Seeks to bring into force certain provisions of the Finance (No. 2) Act, 2019 to amend the CGST Act, 2017 – Notification No. 01/2020 – Central Tax dated 01st January, 2020

With effect from January 01st 2020, Some sections have implemented via Notification No. 01/2020 – Central Tax dated 01st January, 2020 which was amended vide Finance (No. 2) Act, 2019.

Major amendments are as follows

1. Amendment of section 10 (Composition Scheme) :-

a. Value of exempt supply of services provided by way of  extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount shall not be taken into account for determining the value of turnover in a State or Union territory.

b. Casual taxable person and a non-resident taxable person also not eligible for composition scheme

2. Amendment of section 22 (registration) :-

a. There is a enhancement in aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods.

b. a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.

3. Amendment of section 25 (Procedure for registration):-

a. Majorly every registered person shall undergo authentication, or furnish proof of possession of Aadhaar number, in such form and manner and within such time as may be prescribed.

4. Amendment of section 49 (Payment of tax, interest, penalty and other amounts):-

a. Inter head transfer facility:- a registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under this Act, to the electronic cash ledger for integrated tax, central tax, State tax, Union territory tax or cess, in such form and manner and subject to such conditions and restrictions as may be prescribed and such transfer shall be deemed to be a refund from the electronic cash ledger under this Act.

b. Where any amount has been transferred to the electronic cash ledger under this Act, the same shall be deemed to be deposited in the said ledger.

5. Insertion of new section 53A (Transfer of certain amounts) :-

a. Where any amount has been transferred from the electronic cash ledger under this Act to the electronic cash ledger under the State Goods and Services Tax Act or the Union territory Goods and Services Tax Act, the Government shall, transfer to the State tax account or the Union territory tax account, an amount equal to the amount transferred from the electronic cash ledger, in such manner and within such time as may be prescribed.

Seeks to bring into force certain provisions of the Finance (No. 2) Act, 2019 to amend the IGST Act, 2017 Notification No. 01/2020 – Integrated Tax dated 01st January, 2020

With effect from January 01st 2020, Some sections have implemented via Notification No. 01/2020 – Integrated Tax dated 01st January, 2020 which was amended vide Finance (No. 2) Act, 2019.

1. Insertion of new section 17A (Transfer of certain amounts) :-

a. Where any amount has been transferred from the electronic cash ledger under this Act to the electronic cash ledger under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, the Government shall transfer to the State tax account or the Union territory tax account, an amount equal to the amount transferred from the electronic cash ledger, in such manner and within such time, as may be prescribed.

Following major section had already being amended but still not notified :-

1. Amendment of section 2(Definitions) :-

(after the words “the Appellate Authority for Advance Ruling,”, the words “the National Appellate Authority for Advance Ruling,” shall be inserted)

Still there is no formation of National Appellate Authority for Advance Ruling.

2. Amendment of section 50 (Interest on Delayed payment of tax) :-

(Provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger.)

In finance Act 2019, Govt have amended the section 50 and said that Interest will be charge on net amount (After utilizing ITC) instead of gross amount but still that amendment still not notified yet.

(Author can be reached at Mail id- gst@misandassociates.com)

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Qualification: CA in Practice
Company: MIS & Associates
Location: Gurgaon, Haryana, IN
Member Since: 18 Dec 2019 | Total Posts: 4

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