Highlights
The Central Board of Indirect Taxes and Customs (CBIC) notified Central Goods and Services Tax (6th Amendment) Rules, 2019 through a Notification No. 49/2019 – Central Tax that was dated 09-10-2019 and made few significant changes which are-
1. ITC regarding invoices or debit notes, the details of which were not uploaded by the suppliers in GSTR-1, would not go beyond 20% of the eligible credit available relating to invoices or debit notes the details of which were uploaded by the suppliers in GSTR-1.
2. The Amendment in Rule 61(5) were made with retrospective effect from 01/07/2017 by means of making GSTR-3B as the return stated under Section 39, wherever the deadline for filing GSTR-1 or GSTR-2 was extended. This circumvents makes a ruling of the Gujarat High Court in the matter of AAP and Company in which it was stated that GTR 3B is not a return.
ITC has been limited to 20% of claims in case the supplier fails to upload details:
On 9th October, 2019, through Notification No. 49/2019 made by the Central Tax, the amendment rules had furnished that total unmatched credit cannot go beyond 20% of ITC available in GSTR 2A, recommended Form GST DRC-01A for intimation of tax ascertained through proper officer as payable in fraud as well as non-fraud matter and additional changes made in the CGST Rules, 2017.
The Notification that has been issued by the CBIC states that input tax credit shall be availed by a registered individual relating to invoices or debit notes, the details of which were not uploaded by the suppliers under sub-section (1) of section 37, would not go beyond 20% of the eligible credit available relating to invoices or debit notes the details of which was uploaded by the suppliers under sub-section (1) of section 37”.
The Notification also states that where the deadline for providing of details in FORM GSTR-1 under section 37 or in FORM GSTR-2 under section 38 was extended, the return stated in sub-section (1) of section 39 would, in such manner and subjected towards such conditions as the Commissioner might, through notification, lay down, be provided in FORM GSTR-3B electronically through the common portal, either directly or through a Facilitation Centre notified through the Commissioner”.
“In the specified rules, in rule 83A, in sub-rule (6), for clause (i), the following clause would be substituted, which consists of that every individual referred to in clause (b) of sub-rule (1) of rule 83 as well as who is registered as a goods and services tax practitioner inconsistent with the sub-rule (2) of the said rule is requisite to pass the examination within the period as stated in the second provision of sub-rule (3) of the said rule.”.
The notification also mentioned that the Committee would make available towards the Board 50% of the amount credited towards the finance each year, for publicity or customer awareness on Goods and Services Tax, provided the obtainability of finances for consumer welfare activities of the Department of Consumer Affairs is not below Rs 25 crore per annum,.
The notification also stated that the proper officer would, before service of notice to the individual chargeable with tax, interest as well as fine, under sub-section (1) of Section 73 or sub-section (1) of Section 74, as the matter might be, would communicate the details of any tax, interest as well as fine as ascertained by means of the said officer, in Part A of FORM GST DRC-01A.
Link to Notifications are as follows:-
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