{"id":24015,"date":"2021-01-12T15:28:52","date_gmt":"2021-01-12T09:58:52","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=24015"},"modified":"2021-01-13T17:14:26","modified_gmt":"2021-01-13T11:44:26","slug":"gst-updates-2021","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/gst-updates-2021\/","title":{"rendered":"Key Highlights of GST Updates 2021"},"content":{"rendered":"\n<p class=\"has-drop-cap\">With each day that passes, GST laws are becoming stringent instead of\nbeing simplified. That is why the department issues notifications from time to\ntime to keep the interested people updated regarding the changes made by the\nauthorities concerning various compliance procedures, Introduction of QRMP\nscheme, E-invoicing, tax rates, and related matters.<\/p>\n\n\n\n<p>Here, we will discuss in a summarized form all the notifications and GST\nupdates issued by the department. Here the recent GST updates of 2021, but\nbefore that we will have a look at the background of the GST-<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/gst-updates-2021\/#An_Overview_on_the_Background_of_GST\" >An Overview on the Background of GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/gst-updates-2021\/#GST_Updates-Latest_Notification_2021\" >GST Updates-Latest Notification 2021<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/gst-updates-2021\/#Highlights_of_Budget_2021_Expectation_in_GST\" >Highlights of Budget 2021 Expectation in GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/gst-updates-2021\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"An_Overview_on_the_Background_of_GST\"><\/span><strong>An Overview on the Background of GST<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Goods and Service Tax was introduced to-<\/p>\n\n\n\n<ul><li><strong><em>Remove the cascading of taxes, <\/em><\/strong><\/li><li><strong><em>Remove the situation of collecting multiple taxes on every\nlevel of production.<\/em><\/strong><\/li><\/ul>\n\n\n\n<p>Multiple taxes are also collected at every level of production under GST,\nbut the manufacturer is refunded back on further levels. GST is a\ndestination-based tax; it is levied at the point of consumption not at the\nplace of manufacturing. Every state had a different set of regulation under\nGST.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_Updates-Latest_Notification_2021\"><\/span>GST Updates-Latest Notification 2021<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Latest updates on the GST are given below for your understanding, which are as follows-<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">GST Update as on 1st January 2021<\/h3>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/GST-Update-as-on-1st-January-2021.png\" alt=\"GST Update\" class=\"wp-image-24016\" width=\"515\" height=\"522\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/GST-Update-as-on-1st-January-2021.png 985w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/GST-Update-as-on-1st-January-2021-296x300.png 296w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/GST-Update-as-on-1st-January-2021-768x780.png 768w\" sizes=\"(max-width: 515px) 100vw, 515px\" \/><\/figure><\/div>\n\n\n\n<h4 class=\"wp-block-heading\">New\nsub-rule 6 is Inserted to Rule 59 of the CGST Rules<\/h4>\n\n\n\n<p>Wide Notification 1\/2021, dated on 01\/01\/2021, the\ndepartment seeks to amend the CGST Rules, 2017 to CGST Amendment Rules, 2021-. Its Subject\nis to amend the CGST Rules, 2017 to CGST Amendment Rules, 2021. A new sub-rule 6 is\ninserted to rule 59 of the CGST Rules, 2017, limiting or&nbsp;closing the filing of GSTR-1 as follows:-<\/p>\n\n\n\n<ol><li><strong>For filing of GSTR-1 on monthly basis <\/strong>&#8211; GSTR-1 for the current month is not\nallowed, where <strong>GSTR-3B<\/strong> filing for the preceding 2 months is pending.<\/li><li><strong>For filing of GSTR-1 on Quarterly Basis,<\/strong> where GSTR-3B filing for the preceding\ntax period is pending, then neither the Invoice furnishing facility (IFF) nor\nthe GSTR-1 for the current quarter is allowed.<\/li><li>Where more than <strong>99%<\/strong> of tax liability is carried out\nthrough electronic credit ledger under&nbsp;Rule 86B, then the taxpayer cannot\nuse-<\/li><\/ol>\n\n\n\n<ul><li><strong>The Invoice furnishing facility or <\/strong><\/li><li><strong>file GSTR-1,<\/strong><\/li><\/ul>\n\n\n\n<p>if the previous tax period\u2019s GSTR-3B is not filed.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Extension for due date to file GSTR-9 &amp; GSTR-9C for FY 2019<\/h4>\n\n\n\n<p>On 30thDecember2020, the Department has extended the due\ndate to file GSTR-9 &amp; GSTR-9C for FY 2019 from 31st December 2020 up to\n28th February 2021.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Seeks to amend notification no. 13\/2020-Central Tax dated. 21.03.2020<\/h4>\n\n\n\n<ol><li>For the applicability of e-Invoicing, in place of \u201ca\nfinancial year\u201d, substituting the words and figures \u201cany preceding financial\nyear from 2017-18 onwards.\u201d<\/li><li>Positioning the words<strong> \u201cor for exports\u201d,<\/strong> after the\nwords \u201c<strong>goods or services or both to a registered person\u201d<\/strong>.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">GST Update as on 4th January 2021<\/h3>\n\n\n\n<ul><li>To meet the GST compensation shortfall, the central government has released the 10th installment of INR 6000 crores (As a loan) to the states.<\/li><li>Also, a new facility of interaction between taxpayers has been provided on the <strong>GST Portal<\/strong><sup><a href=\"https:\/\/www.gst.gov.in\/\"><strong>[1]<\/strong><\/a><\/sup>.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">GST Update as on 6th January 2021<\/h3>\n\n\n\n<p>GSTN has initiated a new Invoice Furnishing Facility (IFF) under\nquarterly return filing &amp; monthly payment scheme for taxpayers.&nbsp;IFF is\nan optional facility provided to the taxpayer under the QRMP scheme.