Clause 112 - Insertion of New section 11A
This section has been inserted in order to empower the government not to recover central tax which was not levied or short-levied in cases where-
- there was a general practice regarding the levy of central tax on these supplies.
- supplies were liable to central tax but were not being taxed, or
- supplies were taxed at a higher rate than a general practice.
This exemption can be directed through a notification in the Official Gazette based on the recommendation of the Council.
Clause 113 – Amendment in Section 13(3) – Time of Supply of Services under RCM
This amendment seeks to prescribe the time of supply of services which are under RCM and recipient is required to do self-invoicing. The time of supply shall now be determined earlier of the following-
a) Date of Payment, or
b) Date of issue of Invoice by the recipient.
Clause 114 – Insertion of New Sub-section 16(5) – Time limit to avail ITC
This section has been inserted in order to put an end to all litigation which was arising out of time limit given in Section 16(4) regarding the availment of input tax credit. This is one-time exception being given to the registered person for the period July 2017 to March 2021 making him entitled to avail input tax credit in any return filed under section 39 upto 30.11.2021
Clause 115 – Amendment in Section 17(5) – Time limit to avail ITC
Clause (i) of Section 17(5) of the CGST Act has been amended to remove the references to Section 129 and 130 which means that the registered person shall now be entitled to avail input tax credit in cases where the tax has been paid due to confiscation and seizure of goods. Further it has also entitled the registered person from FY 2024-25 to avail input tax credit paid even if the tax is paid in accordance with newly inserted Section 74A.
Clause 131 – Insertion of New Subsection 70(1A) – Summons
This sub-section stipulates that individuals summoned under sub-section (1) can appoint an authorized representative on their behalf to attend the summon but they are required to truthfully respond during examination, make statements, and produce necessary documents or items as requested.
Clause 132 & 133 – Insertion of New Subsection 73(12) & 74(12)
The proposed amendment has been made so to restrict the applicability of the said section upto the financial year 2023-24.
Clause 134 – Insertion of New Section 74A to replace 73 & 74 w.e.f. FY 2024-25
Monetary Limit for issuance of show cause notice: No notice will be issued if the amount involved is less than ₹1,000.
Timeline for issuance of show cause notice: The notice must be issued within 42 months from the due date of the annual return or the date of erroneous refund.
Determination and Order: The order shall be issued within 12 months of issuance of the show cause notice. This period can be further extended upto 6 months by the commissioner or another senior rank officer authorized by the commissioner.
Voluntary Payment: Earlier time limit of 30 days for depositing tax and interest is now being increased to 60 days in all cases.
Clause 139 – Amendment in Section 112(8) – Pre-deposit for Tribunal
In respect of appellate tribunal, the pre-deposit has been reduced from 20% to 10% and maximum caping of pre-deposit is also reduced to 20 crore rupees from 50 crore rupees.
Clause 142 – Insertion of New Section 128A – Amnesty Scheme
Section 128A provides a relief mechanism for taxpayers with pending tax dues for the period from July 2017 to March 2020. Here’s a summary of the key points:
Applicability:
- Notice issued under Section 73, or
- Order passed under Section 73, or
- Order passed under Section 107, or
- Order passed under Section 108
- Notice issued under Section 74 but order required to be passed in accordance with Section 75(2)
Condition to be complied with:
Taxpayer pays the full amount of tax due, as per notices, statements, or orders, by a date to be notified by the Government based on the recommendation of the Council.
Relief:
- No interest under Section 50 or penalty will be payable. All proceedings will be deemed to be concluded.
- However, in cases where the appeal has been filed by the department the taxpayer is required to deposit additional amount of tax payable within 3 months of the date of order in order to avail the relief of interest and penalty.
Exclusions:
- This relief does not apply to amounts related to erroneous refunds.
- It does not apply if the taxpayer has an ongoing appeal or writ petition which has not been withdrawn by the notified date.
No Appeal:
Once the relief is granted and proceedings are deemed concluded, no appeal can be filed against the relevant orders.
Drawback:
If interest and penalties have already been paid, they will not be refunded.
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Disclaimer: This GST update has been compiled for our clients and team of Seth & Associates. The same is not being circulated with the intent of advertising or soliciting any professional work. This update is only for the purpose of ease of understanding.
For a detailed discussion and professional advisory on matters related to GST kindly contact:
CA Dhruv Seth CA Shashank Mittal
Partner – GST HOD - GST
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