{"id":12465,"date":"2020-07-09T17:21:42","date_gmt":"2020-07-09T11:51:42","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=12465"},"modified":"2020-12-05T16:56:48","modified_gmt":"2020-12-05T11:26:48","slug":"changes-in-budget-2020-in-gst","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/changes-in-budget-2020-in-gst\/","title":{"rendered":"Changes in Budget 2020 in GST"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Smt. Nirmala Sitharaman presented the first budget of the year 2020 on 1st February 2020. In this article, the impact of the budget on the most significant tax reform of India- <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>Goods &amp; Services Tax<\/strong><\/a> (GST) has been summarized. As mentioned by honorable FM, Goods and Services Tax (GST) has been the most historic in our country. True to this vision for the landmark structural reform, the Budget 2020 in GST has been progressively growing into a tax that has united the country economically. <\/p>\n\n\n\n<p>It has combined several taxes and cesses to one tax and facilitated the formalization of the budget. During this phase of growing, GST did face particular trials. GST Council has been active in resolving issues during this changeover.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/changes-in-budget-2020-in-gst\/#What_are_the_Changes_in_Goods_and_Services_Tax\" >What are the Changes in Goods and Services Tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/changes-in-budget-2020-in-gst\/#What_are_the_Amendments_in_Central_Goods_Service_Tax_Act_2017\" >What\nare the Amendments in Central Goods &amp; Service Tax Act 2017?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/changes-in-budget-2020-in-gst\/#Period_for_applying_for_withdrawal_of_annulment_for_Budget_2020_in_GST\" >Period for applying for withdrawal of annulment for Budget 2020 in GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/changes-in-budget-2020-in-gst\/#Amendments_that_will_have_Retrospective_effect_to_the_recommendations_of_the_Budget_2020_in_GST_Council\" >Amendments that will have Retrospective effect to the recommendations of the Budget 2020 in GST Council<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/changes-in-budget-2020-in-gst\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Changes_in_Goods_and_Services_Tax\"><\/span><strong>What are the Changes in Goods and Services Tax?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>A basic <a href=\"https:\/\/corpbiz.io\/gst-return-filing\"><strong>GST return<\/strong><\/a> shall be executed from the 1st April 2020. That will make return filing simple with various features like message based filing for return, pre-return filling, input tax credit flow improvement, and complete simplification of the process.<\/li><li>Active QR-code is projected for consumer statements. GST constraints will be captured when payment for purchases is made through that particular QR-code.<\/li><li>Introduction of Aadhaar card initiated verification of taxpayers, which will help in clearing out dummy or non-existent components.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Amendments_in_Central_Goods_Service_Tax_Act_2017\"><\/span><strong>What\nare the Amendments in Central Goods &amp; Service Tax Act 2017?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Following are the amendments done in GST:-<\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"582\" height=\"337\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-37.png\" alt=\" amendments done in GST\" class=\"wp-image-12466\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-37.png 582w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-37-300x174.png 300w\" sizes=\"(max-width: 582px) 100vw, 582px\" \/><\/figure><\/div>\n\n\n\n<ul><li>It has been anticipated to eliminate from the domain of the <a href=\"https:\/\/corpbiz.io\/learning\/brief-gst-composition-scheme\/\"><strong>GST Composition scheme<\/strong><\/a>-specific classes of taxable persons, they are-<\/li><\/ul>\n\n\n\n<ol><li>Supply of facilities not leviable to tax under the <strong>CGST Act<\/strong><sup><a href=\"https:\/\/www.indiacode.nic.in\/handle\/123456789\/2250?view_type=browse&amp;sam_handle=123456789\/1362\"><strong>[1]<\/strong><\/a><\/sup>;<\/li><li>Inter-State outward supply of services;<\/li><li>Outward supply of services concluded an E-Commerce operator.<\/li><\/ol>\n\n\n\n<ul><li>Change\nin date of issuance of debit note from the date of publication of the original\nstatement for purposes of availing input tax credit in Section 16(4)<\/li><li>Time\nlimit for demanding Input tax credit, in respect of a debit note issued by a\nsupplier, shall be estimated from the date of debit note.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Time limit for taking Input tax credit in this cases are as follows:-<\/strong><\/h3>\n\n\n\n<ol><li><strong>For Statement with Input Tax Credit INR 10,000<\/strong> \u2013 Return for September 2020 or date of filing of annual return of Financial Year 2019-20 whichever is prior;<\/li><li><strong>For Debit note with Input Tax Credit INR 4,500<\/strong> \u2013 Return for September 2021 or date of <a href=\"https:\/\/corpbiz.io\/learning\/procedure-of-filing-annual-return\/\"><strong>filing of annual return<\/strong><\/a> of Financial Year 2020-21 whichever is prior. Previous, the time limit for such debit note was also calculated as per date of consistent invoice;<\/li><\/ol>\n\n\n\n<ul><li>Amends\nhave been made to provide registration-cancellation that have been obtained\nvoluntarily under Section 29 (1);<\/li><\/ul>\n\n\n\n<ul><li>Authorizing jurisdictional tax authorities to extend the date for application of revocation of cancellation of registration in deserving cases- Section 30;<\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/mechanism-of-advance-ruling-under-gst\/\">Synopsis of the Entire Mechanism of Advance Ruling under GST<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Period_for_applying_for_withdrawal_of_annulment_for_Budget_2020_in_GST\"><\/span>Period for applying for withdrawal of annulment for Budget 2020 in GST<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Period for applying for withdrawal of annulment is at current 30 days from the date of service of withdrawal order. Though, it has been planned for ranging such period on adequate reason by Assistant commissioner or Joint commissioner for another 30 days and further 30 days by the representative.