With the beginning of New Year 2020, there came a lot of changes in the taxation system of the country. Especially when Nirmala Sitharaman presented Budget, the whole country got to know its new income tax slab rate for the year. Similarly, various changes took place under GST with the beginning of the year 2020. For the GST update today, there are certain points that tax payers must keep in their minds. Following are certain important things discussed that are applicable in GST for the New Year 2020.
- ITC Restrictions- The central board of indirect taxes and customs (CBIC) , earlier inserted to rule 36, a new sub rule (4) which stated that suppliers who have not uploaded any details about invoices/debit notes in GSTR-01 can claim ITC to the extent of 20% of the eligible credit of the details uploaded invoices or debit notes.
Now under this Rule 36(4) of CGST rules, this percentage has been substituted by 10% with effect from 1st Jan 2020. In other words, the suppliers who have not uploaded details about invoices or debit notes in GSTR-01, they can avail ITC up to 10% of the eligible total credit.
- Commissioner’s power under the new rule 86A- New rule 86A of CGST Rules give power to the commissioner that he can decide and amend the conditions for the use of available ITC in electronic credit register. The amendment says that commissioner will not allow debiting of amount for the discharge of tax liabilities or the claim of refunds if he has reasons to believe that;
- Tax credit has been availed fraudulently on the basis of invoices obtained from the person who does not exist or from a person who is not carrying on business despite having registration for the same.
- Such Tax credit that has been availed without the receipt of goods and services.
- Tax credit has been availed based on the value of tax invoices etc.
- Restriction on the generation of E- way bill on failure to file GSTR-1- The amended rule 138E of CGST rules says, that in case of failure of file GSTR-1 for two continuous months and quarters would lead to block of generation of E- way bill. So, it becomes mandatory to file GSTR- 1 and GSTR- 3B regularly in the year 2020.
- Mandatory E- invoicing- This rule states that every person registered under GST whose aggregate turnover is exceeding 100 crores in a financial year on PAN India basis shall mandatorily generate E- invoice in case of Business to business (B2B) supplies and inform through the authorized portals of GST. For the easy adaptability by the tax payers, the websites are accessible since Jan 01, 2020. Tax payers can make relevant changes to their system and to their IT infrastructure so that they can generate e- invoices to ensure smooth transition.
- To create QR codes for Business to customer (B2C) supplies- This rule states that in case where the invoices are issued by a registered person (whose aggregate turnover is exceeding 500 crores in a financial person) to an unregistered person (B2C invoice) in that case, mandatory quick response code (QR Code) should be created.
- New GST return system- The council in its 31st meeting declared that a new GST return system will be introduced. A system which will allow the simplification and automation of GST returns. This will come into force from April 1 2020. This new system will demand more compliance and will also help in reducing tax evasion. The council has already approved this plan and it got released via press release on June 11 2019. This system will introduce two new forms which will come into force from April 1, 2020. The forms are mentioned below
GST ANX- 1 (Annexure of supplies) In this annexure, details related to outward supplies, import of goods and services and inward supplies liable to reverse charge will be included.
GST ANX-2 (Annexure of inward supplies) In this, details related to inward supplies from registered persons, imports made, and supplies which are received from an SEZ unit/developer will be included.
- Waiver of late fees for Non filing of GSTR 1- This rule states that the tax payers who failed to file GSTR 1 from July 2017 to November 2019 are allowed to file their return till Jan 10 2020 without requiring to pay any late fees for the same.
- Extension of last date for TRAN-1 and TRAN-2- As per the new rules, the registered tax payers can now furnish the forms of TRAN 1 and TRAN 2 till 31 March 2020 and April 30 2020 respectively.
9. GST audit and annual Return for F.Y 17-18 & F.Y 18-19- The due date for filing GST Annual Return i.e. GSTR – 9 and Audit Report, Reconciliation Statement i.e. GSTR – 9C for the F. Y. 2017-18 has been further extended to January 31, 2020. Further, the due date for filing GSTR – 9 and GSTR – 9C for the F.Y 2018-19 has been extended to March 31, 2020.
Apart from these there are many other latest news on GST bill that took place under GST with the beginning of the year 2020.
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