The GST Law was implemented from 01st of July 2017 after subsuming several taxes and levies. About 17 laws such as central excise law, service tax law, value added tax, entertainment tax etc. were subsumed. The GST Law is going to prove to be very beneficial for an Honest Taxpayer.
The GST Law is friendly and boon for a Taxpayer because
1. Minimum compliance after introduction of GST Law;
2. Minimum compliance cost as compare to cost being incurred in erstwhile law;
3. Zero litigation under the GST for an honest taxpayer;
The GST Law do not believe in litigation. The provisions of the GST Law are such that before initiating any proceedings the GST Law give chance to the tax payer to rectify the same. If the Taxpayer rectifies/amends any discrepancy suo moto or rectifies/amends the mistake as informed through the notice received from the GST Authority, the notice issued is dropped automatically without taking any further action.
Analysis in account of friendly provisions of the GST Law is as under:
Registration
1. No Fee for the Application for Registration
2. The Registration Application shall have to dispose off within seven working days from the date of filing of registration.
3. No physical verification except in doubtful cases, is required before granting registration.
4. Grant of Registration shall be deemed to be grant of registration if the application for registration has not been rejected within time specified under section 25(10) of the Act.
Registration Amendment
1. No Fee for Application for amendment of registration
2. Amendment in regard to any particulars other than change in legal name of the business, change in principal place of business, additional place of business or change relating to partners or directors, Karta, Managing Committee, Board of Trustees, Chief Executive Officer, shall stand amended upon submission of the application in FORM GST REG-14 on the common portal. No interference is allowed to the GST Officer for such amendments.
3. The Officer shall have to dispose off amendment application within 15 days from the date of submission of amendment application and within seven days from the date of receipt of the reply to notice issued in regard to amendment application.
4. If the officer fails to take any action on application for amendment for registration or after receiving reply to the notice within stipulated period stated under rule 19 CGST, the certificate of registration shall stand amended to the extent applied for and the amended certificate shall be made available to the registered person on the common portal.
Application for Cancellation of Registration
1. No fee for Application for cancellation of registration
2. The proper officer shall drop the proceedings on receiving satisfactory reply to the notice for cancellation of registration.
3. If notice for cancellation of registration was issued due to non filing of returns, then if all returns are furnished with tax, interest and late fee, the proper officer shall drop the proceedings. No reply from the person concern shall be required in this case.
Order Cancelling the Registration
1. The facility to file the application for revocation of cancellation of the registration is available if cancellation of registration was done by the GST Officer. No need to file the appeal.
GST Returns
1. GST return may be filed at any time and from anywhere.
2. Signature on the return may be done from anywhere through EVC mode.
3. Hard copy of the return is not required to be submitted as was happened in the VAT regime.
4. GST Return will be blocked if the previous return was not filed. If GSTR-1 Oct Month was not filed, the return GSTR-3B Oct month will be blocked to file. It will be unblocked immediately after filing GSTR-1 Oct month. This practice will stop unscrupulous persons in the business society. The honest taxpayer shall be benefitted and saved from such persons who filed only GSTR-1 but were not filing GSTR-3B.
Auto Self-Generated Returns
1. GSTR-1 will be auto generated return on the basis of e-invoices issued and eway bills issued. The Taxpayer shall have to fill other details which are not linked with e-invoice portal and eway bills portal.
2. GSTR-3B will also be auto generated return. Outward Supply figures will be auto populated from the GSTR-1 and Input Tax Credit figures will also be auto populated from the GSTR-2B. The Taxpayer shall have to check only the auto populated GSTR-3B return. The return shall be filed after incorporating the details which are not auto populated and edit those figures which may be required.
E-Way Bills
1. For supply of goods e-way bill may be issued by any person i.e.Supplier or Recipient or Transporter.
2. The E-Way bill portal provides auto details to be filled in the e-way bill. Such as name and address of the recipient after just filling of GSTIN of the recipient, distance where to goods to be dispatched after filing pincode etc. .
