Continuing with our series of updates from the Union Budget 2020, today we will talk about some of the key amendments proposed to the existing GST structure. 1. COMPOSITION LEVY It is proposed that dealer registered under GST for supply of goods cannot avail the composition scheme if they provide the following category of services: a. Services on which GST is not leviable; b. Inter-state supply of services; c. Services supplied through E-commerce operator. 2. RELAXATION OF TIME LIMIT FOR ITC CLAIM – DEBIT NOTES Time limit for claiming ITC in respect of debit notes is now proposed to be the earlier of the following: a) Due date of furnishing return for September month following the end of the financial year to which such debit note pertains; b) Date of filling the relevant annual return. 3. CANCELLATION OR REVOCATION OF REGISTRATION a) It is proposed to allow person registered voluntarily under GST to apply for cancellation of registration. b) Additional Commissioner or Joint Commissioner can condone the delay for application for revocation of cancellation of registration by 30 days. Further, Commissioner can condone such delay by additional 30 days. 4. ISSUE OF TAX INVOICE It is proposed to empower the Government to specify time limit within which the invoice is to be issued in respect of certain category of services or supplies. 5. RETROSPECTIVE RATE CHANGE GST will be applicable @ 12% for the period 1st July, 2017 to 31st December, 2018 on Supply of pulley, wheels and other parts (falling under heading 8483) and used as parts of agricultural machinery (falling under heading 8432, 8433 and 8436). Furthermore, no refund shall be granted of tax already paid at higher rate. 6. DENIAL OF REFUND OF UNUTILISED ITC WITH RETROSPECTIVE EFFECT Refund of unutilised ITC of compensation cess arising out of inverted rate structure in respect of tobacco and manufactured tobacco substitutes is proposed to be denied through a retrospective amendment from 1st July 2017. 7. OTHER KEY PROPOSITIONS a) Simplified return system which is currently in pilot run is proposed to be introduced from 1st April, 2020 with features such as SMS-based filing of NIL returns, Pre-filled returns & Improved input tax credit flow. b) E-invoicing system to be implemented in a phased manner starting optionally from February, 2020. c) To introduce Aadhaar based verification of taxpayers for weeding out dummy and non-existent units. d) Cash rewards to encourage customers to seek invoice from sellers. e) Existing penal provision for failure to furnish TDS certificate to be abolished. f) Government can issue removal of difficulty order upto a period of 5 years starting from the date of implementation of GST in the country i.e. 1st July, 2017. With numerous proposals in this year’s budget, the government hopes to bring about uniformity and consistency in the existing structure.