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The government has notified some procedural changes in the GST rules, including those related to the threshold for filing annual returns for the fiscal year 2021-22, a move that will help ease the compliance burden on small players.
The changes were vetted by the Goods and Services Tax (GST) Council at its meeting last week.
With the amendments notified by the Central Board of Indirect Taxes and Customs (CBIC), businesses are also allowed to make tax payments on the GSTN portal using IMPS and UPI payment modes.
Companies with a total annual turnover of up to Rs 2 crore in the fiscal year ended March 31, 2022, are exempted from filing annual returns for 2021-22, as per the amended rules.
KPMG India partner (indirect taxation) Abhishek Jain said these changes will help small players comply and ease the burden on taxpayers with less than Rs 2 crore turnover to the extent of filing annual GST returns.
AMRG & Associates senior partner Rajat Mohan said other important changes include extending the time limit specified in section 73 (assessment of tax) under the GST Act for issuing an order for the financial year 2017-18 to September 30, 2023.
However, no extensions are foreseen for another financial year.
“Due to the delayed submission of refund applications during the COVID period (March 1, 2020 to February 28, 2022), an appropriate extension has been granted which will enable many exporters to encash refunds stuck in litigation disputes,” Mohan said.
Jain said that considering the COVID scenario in the last two years for India, the government has extended the limitation period under GST for issuing notice to tax payers who have not paid/failed to pay the tax due. Similarly, relaxation of restrictions on filing refunds is provided.
“While the government’s intention is to limit revenue leakage, this change leaves businesses exposed to separate audits and assessments for some additional time. That being said, this change also ensures that genuine taxpayers are not denied their refund claims,” Jain added.
According to Mohan, the manner of calculation of interest on late payment of tax has been notified and this would help taxpayers to make an accurate calculation of tax liability.
Under the amended rules, every invoice issued by an MSME supplier will have a standard statement printed on the invoice regarding the non-applicability of e-invoicing.
Also, the cash book balance can be transferred from one GST registered person to another under the same PAN.
The changes were approved by the GST Council, comprising Central and state finance ministers, at its meeting on June 28-29.
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