Important changes in Union Budget 2021 of India

The Finance Minister has presented the Budget for the financial year 2020-21, on 1st of February 2021.

Here are Extractions of amendments in Indirect Taxes of the Union Budget.

1. Supplies to SEZ Developer or SEZ unit would be qualify as Zero rated turnover only for authorised operations, (Clause-114 of the Finance Bill, 2021)
2. Refund ITC refund along with interest if exporter fails to receive foreign exchange remittance for supply of goods within prescribed time
3. IGST route of exports would be allowed only for class of persons and class of goods, i.e. all other exporters will be required to export goods under LUT/Bond.
4. Increased penalties to release the detained conveyance and goods (Clause 108 of the Finance Bill, 2021)
   • Where the owner of the Goods comes forwards for payment of tax and penalties
   • Where owner of goods does not come forward for payment of tax and penalties
   • Further In case of detention and seizure of conveyance and goods, Appeal can be filed only after pre-deposit of 25% of penalty amount, (Clause 107 of the Finance Bill, 2021)
   • Seized Goods can be released only after payment of entires pananties only
   • Time limit of 7 days’ has been inserted to issue from date of detention or seizure
   • Only a penalty is required to be paid to release detained goods
   • The goods or conveyance detained or seized shall become liable to be sold or disposed off in case the payment of imposed penalty is not made within 15 days
5. Supply of services made by clubs, societies etc. to its members has been brought under purview of GST with effect from 1st July 2017
6. ITC would be available only when reflecting under GSTR 2A and GSTR 2B, (Clause 100 of Finance Bill,2021)
7. Certification by Chartered accountant / cost accountant in the GSTR 9C not required, (Clause 101 and 102 of Finance Bill,2021):
8. Interest on delayed payment of tax on net tax liability with effect from 01st July 2017, (Clause 103 of Finance Bill,2021):
9. Proceeding u/s 129 and 130 shall continue independently, (Clause 104 of Finance Bill,2021):
10. Determination of Output tax liabilities based on GSTR 1, (Clause 105 of Finance Bill,2021)
11. Proper officer has been granted power to attach property immediately after initiation of proceedings, (Clause 106 of the Finance Bill, 2021)
12. Confiscation of goods or conveyances and levy of penalty, (Clause 109 of the Finance Bill, 2021)
13. Power to collect statistics, (Clause 110 of the Finance Bill, 2021)
14. Opportunity of being heard to the concern person before using any information collected, (Clause 111 of the Finance Bill, 2021)