11 Jul 2019Posted By: Mudit Handa

7 Important Changes made in GST after Union Budget 2019

The Union Budget 2019 was presented on 5th July 2019 by the honorable Finance Minister of India Smt. Nirmala Sitharaman. The Government has introduced numerous reforms in the Budget 2019 for the taxpayers that will surely boost the ease of doing business.

Very importantly, the government has brought several new provisions in Goods and Services Tax in Union Budget 2019. These will definitely provide convenience to the taxpayers having GST registration.

Let’s have a look at the new GST provisions introduced by the Government in Union Budget 2019.

#1. Aadhaar linking with GST registration

In order to enhance transparency in GST, the new regulation has been made that all persons having GST registration shall furnish their Aadhaar number. In case Aadhaar number is not available, such registered person must furnish alternate ID proof such as PAN card. Failure to provide any ID proof shall cause GST registration certificate to be deemed invalid. Such GST registration shall be canceled.

#2. Interest for late GST payment

Up till now, there was a dilemma among taxpayers having GST registration that whether interest payable for late payment of GST should be charged on gross GST liability, or on net GST liability. 

Now, a new proviso has been included, wherein it has been clarified that interest for late GST payment shall be levied only on the balance of the tax that has been paid by debiting the electronic cash ledger, i.e. on net liability. Let’s understand this through a case study:

Suppose, the sale is of ₹100/- on which GST @ 12%= ₹12

  • Now, if ITC available in cash ledger is only ₹10, net GST liability is ₹2.
  • Now interest for late GST payment shall be levied only on ₹2.

However, if GST return filing is done subsequent to initiation of any legal proceedings under the GST Act, the interest for late GST payment will be levied on the gross tax obligation.

#3. Adjustment of GST liability

Government has made a new regulation that taxpayers having GST registration can now transfer any amount of tax, interest or penalty available in the electronic cash ledger towards payment of IGST, CGST, SGST, UTGST or Cess through a new Form PMT-09. Such transfer shall be considered a refund from electronic cash ledger.

This will, however, subject to conditions and restrictions as under GST Law. 

#4. SGST Refunds by Government

Now, the Central Government has been authorized to pay all amounts of SGST refunds to the taxpayers of different states. This will truly accelerate the refund process.

#5. Ascertaining Turnover for GST registration

Now the value of exempt services provided by the way of extending deposits, loan or advances, where payment is received as interest or discount, shall not be considered for determining turnover under Composition Scheme.

#6. Simplified GST return filing

The new Simplified GST return filing procedure shall be implemented soon. The taxpayers having GST registration under Composition scheme are required to pay GST on a quarterly basis and file annual GST return only.

#7. National Appellate Authority in GST

The Government shall now constitute the National Appellate Authority for Advance Ruling (NAAAR) for hearing appeals. This body will pass an order within 90 days from the date of filing an appeal in GST.

The Taxpayers can, instantly easily raise GST Tax Invoice on the interactive and fast InstaBill Software. 


Also, refer to the 

If you need any guidance on GST registration, or Income tax return filing, feel free to contact our business advisors at 8881-069-069.

Download E-Startup Mobile App and Never miss the latest updates relating to your business.

Give a Reply

Fill up the form

E-startupIndia Mobile App


Download our free Android App and get realtime update on your order status.
Easily connect with our professionals handling your order over chat & mobile.
Never miss business compliances due date with advance notifications.

Get E-startupIndia in your mobile

Why Choose Us

e-startupindia member of GOOGLE

Serving business owners with an Average 4.8+ Google Rating.

e-startupindia certified #AxixBank

Trusted by Axis bank to cater its clients all licensing & compliance needs.

e-startupindia NG Alliance Partner

Providing lending solutions for business needs with NeoGrowth.

e-startupindia Google Partner

Open Neo bank account worldwide & provides cross-border remittance solutions.

e-startupindia member of CII

E-startupindia is a Proudly Member of Confederation of Indian Industry.The CII is a premier business association in India which works to create an environment.

e-startupindia certified #Etstartupindia

E-Startup India is duly certified under GOI's Startup India scheme and is renowned for our tech-driven solutions for business & legal services requirements for MSMEs.

e-startupindia Google Partner

E-Startup India is a Google Partner, which implies we are rigorously involved in assisting SME businesses to market their presence in the digital world.

Popular Services

Private Limited Company | Public Limited Company | One Person Company | Limited Liability Partnership | Partnership Firm | Sole Proprietorship Firm | Section 8 Company Registration | USA Company Registration | UK Company Registration | UAE Company Registration | Singapore Company Registration | Company Registration Hong Kong | Import Export Code | IEC Modification | AD Code Registration | Spice Board Registration | US FDA Certification | ISO 9001 2015 | ISO 14001 EMS | ISO 22000 FSMS | ISO 27001 ISMS | ISO 50001 Energy Management | ISO 45001 | ISO Surveillance | ISO Certification | MSME Registration | FSSAI Registration | Shop Establishment Registration | Barcode Registration | Coffee Board Registration | Startup India Certificate | ZED Certification | Trademark | Trademark Objection Reply | Trademark Opposition | Trademark Hearing | Trademark Formality Check Fail | Website Development | Patent | Copyright | Design Registration | Business Name Suggestion | Logo Designing | Trademark Assignment Service | GST Registration | GST Modification | GST Cancellation | GST Return Filing | GST Invoice Software | UIN Registration | Income Tax Return | Income Tax Notice | Income Tax Refund | Income Tax Assessment | TDS Return Filing | Form 15CA / CB | Professional Tax Registration | 12A and 80G Registration | FCRA Registration | CSR Registration | Project Report | Pitch Deck | Seed Fund Startup India | Accounting for Ecommerce | Virtual cfo services in india | Bookkeeping & Accounting | Private limited Company Annual Compliance | Form INC-22A | Form 15CA / CB | Company Strike Off | Commencement of Business | Fssai annual return | Online CA Consultancy | Income Tax Return Filling | LLP Annual Compliances | Form DIR-3 KYC | Virtual Office for Company Registration |


  • e-startupindia South Asia's Leading Multimedia News Agency
  • Business Standard
  • e-startupindia Outlook
  • e-startupindia Htmedia
  • e-startupindia Yahoo News
  • e-startupindia New Delhi Times
  • e-startupindia India.com
  • e-startupindia IBTN9