<\/p>\n\n\n\n<ul><li>Provisions\nto be announced for propose manner to fix the issue of tax invoice, and the\ncases where the taxpayers may not be obligatory to issue a tax statement-\nSection 31<\/li><\/ul>\n\n\n\n<ul><li>Original\nmeasures proposed to be issued for allotting TDS certificate and late fine for\nnot issuing TDS certificate has been misplaced- Section 51<\/li><\/ul>\n\n\n\n<ul><li>Modification\nin the provision for Appellate Tribunal under the CGST Act for the Union\nterritory of Jammu and Kashmir as well as Ladakh- Section 109<\/li><\/ul>\n\n\n\n<ul><li>Penalty to be imposed on&nbsp;equivalent of tax eluded or input tax credit availed in following cases: Section 122<\/li><\/ul>\n\n\n\n<ol><li>Suppliers of&nbsp; any goods or services or both without issue of any invoice or issues an incorrect or false invoice concerning any such supply<\/li><li>Issues any invoice or bill without procurement of goods or services&nbsp; in violation of the provisions of this Act<\/li><li>Utilises input tax credit without authentic receipt of goods or services&nbsp; either fully or partially, in infringement of the provisions of this Act;<\/li><li>Distributes input tax credit in defilement of section 20;<\/li><\/ol>\n\n\n\n<ul><li>Amendment\nin the offence of fraudulent activity of ITC without any invoice is considered\na cognizable or non-bailable fault and recollects the benefit of transactions\narising out of specified crimes liable for penalty- Section 132.<\/li><\/ul>\n\n\n\n<ul><li>Amendment\nhas to be made with effect from 01 July 2017 to describe the manner and time-limit\nfor accepting transitional credit under Section 140.<\/li><\/ul>\n\n\n\n<ul><li>Such\nAmendment has been made to make requirements for enabling the jurisdictional\ncommissioner to exercise their powers underneath sub-section (5) of section 66\nand second proviso to sub-section (1) of section 143 to Section 168 of the Act.<\/li><\/ul>\n\n\n\n<ul><li>Amendment\nhas been drafted to make a bag for enabling issuance of removal of problems\norder for next 2 years, i.e., up to five years from the date of commencement of\nthe said Act- Section 172. Comparable changes are also being made in the IGST\nAct, the UTGST Act, 2017 (section 25), the GST (Compensation to States) Act,\n2017 under &nbsp;(section 14) and 2017\n(section 26).<\/li><\/ul>\n\n\n\n<ul><li>&nbsp;Admissions at 4(a) &amp; 4(b) in Schedule II\nof the CGST Act is being modified, which will be effective from 01-07-2017 to\nmake establishment for omission of supplies relating to transfer of business\nassets made without any deliberation from Schedule II of&nbsp; GST Act 2017.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amendments_that_will_have_Retrospective_effect_to_the_recommendations_of_the_Budget_2020_in_GST_Council\"><\/span>Amendments that will have Retrospective effect to the recommendations of the Budget 2020 in GST Council<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Exemption is being given on\nfishmeal [HS 2301] from Central Tax, Union Territory Tax, and Integrated Tax,\nfor the period 01-07-2017 till 30-09-2019. Though, GST paid on supply of\nfishmeal during the period shall not be refunded.<\/li><\/ul>\n\n\n\n<ul><li>Concessional rates are being\noffered on elevator, wheels and other fragments (falling under heading 8483)\nand used as fragments of agricultural machinery of headings 8432, 8433, and\n8436 @ 12% rate of Integrated Tax and 6% Central Tax and 6% Union Territory Tax\nduring the period 01-07-2017 to 31-12-2018. Though, GST paid at any other rate\nshall not be refunded, i.e. (higher than 12%).<\/li><\/ul>\n\n\n\n<ul><li>Any refund of accumulated\ncredit in the form of compensation cess over tobacco goods ascending out of\ninverted duty structure in Reimbursement Cess has been restricted with effect\nfrom 01-10-2019 vide notification No. 3\/2019- Compensation Cess (Rate) dated 30-9-2019.\nThe notification is being given retrospective effect from 1-7-2017 forwards.\nAccordingly, no refund on account of inverted duty structure shall be\napplicable to tobacco products for any period.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Goods and Services Tax (GST) has been the most historical change in our country. True to this vision for the landmark structural reform, the GST has been progressively growing into a tax that has united the country economically. It has combined several taxes and cesses to one tax and facilitated the formalization of the budget 2020 in GST.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/know-about-gst-refund-on-exports\/\">All you need to know about GST Refund on Exports\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Smt. Nirmala Sitharaman presented the first budget of the year 2020 on 1st February 2020. In this article, the impact of the budget on the most significant tax reform of India- Goods &amp; Services Tax (GST) has been summarized. As mentioned by honorable FM, Goods and Services Tax (GST) has been the most historic in [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":12492,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[746],"acf":{"service_id":"68"},"authorName":"Sakshi Srivastava","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/IMG-20180130-WA0007.jpg","authorDescription":"Sakshi has pursued B.B.A.LL.B.(IPR Hons.). She is an avid reader and is keen to gather and share her knowledge on the subjects relating to IPR, Company Law and GST. Priorly she has worked as a legal researcher and vide her articles she aims at improving the core knowledge of the subjects to the masses.","postViews":3741,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/12465"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=12465"}],"version-history":[{"count":15,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/12465\/revisions"}],"predecessor-version":[{"id":21173,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/12465\/revisions\/21173"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/12492"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=12465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=12465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=12465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}