{"id":7468,"date":"2020-04-27T20:00:33","date_gmt":"2020-04-27T14:30:33","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=7468"},"modified":"2020-12-05T17:42:31","modified_gmt":"2020-12-05T12:12:31","slug":"finance-act-2020-changes-in-gst","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/finance-act-2020-changes-in-gst\/","title":{"rendered":"Finance Act 2020 &#8211; Changes in GST"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In the Budget Presented on 01<sup>st<\/sup> February 2020, there were many changes proposed in Income Tax and GST. As compared to Income Tax Law, there were very fewer changes in GST for a reason, and changes are frequently coming in GST law via notifications. In this article, we are covering the Finance Act 2020 &#8211; changes in GST proposed in Budget 2020 and their analysis in detail.<\/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\/finance-act-2020-changes-in-gst\/#Summary_Table_to_Reflect_Changes_in_GST\" >Summary Table to Reflect Changes in GST<\/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\/finance-act-2020-changes-in-gst\/#Definition_of_Union_Territory\" >Definition of Union Territory<\/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\/finance-act-2020-changes-in-gst\/#Supply\" >Supply&nbsp;<\/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\/finance-act-2020-changes-in-gst\/#Composition_Scheme-_Section_10\" >Composition Scheme- Section 10<\/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\/finance-act-2020-changes-in-gst\/#Section_164_Time_Limit_to_Avail_ITC\" >Section 16(4): Time Limit to Avail ITC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/finance-act-2020-changes-in-gst\/#Cancellation_of_Registration_%E2%80%93_Section_29\" >Cancellation of Registration &#8211; Section 29<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/finance-act-2020-changes-in-gst\/#Revocation_of_Cancellation_of_Registration-_Section_30\" >Revocation of Cancellation of Registration- Section 30<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/finance-act-2020-changes-in-gst\/#Tax_Invoice-_Section_31\" >Tax Invoice- Section 31<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/finance-act-2020-changes-in-gst\/#Tax_Deduction_at_Source-_Section_51\" >Tax Deduction at Source- Section 51<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/finance-act-2020-changes-in-gst\/#Appeal_to_GST_Appellate_Tribunal-_Section_109\" >Appeal to GST Appellate Tribunal- Section 109<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/corpbiz.io\/learning\/finance-act-2020-changes-in-gst\/#Penalties_of_Certain_Offences_%E2%80%93_Section_122\" >Penalties of Certain Offences \u2013 Section 122<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/corpbiz.io\/learning\/finance-act-2020-changes-in-gst\/#Power_to_Issue_Instructions_Directions_%E2%80%93Section_168\" >Power to Issue Instructions \/Directions \u2013Section 168<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/corpbiz.io\/learning\/finance-act-2020-changes-in-gst\/#Removal_of_difficulties-_Section_172\" >Removal of difficulties- Section 172<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/corpbiz.io\/learning\/finance-act-2020-changes-in-gst\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Summary_Table_to_Reflect_Changes_in_GST\"><\/span>Summary Table to Reflect Changes in GST<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before going in detail, here is the summary table for all the important changes in GST being made:<\/p>\n\n\n\n<table class=\"table table-bordered\">\n<tbody>\n<tr>\n<td width=\"213\">\n<p><strong>Section<\/strong><\/p>\n<\/td>\n<td width=\"213\">\n<p><strong>Subject<\/strong><\/p>\n<\/td>\n<td width=\"213\">\n<p><strong>Comments<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"213\">\n<p><strong>Section 2(114)<\/strong><\/p>\n<\/td>\n<td width=\"213\">\n<p>Union Territory<\/p>\n<\/td>\n<td width=\"213\">\n<p>The Definition is proposed to be updated since New J&amp;K Reorganisation Act 2019 and Merger of Union Territories Act 2019 is coming into force.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"213\">\n<p><strong>Section 7 <\/strong><\/p>\n<\/td>\n<td width=\"213\">\n<p>Supply ( Schedule II )<\/p>\n<\/td>\n<td width=\"213\">\n<p>Retrospective w.e.f 01.07.2017-Para 4(a) and Para 4(b) of Schedule II rectified.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"213\">\n<p><strong>Section 10<\/strong><\/p>\n<\/td>\n<td width=\"213\">\n<p>Composition Scheme<\/p>\n<\/td>\n<td width=\"213\">\n<p>To harmonize the conditions specified under two schemes covered under Section 10, 10(2) is proposed to amended to get it to align with 10(2A)<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"213\">\n<p><strong>Section 16(4)<\/strong><\/p>\n<\/td>\n<td width=\"213\">\n<p>Time limit to avail ITC<\/p>\n<\/td>\n<td width=\"213\">\n<p>No longer linkage between availing of ITC of Debit Note to the year of Issuance of underlying Tax Invoice.