CBIC notifies certain provisions of the Finance (No. 2) Act, 2019 to come into force from 1st day of January, 2020

Central Board of Indirect Taxes & Customs (CBIC) has issued Notification No.1/2020- Central Tax and Notification No.1/2020- Integrated Tax both dated 1st January, 2020 to bring into force certain provisions of Finance (No. 2) Act, 2019 ( i.e Sections 92 to 112 and Section 114, except Section 92, Section 97, Section 100 and Sections 103 to 110) the details of which has been provided in the below table, from 1st day of January, 2020.

Sl No. Section Reference as per Finance (No. 2) Act, 2019 Explanation
1. Section 93 Sub-section (2A) has been inserted in Section 10 of the CGST Act,2017 relating to “Composition levy” in order to bring in supplier of services or mixed suppliers having an annual turnover in preceding financial year up to Rs 50 lakhs who were not eligible for the composition scheme earlier.
2. Section 94 A proviso and an explanation has been inserted in Section 22 of the CGST Act, 2017 relating to “Persons liable for registration” 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 subject to such conditions and limitations as may be notified.
3. Section 95 Sub-section (6A),(6B) ,(6C) and (6D) has been inserted in Section 25 of the CGST Act,2017 relating to “Procedure for registration” where every registered person shall authenticate, or furnish proof of possession of Aadhaar number. If an Aadhaar number is not assigned to the registered person, such person shall be offered an alternate and viable means of identification. 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.
4. Section 96  Section 31A relating to “facility of digital payment to recipient” has been inserted in the CGST Act,2017 so that the Government may 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.
5. Section 98 A proviso has been inserted in sub-section (1) of Section 44 of the CGST Act, 2017 relating to Annual return 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).
6. Section 99 New sub-sections has been inserted in section 49 of the CGST Act,2017 relating to Payment of tax, interest,penalty and other amounts inorder 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.
7. Section 101 New provisos has been inserted in sub-sections (4) and (5) of Section 52 of the CGST Act,2017 relating to Collection of tax at source so as to empower the Commissioner to extend the due date for furnishing of monthly and annual statement by the person collecting tax at source.
8. Section 102 Section 53A has been inserted in the CGST Act,2017 so as to provide for transfer of amount between Centre and States consequential to amendment in section 49 of the CGST Act allowing transfer of an amount from one head to another head in the electronic cash ledger of the registered person .
9. Section 112 Section 171 of the CGST Act, 2017 relating to Anti Profiteering has been amended so as to empower the National Antiprofiteering Authority to impose penalty equivalent to 10% of the profiteered amount.
10. Section 114 Section 17A is being inserted in the IGST Act so as to bring into IGST Act,2017 provisions for transfer of amount between Centre and States consequential to amendment in section 49 of the CGST Act allowing transfer of an amount from one head to another head in the electronic cash ledger of the registered person.

Source : Central Board of Indirect Taxes & Customs

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