Table of Contents
Considering the evolving global marketplace and business scenario, Indian Government has come up with certain updates around GST regulations and norms. GST or Goods and Services Tax is a form of VAT or Value-added Tax which is paid by the consumer at the time of selling of the product/ service. Later, it is sent to the Government by those businesses that sell these products or offer such services. GST tax rates vary by location and its rate might fluctuate at the local level as well. There are some GST reforms in Budget 2022 which we are putting up here to help business administrators better understand the norms and make diligent decisions accordingly.
- Section 29 is proposed to be amended so as to provide that the registration of a person is liable for cancellation, where –A person under composition scheme has not furnished the return for a financial year beyond three months from the due date; A person, other than under composition scheme, has not furnished returns for such continuous tax period as may be prescribed
- Section 47is proposed to be amended so as to provide for levy of late fee for delayed filing of GSTR-8 return by persons deducting TCS under section 52
- Under GST Budget 2022, Section 49is proposed to be amended to provide for prescribing the maximum proportion of output tax liability which may be discharged through the electronic credit ledger
- CGST Act Section 49is proposed to be amended to allow transfer of amount available in electronic cash ledger under the CGST Act of a registered person to the electronic cash ledger under the said Act or the IGST Act of a distinct person. It will help in improving the liquidity of all those taxpayers who have got multiple registrations in different states.
- Section 50(3)is proposed to be amended retrospectively,e.f. 01.07.2017, to provide that interest would be charged on the ineligible input tax credit, only when such credit has been availed as well as utilized.
- Also, the rate of interest notified under Section 50(3)is proposed to be reduced retrospectively, e.f. 01.07.2017 to 18% per annum from the existing rate of 24% per annum.It will help in the removal of ambiguity and legal disputes on the issue, thus benefiting taxpayers at large.
Proposals to Streamline return filing under GST
Amendments are proposed in CGST Act to align the legal provisions relating to return filing in GST with the present GST-1/GSTR-3B return filing system.
- Section 37 of the CGST Act is proposed to be amende
* To provide for tax period-wise sequential filing of GSTR-1
*To do away with two-way communication process in return filing
- Section 38 of the CGST Act is proposed to be substituted for
*Communication of details of inward supplies and input tax credit to the recipient by means of an auto-generated statement.
*Such auto-generated statement to contain the details of inward supplies in respect of which input tax credit may be availed and the details of supplies on which input tax credit cannot be availed by the recipient.
- Section 16of the CGST Act is being amended to provide that input tax credit with respect to a supply can be availed only if such credit has not been restricted in the details communicated to the taxpayer under Section 38.
- The report says that revenues for the month of January 2022 are slightly higher than the GST revenues in the same month last year and even higher than the GST revenues in January 2020.
Business organizations need to file returns to each administration where GST is collected. Organizations indulged in business sales need to register with the right stated to get a sales tax license and other certifications. Without an automated software solution, these processes can be extensively tiresome, time-consuming and may adversely impact regular business operations.
inoday has its own engineered India Tax Bundle to assist businesses grab a simplified and integrated tool to reduce Indian Taxation complexities. We leverage inventive capabilities of Advanced NetSuite Tax Bundle and help automate payment collection, tax reporting, tax credit in GST, GST return filling, tax code configuration encompassing all functionalities in and around India GST and TDS management.