Recent GST Updates and Amendments

Major Recent Updates in GST

1.Restriction on availing ITC – Rule 36(4)

➢ ITC can be availed only up to 105% of GSTR 2A, as against 110% earlier. Now, the ceiling of 105% to be computed on invoices uploaded & returns furnished + invoices furnished by quarterly taxpayer.

➢ Violation of the above could lead to suspension of registration

2.Restriction on use of ITC – Rule 86(B)

ITC in credit ledger can be used only to pay 99% of output tax liability. It is applicable to taxpayers having monthly taxable supply exceeding Rs. 50 lacs.

Not applicable to the following taxpayers

➢ Paid Income tax exceeding Rs. One lac in each of the last two financial years
➢ Claimed refund of more than Rs. 1 lac on zero rated supplies or inverted duty structure in the preceding financial year
➢ Discharged tax liability cumulatively in cash in excess of 1% in the current financial year
➢ Govt. department, PSU, local authority or statutory body

3.Blocking of GSTR 1 – Rule 59(5)

which says that a registered person shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 if he has not furnished the return in FORM GSTR-3B for preceding two months

4.Suspension of registration – Rule 21Az

• It shall be cause to suspending registration.
• Registration shall be suspended if significant differences or anomalies are found in comparison of
➢ GSTR 1 & GSTR 3B
➢ GSTR 3B & GSTR 1 furnished by his supplier
• Taxpayer shall be intimated in GST REG-31 on common portal or to his e mail address highlighting the differences and giving 30 days’ notice as to why registration should not be cancelled
• During the period of suspension, no refund under section 54 shall be granted

5.Validity of e-way bill

• For distance up to 200 kms e-way bill would be valid for one day instead of two days earlier
• For every 200 kms or part thereof validity would be one day instead of two days earlier
• E-way bill would be blocked if GST registration is suspended under rule 21A

6.Changes in registration

Every application shall be followed by Biometric based Aadhar authentication and Taken Photograph, unless exempted along with the verification of original copy of the documents uploaded with the application in Form GST REG – 01.

Verification of original copy of documents uploaded in registration application at Facilitation Centre notified by the Commissioner.

If applicant fails biometric based Aadhar authentication then the proper offer carry out physical verification of place of business and registration to be granted in 30 days from the date of submission of complete application.

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