The Delhi Government notified the Delhi Goods and Services Tax (Amendment) Act, 2020, which seeks to amend the Delhi Goods and Services Tax Act, 2017.
In section 2 of the Delhi Goods and Services Tax Act, 2017, in clause (114), for clauses (c) and (d), the clauses “Dadra and Nagar Haveli and Daman and Diu; Ladakh”, shall be substituted.
The objective of this amendment was to amend clause (114) of section 2 of the Delhi Goods and Services Act so as to align the definition of “Union territory” in line with the Jammu and Kashmir Reorganisation Act, 2019 and the Dadra and Nagar Haveli and Daman and Diu (Merger of Union Territories), Act, 2019.
In section 10 of the principal Act, in sub-section (2), in clauses (b), (c) and (d), after the words “of goods”, the words “or services” shall be inserted.
This was done with the objective to amend clauses (b), (c) and (d) of sub-section (2) of section 10 of the Delhi Goods and Services Act to harmonise the conditions for eligibility for opting to pay tax under sub-section (1) and sub-section (2A).
The government further amended subsection(4) of section 16 of the Delhi Goods and Services Act so as to delink the date of issuance of debit note from the date of issuance of the underlying invoice for purposes of availing input tax credit.
The government seeks to substitute the proviso to sub-section (1) of section 30 of the Delhi Goods and Services Act so as to empower the jurisdictional tax authorities to extend the period provided to file an application for revocation of cancellation of registration.
The state government also amended section 31 of the Delhi Goods and Services Act so as to empower the Government to notify the categories of services or supplies in respect of which tax invoice shall be issued and to make rules regarding the time and manner of its issuance.
Section 132 of the Delhi Goods and Services Act was amended so as to make the offence of fraudulent availment of input tax credit without invoice or bill cognizable and non-bailable under sub-section (1)of section 69 and to make any person who retains the benefit of certain transactions and at whose instance such transactions are conducted liable for punishment.
The notification further amended section 140 of the Delhi Goods and Services Act relating to transitional arrangements for input tax credit, so as to prescribe the time limit and the manner for availing input tax credit against certain unavailed credit under the existing law. This amendment shall take effect retrospectively from the 1st day of July, 2017.
Also a new Section 168A was inserted so as to empower the Government, on the recommendations of the Council and by notifications, extent the time limit specified in or prescribed under this Act in respect of actions which may not be completed or complied with due to force majeure.
It seeks to provide retrospective exemption from State tax on supply of fishmeal, during the period from the 1st day of July, 2017 up to 30th day of September, 2019 (both days inclusive).
It further seeks to retrospectively levy State tax at the reduced rate of six per cent. on supply of pulley, wheels and other parts (falling under heading 8483) and used as parts of agricultural machinery of headings 8432, 8433 and 8436, during the period from the 1st day of July, 2017 up to 31st day of December, 2018 (both days inclusive).
It also seeks to provide that no refund shall be made of the tax which has already been collected.
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