*FINANCE BILL-2024*
*A bird eye view of Some Important Proposals in GST*
- *Sub-section (5) is being inserted in section 16 of the CGST Act,* so as to carve out an exception to the existing sub-section (4) and to provide that in respect of an invoice or debit note under the said subsection, for the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under section 39 which is filed upto the 30th day of November, 2021.
*In my humble opinion, this is clearly injustice to the honest taxpayer who has paid all the GST to avoid litigation. As all the cases for the FY 17-18, 18-19 are already concluded and for FY 19-20 it is only one month left and the Government is now allowing that ITC will be allowed. It means the taxpayer who has filed the appeal is in benefit of this proviosion.*
- No GST on un-denatured extra neutral alcohol (ENA) or rectified spirit used for manufacture of
alcoholic liquor, for human consumption – Amendment in Section-9
- Section 11A is being inserted to empower the government to regularize non-levy or short levy of
central tax due to any general practice prevalent in trade.
- Amendment is proposed in sub section (3) of Section 13 of CGST Act to provide for time of supply of services where the invoice is required to be issued by the recipient of services in cases of reverse charge supplies
- Sub-section (6) is being inserted in section 16 of the CGST Act in the said section so as to allow the availment of input tax credit in respect of an invoice or debit note in a return filed for the period from the date of cancellation of registration or the effective date of cancellation of registration, as the case may be, till the date of order of revocation of cancellation of registration, filed within thirty days of the date of order of revocation of cancellation of registration, subject to the condition that the time-limit for availment of credit in respect of the said invoice or debit note should not have already expired under sub-section (4) of the said section on the date of order of cancellation of registration.
The aforesaid amendments are made effective from the 1st day of July, 2017.
- Sub-section (1A) is being inserted in section 70 of the CGST Act, to enable an authorised representative to appear on behalf of the summoned person before the proper officer in compliance of summons issued by the said officer.
- Section 73 and 74 shall be applicable for the assessments only upto FY 2023-24.
- Section 74A has been inserted for the assessments for FY 2024-25 onwards
- Reduction in amount of Predeposit for Appeal filing –
Sub-section (6) of section 107 of the CGST Act is being amended, so as to reduce the maximum amount of pre-deposit for filing appeal before the Appellate Authority from rupees twenty five crores to rupees twenty crores in central tax.
- Section 128A in the CGST Act is being inserted, to provide for a conditional waiver of interest and
penalty in respect of demand notices issued under section 73 of the said Act for the Financial Years
2017-18, 2018-19 and 2019-20, except the demands notices in respect of erroneous refund.
In cases where interest and penalty have already been paid in respect of any demand for the said
financial years, no refund shall be admissible for the same.
*Compiled by*
*CA Sohrabh Jindal*