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"213\">\n<p><strong>Section 29<\/strong><\/p>\n<\/td>\n<td width=\"213\">\n<p>Cancellation of Registration<\/p>\n<\/td>\n<td width=\"213\">\n<p>Voluntary Registered person can apply for cancellation if he is no more liable to get registered as per Section 22 or 24<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"213\">\n<p><strong>Section 30<\/strong><\/p>\n<\/td>\n<td width=\"213\">\n<p>Revocation of Cancellation of Registration<\/p>\n<\/td>\n<td width=\"213\">\n<p>Proviso added in Section 30(1) to give power to tax authorities to extend the date for application for revocation of cancellation of registration inappropriate &amp; reasonable cases.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"213\">\n<p><strong>Section 31<\/strong><\/p>\n<\/td>\n<td width=\"213\">\n<p>Tax Invoice<\/p>\n<\/td>\n<td width=\"213\">\n<p>To enable the government to specify the manner of E-Invoicing.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"213\">\n<p><strong>Section 51<\/strong><\/p>\n<\/td>\n<td width=\"213\">\n<p>TDS<\/p>\n<\/td>\n<td width=\"213\">\n<p>Section 51(3) amended so that the TDS certificate can be furnished by the common portal, and Section 51(4) Omitted to delete provision for late fees.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"213\">\n<p><strong>Section 109<\/strong><\/p>\n<\/td>\n<td width=\"213\">\n<p>Appellate tribunal Constitution<\/p>\n<\/td>\n<td width=\"213\">\n<p>For setting up the tribunal in Union territory of J&amp;K and Ladakh.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"213\">\n<p><strong>Section 122<\/strong><\/p>\n<\/td>\n<td width=\"213\">\n<p>Penalty<\/p>\n<\/td>\n<td width=\"213\">\n<p>Subsection 1(A) is proposed to be inserted to make real beneficiaries liable to the penalty<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"213\">\n<p><strong>Section 132<\/strong><\/p>\n<\/td>\n<td width=\"213\">\n<p>Prosecution<\/p>\n<\/td>\n<td width=\"213\">\n<p>Amended to provide that offense of availing of ITC without bills\/Invoice, a cognizable and non-bailable offense.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"213\">\n<p><strong>Section 140 <\/strong><\/p>\n<\/td>\n<td width=\"213\">\n<p>Transitional Provisions<\/p>\n<\/td>\n<td width=\"213\">\n<p>Amended to provide that grant of transitional credit shall be subject to conditions and limitations as prescribed. Amendment proposed retrospectively<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"213\">\n<p><strong>Section 168<\/strong><\/p>\n<\/td>\n<td width=\"213\">\n<p>Orders, instructions, directions to GST Officers<\/p>\n<\/td>\n<td width=\"213\">\n<p>Power for fixation of special audit expenses and also the power of extension of time limit for bringing back the goods sent to job worker shall be exercised by the jurisdictional Commissioner.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"213\">\n<p><strong>Section 172<\/strong><\/p>\n<\/td>\n<td width=\"213\">\n<p>Removal of Difficulty <br> (ROD Order )<\/p>\n<\/td>\n<td width=\"213\">\n<p>Time limit extended from 3 years to 5 years.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definition_of_Union_Territory\"><\/span>Definition of Union Territory <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>\u201cUnion Territory means the territory of : &#8211;<\/strong><\/p>\n\n\n\n<ul><li>The Andaman and Nicobar Islands,<\/li><li>Lakshadweep<\/li><li>Dadar and Nagar haveli and daman and diu, Ladakh<\/li><li>Chandigarh<\/li><li>Other territory<\/li><\/ul>\n\n\n\n<p><strong>Analysis<\/strong><strong>\n\u2013 <\/strong>Merger of Union\nTerritories Act, 2019 has been passed, and it is for this reason that changes\nin GST Act are done to align itself with the merger. This is made to reduce\nduplication of services and reduce the cost of administration.<\/p>\n\n\n\n<p>Also, after the passing of the J&amp;K Reorganisation act, 2019, State of J&amp;K is now reconstituted into 2 Union territories- J&amp;K and Ladakh. Since J&amp;K has its own legislature, it shall be included in the Definition of state, and Ladakh needs to be included in the Definition of Union Territory.