Government has notified certain procedural changes in the GST rules, including those relate to threshold, for filing annual returns for the 2021-22 fiscal, a move that will help ease the compliance burden on small players.
The changes were taken by the Goods and Services Tax (GST) Council at its meeting last week.
With the amendments notified by the Central Board of Indirect Taxes and Customs (CBIC), businesses have also allow to make tax payments on the GSTN portal by using IMPS and UPI payment modes.
Businesses with aggregate annual turnover of up to Rs 2 crore in the fiscal end 31st March, 2022 are exempt from filing annual returns for 2021-22, as per the amended rules.
KPMG in India Partner (Indirect Tax) Abhishek Jain said these changes will help the small players in undertaking compliances, and will lighten the burden for taxpayers with less than Rs 2 crore turnover to the extent of filing of annual returns under GST.
AMRG & Associates Senior Partner Rajat Mohan said other important changes include extension of time-limit specified under Section 73 (determination of tax) under the GST Act for issuance of an order for FY 2017-18 to 30th September, 2023.
However, no extensions have provide for any other financial year.
Rajat Mohan Said :
“In relation to the delay filing of refund applications during the COVID period (1st March, 2020 to 28th February, 2022), suitable extension has grant that will enable numerous exporters to encash the refunds stuck in litigation,”.
Abhishek Jain said that considering the COVID scenario of the last two years for India, the government has extend the limitation period under GST for issuance of notice to taxpayers who have not paid/ short paid the tax due.
Similarly, relaxation in limitation is grant for filing refunds.
Abhishek Jain said :
“While the intention of the government is to curb revenue leakage, this change keeps the businesses exposed to departmental audits and assessments for some additional time. This being said, this change also ensures that genuine taxpayers are not denied their refund claims,”.
According to Rajat Mohan, the manner of calculation of interest on delay payment of tax has notified and that would help taxpayers in making precise calculation of the tax dues.
As per the amended rules, every invoice issue by an MSME supplier will have a standard declaration print on invoice regarding non-applicability of e-invoice.
Also, cash ledger balance can be transfer from one GST register entity to another under the same PAN.
The changes were approve by the GST Council, comprising finance ministers of Centre and state, at its June 28-29 meeting.
