New GST Provisions-effective from the date 30th June

Last Updated On: Aug. 21, 2020, 11:04 p.m.
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NEW GST PROVISIONS-EFFECTIVE FROM 30TH JUNE

INTRODUCTION:

New GST provisions have been introduced by Finance Act, 2020 Notification dated 24th June 2020.

Since the GST has been introduced there are many new changes brought forward. Likewise, The Finance Bill was introduced in the month of Feb 2020 which was introduced by the Finance Act.

The Finance Act, 2020 has notified various sections, amongst which few were notified earlier and few are still in vain.

At this point of time, CBIC vide Notification-49/2020-CT dated 24th June 2020 has notified 4 Sections of Finance Act, 2020.

 

Those four sections have been explained in detail in this article.

A. Section 118 of the Finance Act, 2020-

Section 2(114) of CGST Act, 2017 defines union territory: Here two events happened in the constitution:

1. Earlier Dadra and Nagar Haveli and Daman and Diu were two Union territory which is now merged by CG, so they become a single Union territory.

2. Jammu & Kashmir has been removed as state and formed in two Union territory, i.e. UT of J & K which has own legislative body so considered equivalent to the state for GST purposes and UT of Ladakh which is a UT with no legislative body.

Let us compare the existing Law and the Amended Law:

  1. In the existing law, Union Territory means-
  • The Andaman and Nicobar Islands;
  • Lakshadweep;
  • Dadra and Nagar Haveli
  • Daman and Diu;
  • Chandigarh; and
  • Other territories.
  1. In the Amended Law, Union Territory means-
  • The Andaman and Nicobar Islands;
  • Lakshadweep;
  • Dadra and Nagar Haveli and Daman and Diu;
  • Chandigarh;
  • Chandigarh; and
  • Other territories

 

B.Section 125 of the Finance Act, 2020-

The Constitution of Appellate Tribunal and benches with reference to  section 109(6) of the CGST Act, 2017

CG has the power to notify Appellate Tribunal in each state and Union Territory but not in Jammu and Kashmir.

As per the first proviso to Section 109(6) of the CGST Act, The Appellate Tribunal in Jammu and Kashmir shall be Constituted by Jammu and Kashmir GST Act, 2017.

Now, Jammu and Kashmir has been removed has state and formed into two Union Territory i.e  Union Territory of Jammu and Kashmir which has its own legislative body and Union Territory of Ladakh which does not have a legislative body.

COMPARISION:

Existing law-

  • Earlier CG doesn’t have the power to constitute Appellate Tribunal in Jammu  & Kashmir
  • Appellate Tribunal was to be constituted under the Jammu & Kashmir GST Act’ 2017

Amended Law-

As per the amendments in the constitution, words except Jammu & Kashmir removed in Sec 109(6) & first proviso to Section 109(6) has been omitted i.e. now CG can constitute Appellate Tribunal for both newly formed Union Territories.

 

C. Section 129 of the Finance Act,2020-

Powers to issue directions or instructions with reference to section 168 of CGST ACT, 2017

CBIC may issue orders, instructions or directions to the central tax officers which need to be followed by the officers concerned

Now, a reference to Commissioner mentioned in various sections in the act was made. Further commissioner means commissioner posted in CBIC in policy making.

COMPARISION:

Existing Law-

 Earlier the list of sections referred included Sec. 66(5) of CGST Act’ 2017, which deals with fixation of fees and remuneration by the commissioner in case of Special Audit.

Amended Law-

Now Section 66(5) is omitted from the list since Section 168  clearly mentions commissioner in Central Board of Indirect Tax and Section66(5)

refers to the Jurisdictional Commissioner so there was an absurd interpretation of the statue.

 

D. Section 130 of the Finance Act,2020-

The Government has reserved some special power with the introduction of CGST Act vide Sec. 172 of CGST Act, 2017

Where CG with recommendation GST Council has the power to make such provisions not inconsistent with the provisions of this Act or the rules or regulations for Removing Difficulty in implementation of new statue By General or a Special Order in Official Gazette passed in Both house of parliament

COMPARISION-

Existing Law-

Now the provision to Sec. 172(1) states that such power shall be vested till 3 years from the implementation of this law i.e. till 30/06/2020

Amended Law-

But considering that GST is still not settled, the said period has been extended to 5 Years vide Section 130 of Finance Act, 2020. So, now removal of difficulty orders can be issued till 30/06/2022.

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