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[F. No. CBEC-20/06/04/2020-GST]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 22nd December, 2020
Notification No 92/2020 - Central Tax: Seeks to bring into force Sections 119, 120, 121, 122, 123, 124, 126, 127 and 131 of Finance Act, 2020 (12 of 2020).
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii)]
S.O. ...... (E).— In exercise of the powers conferred by sub-section (2) of section 1 of the Finance Act, 2020 (12 of 2020) (hereinafter referred to as the said Act), the Central Government hereby appoints the 1st day of January, 2021, as the date on which the provisions of sections 119, 120, 121, 122, 123, 124, 126, 127 and 131 of the said Act shall come into force.
(Pramod Kumar)
Director,
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 92/2020 – Central Tax
Q1: What is Notification No. 92/2020 – Central Tax about?
Answer:
Notification No. 92/2020 – Central Tax brings into effect Sections 119, 120, 121, 122, 123, 124, 126, 127, and 131 of the Finance Act, 2020, starting from 1st January 2021.
These sections primarily amend provisions in the CGST Act, 2017, improving tax governance, refund systems, and compliance mechanisms.
Q2: What is the legal basis for this notification?
Answer:
The notification is issued under Section 1(2) of the Finance Act, 2020 (12 of 2020), which authorizes the Central Government to notify the date on which specific sections of the Act will come into force.
Q3: Which sections of the Finance Act, 2020 were enforced by this notification?
Answer:
The following sections were brought into force on 1st January 2021:
📄 Sections 119, 120, 121, 122, 123, 124, 126, 127, and 131.
These amendments impacted various provisions of the CGST Act, such as:
Section 10 (Composition Scheme),
Section 16 (Input Tax Credit),
Section 30 (Revocation of registration),
Section 107 (Appeals), and
Section 129 & 130 (Seizure and confiscation).
Q4: Why were these sections implemented from 1st January 2021?
Answer:
The government chose 1st January 2021 to synchronize the implementation of these sections with the new GST compliance structure for FY 2020–21.
It was a part of the GST Council’s roadmap to tighten compliance, ITC claims, and refund verification, improving revenue administration.
Q5: What does Section 119 of the Finance Act, 2020 cover?
Answer:
Section 119 amends Section 10 of the CGST Act, relating to the Composition Scheme.
It allows the government to notify certain categories of taxpayers (service providers, for instance) to opt for composition levy under specific conditions.
💼 Example:
A small restaurant or repair shop can pay a fixed percentage of turnover instead of detailed tax filings.
For registration under the composition scheme, visit Finodha GST Registration.
Q6: What change was introduced under Section 120?
Answer:
Section 120 modifies Section 16(4) of the CGST Act, restricting Input Tax Credit (ITC) claims beyond the due date of filing GSTR-3B for the following financial year.
This ensures taxpayers claim ITC timely and accurately.
💡 Example:
If you forgot to claim ITC for FY 2019–20 before filing the March 2021 return, you can’t claim it later.
Q7: What does Section 121 address?
Answer:
Section 121 amends Section 30 of the CGST Act to simplify revocation of GST registration.
It allows taxpayers whose registration was cancelled for non-filing of returns to apply for revocation within an extended time frame, as permitted by rules.
✅ Use Finodha’s GST Compliance Service to restore cancelled registrations.
Q8: What change was made under Section 122?
Answer:
Section 122 amends Section 31 and related provisions to enable issuance of electronic invoices (e-invoices) and credit/debit notes in a standardized format.
This step promotes automation, traceability, and easier verification.
Q9: What does Section 123 entail?
Answer:
Section 123 amends Section 51 of the CGST Act to strengthen Tax Deducted at Source (TDS) mechanisms.
Government departments and notified entities must now deduct TDS at a prescribed rate when making payments to GST-registered suppliers.
📊 Example:
A government contractor receiving ₹10 lakh from a state department may have 2% TDS deducted under GST.
Q10: What is covered under Section 124 of the Finance Act, 2020?
Answer:
Section 124 amends Section 122 of the CGST Act, introducing new penalties for persons causing issuance of fake invoices or wrongful ITC claims.
It expands liability to intermediaries, including brokers and accountants involved in fraudulent transactions.
🚨 Businesses must ensure invoices are genuine. Stay compliant with Finodha GST Compliance Services.
Q11: What changes were made through Section 126?
Answer:
Section 126 amends Section 129, which deals with detention, seizure, and release of goods in transit.
Now, goods and vehicles detained for tax evasion can be released only after payment of 200% of the applicable tax, ensuring stricter enforcement.
🚚 Example:
If goods worth ₹5 lakh are detained for non-payment of ₹50,000 GST, the penalty could reach ₹1 lakh.
Q12: What does Section 127 introduce?
Answer:
Section 127 revises Section 130, relating to confiscation of goods or conveyance.
It gives authorities the power to confiscate goods or vehicles used for tax evasion if fines and penalties are not paid within a stipulated time.
Q13: What is Section 131’s significance?
Answer:
Section 131 provides retrospective validation for certain actions taken under the GST laws, ensuring past government actions remain legally valid even after amendments.
It prevents unnecessary disputes or retrospective legal challenges.
Q14: How do these changes benefit honest taxpayers?
Answer:
✅ Simplified compliance for small businesses.
✅ Faster refunds and automated e-invoicing.
✅ Reduced fraud due to stronger ITC validation.
✅ Clearer rules for detention, penalties, and confiscation.
For businesses, this means greater transparency and ease of doing business.
Q15: What should taxpayers do after these changes?
Answer:
Review all GST compliance processes.
Ensure timely ITC claims and GSTR filings.
Use automated tools for e-invoicing and TDS reconciliation.
Train staff on amended compliance procedures.
📌 Stay fully compliant — Start your GST Return Filing today with Finodha.
🏁 Conclusion
Notification No. 92/2020 – Central Tax is a crucial milestone in India’s GST evolution.
By activating several key provisions of the Finance Act, 2020, the government reinforced its focus on fraud prevention, automation, and simplified compliance.
These reforms create a transparent, technology-driven GST ecosystem, benefiting both honest taxpayers and administrators.
💡 Ensure your GST systems and filings reflect these updates. Start your GST Return Filing with Finodha today.
Download PDF: Notification No. 92/2020 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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