Latest Changes in GST Rules and Procedures by GST Council

Last Updated at: March 16, 2020
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Latest Update

 

  • The GST Council, in its recent meeting on 18 December, has notified important changes to certain GST rules and procedures.
  • The input tax credit has been lowered from 20% to 10% of eligible credit.
  • This reduction will be effective if debit notes or invoices are not reflected in GST Returns.
  • In case credit is availed fraudulently, officers at the level of commissioners are empowered to bar the debit of the input tax credit for 1 year.
  • E-way bills of taxpayers who failed to file their GSTR-1 for more than two quarters or two months will be blocked.
  • All the above rules will be effective from 1st January 2020.
Latest changes in GST

This New Year, we are going to witness important changes in the existing GST rules and procedures. The GST Council of India discussed and approved certain amendments into the GST rules in its 38th meeting held recently on 18th December 2019. These changes are seen as an attempt to combat the menace of fake invoicing and to check tax evasion. These amendments are being enforced from 1st January 2020.

register for GST online

One notable change in this regard is the reduction of the input tax credit from the existing 20% to 10% of the eligible credit if the debit notes or invoices are not aptly reflected during the filing of Form GSTR-2A. The council also approved in its meeting, a proposal to bestow certain powers upon the tax officers at the level of commissioners in this regard. From now on, these officers will be able to bar the debit of the input tax credit for 1 year, if anomalies are found. If the commissioner concludes, beyond a reasonable doubt, that the input tax credit has been availed fraudulently, he/she may not allow any refund claimed against any unutilised amount or may not permit the debit against the discharge of any liability.

An SOP (Standard Operating Procedure) is being issued for tax officers to earmark the actions to be taken against the non-filling of GSTR 3B returns as well.

In the meeting, another decision was taken to block the e-way bills of taxpayers who failed to file their GSTR-1 form for more than two quarters or two months. Notification is also issued to waive off the late fee for entities if they submit the outward supply details in their GSTR-1 (pending for the period July 2017 to November 2019) between the window starting from 19th  December 2019 to 10th  January 2020.

Our take on the notifications/amendments approved in this meeting:

In a way, it was good to see that major rates have not been changed as frequent changes lead to business difficulties. Ample focus has been kept on revenue augmentation measures and this may result in various anti-evasion measures coming into force in the days to come. The waiver of late fee on pending GSTR-1 submission is also an important step to encourage business entities.

 

 

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Latest Changes in GST Rules and Procedures by GST Council

579

This New Year, we are going to witness important changes in the existing GST rules and procedures. The GST Council of India discussed and approved certain amendments into the GST rules in its 38th meeting held recently on 18th December 2019. These changes are seen as an attempt to combat the menace of fake invoicing and to check tax evasion. These amendments are being enforced from 1st January 2020.

register for GST online

One notable change in this regard is the reduction of the input tax credit from the existing 20% to 10% of the eligible credit if the debit notes or invoices are not aptly reflected during the filing of Form GSTR-2A. The council also approved in its meeting, a proposal to bestow certain powers upon the tax officers at the level of commissioners in this regard. From now on, these officers will be able to bar the debit of the input tax credit for 1 year, if anomalies are found. If the commissioner concludes, beyond a reasonable doubt, that the input tax credit has been availed fraudulently, he/she may not allow any refund claimed against any unutilised amount or may not permit the debit against the discharge of any liability.

An SOP (Standard Operating Procedure) is being issued for tax officers to earmark the actions to be taken against the non-filling of GSTR 3B returns as well.

In the meeting, another decision was taken to block the e-way bills of taxpayers who failed to file their GSTR-1 form for more than two quarters or two months. Notification is also issued to waive off the late fee for entities if they submit the outward supply details in their GSTR-1 (pending for the period July 2017 to November 2019) between the window starting from 19th  December 2019 to 10th  January 2020.

Our take on the notifications/amendments approved in this meeting:

In a way, it was good to see that major rates have not been changed as frequent changes lead to business difficulties. Ample focus has been kept on revenue augmentation measures and this may result in various anti-evasion measures coming into force in the days to come. The waiver of late fee on pending GSTR-1 submission is also an important step to encourage business entities.

 

 

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