Goods and Service Tax (GST) is a comprehensive tax levy on manufacture, sale, and consumption of goods and services at a national level under which no distinction is made between goods and services for levying of the tax.

The Finance Minister of India proposed several amendments in certain GST rules in the recent union budget of the year 2021 to make the GST simpler and more beneficial for taxpayers and also to increase the GST revenue of the government.

Clause 99: Section 7 Amendment

This Clause of the CGST Act speaks about a new clause (aa) to be inserted in sub-section 1. This will ensure that tax is levied on transactions involving the supply of goods or services by any person, except for an individual, to its members or vice-versa. 

Clause 100: 16 Amendment 

This clause seeks to insert a new clause (aa) in sub-section 2, according to which input tax credit (ITC) on invoice or debit note may be claimed only if the supplier has furnished details of such invoice or debit note in the statement of outward supplies and has also mentioned the details on the invoice or debit note of the recipient.

Clause 101: Section 35 Amendment

This Clause proposes to remove sub-section 5 of section 35, which will remove the need to get accounts audited annually and the reconciliation statement submitted to the Council by a certified professional.

Clause 102: Section 44 Amendment 

Clause proposes to replace section 44 with a new section, seeking to remove the mandatory requirement of providing a reconciliation statement audited & signed by the said professional and also to allow the filing of annual return on a self-certification basis.

Clause 103: Section 50 Amendment

According to the new rule, interest will only be paid on the net tax liability, after balancing the credit in the electronic credit ledger, given that the person has not been issued any show-cause notice under section 73 or 74.

Read Amendments in Section 74, 129 and 130

The new rule seeks to delink sections 129 and 130, along with section 74. Also, it proposes to remove all the mentions of words “tax” and “interest” from these two sections, thereby making them strictly penalty sections.

Clause 105: Section 75 Amendment

Clause 105 proposes to add an explanation in sub-section 12 of section 75 of CGST Act, clarifying that “self-assessed tax” means the tax payable concerning details of outward supplies furnished under section 37.

Check Amendment in Section 83

Sub-section 1 is proposed to be substituted. It says that in the case where the commissioner, after initiating any proceeding under chapter XII, chapter XIV and chapter XV, believes it necessary for protecting the government revenue, may order in writing to attach, provisionally, any property or bank account of the taxpayer.

Section 107 Amendment

The proposed amendment in section 107 seeks to change the amount to be deposited for filing an appeal to the appellate authority. The amount has been increased to 25 percent of the disputed tax which was 10% earlier.

View Amendment in Section 129

The amendment seeks to substitute clauses (a) and (b) of section 129, which deal with the segregation of penalty based on whether or not the owner comes forward to claim goods.

Section 130 Amendment

An amendment in section 130 suggests substituting the penalty amount as provided under section 129(1) with a penalty equal to 100 percent of the tax amount which was 200% earlier.

Section 152 Amendment

The provision in section 152 is related to the publishing of information concerning an individual return. It says that access to such information should be given without the written consent of the concerned individual. The amendment seeks to insert words “without giving an opportunity of being heard to the person concerned” to the said provision, thereby introducing the principle of natural justice.

Amendment in Section 16

According to this section, the refund will be given only if the supply of goods or services is used for authorized operations only.

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