Glimpse of proposed amendment in GST presented herewith in the union budget 2020
February 6, 2020
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| SECTION | CURRENT PROVISIONS | PROPOSED PROVISIONS | EFFECT |
| Section 2(114) – Definition of Union Territory | “Union territory” means the territory of- …….. (c) Dadra and Nagar Haveli and Daman and Diu; | “Union territory” means the territory of- …….. (c) Dadra and Nagar Haveli and Daman and Diu; (d) Ladakh | Seeks to align the definition of “Union territory” in line with the Jammu and Kashmir Reorganization Act, 2019 and the Dadra and Nagar Haveli and Daman and Diu (Merger of Union Territories), Act, 2019 |
| Section 10(2) – Composition Scheme | Clause (b), (c) and (d): (2) The registered person shall be eligible to opt under sub-section (1), if–– …….. (b) he is not engaged in making any supply of goods which are not leviable to tax under this Act; (c) he is not engaged in making any inter-State outward supplies of goods; (d) he is not engaged in making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52……. | Clause (b), (c) and (d): The registered person shall be eligible to opt under sub-section (1), if–– ……. (b) he is not engaged in making any supply of goods or services which are not leviable to tax under this Act; (c) he is not engaged in making any inter-State outward supplies of goods or services; (d) he is not engaged in making any supply of goods or services through an electronic commerce operator who is required to collect tax at source under section 52……. | Seeks to harmonize the conditions for eligibility for opting to pay tax under the Composition Scheme as sub-section (1) and sub-section (2A) of Section 10 of the CGST Act. |
| Section 16(4) – the Time period for availing Input Tax Credit (ITC) | A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier. | A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return uer section 39 for the month of September following the end of financial year to which such invoice or | Seeks to delink the date of issuance of debit note from the date of issuance of the underlying invoice for purposes of availing ITC. For illustration, if the original invoice was issued on 30 march 2019 and debit note against the same invoice issued in the month of April 2019, then in such case the ITC involved in the said debit note were earlier allowed till Sep 2019. Now with the delinking with invoice , ITC can be availed till Sep 2020 |
| Section 29(1)(c) – Cancellation of registration by the proper officer | (1) The proper officer may, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where,–– ……… (c) the taxable person, other than the person registered under sub-section (3) of section 25, is no longer liable to be registered under section 22 or section 24. | (1) The proper officer may, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where,–– ……… (c) the taxable person, | Person who has taken voluntarily registrations, can now apply for apply for cancellation instead of unnecessarily filing nil returns. |
Other relevant amendments–
- Introduction of new return regime wef 01, April 2020, reiterated.
- E-invoicing regime proposed to be implemented in a phased manner.
- Transitional provision under GST law proposed to be amended, so as to prescribe the time limit and manner for availing ITC pertaining to previous regime. (Retrospective)
- Revocation of cancellation of registration order can now be extended on sufficient cause shown by Addl or joint commissioner by 30 days and by commissioner for further 30 days, earlier law was not providing any benefit revocation when the same was applied beyond 30 days .