Current provisions | Proposed provisions | Effect |
Second proviso to section 10 - Composition Scheme |
Second proviso to section 10(1):
"Provided
further that a person who opts to pay tax under clause (a) or clause
(b) or clause (c) may supply services (other than those referred to in
clause (b) of paragraph 6 of Schedule II), of value not exceeding ten
per cent. Of turnover in a State or Union territory in the preceding
financial year or five lakh rupees, whichever is higher."; | Second proviso to section 10 (1):
"Provided
further that a person who opts to pay tax under clause (a) or clause
(b) or clause (c) may supply services (other than those referred to in
clause (b) of paragraph 6 of Schedule II), of value not exceeding ten
per cent. Of turnover in a State or Union territory in the preceding
financial year or five lakh rupees, whichever is higher.";
Explanation:
For the purposes of second proviso, the value of exempt supply 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
shall not be taken into account for determining the value of turnover in
a State or Union territory."; | 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 shallnot 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. |
Section 10(2)(d):
The registered person shall be eligible to opt under sub-section (1), if- -
(d)
he is not engaged in making any supply of goods through an electronic
commerce operator who is required to collect tax at source under section
52; and | Section 10(2)(d):
The registered person shall be eligible to opt under sub-section (1), if- -
(d)
he is not engaged in making any supply of goods through an electronic
commerce operator who is required to collect tax at source under section
52; and |
Section 10(2)(e):
The registered person shall be eligible to opt under sub-section (1), if- -
(e) he is not a manufacturer of such goods as may be notified by the Government on the recommendations of the Council: | Section 10(2)(e):
The registered person shall be eligible to opt under sub-section (1), if- -
(e) he is not a manufacturer of such goods as may be notified by the Government on the recommendations of the Council; and |
After Clause (e) of Section 10(2): | After Clause (e) of Section 10(2), the following clause (f) shall be inserted:
The registered person shall be eligible to opt under sub-section (1), if- -
"(f) he is neither a casual taxable person nor a non-resident taxable person:" |
After sub section 10(2): | After sub section 10(2), the following sub-section 2A shall be inserted:
"(2A) Notwithstanding anything to the contrary contained in this Act, but subject to the provisions
of
sub-sections (3) and (4) of section 9, a registered person, not
eligible to opt to pay tax under sub-section (1) and sub-section (2),
whose aggregate turnover in the preceding financial year did not exceed
fifty lakh rupees, may opt to pay, in lieu of the tax payable by him
under sub-section (1) of section 9, an amount of tax calculated at such
rate as may be prescribed, but not exceeding three per cent.. of the
turnover in State or turnover in Union territory, if he is not- -
(a) engaged in making any supply of goods or services which are not leviable to tax under this Act;
(b) engaged in making any inter-State outward supplies of goods or services;
(c) engaged in making any supply of goods or services through an electronic commerce
operator who is required to collect tax at source under section 52;
(d)
a manufacturer of such goods or supplier of such services as may be
notified by the Government on the recommendations of the Council; and
(e) a casual taxable person or a non-resident taxable person.
Provided
that where more than one registered person are having the same
Permanent Account Number issued under the Income-tax Act, 1961, the
registered person shall not be eligible to opt for the scheme under this
sub-section unless all such registered persons opt to pay tax under
this sub-section."; |
Section 10(3):
The
option availed of by a registered person under sub-section (1) shall
lapse with effect from the day on which his aggregate turnover during a
financial year exceeds the limit specified under sub-section (1). | Section 10(3):
The
option availed of by a registered person under sub-section (1) or
sub-section (2A), as the case may be, shall lapse with effect from the
day on which his aggregate turnover during a financial year exceeds the
limit specified under sub-section (1) or sub-section (2A), as the case
may be. |
Section 10(4):
A
taxable person to whom the provisions of sub-section (1) apply shall
not collect any tax from the recipient on supplies made by him nor shall
he be entitled to any credit of input tax. | Section 10(4):
A
taxable person to whom the provisions of sub-section (1) or as the case
may be, sub-section (2A), apply shall not collect any tax from the
recipient on supplies made by him nor shall he be entitled to any credit
of input tax. |
Section 10(5):
If
the proper officer has reasons to believe that a taxable person has
paid tax under sub-section (1) despite not being eligible, such person
shall, in addition to any tax that may be payable by him under any other
provisions of this Act, be liable to a penalty and the provisions of
section 73 or section 74 shall, mutatis mutandis, apply for
determination of tax and penalty.. | Section 10(5):
If
the proper officer has reasons to believe that a taxable person has
paid tax under sub-section (1) or sub-section (2A), as the case may be,
despite not being eligible, such person shall, in addition to any tax
that may be payable by him under any other provisions of this Act, be
liable to a penalty and the provisions of section 73 or section 74
shall, mutatis mutandis, apply for determination of tax and penalty. |
After sub-section (5) of section 10: | After sub-section (5) of section 10, the following Explanations shall be inserted:
Explanation
1.- - For the purposes of computing aggregate turnover of a person for
determining his eligibility to pay tax under this section, the
expression "aggregate turnover" shall include the value of supplies made
by such person from the 1st day of April of a financial year upto the
date when he becomes liable for registration under this Act, but shall
not include the value of exempt supply 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.
