Taxable on debit notes as per CGST Act

- Sales tax: Soham Mashruwala

The 8th meeting of the GST Council was convened on 15 September 2021 and it has been decided to notify changes in the tax rate and a very important amendment has been made regarding interest. These are all proposed amendments and shall be deemed to have come into force from the date on which the notification is issued. Today's article discusses some of the decisions taken at this council meeting and the proposed amendments.

Interest

Section 30 (2) of the CGST Act will be amended so that if a false tax is sought and used, 15% interest will be charged on the same amount which has to be paid in currency when it is returned. Thus, interest will be charged only on netcash liability. No interest will be charged on asking for false dividends when the supplier has a credited dividend. Controversy over interest by the ongoing GST audit account is like closing it down. This amendment is to be brought by the government from 1.2.2021.

Forms and Late Fees

Late payment of GSTR1 will result in levy being levied in its GSTR 3B. As per the provisions of the GST Act, there is no provision for levying GSTR1 in the late GSTR 3B form. In addition, from 1.1.209, if any one has to pay GSTR 3B for the next month, the trader will not be allowed to pay GSTR1 for the next month. Job Form ITC-04 which was a provision to be paid for each quarter instead of the supplier who has aggregate annual turnover of Rs. A person who is more than Rs. 3 crore will have to fill a 6-month form and for others the same annual details for the whole year in ITC-04. Rule 3 (2) bites the supplier while recruiting GSTR 3B. Respect. Until the High Courts declare this rule unconstitutional, the government will resort to this to deprive the trader of the right to inheritance. Will suffer.

Refund

In order to receive a refund, the supplier will have to authenticate the Aadhaar on the GST portal. In addition, in case the supplier exports without paying IGST and seeks refund of the credited tax, the constraint under section 3 (2) of the CGST Act will apply to all transactions in which export duty is paid while exporting goods. As per the proposed amendment, the refund will be credited to the same account provided by the supplier at the time of GST registration and which is attached to the PAN card. Thus, a refund will not be paid if there is a discrepancy of PAN card in the bank account.

Other improvements

As per section 13 (2) of the CGST Act, debit notes are taxable and to determine the time limit, one has to look at the date of the debit note from 1.1.2021 and regardless of how old the bill is. In the case where the e-invoice is applicable, it is not necessary to keep the original or physical copy of the tax invoice with it while transporting the goods. The relief rate for COVID-19 drugs has been extended till December 31, 2021. In addition, when goods are shipped from India by sea or air, GST will not have to be paid till September 30, 207.