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Notification No: 16/2024–Central Tax
Notification Date: August 6, 2024
Relevant Act/Rule: Central Goods and Services Tax Act, 2017 & Central Goods and Services Tax Rules, 2017
Relevant Section/Rule: Section 2(61), 20, 122A,148
Central Board of Indirect Taxes and Customs (CBIC) has issued a notification in respect of Finance Act, 2024 (the Act) wherein the Central Government has appointed:
These sections relate to the Input Service Distributor (ISD), the manner of distribution of credit by the ISD, and the penalty for failing to register certain machines used in the manufacture of goods according to the special procedure.
Gist of Amendment:
1.) Definition of ISD revised by virtue of Section 11 of the Act. It specifies the office responsible for receiving and distributing input tax credits.
2.) Replacement of existing Section 20 of CGST Act by Section 12 of the Finance Act 2024. to specify the process for credit distribution by ISDs. It outlines the registration requirements and the method for distributing central and integrated taxes.
3.) New Section 122A introduced which leads to imposition of a penalty of ₹1 lakh per machine on manufacturers who fail to register certain machines under Section 148 of the Act. Unregistered machines may face seizure and confiscation unless penalties are paid and registration is completed within three days.
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