Attention: Proposed Amendments in the CGST Act, 2017 in the Budget 2021-22 for which Strong Representation is Required Immediately

Attention: Proposed Amendments in the CGST Act, 2017 in the Budget 2021-22 for which Strong Representation is Required Immediately

Government has proposed various amendments in the CGST Act, 2017 in the Budget 2021-22, but some of these will be negative impact on Indian business industry. Here is the list of these proposed amendments :

(1.) Insertion of Sub-section (12) in Section 75: As per the proposed amendment in section 75, if any registered person upload invoices in GSTR-1 and forget to amend/ remove them/ upload credit note issued against these invoices till the specified date but paid tax as per net output, then this will be deemed as self-assessment tax and recovery provisions will enforced on that registered person without any show cause notice.

Let me take simple example: A registered person has issued an invoice and a credit note against that invoice in the same year but forget to upload credit note in GSTR-1 return, then tax interest/ penalty will be determined as per the records available as per GSTR-1 return.

It means that a physical document has not any importance in the eyes of government? This is totally harassment and representations are required in the interest of taxpayers.

(2.) Insertion of Clause (aa) in Section 16(2): After enforcement of this clause, if a registered person has availed ITC on the basis of invoices which are not uploaded by the supplier in his GSTR-1, then ITC availed will be disallowed and tax/ interest/ penalty will be payable accordingly.

Questions on this proposed amendment :

(A) Is disallowance of ITC in this manner as per the provisions of law which is formed for seamless flow of credit?

(B) Should non-updation of invoice lead to ITC reversal even if supplier has paid tax to government through Form GSTR-3B?

(3.) Substitution of Section 151: According to this proposed amendment, commissioner may direct any person to furnish information relating to ANY MATTER dealt with in connection, with this act, within such time, in SUCH FORM, and in SUCH MANNER as may be specified therein.

Question is that why this special power will be granted to commissioner when there are so many provisions in the act to direct a registered person to submit required information and what will be the scope of ANY MATTER and what will be the meaning of SUCH FORM and SUCH MANNER in this regard?

So, I request tax associations/ tax platforms/ tax professionals to represent the government in this regard.


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