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">GST Update as on 7th January 2021<\/h3>\n\n\n\n<p>For existing taxpayers, the authority has added a new feature of Aadhaar\nauthentication &amp; electronic KYC (E-KYC). The feature is available on the GST\nportal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Highlights_of_Budget_2021_Expectation_in_GST\"><\/span>Highlights of Budget 2021 Expectation in GST<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Intending to simplify the GST and Labour laws, the department has issued\nthe various notifications, which are as follows:-<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Regulating the Payment of Taxes through Input Tax Credit<\/h3>\n\n\n\n<p>As per the recent notification issued by the department, if the monthly\ntaxable sales are more than <strong>Rs 50 lakhs<\/strong>, it has been made compulsory to\npay 1 % of GST liability in cash. However, there are few exceptions to it, and\nis not allowed to be set-off against input tax credit. <\/p>\n\n\n\n<p><strong><em>Exception<\/em><\/strong>-The restrictions for the payment of taxes through ITC would not be applied to the following where-<\/p>\n\n\n\n<p><strong>1.<\/strong> Income Tax paid by-<\/p>\n\n\n\n<ul><li>An individual or the proprietor or,<\/li><li>Karta or,<\/li><li>The Managing Director or any of its 2 partners, <\/li><li>Whole-time Directors, <\/li><li>Members of Managing Committee of Associations or,<\/li><li>Board of Trustees<\/li><\/ul>\n\n\n\n<p>of Rs <strong>1 lakh<\/strong> or more in each of last 2 financial year.<\/p>\n\n\n\n<p><strong>2. <\/strong>Claimed refund of the Input tax credit on zero-rated supplies of <strong>1 lakh<\/strong> or more in the previous financial year,<\/p>\n\n\n\n<p><strong>3. <\/strong>Claimed refund of the Input tax credit on an Inverted duty structure of 1 lakh or more in the previous financial year.<\/p>\n\n\n\n<p><strong>4. <\/strong>The person registered under GST has carried out his liability towards output tax through the electronic cash ledger for an amount which is over 1% of the total output tax liability, applied collectively, up to the said month in the current financial year; or<\/p>\n\n\n\n<p><strong>5. <\/strong>The registered person is a <strong>Government division, a Public sector Unit, a local official, ora statutory body.<\/strong><\/p>\n\n\n\n<ul><li>With a requirement of physical verification of office address, the GST officer has increased the time limit of permitting the <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST registration<\/strong><\/a>.<\/li><li>As per recent GST Updates, GST officers have been assigned more powers to cancel GST registration in several cases. <\/li><li>Respective state governments are anticipating GST department audits and scrutiny\u2019s as per respective State GST laws to comply with the GST Update of 2021.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Impact on MSMEs and Startups as per recent GST Updates<\/h3>\n\n\n\n<p>The above GST Updates in Budget expectations shall not only shoot up time and compliance costs for <a href=\"https:\/\/corpbiz.io\/msme-registration\"><strong>MSMEs<\/strong><\/a> and startups but will also bring out manipulation and badgering. MSMEs and new startups anticipating untangled and programmed tax laws are not such complicated and officer-determined laws.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The department keeps on changing and amending the provisions related to\nGST and other taxes. The reason behind such change is to avoid future\ncontingencies and for the ease of the taxpayers.<\/p>\n\n\n\n<p>Once a person gets registered as a Goods and Services taxpayer, he has to follow all the compliances and GST updates issued by the GST Council from time to time. For any queries related to the Goods and Service Tax, GST updates, and related notification feel free to contact our experienced and trained professionals at Corpbiz.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/gst-exemption-on-satellite-launches-for-encouraging-the-domestic-launch\/\">\nGST Exemption on Satellite launches for Encouraging the Domestic Launch\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With each day that passes, GST laws are becoming stringent instead of being simplified. That is why the department issues notifications from time to time to keep the interested people updated regarding the changes made by the authorities concerning various compliance procedures, Introduction of QRMP scheme, E-invoicing, tax rates, and related matters. Here, we will [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":24020,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16,153],"tags":[1420],"acf":{"service_id":"68"},"authorName":"Archita Bhattacharjee","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/WhatsApp-Image-2020-03-18-at-11.26.19-AM-1.jpeg","authorDescription":"Archita Bhattacharjee is working as Legal Analyst (Team Lead, Research &amp; Development) at Corpbiz and has proving experience about 2 years as Corporate Legal Researcher in law firms as well as Rajya Sabha and authors in diverse publications. She has refined her skills by representing India in Paris, France and the University of Leiden over implications of International Humanitarian and Criminal Law being certified member of many Legal Centers.","postViews":6728,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24015"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=24015"}],"version-history":[{"count":21,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24015\/revisions"}],"predecessor-version":[{"id":24043,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24015\/revisions\/24043"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/24020"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=24015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=24015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=24015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}