Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No.92¬¬/2020 – Central Tax dated 22nd December, 2020 to notify 1st day of January, 2021 as the date from which the provisions of Sections 119,120,121,122,123,124,126,127 and 131 of Finance Act, 2020 relating to Central Goods and Services Tax (CGST) Act, 2017 shall come in to force.
The relevant provisions to gain effect under GST Acts are:
1. In sub-section (4) of Section 16 of the CGST Act, 2017, relating to the “Eligibility and conditions for taking input tax credit” the words “invoice relating to such” shall be omitted. Presently, as per Section 16(4) of the CGST Act, 2017 the time limit for availing Input Tax Credit against a debit note was linked with the date of invoice against which such debit note was issued. After this amendment, the time limit to avail ITC against Debit Note has been de-linked with the date of Invoice.
2. In sub-section (1), for clause (c) of Section 29 of the CGST Act,2017, relating to “Cancellation or suspension of registration”, the following clause shall be substituted,- “(c) the taxable person is no longer liable to be registered under section 22 or section 24 or intends to opt out of the registration voluntarily made under sub-section (3) of section 25”. Accordingly, after the amendment, the person who has taken voluntary registration under Section 25(3) of the CGST Act, 2017, who was otherwise not required to get registered under Section 22 or Section 24 of the CGST Act, 2017, can now apply for cancellation of registration.
3. In sub-section (1) of Section 30 of the CGST Act,2017, relating to “Revocation of cancellation of registration” the proviso has been substituted so as to empower the Additional Commissioner and the Joint Commissioner to extend the time period of filing of application for revocation of cancellation by 30 days and thereafter, the Commissioner has been empowered to extend the said period further by 30 days.
4. In sub section (2) of Section 31 of the CGST Act, 2017 relating to “Tax invoice” the proviso has been substituted to widen the powers to the Central Government to notify the categories of services in respect of which a tax invoice shall be issued within such time and in such manner as may be prescribed.
5. After sub-section (1) of Section 122 of the CGST Act,2017 relating to “Penalty for certain offences”, a new sub-section has been inserted, to provide that for following transactions, any person who retains the benefit of the such transaction and at whose instance such transaction is conducted shall be liable to penalty of an amount equivalent to the tax evaded or input tax credit availed of or passed on-
a) any goods or services or both have been supplied without issue of any invoice or issues an incorrect or false invoice with regard to any such supply;
b) any invoice or bill has been issued without supply of goods or services or both in violation of the provisions of the CGST Act, 2017 or the rules made thereunder;
c) input tax credit has been taken or utilised without actual receipt of goods or services or both either fully or partially, in contravention of the provisions of this Act or the rules made thereunder;
d) input tax credit has been taken or distributed in contravention of section 20, or the rules made thereunder.
6. In Section 132 of the CGST Act, 2017 relating to “Punishment for certain offences” the sub-section (1) has been amended so as to penalize the person who actually gets benefited from the fraudulent transactions and the person at whose instance such fraudulent transactions are committed.
For further details, please refer the attached document.
Source : Central Board of Indirect Taxes and Customs (CBIC)
