GST amendment finance bill -Section wise analysis

Explanation–– For the purposes of second proviso, the 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.

Requirement of the facility of digital payment to recipient

1. Composition taxpayers were till now making quarterly payments and filing quarterly returns. Along with this they also have to file Annual Return (GSTR-9A) as well. Relief from some compliance has been given by doing away with quarterly filing of return from dates to be prescribed. It is important to note here that composition taxpayers will still have to make quarterly payment of taxes in manner to be prescribed. Other specified taxpayers may be given the option for quarterly or monthly furnishing of returns and payments of taxes under the proposed new return system.
2. Further, the last date of payment of taxes has been delinked from the due date of filing of return. The payment of taxes may be required at an earlier date than the date of return filing
   

   Amendment in return filing provisions

   Source

   Clause 96 of the Finance Bill, 2019.

   Effective Date
   Date to be notified by the government.

   Affected Provision
   Section 39 of the CGST Act, 2017

   Provision before Amendment

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

   39(2) A registered person paying tax under the provisions of section 10 shall, for each quarter or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of turnover in the State or Union territory, inward supplies of
   goods or services or both, tax payable and tax paid within eighteen days after the end of such quarter.

   39(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.
   Provision after Amendment

   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, 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, in such form and manner, and within such time, as may be prescribed

    

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

   39(2) A registered person paying tax under the provisions of section 10, shall, for each financial year or part thereof, furnish a return, electronically, of turnover in the State or Union territory, inward supplies of goods or services or both, tax payable, tax paid and such other particulars in such form and manner, and within such time, as may be prescribed.

   39(7) Every registered person who is required to furnish a return under sub-section (1), other than the person referred to in the proviso thereto, 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 every registered person furnishing return under the proviso to sub-section (1) shall pay to the Government, the tax due taking into account inward and outward supplies of goods or services or both, input tax credit availed, tax payable and
   such other particulars during a month, in such form and manner, and within such time, as may be prescribed:

   Provided further that every registered person furnishing return under sub-section (2) shall pay to the Government the tax due taking into account turnover in the State or Union territory, inward supplies of goods or services or both, tax payable, and such
   other particulars during a quarter, in such form and manner, and within such time, as may be prescribed.

    

    

   Power of the extension of time limit of annual return by the commissioner

   Source

   Clause 97 of the Finance Bill, 2019.

   Effective Date

   Date to be notified by the government.

   Affected Provision

   Section 44 of the CGST Act, 2017

   Amendment

   The provision marked in green has been inserted newly

   Every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return for every financial year electronically in such form and manner as may be prescribed on or before the thirty-first day of December following the end of such financial year.

   “Provided that the Commissioner may, on the recommendations of the Council and for reasons to be recorded in writing, by notification, extend the time limit for furnishing the annual return for such class of registered persons as may be specified therein

   Provided further that any extension of time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.

   Effect of the Amendment:

   1. The commissioner has now been empowered to extend the due date for furnishing Annual Return prescribed (FORM GSTR9/9A) and reconciliation statement (FORM GSTR-9C)

   Transfer of any amount of tax, interest, penalty, fees between various heads

   Source

   Clause 98 of the Finance Bill, 2019.

   Effective Date

   Date to be notified by the government.

   Affected Provision

   Section 49 of the CGST Act, 2017

   Amendment

   The potion marked in green has been newly inserted :

   49(10) 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.

   49(11) 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 as provided in sub-section (1).

   Effect of the Amendment

   Major heads (CGST/SGST/IGST/UTGST/Cess)

   Minor heads (Tax, Fees, Interest, penalty, others)

   Certain tax payers had erroneously interchanged major head with minor head or made interchanges among the heads at the time of making payment in their electronic cash ledger. Due to this their money was stuck in the electronic cash ledger. Now a registered has the facility to transfer any amount from one head to another or make transfers within the heads.

   Interest to be charged on net tax liability subject to exceptions

   Source

   Clause 99 of the Finance Bill, 2019.

   Effective Date

   Date to be notified by the government.

