Recent Amendments In GST

Recent Amendments In GST

Amendments made by the Finance Act, 2020

Amendment of Section 2 of CGST Act

In section 2 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the Central Goods and Services Tax Act), in clause (114), for sub-clauses (c) and (d), the following sub-clauses shall be substituted, namely:—

“(c) Dadra and Nagar Haveli and Daman and Diu;
(d) Ladakh;”.

Analysis: Changes are made to the given impact of Merger of Union Territories Act, 2019, and J&K Reorganisation act, 2019.
(Effective w.e.f. 30.06.2020 vide Not. No. 49/2020- Central Tax dt. 24-06-2020)

Note: Similar change in sections 1 & 2 of the UTGST Act.

Amendment of Section 10 of CGST Act

In section 10 of the Central Goods and Services Tax Act, in subsection (2), in clauses (b), (c), and (d), after the words ―of goods”, the words ―or services” shall be inserted.

Analysis: Section 10 is related to a composition scheme which covers goods as well as services. Changes in Section
10(2)(b),(c),(d) is made to ensure which goods or SERVICE providers can opt for the composition scheme.

10(2)(b): He is not making any supplies of goods or SERVICES which are not liable to tax under this Act.

10(2)(c): He is not making any Interstate State outward supplies of goods or SERVICES.

10(2)(d): He is not making any supplies of goods or SERVICES through an electronic commerce operator.

Amendment of Section 16 of the CGST Act

In section 16 of the Central Goods and Services Tax Act, in sub-section (4), the words ―invoice relating to such‖ shall be omitted.

Analysis: Section 16(4) prescribes for the time limit to claim ITC, i.e., Due date to file the return for the month of September of the next financial year to which Invoice pertains or Invoice relating to such debit note pertains.

Changes in GST is brought to allow credit relating to debit note irrespective of the date of issuance of Underlying Invoice related to a debit note.

Amendment of Section 29 of CGST Act

In section 29 of the Central Goods and Services Tax Act, in subsection (1), for clause (c), the following clause shall be substituted, namely:—

“(c) the taxable person is no longer liable to be registered under section 22 or section 24 or intends to opt-out of the registration voluntarily made under sub-section (3) of section 25:”.

Analysis: Section 25(3) talks about voluntary registration. Section 29 talks about the cancellation of registration. Before this amendment, an assessee who has taken voluntary registration could not get themselves de-registered as per section 29. But now after this amendment, such assessee can also be de-registered.

Amendment of Section 30 of CGST Act

In section 30 of the Central Goods and Services Tax Act, in subsection (1), for the proviso, the following proviso shall be substituted, namely:—

“Provided that such period may, on sufficient cause being shown, and for reasons to be recorded in writing, be extended,—

(a) by the Additional Commissioner or the Joint Commissioner, as the case may be, for a period not exceeding thirty days;

(b) by the Commissioner, for a further period not exceeding thirty days, beyond the period specified in clause (a).”.

Analysis: Time limit for revocation of cancellation of registration has been extended from 30 days to 60 days/90 days as above.

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