- Changes in the GST Act from January 1
- More stringent rules will be enforced
The Finance Act of 2021 has been amended. Part of this is to implement new changes. The new law amendment includes a number of changes, including the distribution of products subject to GST, eligibility for tax credits, and criteria for filing appeals in certain GST-related cases.
The sales force usually pays the government the amount of GST shown on the bill received at the time of purchase. The main provision of the GST Act is that the GST registered company pays the balance of the GST liability of the purchaser through his GST return.
But if the purchaser wants to get the GST credit received under the bill from January 1, the seller has to file their return and reflect it on the buyer’s screen.
At the time of purchase, the purchaser has already paid the seller the amount including GST. Under the new change, it is now the responsibility of the purchaser to file a return and then pay the product tax. Similarly, IGST on customs duty on imported goods is often not reflected in the GST portal.
Industry insiders say the legal reforms are a setback for the SME sector.
In addition, businesses may have to pay up to 25 percent of the fine for appeals against official orders. This provision will come into effect from January 1. This is when appeals are made in cases of seizure of goods stored or exchanged in violation of the rules.