Page 116 - DHC Budget Book 2021-22 Final
P. 116
10.2.7 Pre-deposit for filing appeal against order of detention or seizure of goods or conveyance specified
The bill proposes to insert proviso to Sec. 107(6) of the CGST Act, 2017 to prescribe pre-deposit of 25% of penalty for filing appeal against order issued in cases of detention or seizure of goods.
Comments
Such amendment is made consequent to the amendment made in Sec. 129 of the CGST Act, 2017.
10.2.8 Amendment in Confiscation of goods or conveyances and levy of penalty
Currently, Second proviso to Sec. 130(2) of the CGST Act, 2017 provides that the aggregate of fine and penalty leviable shall not be less than the amount of penalty leviable under Sec. 129(1) of the CGST Act, 2017.
The Bill proposes to amend such proviso to provide that the aggregate of such fine and penalty leviable shall not be less than the penalty equal to 100% of the tax payable on such goods.
Comments
The above amendment is consequent to the amendment made in Sec.129 of the CGST Act, 2017 and to delink the proceedings under Sec. 130 from proceedings under Sec. 129 of the CGST Act, 2017.
10.2.9 Power to call for information
The Bill proposes to amend Sec. 151 of
the CGST Act, 2017 to grant power to the jurisdictional Commissioner or to any officer authorised by the Commissioner to call for information from any person relating to any matter dealt with in connection with GST Law with safeguards.
10.2.10 Bar on disclosure of information
The Bill proposes to amend Sec. 152 of the CGST Act, 2017 to provide that no information obtained u/ss 150 and 151 shall be used for the purposes of any proceedings under the Act without giving an opportunity of being heard to the person concerned.
10.2.11 Changes in Section 16 of Integrated Goods and Services Tax Act, 2017
Supply of goods or services to a Special Economic Zone developer or a Special Economic Zone unit shall be considered to be a zero
rated supply only when the said supply is for authorised operations.
A registered person making zero rated supply shall be eligible to claim refund of unutilised input tax credit, without payment of integrated tax, provided that the registered person making such supply shall in case of non-realisation of sale proceeds deposit the refund so received along with the applicable interest within 30 days after the expiry of the time limit prescribed under the Foreign Exchange Management Act, 1999 for receipt of foreign exchange remittances.
The Government may notify: (a) the class of persons who may make zero rated supply on payment of integrated tax and claim refund of the tax and, (b) a class of goods or services which may be exported on payment of integrated tax.
Comments:
CGST Rules already contain the condition that supply to SEZ shall be considered as zero-
rated supply and refund shall be granted only when supply is for authorized operations. The amendment have been introduced to create consistency between the IGST Act and the CGST Rules.
Rule 96B of the CGST Rules, 2017 already contain the condition of recovery of refund where export proceeds are not realised. The proposed amendment provide a legal backing to Rule 96B.
Getting refund of Integrated Tax paid on export is much more convenient than getting refund of unutilised ITC due to exports. The amendment will allow exports with payment of Integrated Tax only to specific class of persons for specific goods and services. Thus, the amendment result in increase in working capital requirement, compliance burden and departmental interactions.
114 Building a Resilient and Confident India
INDIA BUDGET 2021-22