   Affected Provision

   Section 50 of the CGST Act,2017

   Amendment

   The following provision marked in green has been inserted:
   Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent, as may be notified by the Government on the recommendations of the Council.

   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.

   Effect of the Amendments:

   1. There was a lot of confusion among taxpayers whether interest on late payment of tax should be calculated on gross tax liability or net cash liability (gross liability less credit available).
   2. The government has now provided that interest shall be charged only on net cash liability. This is in lines with several decisions under the erstwhile Central excise and ST law that when there is sufficient credit, the interest for delayed payment of Duty/tax can be computed and paid net of Cenvat credit. However, there is one exception to this rule wherein interest shall be levied on gross tax liability. Where returns are filed subsequent to initiation of any proceedings as per Section 73 or 74 under GST regime, the interest shall be levied on the gross tax liability.

      Extension of time limit for furnishing the statement for Tax Collected at Source

      Source

      Clause 100 (a) of the Finance Bill, 2019.

      Effective Date

      Date to be notified by the government.

      Affected Provision

      Section 52 of the CGST Act,2017

      Amendment:

      The Provision marked in green has been newly inserted.
      52(4). Every operator who collects the amount specified in sub-section (1) shall furnish a statement, electronically, containing the details of outward supplies of goods or services or both effected through it, including the supplies of goods or services or both returned through it, and the amount collected under sub-section (1) during a month, in such form and manner as may be prescribed, within ten days after the end of such month.

      Provided that the Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing the statement for such class of registered persons as may be specified therein;

      Provided further that any extension of time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.

      52(5). Every operator who collects the amount specified in sub-section (1) shall furnish an annual statement, electronically, containing the details of outward supplies of goods or services or both effected through it, including the supplies of goods or services or both returned through it, and the amount collected under the said sub- section during the financial year, in such form and manner as may be prescribed, before the thirty first day of December following the end of such financial year.

      Provided that the Commissioner may, on the recommendations of the Council and for reasons to be recorded in writing, by notification, extend the time limit for furnishing the annual statement for such class of registered persons as may be specified therein: Provided further that any extension of time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.

      Effect of the Amendment

      Every E-commerce operator who are required to deduct TCS under GST need to file GSTR-8 (monthly return) and GSTR 9B (Annual return). The provisos are inserted 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.

      Effect of the transfer of amounts from CGST to SGST in electronic cash ledger

      Source

      Clause 101 & Clause 113 of the Finance Bill, 2019.

      Effective Date

      Date to be notified by the government.

      New Section

      Section 53A of the CGST Act, 2017 Section 17A of IGST Act, 2017

      Provision

      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.

      Effect of the Amendment

      1. If any person transfers any amount from CGST to SGST electronic cash ledger, the government shall at its end transfer to the State tax account, an amount equal to the amount transferred from the electronic cash ledger. This is a procedural process to be followed by the Department
      2. New section 17A is being inserted in the IGST Act so as to bring into the Act, provisions for transfer of amount between Centre and States consequential to amendment in section 49 of the CGST Act (Point 8) allowing transfer of an amount from one head to another head in the electronic cash ledger of the registered person

      Disbursement of refund by Central Government for State Taxes

      Source

      Clause 102 of the Finance Bill, 2019.

      Effective Date

      Date to be notified by the government.

      Affected Provision

      Section 54 of the CGST Act, 2017

      Amendment

      The following Portion marked in green has been inserted after sub- section 8 of Section 54

      The Government may disburse the refund of the State tax in such manner as may be prescribed.

    

   Effect of the Amendment

   Central Government may now disburse refund amount to the taxpayer in respect of the refund of state taxes as well.

   Definition of Appellate Authority to include National Appellate Authority

   Source

   Clause 103 of the Finance Bill, 2019

   Effective Date

   Date to be notified by the government.

   Affected Provision

   Section 95 of the CGST Act, 2017

   Amendment

   (a) “advance ruling” means a decision provided by the Authority or the Appellate Authority or the National Appellate authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of section 100 or of Section 101C , in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant.

   The portion marked in green has been newly inserted.

