Budget 2020 : Overview of the Union Budget 2020 :

On 1st Feb 2020. the Union Budget for the Financial Year 2020-2021 was presented by Hon’ble Finance Minister Smt Nirmala Sitharaman ji.

Following are the areas which were the pick of the budget session.

Sr. No MAIN PROVISION IMPACT AFTER PROPOSED AMENDMENTS
1 Each of the territories specified in sub- clauses (a) to (f) shall be
considered to be a separate Union territory Impact a􀅌er amendments
Ladakh, being given a recognition has a Union territory even for the purpose of GST Laws the same has been proposed to be envisaged in the list of Union territories in clause (d), whereas in clause (c) has been expanded to include Daman and Diu along with Dadra and Nagar Haveli
2 If any not engaged in making any supply of goods which are not leviable
to tax under Act and he is not engaged in making any inter- State outward supplies of goods
To restrict any person availing composition levy, if such person is engaged in provision of any services which are not leviable to tax under the GST Laws or is engaged in outward supply of services in the course of Inter state supply.
3 A registered person shall not be entitled to take input tax credit in respect
of any invoice or debit note for supply of goods or services
or both after the due date of furnishing of the return for the month
of September following the end of financial year to which such
invoice or invoice relating to such debit note pertains or
furnishing of the relevant annual return, whichever is earlier
The Input Tax Credit in respect of any Invoice or debit note issued during a financial year, would not be eligible after the due date of filing return for the month of September following the end of financial year
4 The taxable person, other than the person registered under sub-section (3)
of section 25, is no longer liable to be registered under section 22 or section 24
The person holding registration obtained voluntarily under Section 25(3) of the CGST Act 2017, can also apply for cancellation of registration
5 If any by order, either revoke cancellation of the registration or reject the
application: Provided that the application for revocation of
cancellation of registration shall not be rejected unless the
applicant has been given an opportunity of being heard
The time limit in respect of cancellation of registration where proper cause is shown to that effect. by the Commissioner, for a further period not exceeding thirty days, beyond the period specified in clause
6 Any other document issued in relation to the supply shall be deemed
to be a tax invoice or tax invoice may not be issued
The specified categories of services or supplies of services to issue Invoices in prescribed manner. Also in respect of notified services the government may on any document to be issued in lieu of tax invoice, which shall be deemed to be an invoice. Or also mention cases where a tax invoice need not be issued
7 The deductor shall furnish to the deductee a certificate mentioning
therein the contract value, rate of deduction, amount deducted, amount paid to the
Government and such other particulars in such manner as may be prescribed
Tax deduction certificate” which is required to be issued by a deductor of tax at source. Also proposed omission of sub section 4 of section 51 would absolve the “Tax deductors” from payment of any late fees.
8 Supplies any goods or services or both without issue of any invoice
or issues an incorrect or false invoice with regard to any such supply (ii) issues
any invoice or bill without supply of goods or services or both in violation of the provisions of this Act or
the rules made thereunder (vii) takes or utilises input tax credit without actual
receipt of goods or services or both either fully or partially, in contravention of the provisions
Whose instance such transaction is conducted, shall be liable to a penalty of an amount equivalent to the tax evaded or input tax credit availed of or passed on
9 Avails input tax credit using such invoice or bill referred to evades tax,
fraudulently avails input tax credit or fraudulently obtains refund avails input tax credit using the invoice or bill referred to particular invoice.
Fraudulently avails input tax credit without any invoice or bill the words “, fraudulently avails input tax credit” shall be omitted
10 A registered person, entitled to take, in his electronic credit ledger,
the amount of CENVAT credit carried forward in the return relating to the period
ending with the day immediately preceding the appointed day, furnished by him under the existing law
A registered person shall be entitled to take, in his electronic credit ledger,
credit of the unavailed CENVAT credit in respect of capital goods, not carried forward in
a return, furnished under the existing law A registered person, who was not liable to be registered under the
existing law, or who was engaged in the manufacture of exempted goods or
provision of exempted services, or who was providing works contract
service and was availing of the benefit of or a first stage dealer or a second
stage dealer or a registered importer or a depot of a manufacturer,
shall be entitled to take, in his electronic credit ledger, credit of eligible duties
in respect of inputs held in stock and inputs contained in semi-finished or
finished goods held in stock A registered person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi- finished or finished goods held in stock
seems to be aimed at giving a effect to the various transactions under undertaken in accordance with the transition provisions, the interpretation thereof and in the light of litigation arising as a reason of it. However, the interesting factor in this is that all the amendments are retrospectively proposed to be given an effect to
11 If any difficulty arises in giving effect to any provisions of this Act, the Government may,
on the recommendations of the Council, by a general or a special order published in the
Official Gazette, make such provisions not inconsistent with the provisions of this Act
or the rules or regulations made thereunder
The time limit for issuing “Removal of difficulty order” has been proposed to be extended from 3 years as originally stated in act to a period of 5 years.
12 Transfer of business assets (a) where goods forming part of the assets of a business
are transferred or disposed of by or under the directions of the person carrying
on the business so as no longer to form part of those assets, whether or not
for a consideration, such transfer or disposal is a supply of goods by the person;
under the direction of a person carrying on a business, goods held or used for the purposes of the business are put to any private use or are used, or made whether or not for a consideration,” at both the places where they occur, shall be omitted