An overview of the latest Changes and Amendment in GST

An overview of the latest Changes and Amendment in GST

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An overview of the latest Changes and Amendment in GST

CBIC has issued few notification which shall be effective e from 1st April 2021. Here is an overview of the latest amendment as under:
  1. Section 16(2)(aa) notification:
    This clause has made addition to the condition for availment of ITC. Now amongst other 4 conditions, ITC can be taken only if the Invoice or debit note have been furnished by the supplier in its GSTR1.

    Thus the end of Rule 36(4)I.e. 5% adhoc credit. Now only the ITC of Invoies which is reflecting in GSTR1 of the supplier is eligible ITC. Many writs regarding the constitutional validity of Rule36 (4) would be settled. But what about the period 01-07-2017 to 31-12-2021   which is still in question. Further which form to be followed i.e. GSTR-2A or GSTR-28 is still in ambiguity.

  1. Sections 7(1) (aa) is notified which was effective retrospectively from 01-07-2017 which has included the within the purview of supply e. transaction between club and it’s member is supply.
  1. A welcome amendment in section 50 wherein interest is payable on net cash liability and not in the liability portion discharged through I Another retrospective amendment applicable from 01-07-2017.
  1. Self assessed tax shall also include supplies and tax declared in GSTR 1 as well. Another malpractice to pass on ITC through declaring in GSTR-1 but not paying tax in GSTR-38 would curbed through this explanation added in Section 75(12).
  1. Increase in the penalty provision from 100% to 200% in Section 129 and increase in pre deposit under Section 107 have been notification. Also, delinking of Section 129 & 130 and changes in both section is notified.

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