GST Supply, Levy and Advance RulingsGST – Budget 2020!

GST – Key Changes Analysis

Amendment in Section 31 [Tax invoice]

Services – the Time limit to issue an invoice

CGST Act

• Sec. 31 (2) – A registered person supplying taxable services shall, before or after the provision of service but within a prescribed period, issue a tax invoice, showing the description, value, the tax charged thereon and such other particulars as may be prescribed

CGST Rules

• Rule 47. The time limit for issuing tax invoice.- The invoice referred to in rule 46, in the case of the taxable supply of services, shall be issued within a period of thirty days from the date of the supply of service:

Amendment in Section 51 [Tax deduction at Source]

Relaxation in the issuance of TDS certificate

Section 51 – TDS

(1) Notwithstanding anything to the contrary contained in this Act, the Government may mandate,

(a) Department or establishment of the Central Government or State Government; or

(b) Local authority; or

(c) Governmental agencies; or

(d) such persons or categories of persons as may be notified by the Government on the recommendations of the Council, (hereafter in this section referred to as “the deductor”), to deduct tax at the rate of one percent. from the payment made or credited to the supplier (hereafter in this section referred to as “the deductee”) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees :

IT Act – Specific provision for fake invoicing

New provision

Section 271AAD is being inserted in the Income Tax Act (from 1st April 2020)

(1) Without prejudice to any other provisions of this Act, if during any proceeding under this Act, it is found that in the books of account maintained by any person there is—

(i) a false entry; or

(ii) an omission of any entry which is relevant for computation of total income of such person, to evade tax liability,

the Assessing Officer may direct that such person shall pay by way of penalty a sum equal to the aggregate amount of such false or omitted entry.

(2) Without prejudice to the provisions of sub-section (1), the Assessing Officer may direct that any other person, who causes the person referred to in sub-section (1) in any manner to make a false entry or omits or causes to omit any entry referred to in that subsection, shall pay by way of penalty a sum equal to the aggregate amount of such false or omitted entry.

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