1st July is celebrated as GST Day in India. Goods and Services Tax enters the 4th year today. Since the roll out of GST in 2017, the Central and State Governments have worked in tandem to make compliance simpler for the businesses in India and taken pro-active steps to address concerns of the tax payers. During the last year, the Government has made constant changes to the compliances more so to ensure easing compliance burden to businesses already hit by the COVID-19 pandemic. We now look back at some of the key changes made in GST compliances over the last year.
Key amendments made under GST during last year:
Changes in input tax credit / electronic cash ledger
- Concept of Provisional Input Tax Credit (ITC) introduced to restrict credit availment for invoices not appearing in GSTR-2A to the extent of 10% of the invoices reflecting therein. However, in view of COVID-19, ITC on provisional basis can be claimed based on book of accounts from February, 2020 to August, 2020 and the same can be adjusted in the month of September 2020 on an overall basis.
- In order to curb, fraudulent availment of ITC, Commissioner has been empowered to restrict utilisation of ITC or refund of unutilized amount to the extent he may have reasons to believe, to be recorded in writing, the ITC available in credit ledger of the taxpayer has been fraudulently availed.
- Form PMT-09 has been introduced for transfer of amount from one head to another head to enable taxpayer to transfer any amount of tax, interest, penalty, etc. that is available in the electronic cash ledger to the appropriate tax or cess head under IGST, CGST and SGST in the electronic cash ledger.
Relaxation provided due to Covid-19
- Late fees for non-furnishing of FORM GSTR-3B from period July, 2017 to July, 2020 for registered persons who have no central tax liability has been completely waived and for those having late fee liability upto INR 500/- in respective months, the liability in excess of such amount has been waived provided these returns are furnished on or before 30th September, 2020.
- Late fee for delay in furnishing outward statement in FORM GSTR-1 for tax periods for months from March, 2020 to June, 2020 has been waived.
- The due date for furnishing summary return in Form GSTR-3B for the month of August,2020 has been extended for taxpayers having aggregate turnover of up to Rs 5 Crore.
- Filing of Nil GSTR-3B returns through SMS allowed.
- Extension in time limit to issue an order on GST refund application and for filing of appeal, furnishing of return, statements, applications, reports, any other documents, time limit for any compliance under GST which is due within 20th March, 2020 to 30th August, 2020 till 31st August, 2020 with certain exceptions.
Online Facilities Introduced
- To ensure timely filing of monthly GST returns, the facility of blocking of generation of e-way bill has been brought in. In case, a taxpayer does not furnished returns in Form GSTR-3B and/or GSTR-1 consecutively for two tax periods, he shall not be allowed to generate E-way bill.
- Concept of e-invoicing brought in for taxpayers having an aggregate turnover of more than Rs 100 crore in previous financial year. Further, taxpayers having an aggregate turnover of more than Rs 500 crore in previous year and who are into B2C sale are required to have OR code on tax invoices issued. However, the implementation has been deferred till 30th September 2020 and is presently available on trial basis.