Finance Act, 2019 (GST Provisions)
1. Finance Act, 2019 received the assent of the President of India on 1st August, 2019
2. However, sections 92 to 112( Pertaining to CGST Act, 2017) and section 114( IGST Act, 2017) of the Finance Act, 2019 shall come into force at a later date to be notified by the Central Government. [After all the States also carry out legislative changes in their respective SGST Act(s)].
3. Section 113, 115 and 116 of the Finance Act, 2017 shall come into effect retrospectively w.e.f 1st July, 2017.
Amendment to CGST Act, 2017
1. Section 2(4) : Adjudicating Authority amended to exclude the National Appellate Authority for Advance Ruling.
2. Section 10 : Amendment to introduce composition scheme for service providers (Up to Rs. 50 lacs).
3. Section 22 : Increase in threshold limit for registration in respect of goods to Rs. 40 lacs.
4. Section 25 : Aadhaar authentication for new and existing registrants.
5. Section 31A : Specified suppliers to mandatorily give the option of electronic payment to the recipients of supply of goods or services or both made by them.
6. Section 39 : Provide for new return system and allow composition taxpayers to furnish annual return along with quarterly payment.
7. Section 44 : Empowers the Commissioner or Joint Secretary posted in the Board to extend the due date furnishing Annual Return prescribed (FORM GSTR9/9A) and reconciliation statement (FORM GSTR-9C).
8. Section 49 : Provide for transfer of an amount from one head to another head in the electronic cash ledger.
9. Such transfer shall be deemed to be a refund from the electronic cash ledger under this Act. Any amount that has been transferred to the electronic cash ledger under this Act, the same shall be deemed to be deposited in the said ledger.
10. Section 50 : Charging interest only on the net cash tax liability, except in proceedings under section 73 or 74.
11. Interest on late payment of tax shall be calculated on net cash liability (gross liability less credit available), and not gross tax liability.
12. Section 52(4&5) : Empowers the Commissioner or Joint Secretary posted in the Board to extend due date of monthly/ annual statement of TCS.
13. Section 53A : Provides for consequential transfer of amount between Centre and States, due to section 49 (Transfer of an amount from one head to another head in the electronic cash ledger.
14. Section 54(8A) : Provides that the Central Govt may disburse refund amount to taxpayers in respect of refund of State taxes i.e disbursement of refund by single authority.
15. Section 95(f) : To define the National Appellate Authority (NAA) for Advance Ruling.
16. Section 101A, B & C : To introduce provisions relating to National Appellate Authority (NAA) for Advance Ruling.
17. Section 102 : Power to NAA to rectify any error apparent on the face of the record.
18. Section 103 : AR pronounced by the NAA shall be binding PAN wise.
19. Section 104 : AR pronounced by NAA to be void in certain cases.
20. Section 105 : NAA to have powers of Civil Court under the Code of Civil Procedure, 1908.
21. Section 106 : NAA to regulate its own procedure.
22. Section 168 : Commissioner or Joint Secretary shall exercise the powers specified in respect of section 44(1) and section 52( 4&5).
23. Section 171 : To empower National Anti-profiteering Authority to impose penalty equivalent to 10% of the profiteered amount. 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.
24. Section 17A : Provisions for consequential transfer of amount between Centre and States, in view of inter-operability of amounts in different heads of cash ledger under section 49 of CGST Act).
Retrospective Amendment to CGST / IGST/ UTGST Act(s)
Section 113, 115 & 116 of the Finance Act, 2019
Retrospective Amendment in Notification No.2/2017-Central Tax (Rate) dated 28th June, 2017.
Following Entry 103A inserted-
1. Uranium Ore Concentrate falling in chapter 26 exempted retrospectively w.r.t 1st July, 2017.
2. Corresponding amendment in IGST Act as well as UTGST Act also done retrospectively ( Section 115 and 116 of Finance Act, 2019).