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TMI BlogAMENDMENTS IN THE CGST ACT, 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... ilar Acts passed by the States Union territories with legislature. I. AMENDMENTS IN THE CGST ACT, 2017 : S. No. Amendment Clause of the Finance (No. 2) Bill, 2024 1. Section 9 is being amended to take Extra Neutral Alcohol used in manufacture of alcoholic liquor for human consumption out of purview of central tax. Similar amendments are also proposed in IGST Act and UTGST Act. [ 110 ] 2. Sub-section (5) of section 10 of the CGST Act is being amended, so as to incorporate a reference to the proposed new section 74A in the said subsection. [ 111 ] 3. Section 11A is being inserted to empower the government to regularize non-levy or short levy of central tax due to any general practice prevalent in trade. Similar power is being proposed in IGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther, where the tax has been paid or the input tax credit has been reversed, no refund of the same shall be admissible. [ 114] 6. Sub-section (5) of section 17 of the CGST Act is being amended, so as to restrict the non-availability of input tax credit in respect of tax paid under section 74 of the said Act only for demands upto Financial Year 2023-24. It also removes reference to sections 129 and 130 in the said sub-section. [ 115 ] 7. Section 21 of the CGST Act is being amended, so as to incorporate a reference to the proposed new section 74A in the said section. [ 116 ] 8. A new proviso in sub-section (2) of section 30 of the CGST Act is being inserted, so as to provide for an enabling clause to prescribe conditions and restrictions for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said section. [ 122 ] 14. Sub-section (7) of section 51 of the CGST Act is being amended, so as to incorporate a reference to the proposed new section 74A in the said section. [ 123 ] 15. Sub-section (3) is being amended and a new sub-section (15) is being inserted in section 54 of the CGST Act, so as to provide that no refund of unutilised input tax credit or integrated tax shall be allowed in cases of zero rated supply of goods where such goods are subjected to export duty. [ 124 ] 16. Sub-section (3) of section 61 of the CGST Act is being amended, so as to incorporate a reference to the proposed new section 74A in the said section. [ 125 ] 17. Sub-section (1) of section 62 of the CGST Act is being amended, so as to incorporate a referen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... input tax credit wrongly availed or utilised for any reason pertaining to the Financial Year 2024-25 onwards. It also provides for the same limitation period for issuing demand notices and orders in respect of demands from the Financial Year 2024-25 onwards, irrespective of whether the charges of fraud, wilful misstatement, or suppression of facts are invoked or not, while keeping a higher penalty, for cases involving fraud, wilful misstatement, or suppression of facts. [ 134 ] 26. Sub-section (2A) is being inserted in section 75 in the CGST Act, so as to provide for redetermination of penalty demanded in a notice invoking penal provisions under clause (ii) of sub-section (5) of the proposed section 74A of the said Act to re-determine the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is also being amended so as to enable the Appellate Tribunal to admit appeals filed by the department within three months after the expiry of the specified time limit of six months. Sub-section (8) of the said section is also being amended so as to reduce the maximum amount of pre-deposit for filing appeals before the Appellate Tribunal from the existing twenty percent to ten percent of the tax in dispute and also reduce the maximum amount payable as pre-deposit from rupees fifty crores to rupees twenty crores in central tax. [ 139 ] 31. Sub-section (1B) of section 122 of the CGST Act is being amended, so as to restrict the applicability of the said sub-section to electronic commerce operators, who are required to collect tax at source unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eference of Appellate Tribunal in the Authority under the said section so that the Appellate Tribunal may be notified by the Government to act as an Authority under the said section. [ 144 ] 36. Paragraph 8 is being inserted in Schedule III to the CGST Act, so as to provide that the 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 shall be treated as neither supply of goods nor supply of services, provided that the lead insurer pays the tax liability on the entire amount of premium paid by the insured. Paragraph 9 is being inserted in Schedule III to the CGST Act, so as to provide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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