Delhi Govt: Fraud Availment of ITC Sans Invoice/Bill Cognizable & Non-Bailable

The Delhi Government released the Delhi Goods and Services Tax (Amendment) Act, 2020, for the purpose of making amendments in the Delhi Goods and Services Tax Act, 2017.

In section 2 of the Delhi GST Act, 2017, for clause (114), clause (c) and (d), the clause “Dadra and Nagar Haveli and Daman and Diu, Ladakh”, will be substituted.

The purpose of this is to amend clause (114) of section 2 of the Delhi GST Act to update the definition of “Union Territory” according to the Jammu and Kashmir Reorganisation Act, 2019 and the Dadra and Nagar Haveli and Daman and Diu (Merger of Union Territories), Act, 2019.

The GST amendment will also add words “or services just after the words of goods” in sections (b), (c) and (d) of sub-section (2) of section 10 of the Delhi Goods and Services Act.

The purpose of amendments in section 10 of the principal Act, in sub-section (2), in clauses (b), (c) and (d) of the Delhi Goods and Services Act to provide conditions for eligibility for opting to pay tax as per sub-Section (1) and Sub-section (2A).

The government also made changes in Subsection (4) of Section 16 of the Delhi GST Act for the purposes of bifurcating the date of issue of debit note from the date of issue of the underlying invoice with the aim of availing input tax credit.

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The Government is also looking at the option to substitute the proviso to sub-section (1) of section 30 of the Delhi Goods and Services Act to expand the power of the jurisdictional tax authorities to stretch the period granted to furnish an application for revocation of cancelled registration.

The State government also made changes in section 31 of the Delhi Goods and Services Act to provide more power to the government so it can notify the categories of services or supplies in respect of which tax invoice will be issued and to make rules concerning the time and manner of its issuance.

Some changes were made in Section 132 of the Delhi Goods and Services Act was to make the offence of fraudulent availing of input tax credit A complete guide for understanding the basics of input tax credit and it calculation with detailed examples under GST (Goods and Services Tax) India. Read more without invoice or bill cognizable and non-bailable under sub-section (1)of section 69 and to make any person who retains the benefit of certain transactions and at whose instance such transactions are conducted liable for punishment.

The Notification also made changes to section 140 of the Delhi GST Act concerning the transitional arrangements for the input tax credit to prescribe the time limit and the method for availing input tax credit against certain unavailed credit under the existing law. This amendment will come into action retrospectively from July 1, 2017.

The amendments also provide a reflective exemption from the state taxation on fishmeal, for the duration of July 1, 2017 to September 30, 2019 (both days inclusive).

It also tries to retroactively levy state tax at a decreased rate of 6% on supply of pulley along with wheels and other parts (covered under heading 8483) and also used as elements of machinery used in the agricultural field of heading  8432, 8433 and 8436, for the period from July 1, 2017, up to December 31, 2018 (both days inclusive).

The Notification also to provide that there will be no refund of tax that has been collected already.