45th GST Council Meeting Highlights

Announcements By - CA Mounika

RELAXATION IN THE REQUIREMENT OF FILING FORM GST ITC-04:

 

Requirement of filing FORM GST ITC-04 under rule 45 (3) of the CGST Rules has been relaxed as under:

• Taxpayers whose annual aggregate turnover in preceding financial year is above Rs. 5 crores shall furnish ITC-04 once in six months;
• Taxpayers whose annual aggregate turnover in preceding financial year is upto Rs. 5 crores shall furnish ITC-04 annually.

 

Turnover in PFY^	ITC-04 filing Frequency
Above  Rs. 5 crores	Once in Six months
Upto  Rs. 5 crores	Annually

^Previous Financial Year

 

NO INTEREST ON INELIGIBLE ITC CLAIMED BUT NOT UTILIZED

 

Section 50(3) of the CGST Act to be amended retrospectively, w.e.f. 01.07.2017, to provide that interest is to be paid by a taxpayer on “ineligible ITC availed and utilized” and not on “ineligible ITC availed”. It has also been decided that interest in such cases should be charged on ineligible ITC availed and utilized at 18% w.e.f. 01.07.2017.

 

Interest is to be paid by a taxpayer on “Ineligible ITC availed and utilized” and not on “Ineligible ITC availed”

Interest would be levied @18% in case ineligible ITC availed and utilized w.e.f. 01.07.2017

To be amended retrospectively, w.e.f. 01.07.2017

 

 

 

TRANSFER OF BALANCE IN CASH LEDGER

 

Unutilized balance in CGST and IGST cash ledger may be allowed to be transferred between distinct persons (entities having same PAN but registered in different states), without going through the refund procedure, subject to certain safeguards.

 

PHYSICAL COPY OF E-INVOICE NOT REQUIRED

 

There is No Need to carry the Physical Copy of tax invoice in cases where invoice has been generated by the supplier in the manner prescribed under rule 48(4) of the CGST Rules, 2017

 

EXTENDED TIME LIMIT TO CLAIM ITC ON DEBIT NOTES

 

W.e.f. 01.01.2021, the date of issuance of Debit Note (and not the date of underlying invoice) shall determine the relevant financial year for the purpose of section 16(4) of CGST Act, 2017

 

GSTR-1 LATE FEE

 

Late fee for delayed filing of FORM GSTR-1 to be auto-populated and collected in next open return in FORM GSTR-3B.

 

Blocking of GSTR-1 Return

Registered person shall not be allowed to furnish FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for the preceding month.

(Rule 59(6) of the CGST Rules to be amended with effect from 01.01.2022)

 

I.T.C = GSTR – 2B

Restrict availment of ITC in respect of invoices/ debit notes, to the extent the details of such invoices/ debit notes are furnished by the supplier in FORM GSTR-1/ IFF and are communicated to the registered person in FORM GSTR-2B

[Rule 36(4) of CGST Rules, 2017 to be amended, once the proposed clause (aa) of section 16(2) of CGST Act, 2017 is notified]