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Thursday, December 23, 2021

New GST rule to be implemented from Jan 1, 2022: check details The Central Board of Indirect Taxes and Customs (CBIC) on December 21 had notified January 1, 2022, as the date on which the new provision under GST law would come into effect.

 

BusinessToday.In Dec 23, 2021,Updated Dec 23, 2021, 3:54 PM IST

The central government has announced that it will implement some amendments to the Central Goods and Services Tax (CGST) Act from 1 January. The government said it will tighten the indirect tax procedure further.

The changes made to the Finance Act 2021 were passed by Parliament earlier this year but their implementation date has been announced now. The changes cover issues including what constitutes a taxable supply, eligibility for tax credits and norms for filing appeals in certain cases.

The move will help curb fake billing whereby sellers would show higher sales in GSTR-1 to enable purchasers to claim an input tax credit (ITC), but report suppressed sales in GSTR-3B to lower GST liability.


For businesses, it is mandatory that GSTR -3B and GSTR-1 should match with each other, and no differences should be permitted in the same irrespective of the reasons, a PTI report mentioned.  

Old GST rule

Till now notices under the Goods and Services Tax law were first issued, and then a recovery process was initiated in such cases of mismatch in GSTR-1 and GSTR-3B. 

New provision in GST law 

Through the Finance Act, the government has inserted an explanation in sub-Section(12) of Section 75 of CGST Act, to clarify "self-assessed tax" shall include the tax payable in respect of outward supplies furnished in GSTR 1 but not included in the return furnished in GSTR-3B, the PTI report added.  

Section 75 of the GST Act?

Section 75 of GST Act states that if there is any self-assessed tax, then it can be recovered without issuing show cause notice and the recovery proceedings under Section 79 can be directly invoked.

Source Business.Today.in and used here for educational purposes only as this blog is not commercial.


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