Notification – Govt has inserted many critical amendments in the latest notification No 94/2020- CGST Dated on 22nd Dec 2020

Rule 21 Earlier commissioner did not have prescribed rule for cancelling the registration but after insertion of clause (e) and (f) commissioner has also prescribed power to cancel the GST Registration in case there is noncompliance as per section 16. The suspension can now happen even without a hearing. Most important is 16(2) wherein proof of payment of tax by the supplier, in case of GST paid by the recipient to the supplier is ultimately not paid to government the department may ………

Rule 21(A)2 Its provide the suspension of GST Registration in case there is reason to believe violation of Rule 21. The suspension can now happen without a hearing. In this I feel govt officer has also be very careful while implementing this rule until and unless they have a valid proof regarding this they can not follow because of after applying the rule by officer tax payer will be able to issue invoices as well as EWB till such suspension continuous.

Rule 21(2A)- Comparision of the returns furnished by the register person under section 39 and 37-

Again here difference between GSTR2A & 3B OR between GSTR1 & 3B may involve for suspension of GST Registration – Now they omitted the sentences “ after affording the said person a reasonable opportunity of being heard”- In short tax payers has to much take precaution while filling the returns in future and should not to take it lightly. In this case I personally feels that, nobody is perfect and there are definitely anything is skipped at the time of filling return, therefore considering the above facts govt has give relaxation atleast 1 time to modify the earlier return in prescribed time line.

Rule 21(3A)- A register person, whose registration has been suspended under sub rule(2) shall not be granted “ANY REFUND”under section 54 during the period of suspension of his registration- I personally strongly oppose to word inserted “ ANY REFUND” instead of NOT GRANTED, they have been blocked his refund till matter is under inspection, if officer found any wrong in this then only they have to remarks as “ANY REFUND” till it is blocked and then released as per matter resolve.

Rule 86(b)- Restration of ITC 99% – Here is restrictions on use of amount available in ECL- In this case govt has to think once. Except the large payment of units, definitely it will be impact on small tax payer.

 Rule 36(4) The restraction of ITC 105% -Slowely slowly govt wants to keep it on actual basis.

Considering the above changes I feel tax payers rights has been restricted and it fears that we are once again moving towards INSPECTOR RAJ instead of keeping flexibility in GST.

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January 2021