CBIC Has Notified 1st January, 2020 As The Date On Which Provisions Of Sections 92 To 112 (Except Section 92, Section 97, Section 100 And Sections 103 To 110) Of The Finance (No. 2) Act, 2019 Shall Come Into Force, Vide Notification No. 01/2020-Central Tax Dated 01/01/2020.
Following Sections Of The Finance (No.2) Act, 2019 Are Notified That Will Be Effective From 1st January, 2020, Concerned To The Sections Of CGST Act, 2017:
· Sec 93: A new sub-section (2A) is being inserted in section 10 of the CGST Act to bring in an alternative composition scheme for supplier of services or mixed suppliers (not eligible for the earlier composition scheme) having an annual turnover in preceding financial year up to Rs 50 lakhs.
Further, explanation is being added to section 10 to clarify that:
i. For computing the aggregate turnover to determine eligibility for the composition scheme, value of exempt supplies services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount shall not be taken into account; and
ii. For determining the value of turnover in a State or Union territory to calculate tax payable, value of exempt supplies of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount; and value of the first supplies from 1st of April till the date when the taxpayer becomes liable for registration shall not be taken into account.
· Sec 94: A proviso and an explanation is being inserted in section 22 of the CGST Act so as to provide for higher threshold exemption limit from Rs. 20 lakhs to such amount not exceeding Rs. 40 lakhs in case of supplier who is engaged in exclusive supply of goods.
· Sec 95: New sub-sections 6A, 6B, 6C, and 6D are being inserted in section 25 of the CGST Act to make Aadhaar authentication mandatory for specified class of new taxpayers and to prescribe the manner in which certain class of registered taxpayers are required to undergo Aadhaar authentication.
· Sec 96: A new section 31A is being inserted in the CGST Act so that specified suppliers shall have to mandatorily give the facility of digital payment or option of specified modes of electronic payment to their recipients of goods or services.
· Sec 98: New proviso is being inserted in sub-section (1) of section 44 of the CGST Act so as to empower the Commissioner to extend the due date for furnishing Annual return (prescribed FORM GSTR-9/9A) and reconciliation statement (prescribed FORM GSTR-9C).
· Sec 99: New sub-sections are being inserted in section 49 of the CGST Act to provide a facility to the registered person to transfer an amount from one (major or minor) head to another (major or minor) head in the electronic cash ledger.
· Sec 101: Section 52 of the CGST Act, has been amended and proviso has been inserted in sub-section (4) and (5) for extension of the time limit by commissioner for furnishing the statement by the registered person.
· Sec 102: A new section 53A has been inserted, to provide for transfer of amount in the electronic cash ledger between the Centre and States.
· Sec 111: In sub-section (2) of section 168 of the CGST Act, after the word and figures “section 39,”, the words, brackets and figures “sub-section (1) of section 44, sub-sections (4) and (5) of section 52,” In Central Goods and Services Tax Act, has been inserted.
· Sec 112: A new sub-section 3A with a proviso has been inserted in section 171 of the CGST Act to empower the National Anti-profiteering Authority to impose a penalty that is equivalent to 10% of the profiteered amount.
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