Select sections of the Finance Act, 2020 for GST to be effective from 1st January 2021

Section of the Finance Act, 2020

Relevant section of the CGST Act, 2017

Amendment

Sec.119

Amendment of section 10

(Composition levy)

In section 10 of the Central Goods and Services Tax Act, in sub-section (2), in clauses (b), (c) and (d), after the words “of goods”, the words “or services” shall be inserted.

Sec.120

Amendment of section 16

(Eligibility and conditions for taking input tax credit)

In section 16 of the Central Goods and Services Tax Act, in sub-section (4), the words “invoice relating to such” shall be omitted.

Sec.121

Amendment of section 29

(Cancellation or suspension of registration)

In section 29 of the Central Goods and Services Tax Act, in sub-section (1), for clause (c), the following clause shall be substituted, namely:—

“(c) the taxable person is no longer liable to be registered under section 22 or section 24 or intends to optout of the registration voluntarily made under sub-section (3) of section 25:”

Sec.122

Amendment of section 30

(Revocation of cancellation of registration)

In section 30 of the Central Goods and Services Tax Act, in sub-section (1), for the proviso, the following proviso shall be substituted, namely:—

“Provided that such period may, on sufficient cause being shown, and for reasons to be recorded in writing, be extended,—

(a) by the Additional Commissioner or the Joint Commissioner, as the case may be, for a period not exceeding thirty days;

(b) by the Commissioner, for a further period not exceeding thirty days, beyond the period specified in clause (a).”.

Sec.123

Amendment of section 31

(Tax invoice)

In section 31 of the Central Goods and Services Tax Act, in sub-section (2), for the proviso, the following proviso shall be substituted, namely:—

“Provided that the Government may, on the recommendations of the Council, by notification,—

(a) specify the categories of services or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed;

(b) subject to the condition mentioned therein, specify the categories of services in respect of which—

(i) any other document issued in relation to the supply shall be deemed to be a tax invoice; or

(ii) tax invoice may not be issued.”.

Sec.124

Amendment of section 51

(Tax deduction at source)

In section 51 of the Central Goods and Services Tax Act,— (a) for sub-section (3), the following sub-section shall be substituted, namely:—

“(3) A certificate of tax deduction at source shall be issued in such form and in such manner as may be prescribed.”

(b) sub-section (4) shall be omitted

Sec.126

Amendment of section 122

(Penalty for certain offences)

In section 122 of the Central Goods and Services Tax Act, after sub-section (1), the following sub-section shall be inserted, namely:—

“(1A) Any person who retains the benefit of a transaction covered under clauses (i), (ii), (vii) or clause (ix) of sub-section (1) and at 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.”.

Sec.127

Amendment of section 132

(Punishment for certain offences)

In section 132 of the Central Goods and Services Tax Act, in sub-section (1),—

1. for the words “Whoever commits any of the following offences”, the words “Whoever commits, or causes to commit and retain the benefits arising out of, any of the following offences’’ shall be substituted;

2. for clause (c), the following clause shall be substituted, namely:— “(c) avails input tax credit using the invoice or bill referred to in clause (b) or fraudulently avails input tax credit without any invoice or bill;”;

3. in clause (e), the words “, fraudulently avails input tax credit” shall be omitted.

Sec.131

Amendment to Schedule II

[Activities or transactions to be treated as supply of goods or supply of services]

In Schedule II to the Central Goods and Services Tax Act, in paragraph 4, the words “whether or not for a consideration,” at both the places where they occur, shall be omitted and shall be deemed to have been omitted with effect from the 1st day of July, 2017.