CBIC Notified various provisions of Finance(No. 2) Act, 2024.

Sr. No.

Sections of Finance (No. 2) Act, 2024

Subject/Section of the CGST Act, 2017

Effective Date

1.

Section 114

Section 9 – Levy and Collection

2.

Section 115

Section 10 – Composition Levy

3.

Section 116

Section 11A – Power not to recover Goods and Services Tax not levied or short-levied as a result of general practice

Notwithstanding anything contained in this Act, if the Government is satisfied that—

(a) a practice was, or is, generally prevalent regarding levy of central tax (including non-levy thereof) on any supply of goods or services or both; and

(b) such supplies were, or are, liable to,—

(i) central tax, in cases where according to the said practice, central tax was not, or is not being, levied, or

(ii) a higher amount of central tax than what was, or is being, levied, in accordance with the said practice,

the Government may, on the recommendation of the Council, by notification in the Official Gazette, direct that the whole of the central tax payable on such supplies, or, as the case may be, the central tax in excess of that payable on such supplies, but for the said practice, shall not be required to be paid in respect of the supplies on which the central tax was not, or is not being levied, or was, or is being, short-levied, in accordance with the said practice.”

4.

Section 117

Section 13 – Time of supply of services

in sub-section (3),––

(i) in clause (b), for the words “by the supplier:”, the words “by the supplier, in cases where invoice is required to be issued by the supplier; or” shall be substituted;

(ii) after clause (b), the following clause shall be inserted, namely:—

“(c) the date of issue of invoice by the recipient, in cases where invoice is to be issued by the recipient:”;

(iii) in the first proviso, after the words, brackets and letter “or clause (b)”, the words, brackets and letter “or clause (c)” shall be inserted.

5.

Section 118

Section 16 – Eligibility and conditions for taking input tax credit - insert sub-section (5) & sub-section (6)  in sec 16

, after sub-section (4), the following sub-sections shall be inserted, namely:––

“(5) Notwithstanding anything contained in sub-section (4), in respect of an invoice or debit note for supply of goods or services or both pertaining to the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under section 39 which is filed up to the thirtieth day of November, 2021.

(6) Where registration of a registered person is cancelled under section 29 and subsequently the cancellation of registration is revoked by any order, either under section 30 or pursuant to any order made by the Appellate Authority or the Appellate Tribunal or court and where availment of input tax credit in respect of an invoice or debit note was not restricted under sub-section (4) on the date of order of cancellation of registration, the said person shall be entitled to take the input tax credit in respect of such invoice or debit note for supply of goods or services or both, in a return under section 39,––

(i) filed up to thirtieth day of November following the financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier; or

(ii) for the period from the date of cancellation of registration or the effective date of cancellation of registration, as the case may be, till the date of order of revocation of cancellation of registration, where such return is filed within thirty days from the date of order of revocation of cancellation of registration,

whichever is later.”.

6.

Section 119

Section 17 – Apportionment of credit and blocked credits

7.

Section 120

Section 21 – Manner of recovery of credit distributed in excess

8.

Section 121

Section 30 – Revocation of cancellation of registration

9.

Section 122

Section 31 – Tax invoice

(a) in sub-section (3), in clause (f), after the words and figure “of section 9 shall”, the words “, within the period as may be prescribed,” shall be inserted;

(b) after clause (g), the following Explanation shall be inserted, namely:––

‘Explanation.––For the purposes of clause (f), the expression “supplier who is not registered” shall include the supplier who is registered solely for the purpose of deduction of tax under section 51.’.

10.

Section 123

Section 35 – Accounts and other records

11.

Section 124

Section 39 – Furnishing of returns

for sub-section (3), the following sub-section shall be substituted, namely:––

“(3) Every registered person required to deduct tax at source under section 51 shall electronically furnish a return for every calendar month of the deductions made during the month in such form and manner and within such time as may be prescribed:

Provided that the said registered person shall furnish a return for every calendar month whether or not any deductions have been made during the said month.”

12.

Section 125

Section 49 – Payment of tax, interest, penalty and other amounts

13.

Section 126

Section 50 – Interest on delayed payment of tax

14.

Section 127

Section 51 – Tax deduction at source

15.

Section 128

Section 54 – Refund of tax

(a) in sub-section (3), the second proviso shall be omitted;

(b) after sub-section (14) and before the Explanation, the following sub-section shall be inserted, namely:––

“(15) Notwithstanding anything contained in this section, no refund of unutilised input tax credit on account of zero rated supply of goods or of integrated tax paid on account of zero rated supply of goods shall be allowed where such zero rated supply of goods is subjected to export duty.”.

16.

Section 129

Section 61 – Scrutiny of returns

17.

Section 130

Section 62 – Assessment of non-filers of returns

18.

Section 131

Section 63 – Assessment of unregistered persons

19.

Section 132

Section 64 – Summary assessment in certain special cases

20.

Section 133

Section 65 – Audit by tax authorities

21.

Section 134

Section 66 – Special Audit

22.

Section 135

Section 70 – Power to summon persons to give evidence and produce documents

after sub-section (1), the following sub-section shall be inserted, namely:––

“(1A) All persons summoned under sub-section (1) shall be bound to attend, either in person or by an authorised representative, as such officer may direct, and the person so appearing shall state the truth during examination or make statements or produce such documents and other things as may be required.”.

23.

Section 136

Section 73 – Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts

(i) in the marginal heading, after the words “Determination of tax”, the words and figures “, pertaining to the period up to Financial Year 2023-24,” shall be inserted;

(ii) after sub-section (11), the following sub-section shall be inserted, namely:––

“(12) The provisions of this section shall be applicable for determination of tax pertaining to the period up to Financial Year 2023-24.”.

24.

Section 137

Section 74–Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilfull-misstatement or suppression of facts

(i) in the marginal heading, after the words “Determination of tax”, the words and figures “, pertaining to the period up to Financial Year 2023-24,” shall be inserted;

(ii) after sub-section (11) and before Explanation 1, the following sub-section shall be inserted, namely:––

“(12) The provisions of this section shall be applicable for determination of tax pertaining to the period up to Financial Year 2023-24.”;

(iii) the Explanation 2 shall be omitted.

25.

Section 138

The insertion of Section 74A – Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onwards.

“74A. (1) Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty leviable under the provisions of this Act or the rules made thereunder:

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26.

Section 139

Section 75 – General provisions relating to determination of tax

27.

Section 140

Section 104 – Advance ruling to be void in certain circumstances

28.

Section 141

Section 107 – Appeals to Appellate Authority

(a) in sub-section (6), in clause (b), for the word “twenty-five”, the word “twenty” shall be substituted;

(b) in sub-section (11), in the second proviso, after the words and figures “section 73 or section 74”, the words, figures and letter “or section 74A” shall be inserted

29.

Section 142

Section 109 – Constitution of Appellate Tribunal and Benches thereof

(a) in sub-section (1), after the words “Revisional Authority”, the words “, or for conducting an examination or adjudicating the cases referred to in sub-section (2) of section 171, if so notified under the said section” shall be inserted;

(b) in sub-section (5), after the proviso, the following provisos shall be inserted, namely:––

“Provided further that the matters referred to in sub-section (2) of section 171 shall be examined or adjudicated only by the Principal Bench:

Provided also that the Government may, on the recommendations of the Council, notify other cases or class of cases which shall be heard only by the Principal Bench.”;

(c) in sub-section (6), for the words “The President”, the words, brackets and figure “Subject to the provisions of sub-section (5), the President” shall be substituted.

30.

Section 143