:05-Section 83(1)
(1) Where, after the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue it is necessary so to do, he may, by order in writing, attach provisionally, any property, including bank account, belonging to the taxable person or any person specified in sub-section (1A) of section 122, in such manner as may be prescribed.
Note:06-Section-107(6)
Provided that no appeal shall be filed against an order under sub-section (3) of section 129, unless a sum equal to twenty-five per cent. of the penalty has been paid by the appellant.
Note:07 Section-129(1)(a)&(b)
(a) on payment of penalty equal to two hundred per cent. of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such penalty;
(b) on payment of penalty equal to fifty per cent. of the value of the goods or two hundred per cent. of the tax payable on such goods, whichever is higher, and in case of exempted goods, on payment of an amount equal to five per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such penalty
(2) Omitted
“(3) The proper officer detaining or seizing goods or conveyance shall issue a notice within seven days of such detention or seizure, specifying the penalty payable, and thereafter, pass an order within a period of seven days from the date of service of such notice, for payment of penalty under clause (a) or clause (b) of sub-section (1).
(4) No penalty shall be determined under sub-section (3) without giving the person concerned an opportunity of being heard.
“(6) Where the person transporting any goods or the owner of such goods fails to pay the amount of penalty under sub-section (1) within fifteen days from the date of receipt of the copy of the order passed under sub-section (3), the goods or conveyance so detained or seized shall be liable to be sold or disposed of otherwise, in such manner and within such time as may be prescribed, to recover the penalty payable under sub-section (3):
Provided that the conveyance shall be released on payment by the transporter of penalty under sub-section (3) or one lakh rupees, whichever is less:
Provided further that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of fifteen days may be reduced by the proper officer.”.
Note: 08-Section 130
(1) Where any person……
(2) Whenever confiscation of any goods or conveyance is authorised by this Act, the officer adjudging it shall give to the owner of the goods an option to pay in lieu of confiscation, such fine as the said officer thinks fit:
Provided that such fine leviable shall not exceed the market value of the goods confiscated, less the tax chargeable thereon:
Provided further that the aggregate of such fine and penalty leviable shall not be less than the amount of penalty equal to hundred per cent. of the tax payable on such goods
(3) Omitted
Note: 09-Section 151: Power to call Information
The Commissioner or an officer authorised by him may, by an order, direct any person to furnish information relating to any matter dealt with in connection with this Act, within such time, in such form, and in such manner, as may be specified therein
Note : 10 –Section 152:
(1) No information ..omitted with respect to any matter given for the purposes of section 150 or section 151 shall, without the previous consent in writing of the concerned person or his authorised representative, be published in such manner so as to enable such particulars to be identified as referring to a particular person and no such information shall be used for the purpose of any proceedings under this Act without giving an opportunity of being heard to the person concerned].
(2) Omitted
Note: 11- Section 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, section 44, sub-sections (4) and (5) of section 52, sub-section (1) of section 143, except the second proviso thereof …..omitted , 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.
4A. Finance Act, 2021: Integrated Goods and Service tax -2017
Sections not enacted so far:
| Sr No | Finance Act, 2021 (13 of 2020) | IGST ACT, 2017 | Remarks |
| 1 | Section 123 | Section 16(1)(b), (3) and (4) | For amended section see note:01
(amendments have been underlined and are in bold text) |
Note: 01- Section 16 (1)(b), (3) and (4)
(b) supply of goods or services or both for authorised operations to a Special Economic Zone developer or a Special Economic Zone unit.
“(3) A registered person making zero rated supply shall be eligible to claim refund of unutilised input tax credit on supply of goods or services or both, without payment of integrated tax, under bond or Letter of Undertaking, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder, subject to such conditions, safeguards and procedure as may be prescribed:
Provided that the registered person making zero rated supply of goods shall, in case of non-realisation of sale proceeds, be liable to deposit the refund so received under this sub-section along with the applicable interest under section 50 of the Central Goods and Services Tax Act within thirty days after the expiry of the time limit prescribed under the Foreign Exchange Management Act, 1999 for receipt of foreign exchange remittances, in such manner as may be prescribed.
(4) The Government may, on the recommendation of the Council, and subject to such conditions, safeguards and procedures, by notification, specify––
(i) a class of persons who may make zero rated supply on payment of integrated tax and claim refund of the tax so paid;
(ii) a class of goods or services which may be exported on payment of integrated tax and the supplier of such goods or services may claim the refund of tax so paid.
Conclusion:
After going through the amendments made effective through various Finance Acts over the period of four years, it is clear that as many as 83 sections out of 174 sections of CGST Act 2017 have either been amended, inserted, substituted or omitted. Some of them have been amended, inserted, substituted or omitted retrospectively. Section -7 and annexures there to, which is pivotal to GST Laws have been amended many times retrospectively. Section 9(4) got deferred for some time and finally amended and is now applicable in real estate sector only. Conditions of Section 16(2) to avail ITC by dealers have been challenged in various courts as are beyond his jurisdiction. In rules also, statements like GSTR-2 and GST-3 of monthly return, which are first documents of dealer’s business to be shared with GST departments, have not seen the light of the day even after four years of the law introduced in the country. Instead of simplification of provisions of laws, these amendments have increased the litigation and confusion among stake holders many fold. Issues at GST portal throw additional challenges to the users. All above shows that GST was introduced in hast without proper homework, though politically we discussed it for more than seventeen years.
Also Read:
1. GST-Sections not enacted yet -part-3/3
Author Bio
Very good information and will help the tax payer as well as tax authorities in GST Audit specially under section 65.