Highlights of Changes proposed in Central Goods and Service Tax Act, 2017 by Union Budget, 2019


  1. National Appellate Authority for Advance Ruling (NAAR) has been excluded from the definition of Adjudicating authority. [Section 2 (4)]
  2. New Composition Levy Scheme for Suppliers of Service or Mixed Suppliers: Proposed new alternative composition scheme for supplier of services or mixed suppliers (not eligible for the earlier composition scheme) having an annual turnover in preceding financial year upto Rs 50 lakhs. Persons opting such scheme shall be liable to pay amount equivalent to 6% of the turnover in state as GST. [Section 10(2A)]
  3. Higher threshold exemption limit of Rs 40 lakhs for registration in case of supplier of goods: Threshold limit for registration under GST proposed to be enhanced from Rs 20 Lakhs to Rs 40 Lakhs in case of dealers engaged exclusively in supply of goods. [Section 22(1)]
  4. Aadhaar authentication made mandatory for specified class of new taxpayers: Manner to be prescribed in which certain class of registered taxpayers are required to undergo Aadhaar authentication. Failure to undergo authentication shall deem the registration allotted to such person as invalid. [Section 25(6A)/(6B)/(6C)]
  5. Mandatory to provide option of prescribed mode of Electronic Payment to Buyers by prescribed class of registered persons. [Section 31A]
  6. Amendment to Section 39 for proposed new return system
  7. Commissioner is empowered to extend time limit for furnishing annual return and GST Audit Report (Form 9 & 9C) [Section 44(1)]
  8. Transfer of Cash Balance to Electronic Cash Ledger of Different Heads: Facility to the registered person to transfer any amount of tax, interest, penalty, fee or any other amount available from one head of electronic cash ledger to the electronic cash ledger for integrated tax, central tax, State tax, Union territory tax or cess. [Section 49(10]
  9. Interest is payable on net liability payable in cash: Where return of a tax period is furnished after due date, the interest on delayed payment of tax is leviable on that portion of tax which is paid by debiting the electronic cash ledger. Except in the cases where return is furnished after commencement of proceedings under Section 73 & 74. [Section 50]
  10. Commissioner is empowered to extend the due date for furnishing of monthly and annual statement by the person collecting tax at source. [Section 52]
  11. Central Government empowered to disburse refund of State Tax. [Section 54(8A)]
  12. Constitution of National Appellate Authority for Advance Ruling:
    1. National Appellate Authority for Advance Ruling (NAAAR) is proposed to be constituted where appeal can be made against conflicting advance rulings given by Appellate Authorities of two or more States or Union Territories in case same questions referred by distinct persons defined under Section 25 i.e. by two different branches of a Company registered in different states. [Section 101A/101B]
    2. Decision of NAAAR would be binding on the distinct persons who had sought such ruling and all registered persons having same PAN along with their respective jurisdictional officers. [Section 103(1A)]
  13. 10% penalty in Anti-profiteering matters: National Anti-profiteering Authority empowered to impose penalty equivalent to 10% of the profiteered amount. No penalty shall be levied if profiteering amount is deposited within 30 days of passing of the order by the Authority.[Section 171(3A)]

Team ALA Legal

GST Law India is a blog on GST and allied commercial laws managed by members of the law firm ALA Legal.