CHAPTER-9 MISCELLANEOUS

SECTION-20 Application of provisions of Central Goods and Services Tax Act

SECTION AND RELEVANT RULE

Section 20. Application of provisions of Central Goods and Services Tax Act.-

Subject to the provisions of this Act and the rules made thereunder, the provisions of Central Goods and Services Tax Act relating to,–

(i) scope of supply;

(ii) composite supply and mixed supply;

(iii) time and value of supply;

(iv) input tax credit;

(v) registration;

(vi) tax invoice, credit and debit notes;

(vii) accounts and records;

(viii) returns, other than late fee;

(ix) payment of tax;

(x) tax deduction at source;

(xi) collection of tax at source;

(xii) assessment;

(xiii) refunds;

(xiv) audit;

(xv) inspection, search, seizure and arrest;

(xvi) demands and recovery;

(xvii) liability to pay in certain cases;

(xviii) advance ruling;

(xix) appeals and revision;

(xx) presumption as to documents;

(xxi) offences and penalties;

(xxii) job work;

(xxiii) electronic commerce;

(xxiv) transitional provisions; and

(xxv) miscellaneous provisions including the provisions relating to the imposition of interest and penalty,

shall, mutatis mutandis, apply, so far as may be, in relation to integrated tax as they apply in relation to central tax as if they are enacted under this Act:

Provided that in the case of tax deducted at source, the deductor shall deduct tax at the rate of two per cent. from the payment made or credited to the supplier:

Provided further that in the case of tax collected at source, the operator shall collect tax at such rate not exceeding two per cent, as may be notified on there commendations of the Council, of the net value of taxable supplies:

Provided also that for the purposes of this Act, the value of a supply shall include any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier:

Provided also that in cases where the penalty is leviable under the Central Goods and Services Tax Act and the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, the penalty leviable under this Act shall be the sum total of the said penalties.

[Provided also that a maximum amount of forty crore rupees shall be payable for each appeal to be filed before the Appellate Authority or the Appellate Tribunal.]^[1]

Reference for Amendments

[1] Substituted vide The Finance (No.2) Act, 2024 (No. 15 of 2024) dated 16.08.2024, to be bought in force w.e.f. 01.11.2024 Notification No. 17/2024-Central Tax dated 27.09.2024. Prior to its substitution, it was inserted by The Integrated Goods and Services Tax (Amendment) Act, 2018 (No. 32 of 2018) – Brought into force w.e.f. 01st February, 2019. The same reads as under “Provided also that where the appeal is to be filed before the Appellate Authority or the Appellate Tribunal, the maximum amount payable shall be fifty crore rupees and one hundred crore rupees respectively.”

ANALYTICAL REVIEW

Application of provisions of Central Goods and Services Tax Act

1. Section 20 of the IGST Act, 2017 explains about application of below provisions of CGST Act, 2017 in relation to integrated tax-

1. scope of supply;
2. composite supply and mixed supply;
3. time and value of supply;
4. input tax credit;
5. registration;
6. tax invoice, credit and debit notes;
7. accounts and records;
8. returns, other than late fee;
9. payment of tax;
10. tax deduction at source;
11. collection of tax at source;
12. assessment;
13. refunds;
14. audit;
15. inspection, search, seizure and arrest;
16. demands and recovery;
17. liability to pay in certain cases;
18. advance ruling;
19. appeals and revision;
20. presumption as to documents;
21. offences and penalties;
22. job work;
23. electronic commerce;
24. transitional provisions; and
25. miscellaneous provisions including the provisions relating to the imposition of interest and penalty,

1. Rate of Tax deducted at Source (TDS)

The deductor shall deduct tax at the rate of 2% from the payment made or credited to the supplier.

1. Rate of Tax Collected at Source (TCS)

The operator shall collect tax at such rate not exceeding 2%, as may be notified on the commendations of the Council, of the net value of taxable supplies:

1. Valuation of supply

For the purposes of this Act, the value of a supply shall include any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier.

1. Penalties under IGST

Where the penalty is leviable under the CGST and the SGST Act or the UTGST Act, the penalty leviable under this Act shall be the sum total of the said penalties.

1. Mandatory Pre-deposit before filing of appeal to Appellate Authority or Appellate Tribunal

Maximum amount of forty crore rupees shall be payable for each appeal to be filed before the Appellate Authority or the Appellate Tribunal. (As amended vide The Finance (No.2) Act, 2024 (No. 15 of 2024) dated 16.08.2024, to be bought in force w.e.f. 01.11.2024). Prior to the amendment, the maximum amount of pre-deposit payable was fifty crore rupees and one hundred crore rupees before the Appellate Authority or the Appellate Tribunal respectively. 

Further, Section 107(6) and Section 112(8) of CGST Act, 2017 provides the quantum of pre-deposit deposit for filing of appeals under GST before the Appellate Authority and the Appellate Tribunal. The Finance (No.2) Act, 2024 (No. 15 of 2024) dated 16.08.2024 w.e.f. 01.11.2024, as amended these provisions to reduce the amount of pre-deposit for filing of appeals under GST. Quantum of pre-deposit post and pre amendments has been tabulated as under:

RELEVANT NOTIFICATION

SECTION-21 Import of services made on or after the appointed day

SECTION AND RELEVANT RULE

Section 21. Import of services made on or after the appointed day.-

Import of services made on or after the appointed day shall be liable to tax under the provisions of this Act regardless of whether the transactions for such import of services had been initiated before the appointed day:

Provided that if the tax on such import of services had been paid in full under the existing law, no tax shall be payable on such import under this Act:

Provided further that if the tax on such import of services had been paid in part under the existing law, the balance amount of tax shall be payable on such import under this Act.

