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GST Highlights of Finance Bill 2019

Interest to be computed on net tax liability

A Proviso has been inserted in Section 50 of the CGST Act, 2017 (‘Interest on Delayed Payment of Tax’) to clarify that interest for late payment of tax shall be levied only on that portion of tax which has been paid by debiting the electronic cash ledger. Earlier there was a confusion among taxpayers on this issue whether such interest would be charged on gross tax liability or only on net tax liability.

The exception to this rule is, where returns are filed subsequent to initiation of any proceedings under GST Act, in that case the interest shall be levied on the gross tax liability.

Aadhaar Authentication

Every registered person shall authenticate, or furnish proof of possession of Aadhaar number. If an Aadhaar number is not assigned to the registered person, such person shall be offered an alternate and viable means of identification. In case of failure to undergo authentication or furnish proof of possession of Aadhaar number or furnish alternate and viable means of identification, registration allotted to such person shall be deemed to be invalid.

Transfer amount from one head (major or minor) to another in electronic cash ledger

Earlier assessee had an option to apply for refund for any amount wrongly deposited under wrong head either minor head (tax, interest, penalty or fee) or major head (IGST, SGST, CGST, UTGST). The amount kept under a particular head was not allowed to be transferred from one head to an-other in the electronic ledger. Now a registered person has been provided with the facility to transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger to the electronic cash ledger for Integrated Tax, Central Tax, State Tax, Union Territory Tax or Cess through a new form PMT-09 subject to the conditions and restrictions prescribed under GST Act. Such transfer shall be deemed to be a refund from the electronic cash ledger.

Refund of State Taxes to taxpayers by the Centre

The Central Government has been authorized to refund the amount towards State taxes to the taxpayers.

National Appellate Authority for Advance Ruling (NAAAR)

The Government shall constitute an Authority ‘National Appellate Authority for Advance Ruling (NAAAR)’. It shall pass an order within 90 days from the date of filing of appeal.

In case of conflicting advance rulings given by the Appellate Authorities of two or more States or Union Territories on the questions sought, an appeal can be filed to National Appellate Authority by the applicant being a distinct person or by the officer (from the State in which advance ruling is pronounced) authorised by the Commissioner.

National Anti-Profiteering Authority empowered to impose penalty

Any registered person, who has profiteered amount as per National Anti-Profiteering Authority (NAPA), he shall be liable to pay penalty of 10% of the profiteered amount. If the profiteered amount is deposited within 30 days of the date of passing order by NAPA, then no penalty shall be levied.


    1. The value of exempt supply of services provided by way of extending deposits, loans or advances (where consideration is received in form of interest or discount) shall not be considered for determining turnover under Composition Scheme.
    2. Simplified return forms to be implemented soon. Composition dealers are required to pay tax quarterly and file return on annual basis.
    3. ‘Uranium Ore Concentrate’ has been exempted from GST retrospectively from July 1, 2017 to November 14, 2017.

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