Several amendments have been proposed in the GST Law in the Finance Bill, 2022, which is a part of Union Budget 2022-23. The amendments have been made in the provisions regarding filing of GST returns, availing of the input tax credit, GST refund, payment of tax, issue of credit notes, levy of interest, and GST registration. Though some of the amendments are in favor of the taxpayer, however, significant amendments are revenue friendly.
It may be noted that these amendments will see the light of the day once these are incorporated in the respective GST legislations by the Centre and well all the States after approval of the GST Council.
There would be various amendments
in the GST rules, and below are the top 5 mentioned ones and their
implications on assessees.
A significant change has been brought by the union budget with the concern of cash balance to be transferred from one head to another in the same registration or as per the IGST and CGST to the cash ledger of the individual.
A distinct person is said to be the one who has a different GSTN but handles the identical PAN. This will furnish the flexibility to assess who has various GSTINs because they transfer the surplus cash balance from one state to another. But the case in which one GSTIN poses a surplus balance and an output liability has been furnished in another state can be prevented. Moreover, the complete steps for applying for the GST refund and providing that would get skipped in these cases in which the assessee transfers these balances to the other state for setting off the liability.
On using the electronic credit ledger, some limitations would get interrupted. It secures litigation on whether this pre-deposit is needed to be furnished while furnishing the petition would be furnished via debiting credit ledger or not. In the former times, the government revamps the compliances to insert these litigations to rest and uses the credit ledger to furnish the pre-deposit is one of the limitations.
ITC rules beneath the GST are subjected to various changes. Till now, another change draws in the ITC rule this year. The law has made a provision to avail the ITC shown in GSTR-2B as qualified. The same is another law that the assessee will be needed to get attached from.
An extension is to be given to claim the GST ITC for any provided fiscal year. Before that, the ITC of the fiscal year can be claimed before the GSTR 3B of the September of the mentioned year gets furnished.
The taxpayer would claim these ITC till November 30 of the next fiscal year.
While the GST official need to decide that the interest must be taken on the ITC in a bogus way claimed and used, the law is changed as per the budget shown in that decision. From July 1, 2017, these changes are being drawn. Thus any litigation in which the council needs the taxpayers to furnish the interest on the fake ITC claimed would be on the front.
As per the ITC provisions, the other companies must be on par with the compliances and have been amended to 30 Nov of the subsequent year. The inclusion of the outward supplies rectifications in alignment with the financial year and all the credit notes too which were in the concerned of given financial year. The primary thing is to watch out that the issue credit note and the rectification window has been made more featureful, providing a better outlook to the assesses.
The major announcement based on the make in India initiatives had to be given some voice and the accordance of custom-based changes. The union finance minister still mentioned that the 350 exemptions earlier given in the imported goods category are to be excluded and a new set of exemptions to be included in the import of inputs. This initiate would be a better opportunity for the make in India initiative and the domestic manufacturer.
The Special Economic Zones Act, 2005, has new legislation, but it is still not clarified as of now, and the taxpayers have to make patience to be clear on it.
All these changes are part of a bigger change in the provisions, including the date of return filing for NRI taxables, GST registration cancellation in missing of return filing and the continuous period prescription. At the same time, there has been late fees applicability in the late filing of TCS and many more.
Created & Posted by Pooja
Income Tax Expert at TAXAJ
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