Explanation.–For the purposes of this section, a transaction shall be deemed to have been initiated before the appointed day if either the invoice relating to such supply or payment, either in full or in part, has been received or made before the appointed day.

ANALYTICAL REVIEW

Import of services made on or after the appointed day

Import of services made on or after the appointed day shall be liable to tax under the provisions of IGST Act regardless of whether the transactions for such import of services had been initiated before the appointed day subject to following-

• If the tax on such import of services had been paid in full under the existing law, no tax shall be payable on such import under this Act:
• If the tax on such import of services had been paid in part under the existing law, the balance amount of tax shall be payable on such import under this Act.

For the purposes of this section, a transaction shall be deemed to have been initiated before the appointed day if either the invoice relating to such supply or payment, either in full or in part, has been received or made before the appointed day.

RELEVANT NOTIFICATIONS

SECTION-22 Power to make rules

SECTION AND RELEVANT RULES

Section 22. Power to make rules.-

(1) The Government may, on the recommendations of the Council, by notification, make rules for carrying out the provisions of this Act.

(2) Without prejudice to the generality of the provisions of sub-section (1), the Government may make rules for all or any of the matters which by this Act are required to be, or may be, prescribed or in respect of which provisions are to be or may be made by rules.

(3) The power to make rules conferred by this section shall include the power to give retrospective effect to the rules or any of them from a date not earlier than the date on which the provisions of this Act come into force.

(4) Any rules made under sub-section (1) may provide that a contravention thereof shall be liable to a penalty not exceeding ten thousand rupees.

ANALYTICAL REVIEW

Power to make rules

This section prescribed the power of Government to make rules to carry out the provisions of this Act. The said power include the power to give retrospective effect to the rules. It also provides for the penalty in case of contravention of any rules made thereunder.

According to Section 22 of Integrated Goods and Service Tax Act, 2017-

1) The Government may, on the recommendations of the Council, by notification, make rules for carrying out the provisions of this Act.

2) Without prejudice to the generality of the provisions of sub-section (1), the Government may make rules for all or any of the matters which by this Act are required to be, or may be, prescribed or in respect of which provisions are to be or may be made by rules.

3) The power to make rules conferred by this section shall include the power to give retrospective effect to the rules or any of them from a date not earlier than the date on which the provisions of this Act come into force.

4) Any rules made under sub-section (1) may provide that a contravention thereof shall be liable to a penalty not exceeding ten thousand rupees.

RELEVANT NOTIFICATION

SECTION-23 Power to make regulations

SECTION AND RELEVANT RULE

Section 23. Power to make regulations.-

The Board may, by notification, make regulations consistent with this Act and the rules made thereunder to carry out the provisions of this Act.

ANALYTICAL REVIEW

Power to make regulations.

Section 23 of IGST Act, 2017 explains about power to make regulations.

The Board may, by notification, make regulations consistent with this Act and the rules made thereunder to carry out the provisions of this Act.

The board have been vested with the similar powers of making the regulations under section 165 of the CGST Act, 2017 also.

RELEVANT NOTIFICATION

SECTION-24 Laying of rules, regulations and notifications

SECTION AND RELEVANT RULE

Section 24. Laying of rules, regulations and notifications.-

Every rule made by the Government, every regulation made by the Board and every notification issued by the Government under this Act, shall be laid, as soon as maybe, after it is made or issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or in the notification, as the case may be, or both Houses agree that the rule or regulation or the notification should not be made, the rule or regulation or notification, as the case may be, shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation or notification, as the case may be.

ANALYTICAL REVIEW

Laying of rules, regulations and notifications

Laying of rules, regulations and notifications:

• Every rule made by the Government,
• Every regulation made by the Board and
• Every notification issued by the Government

Shall be laid as soon as may be after may be after it is made or issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions.

• if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or in the notification, as the case may be, or
• both Houses agree that the rule or regulation or the notification should not be made, the rule or regulation or notification, as the case may be,
• shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation or notification, as the case may be.

Similar provisions relating to laying of rules, regulations and notifications etc., have also been prescribed under section 166 of the CGST Act, 2017.

RELEVANT NOTIFICATION

SECTION-25 Removal of difficulties

SECTION AND RELEVANT RULE

Section 25. Removal of difficulties.-

(1) If any difficulty arises in giving effect to any provision of this Act, the Government may, on the recommendations of the Council, by a general or a special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or regulations made thereunder, as may be necessary or expedient for the purpose of removing the said difficulty:

Provided that no such order shall be made after the expiry of a period of [five years]^[1] from the date of commencement of this Act.

(2) Every order made under this section shall be laid, as soon as may be, after it is made, before each House of Parliament.

Reference for Amendments:-

[1] Substituted for “three years” by The Finance Act, 2020 (No.12 of 2020) – Brought into force w.e.f. 30.06.2020.

ANALYTICAL REVIEW

Removal of difficulties

• If any difficulty arises in giving effect to any provisions of this Act, the Government may on the recommendations of the Council by a general or a special order published in the Official Gazette, make such provisions consistent with the provisions of this Act or the rules or regulations made thereunder, as may be necessary or expedient for the purpose of removing the said difficulty.
• Provided that no such order shall be made after the expiry of a period of five years from the date of commencement of this Act.
• Every order made under this section shall be laid after it is made before each House of Parliament

RELEVANT NOTIFICATION