Himachal Pradesh Goods and Services Tax (Amendment) Bill, 2019

Dec 17, 2019 | by Avantis RegTech Legal Research Team

Finance & Taxation Compliance

The State Government of Himachal Pradesh on December 10, 2019, has published the Himachal Pradesh Goods and Services Tax (Amendment) Bill, 2019 to further amend the Himachal Pradesh Goods and Services Tax Act, 2017.

Some of the major amendments in the Himachal Pradesh Goods and Services Tax Act, 2017 are as under:

Ø  Under section 10 which specifies the provisions related to composition levy, sub-section (2) will be added which specifies the eligibility criteria for the registered persons so that he can opt for composition scheme.

Ø  Under Section 22 which specifies the Persons liable for registration, third proviso will be inserted, namely:

Provided further that the Government may, on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified. 

Ø  Under section 25 which specifies the procedure for registration, sub-sections 6A, 6B, 6C and 6D will be inserted, related to furnishing of proof of possession of Aadhaar number or furnish alternate and viable means of identification by Every registered person, every individual and every person.

Ø  Insertion of Sections:

                     i.            Section 31A: Facility of digital payment to recipient.  

                   ii.            Section 53A: Transfer of certain amounts.

            iii.            Section 101A: National Appellate Authority for Advance Ruling shall be the Appellate Authority.

The proposed Bill, interalia, provides for excluding the ‘National Appeallate Authority for Advance Ruling’ from the definition of ‘Adjudicating Authority’ and to include it in the definition of “Advance Ruling”. It further provides for alternative composition scheme for supplier of services or mixed suppliers, who were not eligible in the earlier composition schemes, having annual turnover in preceding financial year upto rupees fifty lakhs. Presently, every supplier making a taxable supply of goods is liable for registration if his aggregate turnover in a financial year exceeds rupees twenty lakh. This threshold limit is being raised to rupees forty lakh to facilitate the suppliers exclusively engaged in the supply of goods. A provision is also being made that a class of suppliers shall mandatorily offer the facility of digital payments to his recipients. Some amendments are also being made with regard to the provisions of filing various returns under the Act to make them more practicable and convenient. Thus, the various amendments proposed to be carried out in the Act ibid are likely to make it more effective and friendly to the stakeholders.

It will come into force on such date as the State Government may, by notification in the Rajpatra (e-Gazette), Himachal Pradesh, appoint. 

[Bill No. 21 of 2019]


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