Gst has undergone various changes since its inception. Some of the important and crucial new provisions  in GST are discuss  below for the benefits of taxpayers.

New provisions in GST one must know  includes changes in Input Tax Credit Rules , Gst Interest calculation , Gst waybill rules, GST Cancellation or suspension and Revocation of canceled GSTIN 

GST INPUT TAX CREDIT NEW RULE :

New rule 36(4) was inserted in CGST Rules from 09.10.2019 which prescribes that the Input Tax Credit shall not be allowed fully for invoices not uploaded. Every registered person shall be entitled to Input Tax Credit in respect of eligible invoices uploaded by supplier in GSTR1. In respect of eligible invoices Input Tax Credit shall be capped at 20 % of eligible invoices that had been uploaded in GSTR1.

In simple terms , full input tax credit will be allowed if 83.33% of eligible invoices had been uploaded .

For example – Suppose purchase has booked in accounts for Rs 100000 for Nov 19 and Eligible Input Tax Credit out of such amount is Rs 80000. Invoices uploaded in gstr 1 is only of Rs 50000. Now the itc for Nov 19 will be Rs 50000+20% of 80000 = 66000 instead of Rs 80000. Balance itc will be claimed in the period in which renaming invoices for covering 83.33% of Eligible Itc has been uploaded.

In order to calculate the amount of Input Tax Credit as per new rule , only TAX INVOICES and DEBIT NOTES shall be considered . Tax paid of Reverse charge basis , IGST on imports etc shall not be taken into consideration. Full ITC will be allowed in respect of these invoices .

The cut off date to reconcile the GSTR2A to calculate Input Tax Credit  shall be taken as the due date to file GSTR1 by the corresponding supplier.

Also Read : GSTRB FILING SMS FOR NOVEMBER 

Also Read : GST REGISTRATION LIMIT

GST INTEREST NEW CALCULATION.

Section 50 of CGST Act deals with the payment of interest on late payment of taxes or wrong utilization of input tax credit. The interest rate for late payment of tax shall be charged @18 % per annumn. The interest rate for wrong availment of itc shall be charged @24% Per annumn.

Earlier the interest was being charged on gross liability without giving the benefit of itc in case of delayed filing of gst returns. After the changes in Gst act , interest will be charged only in the amount debited from cash ledger except in case of Section 73,74.

GST WAYBILL RULES

The GSTIN of the registered person shall be blocked from generating the e waybill in gst portal it two consecutive gst returns has not filed. If the GSTR3B for consecutive two tax periods has not been filed by a registered person then Part A of Gst Ewb 01 will be blocked for such GSTIN . Neither supplier , purchaser or transporter can generate waybill on such GSTIN. To unblock the GSTIN  for waybill pending  GST Returns must be filed and unblocking will be done by GST Portal

GST SUSPENSION

The period from the date of application for cancellation till the date of cancellation order will be treated as suspended period. During the period for which Gstin was suspended no taxable supply shall be made and no tax shall be collected by such supplier. During suspension period Gst returns is not required to be filed for the gstin which is suspended. The liability upto the date application for cancellation shall remain intact even if gstin was canceled. The amount of tax , interest ,late fee leviable upto such date must be paid. If cancellation is approved then within 90 a final return must be final in Form Gstr-10.

To revoke the canceled gstin by the tax officer , application must be made in REG 21 after filing all the due gst returns. All returns upto the date of filing of revocation application must be filed. Any tax , interest , late fee due on such returns must be paid to get gstin restores by the department.

Gst registration changes.

For taking new gst registration , the bank account details is not required at the time of filing GST REG 01 online. The bank details shall be provided after registration has been granted and after first login. The option to file bank details will be provided as a non core field amendment . Registration can be taken online in GST Portal 

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The amendment act has done various major changes in existing GST Provisions . 

Some of the important GST Amendment  includes :

Provisions related to Blocked Input Tax Credit in GST U/s 17(5) has been amended. Earlier Input Tax Credit was Blocked in respect of all vehicles. After amendment this restriction has been relaxed to some extent and Input Tax Credit can be claimed for vehicles,

Earlier registered supplier has to issue credit notes and debit notes on one to one basis in respect of Tax Invoices In GST. Now one or more Credit and Debit notes can be issued in respect of one or more Tax invoices in GST . This will provide big relief to taxpayers from documentation .

Certain definitions as given in Section 2 of GST Act ,such as Appellate Authority etc has been amended . 

Provisions of Reverse Charge Mechanism U/s 9(4) , has been deleted and new provisions has been inserted . As per the new provisions only notified persons will be required to pay tax under reverse charge for purchases from Unregistered Person in GST for specified goods and services.

Eligibility for opting in GST Composition scheme has been relaxed and big relief has been provided through this GST Amendment for small taxpayers .

The Limit of GST registration has also been increased in this amendment Act.

The new procedure to file GST New return system has been included in GST Act U/s 43A which is yet to be notified . This will change the GST Return filing process for all the dealers and registered taxpayers .

These are some of major changes done in the GST amendment Act. Complete amendment Act is enclosed here for download

Copy of Finance Act can be downloaded here

CGST Amendment 2019

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GST EXEMPTION LIMIT FROM 01.04.2019 INCREASED TO RS 40.00 LACS

CBIC in its Notification no 10/2019 issued on 07.03.2019 , said that Any person who is engaged in the exclusive supply of goods and whose aggregate turnover as per GST LAW does not exceeds Rs Forty Lacs , as the category of persons exempt from registering under GST .This Change in GST registration limit will provide big relief to small taxpayers
 Read Also : GST REGISTRATION PROCESS Persons on which the above exemption will not be applicable are as follows : a) Person who is required to take compulsory registration under GST as per Section 24 of the GST Act. b) Person engaged in the supply of specified goods namely ; Ice Cream and other edible ice whether or not containing Cocoa, Pan Masala, All goods of Tobacco and tobacco substitutes. c) persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand d) Person who wants to take voluntary registration under the Act as per Section 25(3) of GST Act or such persons who intends to continue registration after 01.04.2019. GST registration limit of Rs 40 Lacs will not apply to those persons who are engaged in supplying goods or services or both.It will be applied only if the person is engaged exclusively in supply of goods Refer Official Notification Here : Notification No 10/2019 dated 07.03.2019

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BLOCKED CREDITS IN GST  U/S 17(5) OF GST ACT

(a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:—
(A) further supply of such motor vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such motor vehicles;

(aa) vessels and aircraft except when they are used––

(i) for making the following taxable supplies, namely:—

(A) further supply of such vessels or aircraft; or
(B) transportation of passengers; or
(C) imparting training on navigating such vessels; or
(D) imparting training on flying such aircraft;

(ii) for transportation of goods;

(ab) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa):

Provided that the input tax credit in respect of such services shall be available—
(i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein;

(ii) where received by a taxable person engaged—

(I) in the manufacture of such motor vehicles, vessels or
aircraft; or

(II) in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him;

(b) the following supply of goods or services or both—

(i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance:

Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;

(ii) membership of a club, health and fitness centre;

(iii) travel benefits extended to employees on vacation such as
leave or home travel concession:

Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force.”.

(c) works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service;

(d) goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business. Explanation.––For the purposes of clauses (c) and (d), the expression : “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalization, to the said immovable property; (e) goods or services or both on which tax has been paid under section 10; (f) goods or services or both received by a non-resident taxable person except on goods imported by him; (g) goods or services or both used for personal consumption; (h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and (i) any tax paid in accordance with the provisions of sections 74, 129 and 130. Read Also : GST NEW RETURN  

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