GST & Union Budget 2021


            GST &  Union Budget 2021

Section 7, CGST Act: Scope of supply w.e.f July 2017


Supply of activities or transactions inter se between a person & its members or constituents shall be deemed to take place from one such person to another – hence shall be treated as a supply. The amendment is clarification.


1. Section 16, CGST Act: Claim of Input Tax Credit


Input Tax Credit in respect of invoices and debit notes shall be available only to the extent they are furnished in GSTR-1 by the vendors and thus appearing in GSTR-2A of the recipient.


2. Section 35, CGST Act: Accounts and records


The provision for audit under Section 35(5) has been omitted with consequential amendment in Section 44.


3. Section 44, CGST Act: Annual return


The annual return may be accompanied by a self-certified reconciliation statement (instead of audit report), reconciling the value of supplies declared in the return furnished with the audited annual financial statement.


4. Section 50, CGST Act: Interest on delayed payment


Amendment in Section 50 so as to charge interest only on net tax liability i.e. on portion of the tax paid in cash has been made applicable retrospectively from July, 2017 as committed by GST Council.


5 Section 74, CGST Act: Detention, seizure and confiscation of goods to be a separate proceeding


Detention, seizure and confiscation of goods or conveyances shall have separate proceedings for recovery of tax and penalty.


6. Section 75, CGST Act: Recovery of interest on self-assessed tax


Explanation has been inserted to clarify that ‘self-assessed tax’ shall include only the amount of tax payable in respect of details of outward supplies furnished in GSTR-1, but not included in GSTR-3B.


7 Section 83, CGST Act: Provisional attachment


Powers of provisional attachment has been extended to proceeding under Chapter XII, XIV or XV for attachment of property including bank account belonging to taxable person or person who has retained benefits of offences under 122(1A).


8. Section 107, CGST Act: Appeals to appellate authority


An appeal against an order of detention or seizure of goods or conveyance can be filed only after 25 per cent of the amount of penalty.


9. Section 129 & 130, CGST Act: Detention, seizure and confiscation of goods


Section 129 and 130 have been amended to delink the proceedings for detention/seizure and confiscation of goods and conveyances.


10.  Section 151, CGST Act: Power to collect statistics


The power of the Commissioner has been extended to call for any information relating to any matter dealt with in connection with the GST Acts and the Rules.


11. Section 152, CGST Act: Bar on disclosure of information


Section 152 has been amended so as to prevent use of any information obtained under Section 150 and 151 for the purpose of proceedings under the Act without giving the concerned person an opportunity of being heard.


12. Section 168, CGST Act: Power to issue instructions or directions


Section 168 has been amended to remove references to the omitted sub-section in Section 44 and 151.


13. Schedule II, CGST Act: Paragraph 7 specifying supply (of goods) by any unincorporated association or body of persons to a member as supply of goods has been omitted retrospectively due to inclusion of the same in Section 7.


14 Section 16, IGST Act: Zero-rated supplies


The goods and services supplied only for the authorised operations of SEZ unit / developer shall be eligible for the benefit as zero-rated supply.


Zero-rated supplies with payment of tax may be restricted to notified class of persons or class of goods or services.


In case of non-realisation of sale proceeds for zero-rated supplies under LUT, refund of unutilised ITC along with interest shall become due within 30 days of expiry of time prescribed under the Foreign Exchange Management Act.