This Tax Alert summarizes recent Notification[1] issued by Central Board of Indirect Taxes and Customs (CBIC) notifying effective date for the amendments made in Central Goods and Services Tax Act, 2017 (CGST Act) and allied laws vide Finance (No.2) Act, 2024.
Amendments effective from 1 July 2017:
- Time
limit to avail ITC for FY 2017-18 till 2020-21 extended till 30 November
2021.
- ITC
on any services received prior to 1 July 2017 by an ISD shall be eligible
for distribution as GST credit, even if invoices are received prior to the
said date.
Amendment effective from 27 September 2024:
- Functions
of Appellate Tribunal expanded to include examination or adjudication of
anti-profiteering cases.
Amendments made effective from 1 November 2024:
- Amnesty
scheme to provide waiver of interest and penalty for pending demands in
non-fraud cases for FY 2017-18 till 2019-20, if entire tax demand is paid
up to the date to be notified.
- Government
to be empowered regarding non-recovery of duties not levied or
short-levied as a result of general prevalent trade practice.
- Common
timeline to apply for issuance of SCNs and orders in both fraud and
non-fraud cases from FY 2024-25 onwards.
Comments:
- GST
Council in its 54th meeting have recommended 31 March 2025 as the date on
or before which the payment of tax would be required to be made to avail
the benefit of Section 128A. Rule 164 will be inserted in the CGST Rules
along with certain Forms for providing procedure and conditions for taking
benefit of amnesty scheme. A Circular was also proposed to be issued in
this regard.
- Council
had also recommended issuance of special procedure for rectification of
orders under Section 148. This is for taxpayers who received orders under
Section 73, 74, 107 or 108 for wrongful availment of ITC beyond the time
limit prescribed under Section 16(4), but now permissible as per Section
16(5) and 16(6).
- Exclusion
of un-denatured ENA from GST is prospective and hence, the dispute remains
unsettled for the past cases where many taxpayers have not paid tax on
sale of ENA. Further, businesses may have to evaluate its taxability under
the State Excise and VAT laws.
- Vide
Circular No. 224/18/2024 - GST, CBIC clarified that till the time GSTAT
commences operations, recovery of amount of confirmed demand as per the
Appellate Authority’s order will be stayed on payment of an amount equal
to pre-deposit and filing of an undertaking. Post 1 November 2024,
taxpayers may compute the above amount as per the revised pre-deposit
requirements.
- Currently,
Rule 47 of CGST Rules provides that the invoice referred to in Rule 46
shall be issued within a period of thirty days from the date of supply of
service. Self-invoice is also covered within the ambit of Rule 46. It
remains to be seen whether the timelines to be prescribed by the
Government for issuance of self-invoice would be in line with Rule 47.
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