Dear All,

This tax update document is synopsis of changes which have been proposed in the Indirect Tax Laws, i.e. Goods and Services Tax, Excise and Customs.

The budget has introduced certain schemes such as building of national Appellate Authority for resolving the challenge of contradictory views, allowance of electronically transfer of payment from one head to another, relaxing the norms of the payment of the interest on net cash liability on which Telangana High Court had pronounced negative ruling and lastly formation of the scheme for the settlement of the disputes under the pre GST regime which are pending as on 30 June, 2019.

1.       Goods & Services Tax Act-

Ø  Provision of Inter Transfer of fund of Electronic Cash ledger from one head to another

Ø  Interest to be levied only on the net tax liability

Ø  Registration limits exceeded for supply of goods to INR 40 Lakh

Ø  10% penalty to be paid on profiteered amount

Ø  Facility of Digital Payment to Recipient

Ø  Central Government to grant refund also in respect of state taxes

Ø  Aadhar Authentication Mandatory

Ø  Alternative Composition Scheme for certain registered persons

Ø  Creation of National Appellate Authority for Advance Ruling

2.       Customs Act-

Ø  Failure to comply with the verification of identity and compliance may result in suspension of certain benefits such as clearance of goods, sanction of refunds, etc.

Ø  Power to arrest Person extended outside India also

Ø  Power to screen or X-ray bodies of suspected persons

Ø  Departure manifest to be furnished by other person also to be notified in this behalf

Ø  Grant Custody of Seized Goods

3.       Excise Act-

Ø  Rate of duty on Petroleum levied as INR. 1 per tonne

Ø  Exempts, petroleum oils obtained from bituminous minerals, crude under specified Production Sharing Contracts

Ø  Levies Road and Infrastructure Cess at INR. 9 per litre on Petrol and Diesel

Ø  Levies excise duty at INR. 5 per thousand for cigarettes

4.       Sabka Vishwas Scheme, 2019

Ø  Applicable to disputes pending under the Central Excise Act or the Central Excise Tariff Act or Service tax

Ø  Amount paid shall not be paid through ITC account and not refunded.

Ø  Allows quick closure of pre- GST period litigations

Ø  Defines various situations where amount of relief varies from 30% to 70%.

By Kapil Mahani