CBIC has published certain modifications to the Goods and Services Tax (GST) Rules, carrying in stringent circumstances for getting GST registration as well as for businesses to settle GST liability using the input tax credit. Let’s discuss the notification on GST Liability.
CBIC Notification for GST Liability
Firms with a monthly turnover of overall Rs 50 lakh will have to compulsory spend at 1 per cent of their GST liability in cash, the finance ministry confessed as it started to curb evasion by fake invoicing. The Central Board of Indirect Taxes and Customs (CBIC) has informed certain changes to the(GST) Rules, conditions for getting GST registration.
CBIC Introduced new Rule in GST
CBIC has commenced Rule 86B in GST Rules to be relevant from January 1st 2021, which prohibits the usage of the input tax credit for releasing GST liability to 99 per cent. The registered person shall not expend the quantity accessible in electronic credit ledger to discharge his liability towards output tax in the abundance of 99 per cent of tax liability, in cases where the price of taxable supply in a month exceeds Rs 50 lakh.
Further Notification for Taxpayers
This restriction will not relate where the managing director or any partner has spent more than Rs 1 lakh as income tax or the registered person has obtained a refund proportion of more than Rs 1 lakh in the foregoing financial year on account of an unutilised intake tax credit.
Further, the CBIC has modified GST rules prohibiting the filing of outward supply elements in GSTR-1 for a business that have not compensated tax for the past periods by filing GSTR 3B. So far, non-filing of GSTR 3B ensued in stoppage of the e-way bill but will now conclude in GSTR 1 stoppage as well.
In case, you need any kind of guidance related to the GST Return Filing or GST Registration, please feel free to contact our business advisors at 8881-069-069.
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