11 Jul 2019Posted By: Mudit Handa


7 Important Changes made in GST after Union Budget 2019

The Union Budget 2019 was presented on 5th July 2019 by the honorable Finance Minister of India Smt. Nirmala Sitharaman. The Government has introduced numerous reforms in the Budget 2019 for the taxpayers that will surely boost the ease of doing business.

Very importantly, the government has brought several new provisions in Goods and Services Tax in Union Budget 2019. These will definitely provide convenience to the taxpayers having GST registration.

Let’s have a look at the new GST provisions introduced by the Government in Union Budget 2019.


#1. Aadhaar linking with GST registration

In order to enhance transparency in GST, the new regulation has been made that all persons having GST registration shall furnish their Aadhaar number. In case Aadhaar number is not available, such registered person must furnish alternate ID proof such as PAN card. Failure to provide any ID proof shall cause GST registration certificate to be deemed invalid. Such GST registration shall be canceled.


#2. Interest for late GST payment

Up till now, there was a dilemma among taxpayers having GST registration that whether interest payable for late payment of GST should be charged on gross GST liability, or on net GST liability. 

Now, a new proviso has been included, wherein it has been clarified that interest for late GST payment shall be levied only on the balance of the tax that has been paid by debiting the electronic cash ledger, i.e. on net liability. Let’s understand this through a case study:

Suppose, the sale is of ₹100/- on which GST @ 12%= ₹12

  • Now, if ITC available in cash ledger is only ₹10, net GST liability is ₹2.
  • Now interest for late GST payment shall be levied only on ₹2.

However, if GST return filing is done subsequent to initiation of any legal proceedings under the GST Act, the interest for late GST payment will be levied on the gross tax obligation.


#3. Adjustment of GST liability

Government has made a new regulation that taxpayers having GST registration can now transfer any amount of tax, interest or penalty available in the electronic cash ledger towards payment of IGST, CGST, SGST, UTGST or Cess through a new Form PMT-09. Such transfer shall be considered a refund from electronic cash ledger.

This will, however, subject to conditions and restrictions as under GST Law. 


#4. SGST Refunds by Government

Now, the Central Government has been authorized to pay all amounts of SGST refunds to the taxpayers of different states. This will truly accelerate the refund process.


#5. Ascertaining Turnover for GST registration

Now the value of exempt services provided by the way of extending deposits, loan or advances, where payment is received as interest or discount, shall not be considered for determining turnover under Composition Scheme.


#6. Simplified GST return filing

The new Simplified GST return filing procedure shall be implemented soon. The taxpayers having GST registration under Composition scheme are required to pay GST on a quarterly basis and file annual GST return only.


#7. National Appellate Authority in GST

The Government shall now constitute the National Appellate Authority for Advance Ruling (NAAAR) for hearing appeals. This body will pass an order within 90 days from the date of filing an appeal in GST.

The Taxpayers can, instantly easily raise GST Tax Invoice on the interactive and fast InstaBill Software. 

Also, refer to the 

If you need any guidance on GST registration, or Income tax return filing, feel free to contact our business advisors at 8881-069-069.

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