11 Decisions of GST Council Which Every Professional Should Read

GST Council, in its yesterday’s meeting, has taken many decisions relating to important aspects of GST.

Here is the compilation of 11 decisions which every professional should read:

(1.) Relaxation in filing Form GST ITC-04:

Now, Form GST ITC-04 to be filed as under:

  • Once in 6 months, whose annual aggregate turnover is above Rs. 5 Crore
  • Annually, whose annual aggregate turnover is upto Rs. 5 Crore.

(2.) Interest on Ineligible ITC:

Now w.e.f. 01.07.2017, interest on only ineligible ITC utilized will be levied at 18% and not on ineligible ITC availed.

(3.) Transfer of unutilized balance in cash ledger between entities having same PAN:

Unutilized balance in CGST and IGST cash ledger can be transferred between entities having same PAN but registered in different states, without going through the refund procedure (subject to certain safeguards).

(4.) Clarification on issuance of Debit Note:

w.e.f. 01.01.2021, the date of issuance of debit note (and not the date of underlying invoice) shall determine the relevant financial year for the purpose of section 16(4) of the CGST Act 2017.

(5.) Clarification in respect of Physical Tax Invoice:

Now, no need to carry physical copy of tax invoice in cases where invoice has been generated by the supplier in the manner prescribed under Rule 48(4) of the CGST Rules 2017.

(6.) Clarification on Refund of Accumulated ITC in case of Export:

Now, only those goods which are actually subjected to export duty i.e. on which some export duty has to be paid at the time of export, will be covered under the restriction imposed under section 54(3) of the CGST Act 2017 from availment of refund of accumulated ITC.

(7.) Aadhaar Authentication:

Aadhaar authentication of registration to be made mandatory for being eligible for filing refund claim and application for revocation of cancellation of registration.

(8.) Late Fee on Late Filing of GSTR-1:

Late fee for delayed (late) filing of GSTR-1 will be auto-populated and collected in next GSTR-3B return.

(9.) Clarification on Bank Account for GST Refund:

Now, refund will be disbursed in the bank account, which is linked with same PAN on which registration has been obtained under GST.

(10.) Restriction on Filing of GSTR-1 on Non- Filing of GSTR-3B:

Rule 59(6) of the CGST Rules 2017 to be amended w.e.f. 01.01.2022 to provide that a registered person shall not be allowed to file GSTR-1, if he has not file GSTR-3B for the preceding month (previous month).

(11.) Amendment in Rule 36(4) of the CGST Rules 2017 in the line of Section 16(4) of the CGST Act 2017:

When Section 16(2)(aa) will be notified, then Rule 36(4) will be amended to provide that ITC of only invoices/ debit notes is allowed which are uploaded by the supplier in his GSTR-1/ IFF and are communicated to the registered person in GSTR-2B.