13 July, 2019
The Union Budget 2019-20 has been presented by the Hon’ble Finance Minister in Parliament, today. The budget itself gained significance since it is the first budget in the second tenure of recently elected Government. The highlights of the budget from Indirect Tax/GST perspective have been mentioned. Trust you find the same useful.
Budget Highlights from GST PERSPECTIVE
- New provisions inserted in CGST Act to provide for constitution, qualification, appointment, tenure & conditions of services of the National Appellate Authority for Advance Ruling;
- Introduction of an alternative Composition Scheme for supplier of services or mixed suppliers (not eligible for earlier composition scheme) having an annual turnover in preceding financial year upto Rs. 50 lacs;
- Higher threshold exemption limit from Rs 20 lacs to such an amount not exceeding Rs. 40 lacs in case of a supplier engaged exclusively in supply of goods;
- Specified suppliers to mandatorily give the option of specified modes of electronic payment to their recipients;
- Amendment in CGST provisions to provide for furnishing of annual returns & for quarterly payment of tax by taxpayer who opts for composition levy and to provide for certain other category of tax payers, an option of quarterly & monthly payments under the proposed new return filing system;
- Charging of interest only on the Net Cash Tax liability, except in those cases where tax is paid subsequent to initiation of any proceedings;
- Amendment in CGST provisions so as to provide facility to the taxpayer to transfer an amount from one head to another in the electronic cash ledger;
- A simplified single monthly return is proposed. Taxpayer having annual turnover of less than 5 Cr. shall file quarterly return;
- Fully automated GST refund module to be implemented. Multiple tax ledgers for a taxpayer shall be replaced by one;
- Electronic Invoice system is proposed to be roll-out from January, 2020. This will replace the need for a separate E-Way Bill;
- Empowerment of National Anti-profiteering Authority to impose penalty equivalent to 10% of the profiteered amount;
Budget Highlights from Customs and other (erstwhile) Indirect Tax laws – Service Tax & Excise
- A Dispute Resolution cum Amnesty Scheme called “Sabka Vishwas Legacy Dispute Resolution Scheme” is being introduced for resolution & settlement of legacy cases of Central Excise and Service Tax;
- Services provided by way of grant of liquor license against consideration in form of license fee or application fee or by whatever name called, are proposed to be exempted from service tax during the period commencing from 1st April, 2016 to 30th June, 2017;
- Services provided by Indian Institutes of Management to their students for certain specified courses are proposed to be exempted from service tax during the period commencing from 1st July, 2003 to 31st March, 2016;
- Consideration in the form of upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable in respect of service by way of granting of long term lease of 30 years or more of plots for development of infrastructure for financial business, provided by the State Govt. Industrial Development Corporations or Undertakings or by any other entity having 50% or more ownership of Central Govt., State Govt., Union Territory to the developers in any industrial or financial business area, is proposed to be exempted from service tax for the period from 1st October, 2013 to 30th June, 2017;
- Amendment in Customs provisions so as to increase the maximum limit of penalty from Rs. One lac to Rs. 4 lacs;
- Adjudicating authority is empowered to release bank account provisionally attached (u/s 110 of Customs Act) to the account-holder on fulfilment of certain conditions;
- Increase in Basic Customs Duty Rates on certain items like construction materials, precious metals, automobile parts, electronics & electrical equipments;
- Scheduled rate of Road and Infrastructure Cess, levied as Additional Duty of Customs on Petrol & High Speed Diesel Oil increased by Rs. 2/litre, in addition to other Customs duty;
- Scheduled rate of Road and Infrastructure Cess, levied as Additional Duty of Excise on Petrol & High Speed Diesel Oil increased by Rs. 2/litre, in addition to other Excise duty.
- Increase in excise duty rates on certain cigarettes of different length, chewing tobacco, tobacco extracts & essence.
For further information, please contact:
Manoj Kumar, Partner, Hammurabi & Solomon
Manoj.kumar@hammurabisolomon.com
