- The CGST Act will be amended to: –
01. Raise the minimum threshold of tax amount for launching prosecution under GST from one crore to Rs. 02 crore;
02. Reduce the compounding amount from the present range of 50 per cent to 150 per cent of tax amount to the range of 25 per cent to 100 per cent;
03. Restrict filing of returns/statements to a maximum period of three years from the due date of filing of the relevant return/statement;
04. Enable unregistered suppliers and composition taxpayers to make intra-state supply of goods through E-Commerce Operators (ECOs);
05. This budget has also decriminalised certain offences under the CGST Act, which will be notified on a later date.
- This Budget has introduced setting up a single window IT system for registration and approval from IFSCA, SEZ authorities, GSTN, RBI, SEBI and IRDAI.
- Further, there would not be any mandatory registration under section 23 of GST even for tax payable under Reverse Charge Mechanism (RCM). This will be applied retrospectively from 01st July 2017.
- If both supplier and recipient are located in India, then place of supply for transportation of goods outside India shall be treated as if it were transported in India.
- The time limit to file several GST returns such as GSTR-1, GSTR-3B, GSTR-9 and GSTR-8 has been proposed to be up to 3 years.
- Customs Amendments: –
- The Custom Duty rates on goods, other than textiles and agriculture has been reduced to 13% from 21%. The Customs Duty on specified capital goods or machinery for manufacture of lithium-ion cell for use in battery of electrically operated vehicle (EVs) extended to 31st March 2024.
- Further, when imported by notified testing agencies, vehicles, specified automobile parts/components, sub-systems and tyres will enjoy Customs Duty exemption for the purpose of testing and certification. These exemptions are however subjected to certain conditions.
- There will be exemption on Basic Customs Duty on raw materials for manufacture of CRGO Steel, ferrous scrap and nickel cathode continued.
- The Customs Act, 1962 will be amended to specify a time limit of nine months from date of filing application for passing final order by Settlement Commission.
- The Customs Tariff Act to be amended to clarify the intent and scope of provisions relating to Anti-Dumping Duty (ADD), Countervailing Duty (CVD), and Safeguard Measures.
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