In the budget 2019, several GST related rules and regulations have changed which have been presented in the Finance Bill. Finance Minister Nirmala Sitharaman presented the budget 2019 on July 5, 2019. The budget promulgates the tax payment facilities in addition to the changes made in composition schemes. Most of the things presented in the Finance Bill are related to rules and regulations.
Changes in GST associated rules will increase taxpayers’ convenience while the introduction of the Amnesty Scheme will lead to the resolution of old cases.
GST council takes all the big decisions about GST in the presence of finance ministers of all states, wherein the President of this Council is the Finance Minister of the Central Government. All the decisions regarding the GST rate are taken in the GST council meeting.
List of All GST Changes Made in Budget 2019
- Proposals regarding the cash transfer have also been made in the Finance Bill which proposes that from now on, any amount of taxes, interest, penalties and fees available in Taxpayers electronic cash ledger can be transferred as Central Tax, State Tax or Cess, subject to the condition that this amount should available in taxpayers’ electronic cash ledger.
- Now taxpayers will be able to rectify the mistakes made during tax payments. New SubSection has been added to Section 49 of the CGST Act. Under this section, any tax or penalty which has been mistakenly paid in CGST by any registered person will now be able to get adjusted in IGST, SGST.
- In the Finance Bill, it has been stated that interest will be charged only on the Net Tax liability. For instance, if a taxpayer’s liability is INR 1 lakh and he has an input tax credit of INR 50,000 and this taxpayer files a return after a fixed date, then interest will be charged only on INR 50,000 and not on INR 1 lakh.
- A new proposal in the finance bill increases the GST threshold limit for the supply of goods from INR 20 lakh to INR 40 lakh.
- If any company earns profits on speculation, then it will have to give 10 per cent of the profits as a penalty to the Anti-Profiteering Authority. The penalty must be given within 30 days of when Authority passes the order.
- The option to fill the quarterly tax is also proposed in the Finance Bill. Now composition dealers will have to file the GST returns once a year and they can pay taxes on a quarterly basis. The other taxpayers who are filling monthly returns will be given the option to fill the UCO quarterly returns.
- Another new proposal has been given in the Finance Bill which allows the Central Government to refund the amount of state tax to taxpayers.
- The verification of the Aadhar card of all the taxpayers for GST has now become mandatory. Some taxpayers are kept out of this verification ambit.
- The composition scheme has been provided for the people who supply intrastate goods or services and whose previous year turnover did not exceed Rs 50 lakh. 3 per cent GST rate is leviable it.
- The budget also holds a proposal regarding the creation of a National Appellate Authority for Advance Ruling. If the appellate authority of 2 or more states gives separate rulings, then the National Appellate Authority will consider it.
Additionally, the new amnesty scheme under GST has been brought in the budget to resolve the old cases of service tax and excise. The name of this scheme is ‘Sabka Vishwas Legacy Dispute Resolution Scheme’. Under this scheme, the old cases related to these taxes will be resolved.
Apart from this, a 100 per cent discount will be allowed in late fees and a 70 per cent discount will be given in cases where there is a dispute regarding the tax figures. These benefits will be available only after the fulfilment of certain conditions.