   (f) “National Appellate Authority” means the National Appellate Authority for Advance Ruling referred to in section 101A

   Effect of the Amendment

   New clause (f) in section 95 of the CGST Act is being inserted to define the “National Appellate Authority”. National Appellate Authority for Advance Ruling has been created to resolve conflicting judgements of Appellate Advance Ruling authorities.

   Constitution of National Appellate Authority for Advance Ruling

   Source

   Clause 104 of the Finance Bill, 2019.

   Effective Date

   Date to be notified by the government.

   New Section

   Section 101A, 101B, 101C of the CGST Act, 2017

   Provision

   The provision marked in green has been inserted.

   Section 101A

   1) The Government shall, on the recommendations of the Council, by notification, constitute, with effect from such date as may be specified therein, an Authority known as the National Appellate Authority for Advance Ruling for hearing appeals made under section 101B.

   2) The National Appellate Authority shall consist of—

   (i) the President, who has been a Judge of the Supreme Court or is or has been the Chief Justice of a High Court, or is or has been a Judge of a High Court for a period not less than five years;
   ii) a Technical Member (Centre) who is or has been a member of Indian Revenue (Customs and Central Excise) Service, Group A, and has completed at least fifteen years of service in Group A;

   (iii) a Technical Member (State) who is or has been an officer of the State Government not below the rank of Additional Commissioner of Value Added Tax or the Additional Commissioner of State tax with at least three years of experience in the administration of an existing law or the State Goods and Services Tax Act or in the field of finance and taxation.

   (3) The President of the National Appellate Authority shall be appointed by the Government after consultation with the Chief Justice of India or his nominee: Provided that in the event of the occurrence of any vacancy in the office of the President by reason of his death, resignation or otherwise, the senior most Member of the National Appellate Authority shall act as the President until the date on which a new President, appointed in accordance with the provisions of this Act to fill such vacancy, enters upon his office:

   Provided further that where the President is unable to discharge his functions owing to absence, illness or any other cause, the senior most Member of the National Appellate Authority shall discharge the functions of the President until the date on which the President resumes his duties.

   (4) The Technical Member (Centre) and Technical Member (State) of the National Appellate Authority shall be appointed by the Government on the recommendations of a Selection Committee consisting of such persons and in such manner as may be prescribed.

   (5) No appointment of the Members of the National Appellate Authority shall be invalid merely by the reason of any vacancy or defect in the constitution of the Selection Committee.

   (6) Before appointing any person as the President or Members of the National Appellate Authority, the Government shall satisfy itself that such person does not have any financial or other interests which are likely to prejudicially affect his functions as such President or Member.

   (7) The salary, allowances and other terms and conditions of service of the President and the Members of the National Appellate Authority shall be such as may be prescribed:
   Provided that neither salary and allowances nor other terms and conditions of service of the President or Members of the National Appellate Authority shall be varied to their disadvantage after their appointment.

   (8) The President of the National Appellate Authority shall hold office for a term of three years from the date on which he enters upon his office, or until he attains the age of seventy years, whichever is earlier and shall also be eligible for reappointment.

   (9) The Technical Member (Centre) or Technical Member (State) of the National Appellate Authority shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier and shall also be eligible for reappointment.

   (10) The President or any Member may, by notice in writing under his hand addressed to the Government, resign from his office:
   Provided that the President or Member shall continue to hold office until the expiry of three months from the date of receipt of such notice by the Government, or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest.

   (11) The Government may, after consultation with the Chief Justice of India, remove from the office such President or Member, who—
   (a) has been adjudged an insolvent; or
   (b) has been convicted of an offence which, in the opinion of such Government involves moral turpitude; or

   (c) has become physically or mentally incapable of acting as such President or Member; or
   (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as such President or Member; or

   (e) has so abused his position as to render his continuance in office prejudicial to the public interest:
   Provided that the President or the Member shall not be removed on any of the grounds specified in clauses (d) and (e), unless he has been informed of the charges against him and has been given an opportunity of being heard.

