The goods and service tax (GST) is undoubtedly the most prominent tax law introduced by the Indian government as a revolutionary step to boost the economic growth of the country.
Its been almost three years since its inception, and the taxpayers are still struggling to understand the new norms of GST. Businesses, traders, and salaried persons from all over the country try their best to avoid any mistake and heavy penalties during the taxation process.
The GST law is still new, and people are still trying hard to get familiar with it. There have been many amendments by the GST council every year while considering feedback from the country’s citizens.
It is critical for a taxpayer to keep track of these latest notifications to avoid any mistake or delay, which can cause heavy penalties and other problems. The GST council is trying its best to simplify the whole taxation process and the task associated. For instance, you can efficiently conduct a gst number search by name on the official GST website.
Below are some of the most significant changes under the GST law, which are applicable for the year 2020.
Restriction On The Claim of ITC
As per the rule 36(4) of CGST, 2017, a registered person could claim ITC in respect of debt notes which have not been uploaded by the suppliers in GSTR-01.
Central Board of Indirect Taxes and Customs has notified a specific amendment in this rule, reducing the percentage of eligible ITC available for Availment from 20% to 10%.
Rule 86A Grant New Powers To Commissioner
Under the new rule 86A of CGST Rules, a commissioner may restrict debiting of amount for tax liabilities or refund claims of any unutilized amounts in the tax register if the tax credit is availed fraudulently or without receipt of goods or services. This new amendment was inserted vide Notification No. 75/2019- Central Tax dated December 26, 2019.
Blocking Of Generation of E-way Bill
The rule 138E of the CGST is amended vide Notification No. 75/2019 – Central Tax dated December 26, 2019, Under this amendment, generation of e way bill will be blocked if GSTR-1 for two consecutive months is not filled.
It becomes critically important for taxpayers that they fill GSTR-1 and GSTR-3B without delaying or gap. This amendment is valid from January 11, 2020.
The New System Of E-Invoicing
According to the Notification No. 70/2019 – Central Tax dated December 13, 2019, e.f. April 01, 2020, if your turnover exceeds Rs. 100 Crores in a financial year, it is mandatory for you to generate e-invoices in the case of B2B, and you must report to the website portals of the GST.
Mandatory QR Codes For B2C Supplies
In terms of Notification No. 71/2019 – Central Tax and Notification No. 72/2019 – Central tax, both dated December 13, 2019, e.f. April 01, 2020, Quick Response( QR) codes are mandatory for a registered person whose turnover is Rs. 500 crore and is in B2C business.
New Simplified And Auto-Generated GST Return System
In its 31st meeting, the GST council fulfilled the need of the taxpayers for a better GST return system. This new system will be simplified, auto-generated and will be available for taxpayers from April 1, 2020.
The primary aim of this new system is to increase compliance and reduce tax evasion. The gst new registration process is also being analyzed to make the required amendments.
Quoting DIN In All Communications
Document Identification Number( DIN) was implemented by the CBIC to maintain transparency and accountability related to indirect taxes.
Under the circular No. 128/47/2019- GST dated December 23, 2019, the CBIC has made it mandatory to generate and quote DIN in all the communications sent to the taxpayer by any CBIC office of the country and would be effective from December 24, 2019.
RCM On Renting Of Motor Vehicles
As per the notification no. 29/2019-Central Tax (Rate) dated December 31, 2019, Reverse charge mechanism (RCM) shall apply to the service by way of renting of the motor vehicle under below-mentioned conditions:
- The supplier is other than a body corporate.
- They do not issue an invoice charging GST @12%
- They supply the service to a body corporate in the taxable territory
These are some of the essential GST notification that every taxpayer must be aware of in 2020. GST law is continuously evolving for the betterment of government and citizens, and it is our responsibility to encourage everyone to pay their taxes on time.