Indirect Tax Budget (GST) -2019 

1. Provision of Inter Transfer of fund of Electronic Cash ledger from one head to another: Financial Bill proposes to allow a taxpayer to transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger to integrated tax, central tax, state tax, union territory tax or cess. Welcome for the Industry.

2. Interest shall be levied only on the net tax liability: Financial Bill proposes to restrict interest levy only on that portion of tax that is deposited through the electronic cash ledger (net tax liability after set-off of ITC from electronic credit ledger), where there is delay in filing of return and remittance of tax. Overrule the Negative Ruling of Telangana High Court and benefitted the Interim Judgment of Delhi High Court WP(c) 6055/2019.

3. Registration limits exceeded for supply of goods to INR 40 Lakh: Finance Bill proposes to insert new provision to enhance threshold exemption limit from INR 20 lakhs to such amount not exceeding INR 40 lakhs in case of supplier who is engaged in exclusive supply of goods.

4. 10% penalty to be paid on profiteered amount: Finance Bill proposes new provision to empower National Ant profiteering Authority to levy penalty of 10% of the profiteered amount not deposited within 30 days of the order passed by Authority.

5. New GST return structure: Finance Bill proposes to facilitate Composition taxpayers to furnish annual return along with quarterly payment of taxes under new return system. For other specified taxpayers (persons filing monthly return) an option may be given for quarterly furnishing of returns and payment of taxes.

6. Facility of Digital Payment to Recipient: For promoting digital India, Government to prescribe a class of GST registrants, who shall provide certain prescribed modes of electronic payment to the recipient of goods or services or both. Thus, the recipient would be obliged to make payment only in the prescribed modes.

7. Central Government to grant refund also in respect of state taxes: Finance Bill proposes to insert new provision in law so as to provide that the Central Government may disburse refund amount to the taxpayers in respect of State taxes as well.

8. Aadhar Authentication Mandatory: Aadhar authentication made mandatory for all taxpayers except specified states or class of tax payers.

9. Alternative Composition Scheme for certain registered persons: Finance Bill proposes an option of ‘composition scheme’ for any taxable person engaged in “intra state supplies of goods or services or both” whose turnover in preceding financial year does not exceed INR 50 Lakh, with GST rate not exceeding 3%.

10. Creation of National Appellate Authority for Advance Ruling: The said authority shall entertain the appeal in respect of the following questions:

i. Conflicting advance ruling are given by the Appellate authorities of two or more states or union territories.

ii. When the Appellate authority differs on any point or points referred to in appeal.

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March 2021