Section 118 - Retrospective effect to notification issued under sub-section (2) of section 7 of Central Goods and Services Tax Act
Section 118: Retrospective Effect to Notification under Section 7(2) of the Central Goods and Services Tax Act
This section discusses the retrospective application of a specific notification related to the Central Goods and Services Tax (CGST) Act. According to sub-section (1) of Section 118, a notification issued by the Indian Government's Ministry of Finance on September 30, 2019, is considered to have been effective from July 1, 2017. This notification was issued under the authority of sub-section (2) of Section 7 of the CGST Act, 2017, based on recommendations from the relevant council. Essentially, this means that the rules or changes introduced by this notification are applied as if they were in force from July 1, 2017, rather than from the date the notification was actually issued.
Sub-section (2) of Section 118 specifies that even though this notification is applied retrospectively, there will be no refunds given for central tax that was collected during the period before the notification was officially issued. This means that if any tax was collected that should not have been, according to the retrospective application of the notification, those amounts will not be refunded to those who paid them.
Note: It is an AI generated summary for reference purpose only.
Retrospective effect to notification issued under sub-section (2) of section 7 of Central Goods and Services Tax Act.
118. (1) Subject to the provisions of sub-section (2), the notification of the Government of India in the Ministry of Finance (Department of Revenue) number G. S. R. 746(E), dated the 30th September, 2019 issued by the Central Government, on the recommendations of the Council, in exercise of the powers under sub- section (2) of section 7 of the Central Goods and Services Tax Act, 2017, shall be deemed to have, and always to have, for all purposes, come into force on and from the 1st day of July, 2017.
(2) No refund shall be made of all such central tax which has been collected, but which would not have been so collected, had the notification referred to in sub-section (1) been in force at all material times.