   (12) Without prejudice to the provisions of sub-section (11), the President and Technical Members of the National Appellate Authority shall not be removed from their office except by an order made by the Government on the ground of proven misbehaviour or incapacity after an inquiry made by a Judge of the Supreme Court nominated by the Chief Justice of India on a reference made to him by the Government and such President or Member had been given an opportunity of being heard.

   (13) The Government, with the concurrence of the Chief Justice of India, may suspend from office, the President or Technical Members of the National Appellate Authority in respect of whom a reference has been made to the Judge of the Supreme Court under sub-section (12).

   (14) Subject to the provisions of article 220 of the Constitution, the President or Members of the National Appellate Authority, on ceasing to hold their office, shall not be eligible to appear, act or plead before the National Appellate Authority where he was the President or, as the case may be, a Member.

   Section 101B:

   (1) Where, in respect of the questions referred to in sub-section (2) of section 97, conflicting advance rulings are given by the Appellate Authorities of two or more 

   States or Union territories or both under sub-section (1) or sub-section (3) of section 101, any officer authorised by the Commissioner or an applicant, being distinct person referred to in section 25 aggrieved by such advance ruling, may prefer an appeal to National Appellate Authority:

   Provided that the officer shall be from the States in which such advance rulings have been given.

   (2) Every appeal under this section shall be filed within a period of thirty days from the date on which the ruling sought to be appealed against is communicated to the applicants, concerned officers and jurisdictional officers:
   Provided that the officer authorised by the Commissioner may file appeal within a period of ninety days from the date on which the ruling sought to be appealed against is communicated to the concerned officer or the jurisdictional officer: Provided further that the National Appellate Authority may, if it is satisfied that the appellant was prevented by a sufficient cause from presenting the appeal within the said period of thirty days, or as the case may be, ninety days, allow such appeal to be presented within a further period not exceeding thirty days.

   Explanation.–– For removal of doubts, it is clarified that the period of thirty days or as the case may be, ninety days shall be counted from the date of communication of the last of the conflicting rulings sought to be appealed against.

   (3) Every appeal under this section shall be in such form, accompanied by such fee and verified in such manner as may be prescribed.

    

   Section 101C

   1) The National Appellate Authority may, after giving an opportunity of being heard to the applicant, the officer authorised by the Commissioner, all Principal Chief Commissioners, Chief Commissioners of Central tax and Chief Commissioner and Commissioner of State tax of all States and Chief Commissioner and Commissioner of Union territory tax of all Union territories, pass such order as it thinks fit, confirming or modifying the rulings appealed against.

   2) If the members of the National Appellate Authority differ in opinion on any point, it shall be decided according to the opinion of the majority.

   (3) The order referred to in sub-section (1) shall be passed as far as possible within a period of ninety days from the date of filing of the appeal under section 101B.

   (4) A copy of the advance ruling pronounced by the National Appellate Authority shall be duly signed by the Members and certified in such manner as may be prescribed and shall be sent to the applicant, the officer authorised by the Commissioner, the Board, the Chief Commissioner and Commissioner of State tax of all States and Chief Commissioner and Commissioner of Union territory tax of all Union territories and to the Authority or Appellate Authority, as the case may be, after such pronouncement.

   Effect of the Amendment:

   1. New sections 101A, 101B and 101C are being inserted in the CGST Act so as to provide for constitution, qualification, appointment, tenure, conditions of services of the National Appellate Authority for Advance Ruling; to provide for procedures to be followed for hearing appeals against conflicting advance rulings pronounced on the same question by the Appellate Authorities of two or more States or Union territories in case of distinct persons; and to provide that the National Appellate Authority shall pass order within a period of ninety days from the date of filing of the appeal respectively

   Rectification of advance ruling by the National Appellate Authority

   Source

   Clause 105 of the Finance Bill, 2019.

   Effective Date

   Date to be notified by the government.

