IMPORTANT CHANGES IN GST RULES EFFECTIVE FROM 1st JANUARY 2021
The Goods and Services Tax Act,
2017 came into force with effect from 1.7.2017 in
The following sections of the Finance Act 2020 (12 of 2020) comes into force with effect from 1.1.2021 relating to Goods and Services Tax Act, 2017 and Rules. In these amendments certain changes comes into force with effect from 1.7.2017 itself with retrospective effect.
119. In section 10 of the Central Goods and Services Tax Act, in sub-section (2), in clauses (b), (c) and (d), after the words “of goods”, the words “or services” shall be inserted.
120. In section 16 of the Central Goods and Services Tax Act, in sub-section (4), the words “invoice relating to such” shall be omitted.
121. In section 29 of the Central Goods and Services Tax Act, in sub-section (1), for clause (c), the following clause shall be substituted, namely:— “(c) the taxable person is no longer liable to be registered under section 22 or section 24 or intends to optout of the registration voluntarily made under sub-section (3) of section 25:”.
122. In section 30 of the Central
Goods and Services Tax Act, in sub-section (1), for the proviso, the following
proviso shall be substituted, namely:— “Provided that such period may, on sufficient
cause being shown, and for reasons to be recorded in writing, be extended,— (a)
by the Additional Commissioner or the Joint Commissioner, as the case may be,
for a period not exceeding thirty days; (b) by the Commissioner, for a further
period not exceeding thirty days, beyond the period specified in clause (a).”.
Amendment of First Schedule. Amendment of section 2. 12 of 2017. Amendment of
section 10. Amendment of section 16. Amendment of section 29. Amendment of
section 30. SEC. 1] THE GAZETTE OF
123. In section 31 of the Central Goods and Services Tax Act, in sub-section (2), for the proviso, the following proviso shall be substituted, namely:— “Provided that the Government may, on the recommendations of the Council, by notification,— (a) specify the categories of services or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed; (b) subject to the condition mentioned therein, specify the categories of services in respect of which— (i) any other document issued in relation to the supply shall be deemed to be a tax invoice; or (ii) tax invoice may not be issued.”.
124. In section 51 of the Central Goods and Services Tax Act,— (a) for sub-section (3), the following sub-section shall be substituted, namely:— “(3) A certificate of tax deduction at source shall be issued in such form and in such manner as may be prescribed.”; (b) sub-section (4) shall be omitted.
125. In section 109 of the Central Goods and Services Tax Act, in sub-section (6),— (a) the words “except for the State of Jammu and Kashmir” shall be omitted; (b) the first proviso shall be omitted.
126. In section 122 of the Central Goods and Services Tax Act, after sub-section (1), the following sub-section shall be inserted, namely:— “(1A) Any person who retains the benefit of a transaction covered under clauses (i), (ii), (vii) or clause (ix) of sub-section (1) and at whose instance such transaction is conducted, shall be liable to a penalty of an amount equivalent to the tax evaded or input tax credit availed of or passed on.”.
127. In section 132 of the Central Goods and Services Tax Act, in sub-section (1),— (i) for the words “Whoever commits any of the following offences”, the words “Whoever commits, or causes to commit and retain the benefits arising out of, any of the following offences’’ shall be substituted; (ii) for clause (c), the following clause shall be substituted, namely:— “(c) avails input tax credit using the invoice or bill referred to in clause (b) or fraudulently avails input tax credit without any invoice or bill;”; (iii) in clause (e), the words “, fraudulently avails input tax credit” shall be omitted.
131. In Schedule II to the Central Goods and Services Tax Act, in paragraph 4, the words “whether or not for a consideration,” at both the places where they occur, shall be omitted and shall be deemed to have been omitted with effect from the 1st day of July, 2017.
The Central Government Notification comes into force with effect from 1.1.2021 and the relevant Notification is given below for ready reference:
[To be published
in the Gazette of India, Extraordinary,Part II,Section 3, Sub-section
(ii)]
Government of India Ministry of
Finance (Department of
Revenue)
Central Board of Indirect Taxes and Customs
Notification No
92/2020-Central
Tax
S.O. ...... (E).— In exercise of the powers conferred by
sub-section (2) of section 1 of
the Finance Act, 2020 (12 of
2020) (hereinafter referred to as the said Act), the Central
Government hereby appoints the 1st day of January, 2021, as the date on which the provisions of sections 119, 120, 121, 122, 123, 124, 126, 127
and 131 of the said Act shall come into force.
[F.No. CBEC-20/06/04/2020-GST]
(Pramod Kumar) Director, Government of