Bimal Jain
Quick Summary
The Honble Finance Minister, in Budget 2021-22, hailed as a development-oriented and visionarybudget amid the pandemic-induced disruptions, inter alia , announced multiple changes to the Goods and Services Tax (GST) framework. The changes have been proposed vide the Finance Bill, 2021, that amends t
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FAQ :
Section 129 amendments propose enhanced penalties for goods and conveyances in transit. For taxable goods, the penalty is now 200% of the tax payable if the owner comes forward, and the higher of 50% of the goods' value or 200% of the tax payable if the owner doesn't. Section 129(2) has been omitted, meaning goods won't be released provisionally on a bond; cash payment of penalty is required.
Yes, the amendments introduce time limits. The proper officer must issue a notice within seven days of detention or seizure and pass an order within the subsequent seven days after the notice is served.
Section 129(6) has been amended to delink detention and seizure proceedings from confiscation proceedings. Previously, failure to pay tax and penalty within 14 days could lead to confiscation under Section 130. Now, if the imposed penalty isn't paid within 15 days of the order, the goods or conveyance are liable for sale or disposal.
Under the proposed amendments, a conveyance used for transporting goods may be released upon payment of the penalty imposed or INR 1 Lakh, whichever is less.
The amendments aim to ease doing business, curb input tax credit frauds, safeguard government revenues, and provide statutory backing to debated rules.
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