Amendments introduced with effect from 01st Jan'2021
1. GST New Return with effect from 01.01.2021- Invoice Furnishing Facility (IFF)
The registered person opting for the quarterly filing of GSTR-3B would be required to quarterly filing of GSTR-1;
Quarterly Return Monthly Payment (QRMP) Scheme
- A registered person having aggregate turnover up to five crore rupees in the preceding financial year may be allowed to furnish quarterly return along with monthly payment of tax;
- Facility to avail the Scheme would be available throughout the year.
- A registered person can opt in for any quarter from 1st day of second month of preceding quarter to the last day of the first month of the quarter.
- For example: - The option for the following quarter can exercise as follows: -
Sl. No.
For the quarter
Option can exercise
1. April, 2021 to June, 2021
2. July, 2021 to Sept, 2021
3. Oct,2021 to Dec,2021
4. Jan, 2021 to March,2021
The person opted for quarterly filing of GSTR-1 have the facility (Invoice Furnishing Facility-IFF) electronically on the common portal to furnish the details of such outward supplies to registered person. This facility is not mandatory and is only optional facility for the first and second months of a quarter. Not exceeding the value of fifty lakh rupees in each month. Due date for such GSTR-1 is 1st day of the month till 13th day of the succeeding month.
- For Example: - For the quarter (January – March 2021)
- For the month of January, from 1st February till 13th February
- For the month of February, from 1st March till 13th March.
Invoices furnished using the Invoice Furnishing Facility in the first two months are not required to be furnished again in Form GSTR-1.
Registered persons can opt for the option to opt for Quarterly/Monthly return from 5th of December 2020 to 31st of January 2021.
2. Restriction on filing of GSTR-1 with effect from 01.01.2021
In following situations Registered person has been restricted to file GSTR-1 or Invoice Furnishing Facility (IFF):
- GSTR-3B not furnished for preceding 2 months
e.g., If GSTR-3B not furnished for Jan’21 and Feb’21then the respective GSTN is not able to furnish GSTR-1 or Invoice Furnishing Facility (IFF) for the month of Mar’21.
- Where the Registered person has been restricted from using the amount available in Electronic Credit Ledger (ECL) to pay liability towards tax in excess of 99% of such tax liability as per Rule 86B of CGST Rules,2017 and has not filed GSTR-3B for preceding tax period.
e.g. If GSTR-3B has not been filed for the month of Jan’21 due to restriction as per Rule 86(B) then respective GSTN is not able to furnish GSTR-1 or Invoice Furnishing Facility (IFF) for the month of Feb’21.
3. Restriction of payment through ITC with effect from 01.01.2021- Rule 86(B)
Payment of taxes through utilization of balances from Electronic Credit Ledger (ECL) has been restricted upto 99% of such tax liability. However, this rule is not applicable for exempt supply, Zero rated Supply and where the taxable supply is upto 50 lacs in a month.
Following are further exceptions in which the rule will not apply:
(a) the said person or the proprietor or karta or the managing director or any of its two partners, whole-time Directors, Members of Managing Committee of Associations or Board of Trustees, as the case may be, have paid more than one lakh rupees as income tax under the Income-tax Act, 1961(43 of 1961) in each of the last two financial years for which the time limit to file return of income under subsection (1) of section 139 of the said Act has expired; or
(b) the registered person has received a refund amount of more than one lakh rupees in the preceding financial year on account of unutilised input tax credit under clause (i) of first proviso of sub-section (3) of section 54; or
(c) the registered person has received a refund amount of more than one lakh rupees in the preceding financial year on account of unutilised input tax credit under clause (ii) of first proviso of sub-section (3) of section 54; or
(d) the registered person has discharged his liability towards output tax through the electronic cash ledger for an amount which is in excess of 1% of the total output tax liability, applied cumulatively, upto the said month in the current financial year; or
(e) the registered person is –
(i) Government Department; or
(ii) a Public Sector Undertaking; or
(iii)a local authority; or
(iv) a statutory body:
4. E-Invoicing mandatory for businesses having aggregate turnover above Rs.100 crore with effect from 01.01.2021
The threshold limit for e-invoicing has been reduced to aggregate turnover of 100cr. of any of preceding financial year 2017-18 onwards.
The registered person falling in the threshold limit of 100 cr. will be required to report for the invoice registration portal (IRP) with effect from 01-Jan-2021.
Applicability of E-Invoicing:
E-invoicing is not Applicable for:
- SEZ Units
- Insurance
- Banking company
- Financial institutions
- Goods transport agency
- Passenger transport agency
- Services by way of admission to exhibition of cinematographic films in multiplex screens.
E-invoicing is Applicable for: E- invoicing is required for B2B transaction and exports for following documents:
- Invoice
- Debit Notes
- Credit Notes
5. E-way Bill Amendments with effect from 01.01.2021
Reduction in validity of E-way Bill period w.e.f 01-01-2021
Now the travelling distance in a day has been increased to 200 kms in a day from 100 kms in a day against E-way Bill. Thus only 1 day will be permissible for transportation of goods under cover of E-way Bill for 200 kms.
6. Restrictions on availment of ITC with effect from 01.01.2021
Rule 36(4) has been amended. The restriction on availment of ITC has been reduced from 10% to 5%. Now, recipient can take credit upto 105% of the eligible credit available on invoices/Debit Note which have been furnished by the supplier in GSTR-1 w.e.f 01-01-2021.
No comments:
Post a Comment