   Affected Provision

   Section 102 of the CGST Act, 2017

   Amendment

   The portion marked as green has been newly inserted:

   The Authority or the Appellate Authority or the National Appellate Authority may amend any order passed by it under section 98 or section 101 or Section 101C respectively , so as to rectify any error apparent on the face of the record, if such error is noticed by the Authority or the Appellate Authority or the National Appellate Authority on its own accord, or is brought to its notice by the concerned officer, the jurisdictional officer, the applicant, appellant, the Authority or the Appellate Authority within a period of six months from the date of the order:

   Provided that no rectification which has the effect of enhancing the tax liability or reducing the amount of admissible input tax credit shall be made unless the applicant or the appellant has been given an opportunity of being heard.

   Effect of the amendment

   In consequent to the formation of the National Appellate Authority for Advance ruling , the powers to pass rectification order has been to NAAAR along with the earlier Authority/Appellate Authority. Thus, the NAAR can rectify any error apparent on the face of the record, within a period of six months from the date of the order, except under certain specified circumstances.

   Binding of Advance Ruling pronounced by National Appellate Authority

   Source

   Clause 106 of the Finance bill, 2019.

   Effective Date

   Date to be notified by the government.

   Affected Provision

   Section 103 of the CGST Act, 1962

   Amendment

   The portion marked in green has been newly inserted:

   (1A) The advance ruling pronounced by the National Appellate Authority under this Chapter shall be binding on—
   (a) the applicants, being distinct persons, who had sought the ruling under sub-section (1) of section 101B and all registered persons having the same Permanent Account Number issued under the Income-tax Act, 1961;

   (b) the concerned officers and the jurisdictional officers in respect of the applicants referred to in clause (a) and the registered persons having the same Permanent Account Number issued under the Income-tax Act, 1961.

   (2) The advance ruling referred to in sub-section (1) and sub-section (1A) shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed.

   Effects of the amendment

   In consequent to the formation of the National Appellate Authority for Advance ruling , section 103 has included NAAAR along with Authority / Appellate Authority to provide that the advance ruling pronounced by the NAAAR shall be binding, unless there is a change in law or facts, on the applicants, being distinct person and all registered persons having the same Permanent Account Number and on the concerned officers or the jurisdictional officers in respect of the said applicants and the registered persons having the same Permanent Account Number

   Advance ruling to be void in certain cases Source

   Clause 107 of the Finance bill,2019.

   Effective Date

   Date to be notified by the government.

   Affected Provision

   Section 104 of the CGST Act 2017.

   Amendment:

   The proviso marked in green has been newly inserted:

   1) Where the Authority or the Appellate Authority or the National Appellate Authority finds that advance ruling pronounced by it under sub-section (4)of section 98 or under sub-section (1) of section 101 or under section 101C has been obtained by the applicant or the appellant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the applicant or the appellant as if such advance ruling had never been made:

   Provided that no order shall be passed under this sub-section unless an opportunity of being heard has been given to the applicant or the appellant

   Effects of the amendment

   In consequent to the formation of the National Appellate Authority for Advance ruling , section 104 has included NAAAR along with Authority / Appellate Authority to provide that advance ruling pronounced by the National Appellate Authority shall be void where the ruling has been obtained by fraud or suppression of material facts or misrepresentation of facts

    

   Powers of Authority and Appellate Authority and National Appellate Authority

   Source

   Clause 108 of the Finance Bill, 2019.

   Effective Date

   Date to be notified by the government.

   Affected Provision

   Section 105 of the CGST Act 2017

   Amendment

   The portion marked as green has been newly inserted: Marginal heading has been changed to-

   Powers of Authority, Appellate Authority and National Appellate Authority

   The Authority or the Appellate Authority or the National Appellate Authority shall, for the purpose of exercising its powers regarding—
   a) discovery and inspection;
   b) enforcing the attendance of any person and examining him on oath;

   c) issuing commissions and compelling production of books of account and other records,
   have all the powers of a civil court under the Code of Civil Procedure, 1908.

   (2) The Authority or the Appellate Authority or the National Appellate Authority shall be deemed to be a civil court for the purposes of section 195, but not for the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974), and every proceeding before the Authority or the Appellate Authority shall be deemed to be a judicial proceedings within the meaning of sections 193 and 228, and for the purpose of section 196 of the Indian Penal Code.

