Effective Date Of Amended Section 16(4) Of CGST Act

[Kaustubh Karandikar]

Section 16(4) of CGST Act, 2017 is amended through clause 120 of Finance Act, 2020 which is effective 27.03.2020. Can we consider 27.03.2020 as the effective date for amendment to Section 16(4) or there will be seperate notification to be issued for effective date of the same?

[KASTURI SETHI]

Separate notification will be issued. Pl. read the following:-

THE FINANCE ACT, 2020 NO. 12 OF 2020 [27th March, 2020.]

An Act to give effect to the financial proposals of the Central Government for the financial year 2020-2021. BE it enacted by Parliament in the Seventy-first Year of the Republic of India as follows:-

CHAPTER I

PRELIMINARY 1. (1) This Act may be called the Finance Act, 2020.

(2) Save as otherwise provided in this Act,-

(a) sections 2 to 104 shall come into force on the 1st day of April, 2020; (b) sections 116 to 129 and section 132 shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

Section 120. In section 16 of the Central Goods and Services Tax Act, in sub-section (4), the words “invoice relating to such” shall be omitted.

121. In section 29 of the Central Goods and Services Tax

AI Summary

Effective date of GST amendment depends on issuance of official notification, not solely on enactment date.
The Finance Act, 2020 enacts a textual deletion to the CGST input tax credit provision but contains a commencement scheme reserving certain sections to come into force only by notification; therefore the amendment's legal operation depends on a separate official notification and is not automatically effective by enactment alone.