Union Budget 2020 Highlights on GST

On 1st February 2020, the new union budget was presented in the parliament by the Finance Minister N. Sitharaman.

This was the second time she presented the budget, and in her budget presentation, the finance minister said: “GST has resulted in gains of Rs 1 lakh crore to consumers and inspector raj was also removed and its introduction has also helped the transport sector”.

While presenting the budget the FM mentioned in her speech that the fundamentals of the economy are strong and 16 lakh new taxpayers have been added.
She further went on to mention that 40 crore GST returns were filed.

“Average household now saves 4 per cent in monthly expense after the rollout of GST," Sitharaman said, and added that the Budget for 2020-21 aims to increase the purchasing power of the people, increase the movement of money in the economy and to fulfil aspirations of people.

The government’s main source of revenue is the ‘Customs Duty’ and the ‘Goods and Service Tax’, while all eyes were on the new tax slab rates, an individual must also be updated about them so as to know how government earns money apart from Direct taxes. 

In her speech, Sitharaman praised the GST system and said that the new tax regime has resulted in efficiency gains in the logistics and transport sector.

While presenting the budget she said that the government’s main aim and focus through this budget was to boost the income of people and enhance their purchasing power.
There were numerous amendments made to the GST but some notable amendments are mentioned below:

•    If any person is involved or benefited out of fake ITC shall be liable for a penalty of 100% of the tax involved. It was made a non-bailable offence, and to make it an offence the approval by the GST Council has been granted.

•    Delinking from the date of invoice, the date of the debit note will alone be considered for availing input tax credit, 

•    Composition scheme restricted to taxpayers making the inter-state supply of service,

•    Powers provided to notify the form of TDS certificate and late fee (200 per day, maximum of 5,000) for non-issuance of TDS certificate has been waived off.

•    The retrospective effect has been given for transition provisions from 01st July 2017, to nullify the decision of Gujarat High Court in case of Siddhartha Enterprises.

•    A provision inserted for cancellation of voluntary GST registration for distinct persons.

•    A provision was also added to extend the time limit to return the inputs and capital goods from job worker.

CONCLUSION

The amendments made to the GST through the budget were done to improve the conditions in the market, to boost the income of people and for the increasing the purchasing power of the individuals. Also, the provision making it punishable to take advantage of fake ITC will help in improving the economy.

Author:

eStartIndia Team