As the year has changed then how can we expect that there are no changes in taxes. This new year bought many changes with it. So let’s check what is coming new in GST from January 2020.
1. GST authorities will block your bank account on non-filing of GST Returns on time.
A new set of rules has given GST authorities the free pass to attach their property and bank accounts as a strategy to ensure better compliance, according to the reports. The CBIC agreed to go hard against “defaulters” in the three-page standard operating procedure released if they fail to file tax returns despite repeated reminders.
GST Input Tax Credit Calculator
2. Rule 86a will come into force.
Rule 86A has authorized the Department to impose restrictions on the use of available input tax credit of recipients in some cases. It deals with the restriction on obtaining credit where there is reason to believe that ITC has been used fraudulently.
3. GSTR-1 Late Fee Waives Off
For the period between July 2017 and November 2019, the government has allowed a waiver of the late fee for businesses filing outward supply details in Form GSTR-1 till the date of January 10, 2020.
Get all the updates in Our Telegram Channel
4. 10% Credit Rule
The government has notified the rules on the availability of input tax credit reduced to 10 percent from 20 percent of eligible credit, if invoices or debit notes are not reflected in GSTR-2A In accordance with the new sub-rule (4) inserted in Rule 36 of the Central Goods and Service Tax Rules 2017, a taxpayer filing GSTR-3B can claim provisional Input Tax Credit (ITC) only to the extent of 10% of the eligible credit available in GSTR-2A. The amount of eligible credit is arrived from those invoices or debit notes received and reflecting in the GSTR-2A.
5. E-invoicing
The E- Invoicing system is effective for the businesses with an annual turnover above Rs500 crore on a voluntary basis w.e.f. 01.01.2020 It is compulsory from 1st April 2019. For those with an annual turnover of over Rs100 crore, e-invoicing can be used from 1 February.
6. Aadhar Authentication for GST Registration
For new registration dealers, aadhaar authentication is mandatory now. Those who fail or decline their Aadhaar numbers would have to undergo for physical checking.
GST Input Tax Credit Refund- Cases, Process, Documents
7. GST Council exempts long-term leases on industrial plots to promote the establishment of industrial parks.
Exemption is given from the upfront amount payable for long-term leases of industrial / financial infrastructure plots to an entity with 20% or more ownership of central or state government. Previously, the waiver was applicable to an entity that owns the 50% or more of central or state government property.
8. GST Rate
The effective GST rate is fixed at 28 percent for lottery. The GST Council also recommended raising the GST to a uniform rate of 18% from 12% for all such bags falling under HS 3923/6305, including Flexible Intermediate Bulk Containers (FIBC), effective from January1, 2020.
Tax Calendar
9. Proviso to Section 44 of CGST Act, 2017 – Annual return
As per this proviso, the commissioner are now empowered to grant time for filling Annual Return to the class of registered taxpayers on the recommendation of the GST Council.
10. Change in the list of RCM
Renting of motor vehicles intended to carry passengers where the cost of fuel is included in the consideration charged to the service recipient, provided to a corporate body by any person (other than a corporate body) who provides the service to a body corporate and does not issue tax invoice at the rate of 12% to the receiver. This is now charged under Reverse Charge Mechanism.
For any question visit us at forum
The author of above article is Sneha Bhalotia.
