Weekly GST updates

 Goods & Services Tax (GST) updates

• The late fee payable for delay in furnishing of FORM GSTR-4 for the FY 2019-20 under section 47 of the said Act, from the 1^st November, 2020 till the 31^st December, 2020 shall stand waived for the registered person whose principal place of business is in the Union Territory of Ladakh.

• CBIC has issued a notification 94/2020 relating to the amendment in rules 4, 8, 9, 21, 21A, 22, 36, 59, 138 and 138E & insertion of new rule 86B

Rule 8 amendment:

To apply a new registration the taxpayer has to undergo

• Biometric-based Aadhaar authentication and taking photograph or
• Taking biometric information, photograph and verification of such other KYC documents & physical verification

Rule 9 amendment:

For a new registration the department will be taking 7 days instead of 3 days (if Aadhar Authentication is done) else 30 days after physical verification.

Rule 21 Amendment:

The GST Registration can be cancelled by the department if:

• The Assessee has claimed ITC more than what is eligible under Sec 16
• Outward Supply details (Sales) declared more than one time in GSTR1 by mistake
• Violates Rule 86B, which is inserted now under this notification

Rule 21 amendment:

The registration will be suspended after giving 30 days’ time to explain the reason when there is significant differences or anomalies in GSTR 1 & GSTR 3B & GSTR 2A

Rule 36(4) amendment:

An assessee can avail ITC only upto 105% of his Suppliers filed data in their respective GSTR1, which is populated as GSTR2A for the assessee.

Rule 59 amendment:

The registered person will not be allowed to furnish details of GSTR-1 or in Invoice Furnishing Facility if

• He has not filed his GSTR-3B for preceding 2 Months – in case of monthly filers of GSTR 3B
• Has not filed GSTR-3B for preceding periods – in case of registered persons opting for QRMP
• He has not furnished GSTR 3B for the preceding month to whom rule 86B  applies

Rule 138 amendment

The validity of the e-way bill has been revised from 1 day for every 100 kms to validity of 1 day for every 200 kms.

Rule 86(B)

The rule has restricted to use the amount available in the electronic credit ledger to discharge his liability towards output tax in excess of ninety-nine per cent of such tax liability in cases where the value of taxable supply other than exempt supply and zero-rated supply, in a month exceeds fifty lakh rupees i.e. an assessee has to pay 1% of his liability mandatorily through Cast ledger even if he has adequate ITC in his Credit ledger if his taxable supply exceeds Rs. 50 Lakhs.