IMPORTANT GST AMENDMENT APPLICABLE FROM 1ST JANUARY 2022
NO INPUT TAX CREDIT (ITC) UNLESS REFLECTED IN GSTR 2A/2B:
Buyer will not be able to avail the benefit of Input Tax Credit (ITC) unless details of invoices are uploaded by supplier in Form GSTR-1. It is only after the invoice is uploaded in GSTR 1 that the buyer would be able to view it in GSTR 2A/2B & get the credit of ITC thereafter. Any error on the part of the supplier in uploading would result in the denial of the credit to the buyer. Further, now IFF would be mandatory for the person who has opted for Quarterly Return Monthly Payment (QRMP) scheme as the buyer would not be able to get the ITC till it is reflected in their GSTR-2A.
Earlier, there was a tolerance band of 5% which will be no longer available to the buyers. It may be noted that now belated uploading of the invoice details in subsequent months return by the seller would result in the blockage of the working capital of the buyer. In short, timely compliance by the sellers would ease the burden of the buyers. The responsibility of monitoring and compliances of the seller has indirectly been shifted onto the buyers. Further, there would be a need of "Reconciliation Manager" for the business entity with a sizable volume of invoices.
DIFFERENCE BETWEEN GSTR -1 & 3B: DIRECT RECOVERY:
Section 75(12) is amended so as to provide that tax declared under GSTR-1 but not included in GSTR-3B, will be considered as "Self Assessed Tax" and hence direct recovery of such tax under Section 79 will be possible even without issuing any Show Cause Notice (SCN). Now, one has to be extra careful while filing GSTR-1 as well as GSTR-3B as any human error in filing the returns would have adverse effects on such taxpayers. The concept of "principle of Natural Justice" has been done away by removing the requirements of issuing SCN.
NO GSTR-1 FILING PERMISSIBLE IF GSTR-3B NOT FURNISHED FOR PREVIOUS MONTH:
Rule 59(6) of the CGST Rules to be amended with effect from 01.01.2022 to provide that a registered person shall not be allowed to furnish FORM GSTR-1, if he has not furnished the return in Form No. GSTR-3B for the preceding month.
E-WAY BILL: 200% PENALTY TO RELEASE GOODS:
Violation of the norms related to e-way bill has been made more stringent. At present, full tax and 100% penalty is required to be paid for releasing the goods which are seized for violation of E-way Bill related provisions and for non-carrying of other documents under Section 129. Now, it is provided that goods will be released on payment of a penalty equal to 200% of tax and tax will be recovered through separate proceedings.
PROVISIONAL ATTACHMENT OF ASSETS OF BOGUS BILLING BENEFICIARIES ALSO:
GST department is all set to act tough against fake invoice cases. Now, not only the supplier but also of the recipients will be subject to the penal consequences. Now, it has been provided that the assets of the beneficiaries of bogus bills can also be provisionally attached. It may carry the chain effect and can have serious consequences at multiple levels.
SCOPE OF PROVISIONAL ATTACHMENT WIDENED:
Now, the power of Provisional attachment is made applicable in all cases of proceedings of Assessment, Inspection, Search, Seizure and Arrest or Demands and Recovery. Now, provisional attachment of property, like bank accounts, etc can be done not only in the case of Show Cause Notices and investigation but also for other proceedings like Scrutiny of Returns and tax collected but not paid.
25% PRE-DEPOSIT FOR E-WAY BILL APPEALS:
Any appeal against violation of the E-way bill related issues will now be subject to higher filing fees regulation. Now, for filing appeals before the first appellate authority against order for violation of E-way bill and other provisions, it will be mandatory to make a pre-deposit of an amount equal to 25% of the penalty imposed.
E-WAY BILL CO-NOTICEE MAY NOT GET FREE BY PAYMENT OF 200% PENALTY BY MAIN NOTICEE:
At present, where proceedings against main person liable to pay tax have been concluded under Section 74, proceedings against co-noticee are also deemed to have been concluded. This is provided under Explanation 1(ii) to Section 74. However, now such benefit will not be available to co-noticee for proceedings initiated to impose penalties for violation of E-way bill. It means that the co-noticee will be subject to equal penal consequences as the main person.
GST RATE HIKE:
a) The rate of GST on works contract service provided to Governmental authority and entity has been enhanced from 12% to 18%. Similarly, exemption in respect of pure services by way of any activity in relation to any function entrusted to panchayat has been withdrawn.
b) The GST Rate of footwear products has been increased from 5% to 12%
Budget, Gst Rules
Union Budget 2023: Important changes proposed in CGST and IGST Acts:*
SEZ unit not required to pay GST under RCM
GST, Gst Rules
GST Penalty on Transport of Goods without E-way Bill: An overview
Launch of 5 new reports on ADVAIT portal (GST)
Whether Cash can be seized by the GST Department?
GST ON THE FREELANCER CONTENTS WRITER, VLOGGERS, BLOGGERS, YOUTUBER, & SOCIAL MEDIA INFLUENCERS
Applicability of GST on by-products of milling of Dal/ Pulses such as Chilka, Khanda and Churi/Chuni
Mistake of filing Form-B2B instead of B2C: Orissa HC Allows Correction in GSTR-1 to get ITC
Cgst Acts, GST
Cases in various court against disallowance of ITC U/s 16(4)
Circular, GST
CBIC circular No. 189/2023: Clarification about GST rates and classification of goods
CBIC issued circular on clarification on classification of certain services no 190/2023
Clarification regarding GST rates and classification of certain goods based on the recommendations of the GST Council in its 48th meeting held on 17th December, 2022 –reg.
New Functionality in GST Returns: A Short Overview
GST Advisory on "Initiating Drop Proceeding" by taxpayers
GST, Income Tax, The Planning
Compliance Calendar for Jan- 23 Happy New Year