16 Proposed amendments to CGST in Union Budget 2020

The Finance Minister Nirmala Sitharaman on Saturday through the union Budget has proposed the following 16 amendments to the Central Goods and Service taxes (CGST) aiming to improve the scope and productivity of the tax regime.

• Dadra and Nagar Haveli, Daman and Diu and Ladakh to be included in the definition of Union Territory.
• Composition scheme restricted to the taxpayer making an inter-state supply of service supplies no leviable to GST and supplies through e-com operator where TCS is deductible.
• ITC can be availed based on the date of the debit note.

• Provision made for cancellation of the voluntary registration.
• Power to condone the delay in applying for revocation of cancellation to be provided to Additional Commissioner and commissioner for a period of 30 days each.
• Powers to be provided to notify the time and manner of issuance of an invoice for specific categories of service or supplies.
• Powers to be provided to notify the form of TDS certificate.
• Late fee (Rs.200 per day to a maximum of Rs.5,000) for non-issuance of TDS certificate has been removed.
• Jammu and Kashmir to have the state bench of their own.
• The person involved/benefited out of fake billing to be made liable for 100% Penalty.
• Punishment of imprisonment to be extended to the person ‘causes to omit’ and ‘person retaining the benefit’ also.
• Punishment to be restricted to persons fraudulently taking credit without invoice or a bill.
• Power to prescribe the limit for transition provisions to be provided with retrospective effect of 1st July 2017.
• Board Approval not to be required for the commissioner to determine the expense in case of the special audit and an extended period for return of input or capital goods by a job worker.
• Removal of difficulty order to be given for the period up to 5 years from 1st of July 2017 to 30th September, 2019.
• Retrospective exemption to be provided for CGST amendments in respect of the supply of fishmeal from the 1st July 2017 to 30th September 2019.
• CGST 6% rate (12% in total) to be provided for the supply of pulley, wheels and other parts and used as parts of agricultural machinery, during the period commencing from 1st July 2017 to 31st December 2018.
• Bar on refund of inverted duty on tobacco products to be made with retrospective effect of 1st July 2017.