Central Goods and Services Tax (Fourteenth Amendment) Rules, 2020

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The CBIC vide notification dated 22 December 2020 has published the Central Goods and Services Tax (Fourteenth Amendment) Rules, 2020. In this article, we will discuss the CGST Fourteenth Amendment Rules in brief.

CBIC Notification on Fourteenth Amendment Rules, 2020

The CBIC vide notification dated 22 December 2020 has announced the Central Goods and Services Tax (Fourteenth Amendment) Rules, 2020 Where a comparison of the returns provided by a registered person under section 39 with the elements of outward supplies furnished in FORM GSTR-1 or the details of inward supplies derived based on the details of outward supplies furnished by his suppliers in their FORM GSTR-1.

Further such other analysis, as may be carried out on the proposals of the Council, show that there are significant differences or aberrations indicating contravention of the provisions of the Act or the rules made thereunder, directing to cancellation of registration of the said person, his GST Registration shall be cancelled and the said person shall be intimated in FORM GST REG-31, electronically, on the common portal.

CGST Fourteenth Amendment Rules

On the guidance of the council of ministers, the central government has advised injecting significant changes introduced under CGST (Fourteenth Amendment) Rules, 2020.

1 Time Limit for Grant of System-Based GST Registration has been Expanded

The time limit for system-based Goods and Services registration tax has been expanded from 3 days to 7 days, now. Meaning which, that now the authorised division will have a review and grant Goods and Services Tax registration within 7 days rather than in 3 days.

2 Additional Provisions for the Cancellation of the GST Registration

Goods and Service Tax department is presently capable to cancel GSTIN (Goods and Services tax identification Number) (Rule 21A)

3 The limit of for Claiming ITC

The restriction has been inflicted in respect of invoices or debit notes, 10 % cap of claiming ITC has now been lessened to 5%.

4 Limitations on Electronic Credit Ledger

The taxpayers are not authorized to utilize the amount stored in electronic credit ledger to get rid of his liability towards output tax in extra of 99% of such tax liability.

5 GSTR 1 to be Obstructed in Case of Non-Filing of GSTR 3B

If a taxpayer declines to file Form GSTR 3B for two succeeding months then Form GSTR 1 will be obstructed. Read Official Notification.

Important GST Changes Applicable from 2021

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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