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Supply\"><\/span>Supply&nbsp; <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Supply\nincludes:<\/strong><\/p>\n\n\n\n<ul><li>All forms of supply of goods or services or both such as sale, transfer. Barter, exchange, license, rental, lease, or disposal :<\/li><\/ul>\n\n\n\n<ol><li>Made or agreed to be made for a consideration<\/li><li>By a person<\/li><li>In the course or furtherance of business<\/li><\/ol>\n\n\n\n<ul><li>Importation\nof services for a consideration whether or not in the course or furtherance of\nbusiness.<\/li><li>Activities\nspecified in Schedule I, made or agreed to be made without a consideration<\/li><\/ul>\n\n\n\n<p>Changes in GST have been brought in Schedule II of the\nCGST Act w.e.f 01.07.2017. Entries at 4(a) and 4(b) relating to the transfer of\nbusiness assets made without consideration have been amended. The words \u2018\u2019<em>Whether or not for consideration \u2018\u2019 have\nbeen deleted.<\/em><\/p>\n\n\n\n<p><strong>Analysis<\/strong><strong>:\n<\/strong>Schedule II\nprovides for the determination of status, whether any activity is to be treated\nas a supply of goods or supply of service. But where an activity is not treated\nas a supply as per Section 7(1)(c) and Schedule I, the question of\ndetermination of status does not arise.<\/p>\n\n\n\n<p><strong>For example<\/strong>, An asset on which ITC was not taken is donated to a school without any consideration. Now since this activity does not supply, no question to determine its status as a supply of goods or supply of service arises. Therefore the words as mentioned above are deleted in entries 4(a) and 4(b) to bring that in alignment with Section 7 Schedule I. <\/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\/impact-of-gst-rate-on-indian-economy\/\">Pragmatic Impact of GST Rate on Indian Economy<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Composition_Scheme-_Section_10\"><\/span>Composition Scheme- Section 10 <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Eligibility <\/strong>\u2013 The registered shall be allowed to opt for\ncomposition scheme subject to below-mentioned conditions:<\/p>\n\n\n\n<ul><li>Save\nas otherwise provided in subsection (1); he is not engaged in the supply of <strong><em>SERVICES<\/em><\/strong>\n<\/li><li>He\nis not making any supplies of goods or <strong><em>SERVICES<\/em><\/strong> which are not liable to tax\nunder this Act<\/li><li>He\nis not making any Interstate State outward supplies of goods or <strong><em>SERVICES<\/em><\/strong><\/li><li>He\nis not making any supplies of goods or <strong><em>SERVICES<\/em><\/strong> through an electronic\ncommerce operator who is required to collect tax at source under section 52<\/li><li>He\nis not a manufacturer of such goods as notified (Tobacco and Manufacturing\ntobacco substitutes, Ice cream and other edible ice whether or not containing cocoa,\nPan Masala, Aerated Water.)<\/li><li>The\ntaxable person opting to pay such tax is not allowed to collect tax on outward\nsupplies from the recipient<\/li><li>No\ncredit of Input Tax Credit can be taken.<\/li><li>Not\napplicable to Casual taxable persons or non-resident taxable persons.<\/li><\/ul>\n\n\n\n<p><strong>Analysis: <\/strong>The composition scheme usually covers two schemes under Section 10. Conditions for opting compositions scheme is mentioned under Section 10(2) and Section 10(2A). <a href=\"https:\/\/corpbiz.io\/learning\/latest-changes-in-gst-due-to-covid-19\/\"><strong><em>Changes in GST<\/em><\/strong><\/a> in Section 10(2)(b),(c),(d) is made to bring it in harmony with conditions specified in Section 10(2A). Therefore the word \u2018\u2019SERVICES\u2019\u2019 is added.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_164_Time_Limit_to_Avail_ITC\"><\/span>Section 16(4): Time Limit to Avail ITC<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per Section 16(4), the time limit to claim ITC is\nearlier of:<\/p>\n\n\n\n<ul><li>Due\ndate to file the return for the month of September of the next financial year\nto which Invoice pertains <strong>or Invoice\nrelating to such<\/strong> debit note pertains<\/li><li>Due\ndate of filing Annual Return.<\/li><li>The\nwords \u201cInvoice relating to such \u201care now omitted.<\/li><\/ul>\n\n\n\n<p><strong>Analysis:<\/strong> Changes in GST is brought to allow credit relating to debit not irrespective of the date of issuance of Invoice related to debit note (Underlying Invoice)<\/p>\n\n\n\n<p><strong>Example:<\/strong> Invoice date is 20.01.2020 and Debit Note Date is\n20.05.2020<\/p>\n\n\n\n<p>Time Limit to claim ITC as per Section 16(4) : <\/p>\n\n\n\n<ul><li>Relevant Financial year to which Invoice pertains: F.Y 2019-20<\/li><li>Relevant Financial year for debit note :<\/li><\/ul>\n\n\n\n<ol><li>Existing Provisions: F.Y 2019-20 ( F.Y to which Invoice relating to such debit note pertains )<\/li><li><strong>Amended Provisions after changes in GST<\/strong>: F.Y 2020-21 ( F.Y to which debit note pertains )<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cancellation_of_Registration_%E2%80%93_Section_29\"><\/span>Cancellation of Registration &#8211; Section 29<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Section\n29 deals with cancellation of registration on suo moto basis by the proper\nofficer or upon receiving application by the registered person.