The authorities has notified a host of procedural changes in the GST rules, together with levy of curiosity for wrongful utilisation of ITC and turnover threshold for submitting annual returns for the 2021-22 fiscal.
The changes have been vetted by the Goods and Services Tax (GST) Council at its assembly final week.
With the amendments notified by the Central Board of Indirect Taxes and Customs (CBIC), companies have additionally been allowed to make tax funds on the GSTN portal through the use of IMPS and UPI fee modes.
Businesses with mixture annual turnover of as much as Rs 2 crore in the fiscal ended March 31, 2022, are exempt from submitting annual returns for 2021-22, as per the amended rules.
The modification additionally clarified that curiosity on incorrect availment of enter tax credit score (ITC) would solely apply in circumstances the place such credit score is utilised. The Finance Act had introduced in a provision associated to levying of curiosity on ITC wrongly availed and utilised.
The provision would come into impact from July 5 and would apply retrospectively from July 1, 2017, — the date of GST rollout.
Deloitte India Partner, Leader Indirect Tax, Mahesh Jaising stated the notification issued for retrospective modification to Section 50(3), clarifying that curiosity on incorrect availment of credit score would solely apply in circumstances the place such credit score is utilised, is a welcome one.
KPMG Tax Partner Abhishek Jain stated the GST legislation has been suitably amended to say that curiosity shall be payable solely in respect of the ITC availed and utilised. “This change is way appreciated, and places a closing near this subject.”
The amendments additionally present for computerized revocation of GST registrations cancelled as soon as the return submitting is regularised.
“This will scale back the effort and time spent by taxpayers in getting registrations revoked even after regularisation of the return filings. It will scale back the interplay and enhance the faceless compliances below GST, Jaising stated.
Jain stated these changes in rules would additionally assist the small gamers in enterprise compliances, and can lighten the burden for taxpayers with lower than Rs 2 crore turnover to the extent of submitting of annual returns below GST.
AMRG & Associates Senior Partner Rajat Mohan stated different necessary changes embody extension of time-limit specified below Section 73 (dedication of tax) below the GST Act for issuance of an order for FY 2017-18 to September 30, 2023.
However, no extensions have been offered for another monetary yr.
“In relation to the delayed submitting of refund purposes throughout the COVID interval (March 1, 2020 to February 28, 2022), appropriate extension has been granted that may allow quite a few exporters to encash the refunds caught in litigation,” Mohan stated.
Jain stated that contemplating the COVID situation of the final two years for India, the federal government has prolonged the limitation interval below GST for issuance of discover to taxpayers who haven’t paid/ brief paid the tax due. Similarly, rest in limitation is granted for submitting refunds.
“While the intention of the federal government is to curb income leakage, this variation retains the companies uncovered to departmental audits and assessments for some further time. This being stated, this variation additionally ensures that real taxpayers are usually not denied their refund claims,” Jain added.
According to Mohan, the style of calculation of curiosity on delayed fee of tax has been notified and that will assist taxpayers in making exact calculation of the tax dues.
As per the amended rules, each bill issued by an MSME provider could have a typical declaration printed on bill concerning non-applicability of e-invoice.
Also, money ledger steadiness may be transferred from one GST registered entity to a different below the identical PAN.
(Only the headline and film of this report could have been reworked by the Business Standard workers; the remainder of the content material is auto-generated from a syndicated feed.)
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