Significant GST reforms in Union Budget 2019


On 5th July 2019, the Union Budget of India was presented. In this year’s Budget, our Government has introduced numerous reforms in the GST registration process. These will surely help in boosting the overall trade & commerce in India.

  • ID proof mandatory

So as to boost transparency in the GST regime, govt. brought a new guideline wherein all the persons having a GST registration will have to submit their Aadhaar UIN. Now, if you do not have the Aadhaar UIN, such registered person must show alternate ID evidence, for example, voter ID or PAN card.
In case you fail to furnish any of the above ID evidence, your GSTIN shall be deemed invalid. In such a case shall attract GST registration cancellation.

  • Interest payable in case of late payment of tax

So far, there was a problem among taxpayers having GST registration as to whether the interest due to late payment of tax will be on gross obligation, or on net liability.

Presently, a new condition has been added in GST law, wherein the interest due to late payment of GST shall be on the remaining amount of the tax that is debited from the electronic cash ledger, i.e. on net GST liability. Let’s understand this with an example:

Let’s say, the total sale is INR100/- on which GST is 18 p.c. or INR 18/-. Presently, if ITC available in cash ledger is just INR10, net GST liability is INR8. Hence, the interest payable for late GST payment will be levied only on INR8.

  • Settlement of liability

Government has now made a new guideline wherein the taxpayers having GST registration would now transfer any amount of tax, interest or penalty available in the electronic cash ledger to the IGST, CGST, SGST, UTGST or Cess liability by filing the new Form PMT-09. Such transfers are a type of refund category from the electronic cash ledger.
This will, however, subject to some conditions and restrictions specified under the Law.

  • Refund of State tax

Currently, the Central Government will disburse all SGST refunds to the taxpayers of different states. This will actually speed up the process of refund.

  • Turnover for GST registration

Presently, the new system will not consider while determining annual turnover for getting GST registration under Composition Scheme. This will also ignore the value of exempt services as such by extending deposits, advances or loan, where the client had paid in the form of interest or concession.

  • New GST return filing

The new Simplified GST return filing procedure will come into effect very soon. The taxpayers having GST registration under Composition scheme shall pay quarterly tax and file return annually as it were.

  • National Appellate Authority

The Government will form a National Appellate Authority for Advance Ruling (NAAAR) for hearing of the appeals. This body will speedily pass orders in not more than 90 days from the date of filing an appeal in NAAAR.
So these are seven different GST provisions which are there in the Union Budget of India this year.


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