<\/li><li>Claus\n(c) of subsection (1) is amended to provide that that taxable person (Voluntarily\nRegistered), who is no longer liable to be, registered as per section 22 or 24\nor who intends to opt-out of the registration voluntarily made under section\n25(3).<\/li><\/ul>\n\n\n\n<p><strong>Analysis:<\/strong> Earlier, a registered person who wishes to get de-registered on account of Aggregate Turnover being less than the prescribed limit was not allowed to apply for Deregistration as per section 29(1)(c).Finance Act 2020 has brought a change in GST to amend Section 29(1)(c) to allow them to apply for Deregistration, i.e., cancel their existing registration, which was done voluntarily.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Revocation_of_Cancellation_of_Registration-_Section_30\"><\/span>Revocation of Cancellation of Registration- Section 30<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>It simply means applying for renewal of registration once it is canceled. <\/li><li>As per Section 30, a registered person whose registration is canceled is allowed to apply for the revocation of his canceled registration. <\/li><li>Existing time limit to apply for revocation is within 30 days of serving of cancellation order.<\/li><li>Changes in GST is implemented <strong>to increase this limit of 30 days<\/strong> in reasonable cases<\/li><li>The power to grant an extension is with Additional Commissioner or the Joint Commissioner or Jurisdictional Commissioner<\/li><li><strong>The first extension<\/strong> up to 30 days can be given by AC OR JC, and <strong>further extension<\/strong> up to 30 days can be granted by Jurisdictional Commissioner.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tax_Invoice-_Section_31\"><\/span>Tax Invoice- Section 31<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>As\nper the existing provisions of Section 31, In respect of invoicing for goods,\ngovt has the power to prescribe the manner of invoicing. But in respect of\ninvoicing for services, no power is prescribed for the manner of invoicing to\nbe done.<\/li><li>Change\nis GST is being brought in by Finance Act 2020, and proviso to Section 31(2) is\nbeing substituted to enable the government to mandate manner of invoicing for\nSupplier of Services.<\/li><\/ul>\n\n\n\n<p><strong>Analysis: <\/strong>Keeping in view the introduction of E-Invoicing, the government has brought changes in GST with respect to the manner of invoicing for the supplier of services. The government now has the power to prescribe the manner of invoicing with respect to both Goods and Services.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tax_Deduction_at_Source-_Section_51\"><\/span>Tax Deduction at Source- Section 51<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Earlier, <strong>Section 51(3) of the CGST Act<\/strong><sup><a href=\"http:\/\/dswcpunjab.gov.in\/contents\/docs\/TDS-%20GST.pdf\"><strong>[1]<\/strong><\/a><\/sup> provides that the deductor needs to issue a certificate of TDS to the deductee.<\/li><li>The time limit to issue such certificate is within 5 days of the crediting the TDS to the government; otherwise, late fees were charged.<\/li><li>Finance Act 2020, has done away with the requirement of late fees for delay in issuance of TDS Certificate. Section 51(4) is amended with this respect.<\/li><\/ul>\n\n\n\n<p><strong>Analysis<\/strong>:\nSince there was difficulty in compliance and non-issue of TDS certificate. This\ndifficulty was resolved by making the certificate a system generated\ncertificate which can be downloaded. Therefore the late fees provisions are made\naway with.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Appeal_to_GST_Appellate_Tribunal-_Section_109\"><\/span>Appeal to GST Appellate Tribunal- Section 109<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Section\n109(6) Provides that C.G. has the power to notify state bench who shall have\nthe power of appellate tribunal within the concerned state.<\/li><li>However,\nC.G. will not be constituted the state bench for the state of J&amp;K <\/li><li>Now\nafter the passing of J&amp;K Reorganisation Act, 2019, it is now decided that C.G.