New changes in GST rules need a relook: EPCH
New Delhi – 24th December, 2020 – The GST Council has notified various important changes in the GST Rules which included changes like Time limit for system-based GST Registration increased from 3 days to 7 days; More Powers to GST department in cancellation of GSTIN; Restriction on claim of ITC as per Rule 36(4) has now been made as 5% of the credit available in GSTR 2B; GSTR 1 to be blocked in case of non-filing of GSTR 3B Where a taxpayer fails to file GSTR 3B for two subsequent months, his GSTR 1 shall now be blocked; Taxpayer who is restricted to avail ITC as per rule 86B shall also not be permitted to file GSTR 1 where he has not filed GSTR 3b for the preceding tax period; Restriction on Utilization of Input Tax Credit – Rule 86B and Narrowing the validity of Eway bill.
Ravi K Passi Chairman EPCH while commenting on the important changes introduced in CGST Rules 2020 said a lot of restrictions have been imposed on assesses, particularly, Input tax credit can only be availed if it is appearing in form GSTR 2A, input tax can be blocked if GST officer has reason to believe that assesse has wrongly availed credit and GST registration can be cancelled by the department if any activity is found suspicious. While these all changes will give more powers to departmental officers, it sets the alarm bells ringing for assesses that they should be extremely cautious while doing GST compliances.
Passi further said that these changes need a relook and the interest of all genuine assesses should be kept in mind as GST compliance is a way forward and after three years of GST implementation, there is a wide spread understanding and acceptability of the system amongst exporters.
