Goods and Service Tax under Indian Union Budget 2021-22

Indian Budget 2021-22, GST

 

 Central Goods and Services Tax Act (CGST)  Integrated Goods and Services Tax Act(IGST) Amendments under Indian Union Budget 2021-22

 

 

Goods and Service Tax

 

 

 

Note:   (a)          CGST Act, 2017 means Central Goods and Services Tax Act, 2017

 

(b)               IGST Act, 2017 means Integrated Goods and Services Tax Act, 2017

 

Amendments carried out in the Finance Bill, 2021 will come into effect from the date when the same will be notified, as far as possible, concurrently with the corresponding amendments to the similar Acts passed by the States and Union territories with Legislature.

 

  1. I.                   AMENDMENTS IN THE CGST ACT, 2017:

 

S. No.

Amendment

Clause of the

 

 

Finance Bill, 2021

 

 

 

1.

A new clause (aa) in sub-section (1) of Section 7 of the CGST

[99]

 

Act is being inserted, retrospectively with effect from the 1st

 

 

July,  2017,  so  as  to  ensure  levy  of  tax  on  activities  or

 

 

transactions  involving  supply  of  goods  or  services  by  any

 

 

person, other than an individual, to its members or constituents

 

 

or vice-versa, for cash,  deferred  payment  or other valuable

 

 

consideration.

 

 

 

 

2.

A new clause (aa) to sub-section (2) of the section 16 of the

[100]

 

CGST Act is being inserted to provide that input tax credit on

 

 

invoice or debit note may be availed only when the details of

 

 

such invoice or debit note have been furnished by the supplier

 

 

in the statement of outward supplies and such details have been

 

 

communicated to the recipient of such invoice or debit note.

 

 

 

 

3.

Sub-section (5) of section 35 of the CGST Act is being omitted

[101]

 

so as to remove the mandatory requirement of getting annual

 

 

accounts  audited  and  reconciliation  statement  submitted  by

 

 

specified professional.

 

 

 

 

4.

Section  44  of  the  CGST  Act  is  being  substituted  so  as  to

[102]

 

remove   the   mandatory   requirement   of   furnishing   a

 

 

reconciliation statement duly audited by specified professional

 

 

and  to  provide  for  filing  of  the  annual  return  on  self-

 

 

certification basis. It further provides for the Commissioner to

 

 

exempt a class of taxpayers from the requirement of filing the

 

 

annual return.

 

 

 

 

5.

Section 50 of the CGST Act is being amended, retrospectively,

[103]

 

to substitute the proviso to  sub-section (1) so as to charge

 

 

 

 

 

 

interest on net cash liability with effect from the 1st July, 2017.

 

 

 

 

6.

Section 74 of the CGST Act is being amended so as make

[104]

 

seizure and confiscation of goods and conveyances in transit a

 

 

separate proceeding from recovery of tax.

 

 

 

 

7.

An explanation to sub-section (12) of section 75 of the CGST

[105]

 

Act is being inserted to clarify that “self-assessed tax” shall

 

 

include the tax  payable  in respect of outward  supplies, the

 

 

details of which have been furnished under section 37, but not

 

 

included in the return furnished under section 39.

 

 

 

 

8.

Section 83 of the CGST Act is being amended so as to provide

[106]

 

that provisional attachment shall remain valid for the entire

 

 

period  starting  from  the  initiation  of  any proceeding  under

 

 

Chapter XII, Chapter XIV or Chapter XV till the expiry of a

 

 

period of one year from the date of order made thereunder.

 

 

 

 

9.

A proviso to sub-section (6) of section 107 of the CGST Act is

[107]

 

being inserted to provide that no appeal shall be filed against

 

 

an order made under sub-section (3) of section 129, unless a

 

 

sum equal to twenty-five per cent. of penalty has been paid by

 

 

the appellant.

 

 

 

 

10.

Section 129 of the CGST Act is being amended to delink the

[108]

 

proceedings under that section relating to detention, seizure

 

 

and  release  of  goods  and  conveyances  in  transit,  from  the

 

 

proceedings under section 130 relating to confiscation of goods

 

 

or conveyances and levy of penalty.

 

 

 

 

11.

Section 130 of the CGST Act is being amended to delink the

[109]

 

proceedings under that section relating to confiscation of goods

 

 

or conveyances and levy of penalty from the proceedings under

 

 

section 129 relating to detention, seizure and release of goods

 

 

and conveyances in transit.

 

 

 

 

12.

Section 151 of the CGST Act is being substituted to empower

[110]

 

the jurisdictional commissioner to call for information from

 

 

any person relating to any matter dealt with in connection with

 

 

the Act.

 

 

 

 

13.

Section  152  of  the  CGST  Act  is  being  amended  so  as  to

[111]

 

provide that no information obtained under sections 150 and

 

 

151 shall be used for the purposes of any proceedings under

 

 

the Act without giving an opportunity of being heard to the

 

 

person concerned.

 

 

 

 

14.

Section 168 of the CGST Act is being amended to enable the

[112]

 

jurisdictional commissioner to exercise powers under section

 

 

 

 

 

 

151 to call for information.

 

  1. Consequent to the amendment in section 7 of the CGST Act [113] paragraph 7 of Schedule II to the CGST Act is being omitted retrospectively, with effect from the 1st July, 2017.

 

 

 

 

 

  1. II.                AMENDMENTS IN THE IGST ACT, 2017:

 

 

S. No.

Amendment

Clause   of   the

 

 

Finance Bill, 2021

 

 

 

1.

Section 16 of the IGST Act is being amended so as to:

[114]

 

(i)  zero  rate  the  supply  of  goods  or  services  to  a  Special

 

 

Economic Zone developer or a Special Economic Zone unit

 

 

only when the said supply is for authorised operations;

 

 

(ii) restrict the zero-rated supply on payment of integrated tax

 

 

only to a notified class of taxpayers or notified supplies of

 

 

goods or services; and

 

 

(iii) link the foreign exchange remittance in case of export of

 

 

goods with refund.

 

 

 

 

 

 


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