Page 113 - DHC Budget Book 2021-22 Final
P. 113
10.2
Other Changes proposed in the Bill [Effective date to be notified coinciding with amendments in SGST Acts]
10.2.1 Addition in Eligibility Conditions to avail ITC
Sec. 16(2) of the CGST Act, 2017 prescribes conditions for availing Input Tax Credit.
The bill proposes to include a condition that ITC in respect of an invoice or debit note can be available only when the details of the invoice or debit note has been furnished by the supplier in their statement of outward supplies (GSTR-1) and such details have been communicated to the recipient.
Comments
Such amendment has been made to allow ITC only in respect of those invoices or debit notes which are reflected in GSTR-2A.
Pursuant to such amendment, Rule 36(4) of
the CGST Rules, 2017 (which states that ITC availed in respect of invoices or debit notes not reflecting in GSTR-2A, shall not exceed 5% of the eligible credit available in GSTR-2A) will become redundant.
10.2.2 Annual Return to include a self-certified reconciliation statement and requirement of GST Audit Certification omitted
The Bill proposes to amend Sec. 44 of the CGST Act, 2017 to include a self-certified reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year, with the audited annual financial statement for every FY and to remove mandatory requirement of getting accounts audited by a Chartered Accountant or Cost Accountant by omission of Sec. 35(5) of the CGST Act, 2017.
It is also proposed to exempt departments of Central Government or a State Government or Local Authority, whose books of account are subject to audit by CAG or an auditor appointed for auditing the accounts of local authorities
under any law for the time being in force, from furnishing of Annual Return.
This amendment will not be applicable for FY 2019-20, as clarified by CBIC.
Comments
Such amendment has been made to further ease compliance formalities under GST.
Thus, the proposed amendment is expected
to provide relief for registered persons as an additional compliance is done away with. However, a self-certified reconciliation would have to be given with GSTR 9. Thus in effect the extent of ease is to be ascertained once the changes in form is notified.
10.2.3 Seizure, detention and confiscation to be a separate proceeding from recovery of tax.
The Bill proposes to amend Explanation 1(ii) to Sec. 74 of the CGST Act, 2017 to make seizure, detention and confiscation of goods and conveyances in transit, a separate proceeding from recovery of tax.
Comments
Currently, where a SCN is issued to the main person liable to pay tax and some other persons, the proceedings against all the persons liable to pay penalty under Sec. 129 (Detention, seizure and release of goods and conveyances in transit) and 130 (Confiscation of goods or conveyances and levy of penalty) of the CGST Act, 2017 are deemed to be concluded if proceedings against the main person is concluded.
As a result of the amendment, proceedings against other persons (e.g. Transporters, Person-in-charge of vehicles, etc.) shall continue even if proceeding against the main person is concluded.
Content
Goods and Services Tax Indirect Tax 111
