The federal government has notified a bunch of procedural adjustments within the GST guidelines, together with levy of curiosity for wrongful utilisation of ITC and turnover threshold for submitting annual returns for the 2021-22 fiscal.
The adjustments had been vetted by the Items and Providers Tax (GST) Council at its assembly final week.
With the amendments notified by the Central Board of Oblique 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.
Companies with mixture annual turnover of as much as Rs 2 crore within the fiscal ended March 31, 2022, are exempt from submitting annual returns for 2021-22, as per the amended guidelines.
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 availability would come into impact from July 5 and would apply retrospectively from July 1, 2017, — the date of GST rollout.
Deloitte India Companion, Chief Oblique Tax, Mahesh Jaising mentioned the notification issued for retrospective modification to Part 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 Companion Abhishek Jain mentioned the GST legislation has been suitably amended to say that curiosity shall be payable solely in respect of the ITC availed and utilised. “This transformation is far appreciated, and places a remaining near this subject.”
The amendments additionally present for automated revocation of GST registrations cancelled as soon as the return submitting is regularised.
“This can scale back the effort and time spent by taxpayers in getting registrations revoked even after regularisation of the return filings. It’ll scale back the interplay and enhance the faceless compliances underneath GST, Jaising mentioned.
Jain mentioned these adjustments in guidelines 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 underneath GST.
AMRG & Associates Senior Companion Rajat Mohan mentioned different vital adjustments embody extension of time-limit specified underneath Part 73 (dedication of tax) underneath the GST Act for issuance of an order for FY 2017-18 to September 30, 2023.
Nonetheless, no extensions have been offered for another monetary yr.
“In relation to the delayed submitting of refund functions throughout the COVID interval (March 1, 2020 to February 28, 2022), appropriate extension has been granted that can allow quite a few exporters to encash the refunds caught in litigation,” Mohan mentioned.
Jain mentioned that contemplating the COVID state of affairs of the final two years for India, the federal government has prolonged the limitation interval underneath GST for issuance of discover to taxpayers who haven’t paid/ quick paid the tax due. Equally, leisure in limitation is granted for submitting refunds.
“Whereas the intention of the federal government is to curb income leakage, this modification retains the companies uncovered to departmental audits and assessments for some extra time. This being mentioned, this modification additionally ensures that real taxpayers should not denied their refund claims,” Jain added.
In accordance with Mohan, the style of calculation of curiosity on delayed fee of tax has been notified and that may assist taxpayers in making exact calculation of the tax dues.
As per the amended guidelines, each bill issued by an MSME provider could have a regular declaration printed on bill concerning non-applicability of e-invoice.
Additionally, money ledger steadiness might be transferred from one GST registered entity to a different underneath the identical PAN.
(Solely the headline and movie of this report could have been reworked by the Enterprise Customary employees; the remainder of the content material is auto-generated from a syndicated feed.)