Key amendments introduced in GST Law |
Dear All,
The Central Board of Indirect Taxes and Customs (‘CBIC’) on recommendation of the GST Council, has issued various notifications for implementing the changes in law and procedures. We have hereinbelow summarized the key aspects of the Notifications issued by the CBIC:
S. No. | Key Changes | Points |
1. | Change in registration procedure |
(Refer Rule 8(4A) of the CGST Rules) |
2. | Change in time limit for grant of registration | · Time limit to grant approval for system-based registration and time limit to issue a notice in case of deficient registration application has been enhanced from 3 days to 7 days;
· In case, the applicant fails to undergo authentication of aadhaar number or where the officer deems fit to carry out physical verification of the place of business, then the time limit for grant of registration shall be 30 days · In case the GST officer fails to take any action in the prescribed time limit (i.e., 7 or 30 days as the case may be), then the application for grant of registration shall be deemed to have been approved (Refer Rule 9 of the CGST Rules) |
3. | Cancellation of GST registration | · The GST registration granted to a person is liable to be cancelled on the following additional grounds:
(Refer Rule 21 of the CGST Rules) |
4. |
Change in procedure for suspension of GST registration
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· Where the GST officer has reasons to believe that the registration of a person is liable to be cancelled under the GST law, then he may suspend the registration of such person with effect from a date to be determined by him. Accordingly, no opportunity of being heard shall be given in case of suspension of GST registration;
· Where there are significant deviation/anomalies between:
which indicates contravention of provisions of the GST law leading to cancellation of registration, then the GST officer shall serve a notice and asking the taxpayer to explain anomalies and differences (within 30 days) as to why GSTIN should not be cancelled · Where a GSTIN has been suspended no refund under the GST law shall be granted during the period of suspension (Refer Rule 21A of the CGST Rules) |
5. | Restriction on claim of Input tax credit upto 5% | · Limiting input tax credit availment by a registered person in respect of invoices/ debit notes not furnished by the supplier in the Form GSTR 1 or using the invoice furnishing facility up to 5% of the total eligible input tax credit available in Form GSTR 2B
· The said provision shall be effective from 01 January 2021 (Refer Rule 36(4) of the CGST Rules) |
6. | Restriction on filing of Form GSTR 1 |
(Refer Rule 59(4) of the CGST Rules) |
7. | Restriction on use of amount available in electronic credit ledger |
(Refer Rule 86B of the CGST Rules) |
8. | Validity of e-way bill upto 200 kms |
(Refer Rule 138 (10) of the CGST Rules) |
9. | Wavier of late fee |
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The above change has been introduced vide Notification No. 93 & 94 / 2020 – Central Tax dated 22 December 2020.
Separately, it is to be noted that vide Notification No. 92/2020 – Central Tax dated 22 December 2020 amendment introduced vide Finance Act, 2020 in respect of specific section of the CGST Act have been made effective from 01 January 2021.