\nwill now be constituting the state bench for the Union Territory of J&amp;K and\nUnion Territory of Ladakh<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Penalties_of_Certain_Offences_%E2%80%93_Section_122\"><\/span>Penalties of Certain Offences \u2013 Section 122<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>This Section deals with Penalties charged for certain offenses.<\/li><li>Finance Act 2020 has made an insertion by subsection (1A) in Section 122, making any person who retains the benefit of the transaction liable for the penalty.<\/li><li>Such transactions are :<\/li><\/ul>\n\n\n\n<ol><li>Supplying of goods&nbsp; or services or both without the issuance of Invoice or issuance of incorrect Invoice<\/li><li>Issue of any invoice or bill without supply of goods or services or both.<\/li><li>Claiming of ITC without actual receipts of goods or services<\/li><li>Claims or distributes credit in violation of Section 20.<\/li><\/ol>\n\n\n\n<p><strong>Analysis<\/strong>: To impose the penalty on the person who in reality\ngets the benefits of &nbsp;above-mentioned\ntransactions, changes in GST are made under section 122 by inserting a new\nsubsection 1(A)<\/p>\n\n\n\n<p><strong>Similar changes are brought in Section 132 to prosecute the actual beneficiary.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Power_to_Issue_Instructions_Directions_%E2%80%93Section_168\"><\/span>Power to Issue Instructions \/Directions \u2013Section 168<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Section\n168 empowers CBIC to issue circulars to ensure uniformity in the implementation\nof the Act.<\/li><li>Finance\nAct 2020 has brought in changes in GST in Section 168 to align the intent with\nthe words of the Section, and therefore, Special Audit Expenses shall now be\ndetermined and fixed by the Jurisdictional Commissioner.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Removal_of_difficulties-_Section_172\"><\/span>Removal of difficulties- Section 172<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Section 172, provides that if there is any difficulty in the implementation of <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST<\/strong><\/a>, special provisions may be made for removing the difficulty.<\/li><li>Earlier Removal of difficulty order can be issued up to 3 years from the date of commencement of GST.<\/li><li>Finance Act 2020 has amended the Section to provide the Removal of difficulty order can now be passed with 5 years from the commencement of GST.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>All the changes mentioned above in GST are note worthing and essential. Since GST is still into the infant stage, changes in GST are coming quickly by way of notifications, clarifications, circulars etc. Finance Bill, which proposed the changes as mentioned above in GST, was passed in both the houses and became Finance Act 2020.<\/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\/gst-taxpayers-can-file-their-gstr-3b-returns\/\">\nGST Taxpayers can file their GSTR-3B Returns in an easy way\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the Budget Presented on 01st February 2020, there were many changes proposed in Income Tax and GST. As compared to Income Tax Law, there were very fewer changes in GST for a reason, and changes are frequently coming in GST law via notifications. In this article, we are covering the Finance Act 2020 &#8211; [&hellip;]<\/p>\n","protected":false},"author":23,"featured_media":7477,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[527],"acf":{"service_id":"132"},"authorName":"Siddharth Gambhir","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/sid.jpg","authorDescription":"Mr. Siddharth Gambhir is a Chartered Accountant by profession and also holding post-graduate degree in Finance and Taxation. He is an Advisory consultant at Corpbiz with experience in Taxation and Auditing.Holding experience in Taxation and Auditing, he holds keen interest in writing new content by updating himself with the latest changes.","postViews":4566,"readingTime":8,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/7468"}],"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\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=7468"}],"version-history":[{"count":19,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/7468\/revisions"}],"predecessor-version":[{"id":21184,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/7468\/revisions\/21184"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/7477"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=7468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=7468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=7468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}