Budget 2021 update: Few of the items on which Customs Duty Rates are revised are as follows: – Reduced duty on copper scrap from 5% to 2.5% – Basic and Special additional excise duty on petrol and high-speed diesel oil (both branded and unbranded) is reduced – Increased duty on solar inverters from 5% to 20% – Raised duty on solar lanterns from 5% to 15% – The basic customs duty on gold and silver reduced. – The department will rationalise duty on textile, chemicals and other products – The revised rates will be applicable from 2nd February 2021 onwards.The Union Budget 2020 was presented on 1 February 2020 by the Union Finance Minister Smt. Nirmala Sitharaman.While all eyes are on the popular sops expected under the income tax slabs and reliefs, one must also stay updated about our main source of revenue to the government which is Customs duty and Goods and Services Tax (GST).
The changes notified in GST were procedural and focused to end the fake invoicing menace. These GST legislative changes in Finance Bill, 2020 (later to be called as Finance Act, 2020) were earlier recommended by the GST Council. On the other hand, customs law and foreign trade measures were announced to boost the domestic industries and encourage export sector.
GST Highlights from Union Budget 2020
The amendments will be passed through the Finance Act, 2020 after receiving the President’s assent.
Top 5 GST Amendments
- The person involved/benefited out of fake ITC shall also be liable for a penalty of 100% of the tax involved.
- Composition scheme restricted to taxpayers making the inter-state supply of service, supplies not leviable to GST and supplies through e-commerce operator where TCS is deductible.
- The date of the debit note will be standalone considered for availing input tax credit, delinked from the date of invoice.
- The retrospective effect has been given for transition provisions from 01st July 2017, to nullify the decision of Gujarat High Court in case of Siddhartha Enterprises.
- Powers provided to notify the form of TDS certificate and late fee (200 per day, maximum of 5,000) for non-issuance of TDS certificate has been waived off.
Other Important GST Amendments
- A provision inserted for cancellation of voluntary GST registration for distinct persons.
- Power to condone the delay in applying for revocation of cancellation has been provided to the additional commissioner and commissioner for a period of 30 days.
- Refund due to Inverted tax prevalent for tobacco products is barred with a retrospective effect from 1st July 2017.
- Applicability of 6% CGST rate (total of 12% IGST rate) for the supply of pulley, wheels and products used in Agri machinery between 1st July 2017 to 31st December 2018.
- Ladakh has been included in the definition of Union Territory. J&K will have its appellate tribunal
- The law has been amended to extend the imprisonment to the person ‘who causes to commit’ and ‘person retaining the benefit’. Earlier the punishment is restricted to the person committed. This punishment is restricted to the person fraudulently availing ITC without an eligible invoice. Accordingly, these offences will be congnizable and non-bailable.
- Supply of fishmeal provided a retrospective GST exemption from 1st July 2017 to 30th September 2019.
- Provision to issue the removal of difficulty order by CBIC extended from earlier three-year limit to five years w.e.f 1st July 2017.
- Order for determining expense in special audit will not require the Board’s approval.
- Provision to extend the time limit to return the inputs and capital goods from job worker.
- Powers provided to notify the time and manner of issuing an invoice for a specific category of supplies or services.
- The entry in the Schedule II to the CGST Act on ‘Transfer of business assets’ will now exclude transactions done without consideration from it.