Delhi LG VK Saxena gives assent to The Delhi Goods and Services Tax (Second Amendment) Bill, 2023

New Delhi [India]: Delhi Lt Governor VK Saxena gave assent to The Delhi Goods and Services Tax (Second Amendment) Bill, 2023 on Wednesday. 

Lt Governor Office said, “Delhi Lt Governor VK Saxena gives assent to “The Delhi Goods and Services Tax (Second Amendment) Bill, 2023.” This will ensure uniformity between Central and State legislation on the subject. Bill was passed by the Legislative Assembly on December 18, 2023.” 

The Bill has made amendments in the Delhi Goods and Services Tax, 2017 so as to make provisions regarding reference to the word “goods”, certain time limits and input tax credits, pursuant to the recommendations of GST Council in its 47th meeting held on June 28 and 29, 2022, 48th meeting held on December 17, 2022 and 49th meeting held on February 18, 2023. 

“The Bill was passed by the Legislative Assembly on December 18, 2023. It was introduced in the Assembly for consideration with the prior recommendations of Lt. Governor as required under section 22 of the Government of National Capital Territory of Delhi Act, 1991,” the LG office said in a press release. 

The GST Council in its 47th, 48th and 49th meetings recommended various amendments to the provisions of the Central Goods and Services Tax (CGST) Act, 2017 and through the Finance Act, 2023, the Central Government amended the CGST Act, 2017. 

The amendments in the DGST Act, 2017 are in sync with the Finance Act, 2023 notified in the Gazette of India on March 31, 2023. 

In order to ensure uniformity between the CGST Act, 2017 and the DGST Act, 2017, the amendment in the Delhi law was required by the State Legislature after making State specific notifications wherever necessary. 

The Delhi Goods and Services Tax (Second Amendment) Bill, 2023 has brought amendments in the provisions of Section 10 pertaining to the supply of goods through e-commerce, Section 16 about payment of tax along with interest liability and availing input tax credit, Section 17 about the reversal of tax credit on exempt supplies, Section 23 about exemption from registrations, Section 30 about time limits, conditions and restrictions for revocation of cancellation of registration, Sections 37 and 39 pertaining to extension of time limit of 03 years for furnishing details of outward supplies by a registered person by the Government. 

It has also brought amendments to the provisions of Section 44 pertaining to the extension of the time limit of 03 years for filing annual returns by a registered person, Section 52 pertaining to the extension of monthly time limits by persons undertaking e-commerce, Section 54 pertaining to the removal of reference to the provisionally accepted input tax credit so as to align the same with the present scheme of availing of self-assessed input tax credit, the LG office said. 

“Section 56 pertaining to allowing prescribing of rules for the manner of computation of delay for calculation of interest on delayed refunds, Section 62 pertaining to the substitution of words 30 days to the words 60 days to file returns, Section 117 pertaining to the substitution of the word state bench or area benches with a word state bench, Section 118 pertaining to the substitution of the word national bench or regional benches with the word principal bench have also been amended,” the LG office said. 

There have also been amendments to the provisions of Section 119 pertaining to the substitution of the word national or regional benches with the word principal bench and state bench or area benches with state benches and Section 122 pertaining to penal provisions applicable to e-commerce operators in case of contravention of provisions relating to supplies of goods or services made through them by unregistered persons or composition taxpayers. 

Further, the Bill proposes amendment in Schedule III of the Act to give retrospective applicability to certain provisions. 

The Bill also amends sub-section (1) of Section 132 to decriminalize offences and to increase the monetary threshold from 100 Lakh rupees to 200 Lakh rupees for launching prosecution for the offences under the Act, except for the offences related to issuance of invoices without supply of goods or services or both and first proviso to sub-section (1) of Section 138 to exclude the persons involved in offences relating to issuance of invoices without supply of goods or services or both from the option of compounding of offences and to rationalize the amount for compounding of various offences by reducing the minimum as well as maximum amount for compounding. 

The 2023 amendment also enables to insertion of new section 158A so as to provide for the manners and conditions for sharing of the information furnished by the registered persons in the application form registration or in the return filed or in the statement of outward supplies furnished, or the details uploaded by him for generation of electronic invoice or e-way bill or any other details as may be provided by rules on the common portal with such other systems as may be notified and omits Sections 110 relating to the constitution of appellate tribunal and 114 relating to the financial and administrative power of state president.