Major Highlights of Budget 2024 – GST related

Sl No	Changes proposed	Impact
1	In section 9 after the words “alcoholic liquor for human consumption”, the following words are inserted “and un-denatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquor, for human consumption”	No GST levy on Extra Neutral Alcohol (ENA) used for manufacture of alcoholic liquor for human consumption
2	Insertion of new section 11A: If the Government is satisfied that- A practice was, or is generally prevalent regarding levy of tax (including a non-levy) on any supply of goods or services or both and such cases are liable to:Tax if no tax is being levied orA higher amount of GST is liable to be levied   Then the Government may on the recommendation of the Council, by notification will not collect such tax in excess of that payable on such supplies but for that said practice.	A notification will be issued in future where in certain circumstances, because of interpretation issues, the usual tax collected as per general business practices may be less than the actual tax to be collected. In such situations, Government may come with a relief on such short collections or no collections through a notification.
3	Section 13 sub section (3) amended to change the time of supply of invoices raised by the recipient in the case the supplier is an unregistered person where tax is paid under reverse charge.   Clause (f) of sub section (3) of section 31 also amended to align with this amendment.   New explanation is inserted in sub section (3) of section 31 to clarify that “supplier not registered” shall not include supplier registered only for the purpose of deduction of tax.	In the case of tax to be paid under RCM in the case where the supplier is an unregistered person, the recipient is supposed to raise a self-invoice. The time of supply in the case of this self-invoice will be the date of issue of invoice by the recipient.
4	After Section 16(4) new sub section (5) inserted:   For the Financial years 2017-18 to 2020-21, the registered person is entitled to take input tax credit on any invoice or debit note if he has filed his return under section 39 before 30.11.2021.	This is a much-awaited relief given to the taxpayers who have belatedly filed their GSTR 3B returns beyond the statutory due date and were denied input tax credit. Now this amendment will give a big relief to the taxpayers only if they have availed the input tax credit in GSTR 3B before 30.11.2021 for all those financial years.
5	New sub section (6) inserted in section 16:   Where the registration of a registered person is cancelled and subsequently it is revoked by Appellate Authority or Appellate Tribunal or Court and where the availment of input tax credit is not restricted under section 16(4) on the date of the order of cancellation, then such person is entitled to take the input tax credit in GSTR 3B filed within 30th November following the financial year to which the invoice or debit note pertains or furnishing of the annual return whichever is earlier   or   Where the GSTR 3B is filed within thirty days from the date of order of revocation of cancellation of registration   Which is later.	Generally, there is a considerable delay to revoke the cancellation of the registration after its application, or the registered person may have delayed in approaching for the revocation, in these situations, the time limit to avail input tax credit may expire under section 16(4). This amendment will give time to avail the input tax credit within thirty days from the date of order of revocation.
6	Clause (i) of sub section (5) of Section 17 amended:   Section 74 is deleted from the clause retrospectively up to financial year 2023-24	After this amendment, any tax paid under section 74 is not a blocked credit and the recipient can avail the input tax credit.
7	Sub section (3) of section 39 is substituted requiring the registered person filing TDS returns under section 51 to file returns every month irrespective of whether any tax is deducted or not.	TDS deductors must file returns even if no deduction is made during that month.
8	New sub section (15) inserted in section 54 to restrict the refund of unutilised input tax credit on account of zero-rated supply of goods or of refund of integrated tax paid on such supplies, where such zero rated supply of goods is subjected to export duty.	No refund is allowed on zero rated supplies of goods, if the exporter is getting the benefit of export duty.
9	New sub section (1A) inserted in section 70 to allow even the authorized representative to attend the summons.	Positive move to allow authorized person to attend the summons.
10	Section 73 deleted from the financial year 2024-25 onwards.	New section 74A will replace section 73 and section 74 from the financial year 2024-25.
11	Section 74 deleted from the financial year 2024-25 onwards.
12	New section 74A inserted with following important provisions: No separate section for fraud and non-fraud cases.No show cause notice for a demand less than Rs.1000/- (Rs.2000 CGST + SGST)The time limit to issue notice under this section in 42 months from the due date of furnishing annual returns or date of erroneous refund. Penalty of non-fraud case shall be 10% of the tax due or Rs.20000 (CGST+SGST) whichever is higher and for fraud cases it will equal to the tax amount. (No penalty or less penalty if the tax is paid with interest before the issue of SCN or if SCN issued the amount is paid within sixty days of issue of SCN)The order to be issued within one year from the date of issue of notice and can be extended by another six months after the approval of the officer authorized by the Commissioner.Penalty of 10% or Rs.20000 (CGST+SGST) whichever is higher is leviable if the tax declared in GSTR 1 is not paid within thirty days from the due date of such tax.	The erstwhile provisions of section 73 and section 74 has been merged into one section now. This will give clarity to the officers to issue notices under one section, where at present officers by default most of the cases issue notice under section 74 as fraud case or are never clear under what section notice is to be issued.   The time limit to issue notice also is now standardized to 42 months. The time limit is extended compared to erstwhile provisions of section 73 where the order should have been passed within three years from the due date of filing annual returns. With this amendment, now the order can be passed within 52 months and with the extension within 58 months, which is almost five years and akin to present section 74. The amendment is giving more time to officers to issue notice.
13	Sub section (6) of section 107 the pre deposit amount for disputed tax amount is reduced from rupees fifty crores to forty crores (CGST+SGST).
14	Section 109 amended to include even the orders passed under section 171 (Anti profiteering) to be handled by the principal bench of the appellate tribunal.
15	Section 112 amended to notify the date when the appeal can be filed with the appellate tribunal w.e.f 01.08.2024.   The pre-deposit amount to file appeal with the appellate tribunal also is reduced to ten percent of the disputed amount up to the maximum of rupees forty crores (CGST+SGST)
16	New section 128A inserted. The provisions are: Interest and penalty conditional waiver for the period from 1st July 2017 to 31st March 2020.Where the amount is payable by a person chargeable with tax.It is applicable for cases where the notice is issued under section 73 and no order is passed or order is passed and no order in appeal is passed by first appellate authority (FAA) or where order is passed by the FAA but no order is passed by the appellate tribunal.If the tax amount which is payable is paid, then interest and penalty is waived off and all the proceedings under this is act is deemed to be concluded. Further if any notice or order issued under section 74, in appellate stage is changed to section 73, then such notice or orders also can be treated as issued under section 73. This provision not applicable where amount is payable on account of erroneous refund.	The conditional waiver of interest and penalty   This may be applicable only where there is a demand for tax as well as interest and penalty. It is not clear whether benefit can be taken if there is demand separately only for interest and or penalty without any demand for tax.   What happens to the taxpayers who have already paid the tax along with interest and penalty. Is there a way to ask for refund?  Though the new section restricts the refund, but this will be tested in the court of law.
17	Schedule III two new paragraphs included as below:   Activity of apportionment of co-insurance premium by the lead insurer to the co-insurer for the insurance services jointly supplied by the lead insurer and the co-insurer to the insured in coinsurance agreements.Services by insurer to the reinsurer for which ceding commission, or the reinsurance commission is deducted from the reinsurance premium paid by the insurer to the reinsurer.