3. The detained goods may be released before final order subject to payment of penalty or furnishing of the security bond.
Input Tax Credits
1. The GST Authority is providing inward supply details through GSTR-2B every month. By virtue of this Form GSTR-2B it has become easy to a Taxpayer to avail correct input tax credit and fulfill the conditions stated under section 16(2) of CGST Act. The GSTR-2B is enabling the taxpayer:
1.1 To match the inward supplies;
1.2 The inadvertent mistakes may be rectified within reasonable time;
1.3 To fulfill the condition enumerated under section 16(2)(aa);
1.4 To provide the details of such input tax credit which are restricted under section 38;
1.5 To know the status of the supplier whether he has filed returns or not and
1.6 To verify the credibility of his supplier.
NOTICES and ASSESSMENTS
GST Assessment is based on self-assessed. No assessment is regularly required on time bound basis as was done in erstwhile law of VAT. If any discrepancy is come to the notice of the GST Authority, the GST Authority give opportunity by issuing a notice for rectifying the same. If the taxpayer has rectified the mistake by paying additional payment of tax, interest and penalty or by filing satisfactory reply then the notice shall be dropped without taking any further action. If no satisfactory response is come from the taxpayer, then relevant action may be taken under the law.
The GST Law do not believe in litigation. In every case the opportunity is given under the law to rectify the same before taking any action.
Here, we shall discuss how notices issued are friendly under the GST Law.
Section 61 (Scrutiny of returns) – Sub-section (2) – In case the explanation is found acceptable, the registered person shall be informed accordingly and no further action shall be taken in this regard.
Section 62 (Assessment of non-filers of returns) – Sub-section (2) – Where the registered person furnishes a valid return within thirty days of the service of the assessment order under sub-section (1), the said assessment order shall be deemed to have been withdrawn…
Section 73 (Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts) – Sub-section (5) – The person chargeable with tax may, before service of notice under sub-section (1) or, as the case may be, the statement under sub-section (3), pay the amount of tax along with interest payable thereon under section 50 on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment.
Sub-section (6) – The proper officer, on receipt of such information, shall not serve any notice under sub-section (1) or, as the case may be, the statement under sub-section (3), in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder.
Section 74 (Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts) – Sub-section (5) – The person chargeable with tax may, before service of notice under sub-section (1), pay the amount of tax along with interest payable under section 50 and a penalty equivalent to fifteen per cent. of such tax on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment.
Sub-section (6) – The proper officer, on receipt of such information, shall not serve any notice under sub-section (1), in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder.
Appeal
Section 107(7) – Stay of balance Disputed demand automatically subject to payment of ten percent amount in dispute.
Section 107(13) – Limitation period to pass the order – The Appellate Authority shall, where it is possible to do so, hear and decide every appeal within a period of one year from the date on which it is filed.
Miscellaneous beneficial provisions for a Tax Payer
Section 75(4) – An opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person.
Section 75(7) – The amount of tax, interest and penalty demanded in the order shall not be in excess of the amount specified in the notice and no demand shall be confirmed on the grounds other than the grounds specified in the notice.
Section 75(10) – The adjudication proceedings shall be deemed to be concluded, if the order is not issued within three years as provided for in sub-section (10) of section 73 or within five years as provided for in sub-section (10) of section 74.
Section 75(13) – Where any penalty is imposed under section 73 or section 74, no penalty for the same act or omission shall be imposed on the same person under any other provision of this Act.
Section 80 – Liability other than self-assessed liability to pay in installments – Due amount other than the amount due as per liability self-assessed may be allowed to be paid in maximum 24 installments subject to payment of interest.
Section 138 – Compounding of offences
The Taxpayer is now free from collection of statutory forms against central sale, free from issuing of statutory forms against central purchase, saving amount as to be spent on account missing statutory forms and free from the burden of getting yearly assessment etc..
To reach to me for any suggestions, rectifications, amendments and/or further clarifications in regard of this article my email address is [email protected].
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