The Finance Bill, 2021 has been introduced in the Lok Sabha on 1st February, 2021 and has proposed various amendments under Indirect taxes.
1. A new clause under (aa) under Section 16(2) relating to Eligibility and Conditions for taking input tax credit is being proposed to be inserted to provide that ITC on invoice or debit note may be availed only when the details of such invoice or debit note have been furnished by supplier under GSTR-1 and such details have been communicated to the recipient.
2. The requirement of filing an Audit Report in Form GSTR-9C certified by a specified professional has been proposed to be done away with. However, notified class of tax-payers shall now be required to file a self-certified statement reconciling the GST returns with audited financial statements which shall form part of annual return in Form GSTR-9 filed under Section 44.
3. Section 50 relating to Interest on delayed payment of tax has been proposed to be amended retrospectively from 1st July, 2017 to provide for interest on net cash payable in case of delayed filing of returns. The said benefit shall not be available in cases where the return is furnished after commencement of any proceedings under Section 73 or Section 74 of the CGST Act, 2017 and in case of non-reporting transactions and the interest is to be payable on that portion of the tax which is paid by debiting the electronic cash ledger.
4. Provisions of Section 107 i.e. Appeals to Appellate Authority has been proposed to be amended to provide for pre deposit of 25% of penalty amount (i.e. 200% now) for making any appeal against an order specifying the tax and penalty made under sub-section (3) of section 129 by the officer detaining or seizing goods or conveyances.
5. An explanation has been proposed to be inserted to Section 75(12) relating to determination of tax to clarify that “self-assessed tax” shall also include transactions reported in GSTR-1, even if not reported in GSTR-3B. The amendment shall allow tax authorities to recover such differential tax.
6. It has been proposed that penalty under Section 129 relating to transportation and storage of any goods in contravention of provisions of GST Act should be increased from 100% to 200%.
7. Section 83 relating to Provisional attachment to protect revenue in certain cases has been proposed to be amended to provide that powers of attachment of property including bank account as given to the commissioner has been widened to include all proceedings under XII(Assessment), XIV(Inspection, Search, seizure and Arrest) and XV(Demands and Recovery).
8. Form and manner in which the information under section 151 shall be called by the jurisdictional commissioner or any officer authorised by him from any person relating to any matter under this act shall be notified in due course.
