Section 29 is proposed to be amended so as to provide that the registration of a person is liable for cancellation, where –
A person under composition scheme has not furnished the return for a financial year beyond three months from the due date;
A person, other than under composition scheme, has not furnished returns for such continuous tax period as may be prescribed
Section 47 is proposed to be amended so as to provide for levy of late fee for delayed filing of GSTR-8 return by persons deducting TCS under section 52
Section 49 is proposed to be amended to provide for prescribing the maximum proportion of output tax liability which may be discharged through the electronic credit ledger.
Section 49 of the CGST Act is proposed to be amended to allow transfer of amount available in electronic cash ledger under the CGST Act of a registered person to the electronic cash ledger under the said Act or the IGST Act of a distinct person.
It will help in improving the liquidity of all those taxpayers who have got multiple registrations in different states.
Section 50(3) is proposed to be amended retrospectively, w.e.f. 01.07.2017, to provide that interest would be charged on the ineligible input tax credit, only when such credit has been availed as well as utilized.
Also, the rate of interest notified under Section 50(3) is proposed to be reduced retrospectively, w.e.f. 01.07.2017 to 18% per annum from the existing rate of 24% per annum.
It will help in the removal of ambiguity and legal disputes on the issue, thus benefiting taxpayers at large.
Section 54 is proposed to be amended to :
Increase the time limit for claiming refund of tax paid on inward supplies of goods or services by a specialized agency of the United Nation/Diplomatic missions, etc. to two years from the last day of the quarter in which the said supply is received.
To provide clarity regarding the relevant date for filing refund claim in respect of supplies made to a Special Economic Zone developer or a Special Economic Zone Unit.
To provide clarity regarding the manner of availing refund of balance in electronic cash ledger.
It will help in removing doubts and legal disputes, and also for aligning the provisions of sub-section (2) with sub-section(1) of Section 54
The time limit for the following compliances in respect of a particular FY has been proposed to be extended and fixed to 30th November, of the next financial year:
Section 16(4) : Claiming of ITS in respect of any invoice or debit note
Section 34(2) : Issuance of credit note and declaration of details thereof
Section 37(3) : Rectification of particulars in details of outward supplies
Section 39(9) : Rectification of particulars furnished in a return
Section 52(6) : Rectification of particulars in the statement furnished by TCS operator
It will help in-
Making the timelines synchronous across various sections of the Act, and
would provide additional time to taxpayers for rectification of errors in GSTR-1/GSTR-3B/GSTR-8 or for availing ITS, etc.
Proposals to Streamline return filing under GST
Amendments are proposed in CGST Act to align the legal provisions relating to return filing in GST with the present GST-1/GSTR-3B return filing system.
Section 37 of the CGST Act is proposed to be amended.
To provide for tax period-wise sequential filing of GSTR-1
To do away with two-way communication process in return filing
Section 38 of the CGST Act is proposed to be substituted for;
Communication of details of inward supplies and input tax credit to the recipient by means of an auto-generated statement.
Such auto-generated statement to contain the details of inward supplies in respect of which input tax credit may be availed and the details of supplies on which input tax credit cannot be availed by the recipient.
Section 16 of the CGST Act is being amended to provide that input tax credit with respect to a supply can be availed only if such credit has not been restricted in the details communicated to the taxpayer under Section 38
Section 39 is proposed to be amended.
To provide for the mandatory requirement of filing of GSTR-1 before filing of GSTR-3B return for a tax period
To change the due date of filing of return of a month by Non-Resident Taxable person to 13th of the following month
Section 41 of the CGST Act is proposed to be substituted so as:
To do away with the concept of “claim” of eligible input tax credit on a “provisional” basis
To provide for availment of self-assessed input tax credit subject to such conditions and restrictions as may be prescribed
To provide for a mechanism for reversal of input tax credit if tax thereon has not been paid by the supplier.
Section 42,43, and 43A of the CGST Act are being omitted so as to do away with –
The concept of “claim” of eligible input tax credit on a “provisional” basis and subsequent matching, reversal and reclaim of such credit.
Concept of matching, reversal and reclaim of reduction in output tax liability
Two-way communication in return filing.
GST Revenue for January 2022
The gross GST revenue collected in January 2022 is Rs 1,38,394 croreof which CGST is Rs 24,674 crore, SGST is Rs 32,016 crore, IGST is Rs 72,030 crore (including Rs 35,181 crore collected on import of goods) and cess is Rs 9,674 crore (including Rs 517 crore collected on import of goods).
The revenues for the month of January 2022 are 15%higher than the GST revenues in the same month last year and 25% higher than the GST revenues in January 2020. During the month, revenues from import of goods were 26% higher and the revenues from the domestic transactions (including import of services) are 12% higher than the revenues from these sources during the same month last year.
Upcoming GSTR-1 enhancements & improvements :
The statement of outward supplies in FORM GSTR-1 is to be furnished by all normal taxpayers on a monthly or quarterly basis, as applicable. Quarterly GSTR-1 filers have also been provided with an optional Invoice Furnishing Facility (IFF) for reporting their outward supplies to registered persons (B2B supplies) in the first two months of the quarter.
The previous phase of GSTR-1/IFF enhancement was deployed on the GST Portal in November 2021. The next Phase of the GSTR-1/IFF improvements would be implemented shortly on the Portal.
GSTR-1/IFF can be viewed as usual by navigating in the following manner :
Return Dashboard > Selection of Period > Details of outward supplies of goods or services GSTR-1 > Prepare Online
The following changes are being done in this phase of the GSTR-1/IFF enhancements :
Removal of ‘Submit’ button before filing : The present two-step filing of GSTR-1/IFF involving ‘Submit’ and ‘File’ buttons will be replaced with a simpler single-step filing process . The upcoming ‘File Statement’ button will replace the present two-step filing process and will provide taxpayers with the flexibility to add or modify records till the filing is completed by pressing the ‘File Statement’ button.
Consolidated Summary : Taxpayers will now be shown a table-wise consolidated summary before actual filing of GSTR-1/IFF. This consolidated summary will have a detailed & table-wise summary of the records added by the taxpayers.
Recipient wise summary : The consolidated summary page will also provide recipient-wise summary, containing the total value of the supplies & the total tax involved in such supplies for each recipient. The recipient-wise summary will be made available with respect to the following tables of GSTR-1/IFF, which have counter-party recipients :
– Table 4A : B2B supplies
– Table 4B : Supplies attracting reverse charge
– Table 6B : SEZ supplies
– Table 6C : Deemed exports
– Table 9B : Credit/Debit notes
The functionality will be made available on the GST Portal shortly, and the same will be intimated to taxpayers. For detailed advisory & sample screenshots of the upcoming GSTR-1/IFF improvements & enhancements, please click here