The CBIC vide issuing Notification No. 17/2024-Central Tax dated 27.09.2024, has appointed the date for applicability of the provisions of the Finance Act, 2024 in relation to Goods and Services Tax Act in the following manner:
- w.e.f. 27th September, 2024: Date on which provisions of Section 118, 142, 148 and 150 of the Finance Act shall be applicable.
- w.e.f. 1st November, 2024: Date on which provisions of Section 114 to 117 and 119 to 141, 143 to 147, 149 and 151 to 157 shall be applicable.
The gist of changes are discussed as under:
A. Changes which are made applicable w.e.f. 27.09.2024:
1. Changes proposed in relation to Input Tax Credit (ITC):
- Section 16(5) – Relaxation in conditions of section 16 of the CGST Act, 2017 w.e.f. 01.07.2017: Extending the deadline for claiming ITC for invoices or debit notes u/s 16(4) of the CGST Act, to 30th November, 2021 for financial years 2017-18, 2018-19, 2019-20 and 2020-21. This extension applies to return filed in FORM GSTR-3B. (vide Section 118 of the Finance Act, 2024)
- Section 16(6) – Availment of ITC in case of revocation of cancellation of GST registration: This Amendment conditionally relaxes for cases where returns from the date of registration cancellation to revocation are filled within 30 days of the revocation order. (vide Section 118 of the Finance Act, 2024)
2. Amendment in Section 109 of CGST Act – so as to empower the Government to notify types of cases that shall be heard only by the Principal Bench of the Appellate Tribunal, including Anti-profiteering matters (vide Section 142 of the Finance Act, 2024)
3. Amendment in Section 171 of the CGST Act – To introduce a sunset clause for Anti-Profiteering measures and align these cases to the GSTAT (GST Tribunal). (vide Section 148 of the Finance Act, 2024)
4. Section 118 of the CGST Act – No refund shall be made of all the tax paid or the input tax credit reversed, which would not have been so paid, or not reversed, had sec 118 been in force at all material times. (vide Section 150 of the Finance Act, 2024)
B. Changes which are made applicable w.e.f. 1.11.2024:
1. Amendment in Section 9 of the CGST Act 2017 – To exclude undenatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquor, for human consumption from purview of GST. (vide Section 114 of the Finance Act, 2024)
Similar amendment is made in Section 5(1) of IGST Act, 2017. (vide Section 151 of the Finance Act, 2024)
2. Amendment in Section 10, 21, 35, 49, 50, 51, 61, 62,63, 64, 65, 66, 75, 104, 127 of the CGST Act. 2017: To include reference to Section 74A wherever reference to Section 73 or Section 74 has been made (vide Section 115, 120, 123,125, 126, 127, 129 ,130,131,132,133,134 ,139,140, 145 of the Finance Act, 2024)
3. Insertion of Section 11A: To empower the government to regularize past discrepancies in tax practices by issuing a notification, ensuring that businesses are not unduly penalized for following a generally accepted but incorrect tax practice. (vide Section 116 of the Finance Act, 2024)
Similar amendment is made by inserting Section 6A of IGST Act, 2017. (vide Section 152 of the Finance Act, 2024)
4. Time of Supply in case of Reverse Charge Mechanism (RCM) (Section 13(3)): To specify the time of supply of services where the self-invoice has to be issued by the recipient of services liable to pay GST under Reverse Charge Mechanism (RCM). (vide Section 117 of the Finance Act, 2024)
5. Amendment in Section 17(5)CGST Act: To restrict the non-availability of input tax credit in respect of tax paid under section 74 of the said Act only for demands upto Financial Year 2023-24. It also removes reference to sections 129 and 130 in the said sub-section. (vide Section 119 of the Finance Act, 2024)
6. Amendment in Section 30 of the CGST Act – Revocation of registration : To empower the Central Government to prescribe conditions and restrictions for revocation of cancellation of registration by rules. (vide Section 121 of the Finance Act, 2024)
7. Amendment in Section 31 of the CGST Act – In order to propose a time limit for issuance of invoice by the recipient in case the recipient is liable to make payment of taxes under Reverse Charge Mechanism. (vide Section 122 of the Finance Act, 2024)