Explanation 2.- - For
the purposes of determining the tax payable by a person under this
section, the expression "turnover in State or turnover in Union
territory" shall not include the value of following supplies, namely:- -
(i)
supplies from the first day of April of a financial year up to the date
when such person becomes liable for registration under this Act; and
(ii)
exempt supply 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.’. |
Second Proviso after sub-section (1) of Section 22: Persons liable for registration |
In sub-section (1) of Section 22, after the second proviso: | In sub-section (1) of Section 22, after the second proviso, the following proviso shall be inserted:
"Provided
also that the Government may, at the request of a State and on the
recommendations of the Council, enhance the aggregate turnover from
twenty lakh rupees to such amount not exceeding forty lakh rupees in
case of supplier who is engaged exclusively in the supply of goods,
subject to such conditions and limitations, as may be notified.
Explanation.-
- For the purposes of this sub-section, a person shall be considered to
be engaged exclusively in the supply of goods even if he is engaged in
exempt supply 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.". | 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. |
After sub-section (6) of Section 25: Procedure for registration |
After sub-section (6) of Section 25: | After sub-section (6) of Section 25 the following sub-sections 6A, 6B, 6C, 6D shall be inserted:
"6(A)
Every registered person shall undergo authentication, or furnish proof
of possession of Aadhaar number, in such form and manner and within such
time as may be prescribed:
Provided that if an Aadhaar number is
not assigned to the registered person, such person shall be offered
alternate and viable means of identification in such manner as
Government may, on the recommendations of the Council, prescribe:
Provided
further that in case of failure to undergo authentication or furnish
proof of possession of Aadhaar number or furnish alternate and viable
means of identification, registration allotted to such person shall be
deemed to be invalid and the other provisions of this Act shall apply as
if such person does not have a registration.
(6B) On and from the
date of notification, every individual shall, in order to be eligible
for grant of registration, undergo authentication, or furnish proof of
possession of Aadhaar number, in such manner as the Government may, on
the recommendations of the Council, specify in the said notification:
Provided
that if an Aadhaar number is not assigned to an individual, such
individual shall be offered alternate and viable means of identification
in such manner as the Government may, on the recommendations of the
Council, specify in the said notification.
(6C) On and from the
date of notification, every person, other than an individual, shall, in
order to be eligible for grant of registration, undergo authentication,
or furnish proof of possession of Aadhaar number of the Karta, Managing
Director, whole time Director, such number of partners, Members of
Managing Committee of Association, Board of Trustees, authorised
representative, authorised signatory and such other class of persons, in
such manner, as the Government may, on the recommendation of the
Council, specify in the said notification:
Provided that where
such person or class of persons have not been assigned the Aadhaar
Number, such person or class of persons shall be offered alternate and
viable means of identification in such manner as the Government may, on
the recommendations of the Council, specify in the said notification.
(6D)
The provisions of sub-section (6A) or sub-section (6B) or sub-section
(6C) shall not apply to such person or class of persons or any State or
Union territory or part thereof, as the Government may, on the
recommendations of the Council, specify by notification.
Explanation.—For
the purposes of this section, the expression "Aadhaar number" shall
have the same meaning as assigned to it in clause (a) of section 2 of
the Aadhaar (Targeted Delivery of Financial and Other Subsidies,
Benefits and Services) Act, 2016.". | A
New sub-section is 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. |
Insertion of New Section 31A: Facility of digital payment to Recipient. |
After Section 31: | After section 31, Section 31A shall be inserted:
"31A.
The Government may, on the recommendations of the Council, prescribe a
class of registered persons who shall provide prescribed modes of
electronic payment to the recipient of supply of goods or services or
both made by him and give option to such recipient to make payment
accordingly, in such manner and subject to such conditions and
restrictions, as may be prescribed.". | A
new section 31A is being inserted in the CGST Act so that specified
suppliers shall have to mandatorily give the option of specified modes
of electronic payment to their recipients of goods or services. |
Section 44: Annual Return | |
Sub Section (1) of section 44:
Every
registered person, other than an Input Service Distributor, a person
paying tax under section 51 or section 52, a casual taxable person and a
non-resident taxable person, shall furnish an annual return for every
financial year electronically in such form and manner as may be
prescribed on or before the thirty-first day of December following the
end of such financial year. | After Sub Section (1) of section 44, the following proviso shall be inserted:
Every
registered person, other than an Input Service Distributor, a person
paying tax under section 51 or section 52, a casual taxable person and a
non-resident taxable person, shall furnish an annual return for every
financial year electronically in such form and manner as may be
prescribed on or before the thirty-first day of December following the
end of such financial year.
"Provided that the Commissioner may,
on the recommendations of the Council and for reasons to be recorded in
writing, by notification, extend the time limit for furnishing the
annual return for such class of registered persons as may be specified
therein:
Provided further that any extension of time limit
notified by the Commissioner of State tax or the Commissioner of Union
territory tax shall be deemed to be notified by the Commissioner.". | New
provisos are 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). | |
Section 49: Payment of tax, interest, penalty and other amounts. | |
Sub Section (9) of section 49: | After Sub Section (9) of section 49 the following sub section (10) and (11) shall be inserted:
"(10)
A registered person may, on the common portal, transfer any amount of
tax, interest, penalty, fee or any other amount available in the
electronic cash ledger under this Act, to the electronic cash ledger for
integrated tax, central tax, State tax, Union territory tax or cess, in
such form and manner and subject to such conditions and restrictions as
may be prescribed and such transfer shall be deemed to be a refund from
the electronic cash ledger under this Act.
(11) Where any amount
has been transferred to the electronic cash ledger under this Act, the
same shall be deemed to be deposited in the said ledger as provided in
sub-section (1).". | 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. | |
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