CHANGE IN PROVISION OF GOODS AND SERVICE TAX

1. A new clause proposed to inserted for availment of Input tax Credit (ITC). The input tax credit on invoice or debit note can be availed only if supplier furnish in statement of outward supplies i.e. GSTR 1.

2. Mandatory requirement of getting annual accounts audited and furnishing of Reconciliation Statement has been done away with. Further, furnishing of annual return with self-certified reconciliation statement has been facilitated. The Commissioner has been empowered to exempt a class of taxpayers from the requirement to file annual return

3. Retrospective amendment (with effect from July 01, 2017) under proviso to Section 50(1) of the CGST Act has proposed to provide that Interest under GST to be charged on ‘Net Cash Liability’ component retrospectively.

4. Definition of ‘self-assessed tax’ has been amended to provide that it shall include the tax payable in respect of outward supplies furnished in Form GSTR-1, but not included in Form GSTR-3B.

5. During the preceding under chapter XII, chapter XIV or chapter XV, the commissioner for the purpose of protecting interest of government revenue he may attached provisionally any property including bank account.

6. Provisions for ling appeal against order of detention of goods or conveyance by proper officer has been proposed to be amended to provide that 25% of the penalty is required to be paid before filing of any appeal.

7. Sub-section (1)(a) of Section 129 is substitutin g , Seeks to increase the payment of penalty (previously penalty and tax) from 100% to 200 % for releasing of detained or seized goods and conveyance. Previously, tax and penalty equal to 100% were to be paid for release of detained or seized goods and conveyance.

8. Sub-section (1)(b) of Section 129 is substituting , Seeks to change options for release of detained or seized goods and conveyance for taxable goods where owner does not come forward: Penalty equal to 50% of value of goods; or 200% of tax payable on such goods , Whichever is higher.

9. AS per section 129(2 ) Seeks to provide that goods seized shall not be released on provisional basis upon execution of a bond and furnishing of a security, in such manner and of such quantum. This means that the penalty imposed by the officer will have to be paid in cash by the taxpayer. Earlier the provision was if person does not pay tax and penalty within 14 days of seizure, the conveyance and goods detained were liable for confiscation as per Section 130. But, after this amendment, the goods or conveyance detained or seized shall become liable to be sold or disposed off in the manner prescribed in case the payment of imposed penalty is not made within 15 days from the date of receipt of copy of the order imposing such penalty.

10. Definition of Zero-rated supply has been proposed to be amended. As per this, only notified class of persons and notified class of goods or services can make zero rated supply with payment of IGST.

11. Foreign exchange realization would be mandatory for refund of unutilized ITC for zero rated supply of goods. In case of non-realisation, benefit of refund would be deposited along with interest.

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Author Bio

Qualification: CA in Practice
Company: Shubham Agarwal & Co
Location: Agra, Uttar Pradesh, IN
Member Since: 07 Feb 2021 | Total Posts: 1
A Practising Chartered Accountant in the field of Accounting, Book Keeping, Due Diligence, Direct and Indirect Tax Consulting, Mergers & Acquisition, Audits and Assurance, Registrations & Annual Compliances, Project Financing and Project Implementation with a wide expertise and experience in View Full Profile

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