Budget-Changes in GST and Income Tax

By CA. Rajeev K Sharma
Clause (aa) has been introduced in Sec 16(2),
This clause is being inserted to provide that input tax credit on invoice or debit note may be availed only when the details of such invoice or debit note have been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note. Rule 36(4) already exists in GST Rules, 2017 but Now SECTION 16(2)(aa) will make it legally possible for the tax authorities to recover input tax credit from the receiver of goods or services if the supplier of goods or services has not uploaded the details of Invoices in Supplier’s returns.
GST Sec 35(5) removed.  and Sec 44 amended
PREVIOUSLY for a TURNOVER of more than Rupees five crores, it was mandatory to get the annual returns signed by the Chartered Accountants.
This section is being omitted so as to remove the mandatory requirement of getting annual accounts audited and reconciliation statement submitted by specified professional. Now GSTR 9C can be filed without certification. This amendment will be effective from future date.
PENALTY IN CASE OF E-WAY BILL DEFAULTS
IF goods or vehicle is detained due to discrepancy in E-way bill penalty payable was 100% now, for  release of goods/vehicle in case of default of E way bill, penalty equal to 200% will be payable.
• Time list of 7 days for notice and 7 days for order is now provided in act. Earlier no such time limit was provided.
• If vehicle is also detained, same can be released by transporter, now on payment of penalty or Rs 1 lakhs, whichever is lower.
INCREASE IN TURNOVER LIMIT FOR AUDIT FOR BUSINESS CASES IF 95 PERCENT OF PAYMENTS OR RECEIPTS ARE OTHERWISE THAN BY WAY OF CASH
Previously a person carrying on business WAS NOT REQUIRED to get his accounts audited, in cases where TOTAL aggregate of all payments in cash during the previous year does not exceed five per cent of such payment AND aggregate of all receipts in cash during the previous year does not exceed five per cent of such receipts AND if total sales, turnover or gross receipts, was up to five crore rupees. It meant that if 95 per cent of  all his receipts was otherwise than by way of cash i.e. 95 per cent or more of all his receipts was online or through banking channel during the previous year AND 95 per cent of  all his payments were otherwise than by way of cash i.e. 95 per cent or more of all his payments were online, or through banking channel during the previous year AND the total sales, turnover or gross receipts, was up to five crore rupees then there was no requirement for them to get the audit of his books from a Chartered Accountant.  Now this limit has been raised to rupees ten crores. There is no such relief to professionals, this provision is only for the businessmen, they may be traders or manufacturers.

Provisional attachment of Property can be made under Section 281B if penalty under Section 271AAD is more than Rupees Two Crores
In the previous Union Budget a very strict provision was brought in for imposition of penalty under Section 271AAD of the Income-tax Act, 1961 whereby heavy penalty can be imposed in certain cases. The provision is such that  if during any proceeding under this Act, it is found that in the books of account maintained by any person there is (i) a false entry in the books of accounts; or (ii) an omission of any entry which is relevant for computation of total income of such person, to evade tax liability, the Assessing Officer may direct that such person shall pay by way of penalty a sum equal to the aggregate amount of such false or omitted entry. In such cases, the Assessing Officer may ALSO direct that any other person, who causes the person referred to in sub-section (1) in any manner to make a false entry or omits or causes to omit any entry referred to in that sub-section, shall pay by way of penalty a sum equal to the aggregate amount of such false or omitted entry.
There is another strict provision under Section 281B of the Act which provides that in cases of assessment or reassessment the Assessing Officer may provisionally attach any property of the assessee, if necessary, in order to protect the interest of revenue with prior approval of Pr. Chief Commissioner or Pr Director General or Chief Commissioner or Director General or Principal Commissioner or Principal Director or Commissioner or Director, of Income-tax for a period of 6 months. In the current budget, in order to protect the interest of revenue, it is proposed to amend the provision of section 281B of the Act to enable the Assessing Officer to exercise the powers under this section during the pendency of proceedings for imposition of penalty under section 271AAD of the Act, if the amount or aggregate of amounts of penalty imposable under Section 271AAD of the Income-tax Act, 1961  is likely to exceed two crore rupees.