Budget 2019 Changes in GST

Here is a quick reference of changes in GST from Union Budget 2019

1. Interest on Tax Liability

A new proviso in sub-sections (1) is being inserted in section 50 of the CGST Act so as to provide for charging interest only on the net cash tax liability, except in those cases where returns are filed subsequent to initiation of any proceedings under section 73 or 74 of the CGST Act.

For Example, If taxpayer has output liability of Rs. 1,00,000/- and ITC of Rs. 50,000/-. The return is filed after due date in such cases, the taxpayer would be liable to calculate interest on net liability of Rs. 50,000/- and not on Rs. 1,00,000/-

2. Correct errors in payment of Tax

Now taxpayers can correct errors in payment of taxes. New sub-sections are being inserted in section 49 of the CGST Act to provide a facility to the registered person to transfer an amount from one (major or minor) head to another (major or minor) head in the electronic cash ledger i.e. of tax, interest, penalty, late fees wrongly paid in CGST may be adjusted in IGST, SGST, etc and vice versa as the case may be.

For Example, f taxpayer has wrongly paid liability of Rs. 1,00,000/- under CGST which ought to be paid under SGST. Now the taxpayer can transfer such amount from CGST to SGST of Rs. 1,00,000/- corresponding changes in rules were also proposed earlier under PMT-09 .


A very unique and substantial relief scheme named as “ SABKA VISHWAS LEGACY DISPUTE RESOLUTION SCHEME” has been proposed. The focus of the government will be to reduce the pending litigations of 26 pre-GST laws, the government has proposed a Dispute Settlement Scheme for speedy settlement of pending litigations and to remove the funds blocked in the litigations. Upto 70% relief in payment of disputed tax dues and 100% relief of late fees, interest and penalty subject to fulfillment of specified conditions. This is one of the most beneficial scheme ever made in the history of Indirect tax by Central Government.


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