The Hon'ble Finance Minister Ms. Nirmala Sitharaman presented the Finance (No. 2) Bill, 2024 ("the Finance Bill") on July 23, 2024 in the Parliament. We are enumerating key policy initiatives and changes under the specified Indirect Tax Laws.
Goods & Services Tax (GST)
1. Changes coming into force on enactment of the Finance Bill, 2024
1.1 The Central Goods and Services Tax Act, 2017 ("the CGST Act")
- Exclusion of items from purview of GST
GST is not leviable on un-denatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquor for human consumption. Similar amendment is proposed under the Integrated Goods and Services Tax Act, 2017 ("the IGST Act")
- Power to regularise non-levy/ short - levy of GST
The government is empowered to regularise non-levy/ short levy of GST where such nonlevy/ short levy is due to general trade practice.
- Time of Supply
Time of supply for cases where invoices are required to be issued by the recipient of services in reverse charge supplies to be amended.
- Input Tax Credit (ITC)
- Time limit to avail ITC pertaining to invoices or debit notes issued during the period July 2017 - March 2021 extended till 31 November 2021.
- Further, wef 1 July 2017, ITC pertaining to invoices or debit notes can be claimed for the period from the date of cancellation of registration till the date of order of revocation of cancellation of registration, only if the return claiming such ITC is filed within 30 days of the said revocation order. This is subject to the condition that the time-limit for availing ITC has not expired on the date of order of cancellation of registration.
- ITC to be availed of tax demanded and paid on seized/ detained & confiscated goods up to FY 2023-24.
- Tax invoice
- The Government may prescribe time limit to issue invoice wrt supplies taxable under reverse charge mechanism.
- Returns
- Time limit removed to file monthly deduction of tax at source (TDS) return in Form GSTR- 7 within 10 days of the next month.
- TDS return to be filed irrespective whether any tax deducted or not.
- Refund
- No refund of unutilised ITC shall be allowed in case where goods are subject to export duty.
- Power to Summon
- Authorized representative to appear on behalf of summoned person w.r.t summons issued under Section 70 of the CGST Act.
- Show Cause Notice
- Applicability of Section 73 and 74 of the CGST Act restricted upto FY 2023-24 only.
- New Section 74A introduced with the following provisions:
- No notice can be issued for demand lower than INR 1,000/-.
- Notice can be issued within 42 months from due date of filing annual return or date of grant of erroneous refund.
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