   Effects of the amendment

   1. In consequent to the formation of the National Appellate Authority for Advance ruling, section 105 has included NAAAR along with Authority / Appellate Authority to provide that the National Appellate Authority shall have all the powers of a civil court under the Code of Civil Procedure, 1908 for the purpose of exercising its powers under the Act.

   Power to regulate Procedure of National Appellate Authority

    

   Clause 109 of the Finance Bill, 2019

   Effective Date

   Date to be notified by the government.

   Affected Provision

   Section 106 of the CGST Act 2017

   Amendment

   The portion marked in green has been newly inserted: Marginal heading has been changed to-

   Procedure of Authority, Appellate Authority and National Appellate Authority
   The Authority or the Appellate Authority or the National Appellate Authority shall,

   subject to the provisions of this Chapter, have power to regulate its own procedure.

   Effects of the amendment

   1. In consequent to the formation of the National Appellate Authority for Advance ruling, section 106 has included NAAAR along with Authority / Appellate Authority to provide that the National Appellate Authority shall have power to regulate its own procedure

   Powers of extension of due dates by Commissioner or Joint Secretary

   Source

   Clause 110 of the Finance Bill,2019.

   Effective Date

   Date to be notified by the government.

   Affected Provision

   Section 168 of the CGST Act 2017

   Amendment

   The portion marked in green has been newly inserted:

   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, sub-section (1) of section 44, sub-sections (4) and (5) of section 52, sub-section (5)of section 66, sub-section (1) of section 143, sub-section (1) of section 151, 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.

   Effects of the amendment

   In consequent of point 7 and 10 it is specified that Commissioner or Joint Secretary shall exercise the powers of extension of due dates with the approval of the Board.

   Penalty under Anti Profiteering

   Source

   Clause 111 of the Finance Bill, 2019.

   Effective Date

   Date to be notified by the government.

   Affected Provision

   Section 171 of the CGST Act, 2017 (3A) -New section has been inserted

   Provision after amendment

   The below mentioned provision has been newly inserted:

   “(3A) Where the Authority referred to in sub-section (2) after holding examination as required under the said sub-section comes to the conclusion that any registered person has profiteered under sub- section (1), such person shall be liable to pay penalty equivalent to ten per cent. of the amount so profiteered:

   Provided that no penalty shall be leviable if the profiteered amount is deposited within thirty days of the date of passing of the order by the Authority.

   Explanation.— For the purposes of this section, the expression “profiteered” shall mean the amount determined on account of not passing the benefit of reduction in rate of tax on supply of goods or services or both or the benefit of input tax credit to the recipient by way of commensurate reduction in the price of the goods or services or both.

    

   Effects of the amendments

   1. The government has formed a National Anti-profiteering Authority (NAA) that will ensure that entities pass on the benefit of reduced tax rates under GST to the consumers. Big companies like TATA, Starbucks and Maggie have also come in its loop.
   2. Sub section (3A) has been inserted in section 171 which empower the National Antiprofiteering Authority (under sub-section (2) of section 171 of the Act) to impose penalty equivalent to 10% of the profiteered amount.
   3. However, no penalty shall be levied if the profiteered amount is deposited within thirty days of the date of passing of the order by the Authority

      Retrospective Exemption of Uranium Ore Concentrate

      Notification No. 2/2017-Central Tax (Rate) dated the 28th June, 2017, Notification No. 2/2017-Integrated Tax (Rate) dated the 28th June, 2017 and Notification No. 2/2017-Union Territory Tax (Rate) dated the 28th June, 2017 is being amended retrospectively so as to exempt “Uranium Ore Concentrate” from the levy of Central Tax from 1st July, 2017 to 14th November, 2017

      This publication contains information for general guidance only. It is not intended to address the circumstances of any particular individual or entity. Although the best of endeavour has been made to provide the provisions in a simpler and accurate form, there is no substitute to detailed research with regard to the specific situation of a particular individual or entity. S. Khaitan & Associates or any of its officials do not accept any responsibility for loss incurred by any person for acting or refraining to act as a result of any matter in this publication