EXTRACT OF THE FINANCE ACT, 2020

No. 12 OF 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. Short title and commencement.

(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.

CHAPTER IV

Indirect Taxes

Union Territory Goods and Services Tax

136. Amendment of section 1.

In section 1 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017.) (hereinafter referred as the Union Territory Goods and Services Tax Act), in sub-section (2), for the words "Dadra and Nagar Haveli, Daman and Diu", the words "Dadra and Nagar Haveli 45 and Daman and Diu, Ladakh" shall be substituted.

137. Amendment of section 2.

In section 2 of the Union Territory Goods and Services Tax Act, in clause (8), for sub-clauses (iii) and (iv), the following sub-clauses shall be substituted, namely:-

"(iii) Dadra and Nagar Haveli and Daman and Diu;

(iv) Ladakh;".

138 Amendment of section 26. .

In section 26 of the Union Territory Goods and Services Tax Act, in sub-section (1), in the proviso, for the words "three years", the words "five years" shall be substituted.

139. Retrospective exemption from, or levy or collection of, Union Territory tax in certain cases.

(1) Notwithstanding anything contained in the notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 710(E), dated the 28th June, 2017 (14 of 2017.), issued by the Central Government, on the recommendations of the Council, in exercise of the powers under sub-section (1) of section 7 of the Union Territory Goods and Services Tax Act, 2017,-

(i) no Union territory tax shall be levied or collected in respect of supply of fishmeal (falling under heading 2301), during the period commencing from the 1st day of July, 2017 and ending with the 30th day of September, 2019 (both days inclusive);

(ii) Union territory tax at the rate of six per cent. shall be levied or collected in respect of supply of pulley, wheels and other parts (falling under heading 8483) and used as parts of agricultural machinery (falling under headings 8432, 8433 and 8436), during the period commencing from the 1st day of July, 2017 and ending with the 31st day of December, 2018 (both days inclusive).

(2) No refund shall be made of all such tax which has been collected, but which would not have been so collected, had sub-section (1) been in force at all material times.