1. Date extension for availing ITC and issuing credit notes
Input tax credit for a financial year can be availed up to 30 November of the next financial year. Thus this limit is not dependent on GST Returns of a particular month. This limit currently is up to due date for return of September of next financial year. i.e next year’s September GSTR3B
Similarly, credit notes/amendment of invoices declared in GSTR1 can be done up to 30 November of next financial year instead of September GST return
Thus a Hard limit of 30 November to rectify is being proposed
However, the limit shall be date of filing of annual return if annual return is filed before 30 November.
2. Cancellation of Registration due to non-filing of returns
GST Registration may be cancelled if
[For Regular Tax Payers]
GST Returns for such continuous period as may be prescribed are not furnished (Notification for period shall be issued).
Currently this is 6 continuous months
[For Composition Tax payers]
GST Return for a FY has not been submitted beyond 3 months from due date (30 April)
Earlier this is 3 consecutive tax periods
3. New Conditions to avail ITC
A new condition shall be added in order to avail ITC. The condition is that ITC can be availed only is it is not restricted
GSTR2A/2B shall be changed to reflect if the ITC is restricted.
Further ITC now cannot be availed on provisional basis.
This change is being made in the GST Act. Though the condition maximum up to 100% as reflected in GSTR2B has already been notified vide NN 39/2021 CT dt 21.12.2021 and is in effect from 1st Jan 2022.
4. GSTR 2 is now being Removed.
GST initially included a provisions wherein a person would file GSTR2 to accept/reject/modify details of ITC. However, this was never implemented due to various factors.
Now the provision for GSTR 2 is being proposed to be omitted along with the relevant provisions. Instead the conditions and restrictions in providing details of inward supplied via auto-generated statement shall be notified.
Simply put GSTR 2A/2B shall be continued.
5. Additional Details in GSTR 2A
It is proposed that GSTR 2A/2B shall provide additional detail on whether ITC of an invoice/supplier can be availed or not be availed wholly or partially depending on various situations such as
- Default in payment of Tax by supplier
- Tax payable as per GSTR 1 of supplier exceeds tax paid by such limit as notified, etc
6. GST Returns
[Non Resident Taxable Person]
The due date to file GSTR 5 is proposed to be changed to 13th day of following month instead of 20th day of following month.
7. Transfer of Amount in GST Cash Ledger among
Transfer of amount in Electronic Cash Ledger among distinct persons is proposed to be allowed.
Distinct persons are persons with same PAN but different GSTIN i.e GST Registered Branches/Offices/Factories of same person in different states/UT
Note: The above changes have been proposed and not yet passed by the parliament
Feb 01, 2022 - Blog - Team SSB