8. Amendment in Section 39 of the CGST Act, 2017 – To provide registered persons required to deduct tax u/s 51 must file return in FORM GSTR-7 monthly, even if no tax has been deducted. (vide Section 124 of the Finance Act, 2024)
9. Amendment in Section 54 of the CGST Act, 2017 – To restrict IGST refunds for goods subject to export duty, including those exported or supplied to SEZs, regardless of with or without payment of tax. (vide Section 128 of the Finance Act, 2024)
Also, amendment made in Section 16 of the IGST Act, 2017, so as to provide for notification of class of persons who may make zero-rated supplies of goods or services or both or class of goods or services which may be supplied on payment of tax and refund of IGST in respect of which can be claimed. (vide Section 153 of the Finance Act, 2024)
10. Amendment in Section 70 of the CGST Act, 2017 –To enable an authorised representative to appear on behalf of the summoned person before the proper officer in compliance of summons issued by the said officer. (vide Section 135 of the Finance Act, 2024)
11. Amendment in Section 73 and 74 of the CGST Act, 2017 – To provide that the different time limit for issuance of demand notices and orders pertains to period upto Financial year 2023-24. (vide Section 136 and 137 of the Finance Act, 2024)
12. Insertion of New Section 74A in the CGST Act – to provide for the common time limit for issuance of demand notices and orders irrespective of whether case involves fraud, suppression, willful misstatement etc., or not, for period pertaining to Financial year 2024-25 onwards.
Section 74A is proposed to be inserted which will have effect for cases from FY 2024-25 onwards, meaning thereby, for the demands pertaining to period 01 July 2017 to 31 March 2024, old provisions will operate and department has the option to issue SCN under Section 73 or Section 74 depending upon the facts of the case. However, for the demands pertaining to period 01 April 2024 onwards, every SCN has to be issued mandatorily under Section 74A only. (vide Section 138 of the Finance Act, 2024)
13. Amendment in Section 107 of the CGST Act, 2017 and Section 20 of the IGST Act – For reducing the amount of pre-deposit required to be paid for filing of appeal under GST. (vide Section 141 and 154 of the Finance Act, 2024)
14. Amendment in Section 112 of the CGST Act, 2017 – Time for filing appeals in GST Appellate Tribunal, to allow 3 months period for filing appeals before GSTAT to start from a date to be notified by the Government in respect of appeals/ revision orders passed. This would have effect from 01.08.2024. Also, reducing the amount of pre-deposit required to be paid for filing the GSTAT appeals. (vide Section 143 of the Finance Act, 2024)
15. Amendment in Section 122 of the CGST Act : Relating to Penalty provisions on E-commerce operators. (vide Section 144 of the Finance Act, 2024)
16. Insertion of Section 128A of the CGST Act, Waiver of interest & penalty for the FY 2017-18, 2018- 19 & 2019-20 – As per Section 128A, interest and penalty will be waived for demand notices issued, demand orders or Appellate Orders passed under Section 73 of the CGST Act, 2017 for the aforementioned periods where the taxpayer pays the full amount of tax demanded in the notice up to a date to be notified. However, the waiver does not cover demand of erroneous refund (vide Section 146 of the Finance Act, 2024)
17. Amendment in Section 140 of the CGST Act – To allow transitional credit for service invoices received by the IGST before the appointed date. Amendment would have an retrospective effect from 01.07.2017. (vide Section 147 of the Finance Act, 2024)
18. Amendments in Schedule III: Co-insurance premium apportioned by lead insurer to the co-insurer for the supply of insurance service by lead and co-insurer to the insured in coinsurance agreements and transactions of ceding commission/ re-insurance commission between insurer and re-insurer. (vide Section 149 of the Finance Act, 2024)
The complete Notification can be accessed at https://taxo.online/wp-content/uploads/2024/09/257555.pdf
