Jamshedpur, Dec 28: A delegation of Singhbhum Chamber of Commerce and Industry led by president Vijay Anand Moonka met Central GST commissioner, M Rahman and submitted a memorandum addressed to Union finance minister Nirmala Sitharaman over changes in GST.
The delegation in the memorandum on the changes in GST with effect from January 2022 have informed that in the input tax credit in respect of invoices and debit notes will be available only to the extent they are furnished by the sellers in GSTR-1 and thus appear in GSTR-2A/2B of the recipient. Input tax credit will not be available unless the details of the invoice uploaded by the supplier in Form GSTR-1 are communicated to the recipient (ie as reflected in GSTR 2A/2B). The margin of five percent will no longer be available.
“We suggest that the recipient should be allowed to take input tax credit on the basis of GSTR-2A filed by 20th of the following month and not 2B. Because due to some reason the supplier could not file GSTR-1 on or before the due dates but has filed it by 20th of next month i.e. on or before the due date of filing GSTR-3B. Further, in many judicial pronouncements, it is held that the input tax credit of the recipient cannot be denied, if proper documents are available with the recipients at the time of availing the input credit,” the memorandum states.
The memorandum draws attention to the Section 75(12) which has been amended to provide that tax declared under GSTR-1 but not included in GSTR-3B shall be treated as “self-assessed tax” and hence, such tax declared under section 79 direct recovery of tax will also be possible without issuing any show cause notice.
“Due to this amendment, the officers of the department will be empowered to initiate recovery action directly on the basis of supplies shown in the GSTR 1 return, provided the relevant GSTR 3B return is not filed properly, i.e. wholly or partly of tax. has not been discharged. He will not even need to issue notice. For example, more trouble would be in cases where even 1 is inadvertently shown as 10 or the amount will show up in the wrong tax head,” the memorandum states.
“We suggest that either the assessee should have been given an opportunity before initiating any proceeding under section 79 of the GST Act or the assessee may kindly be allowed to revise his return immediately,” the memorandum suggests.
Presently it is necessary to pay full tax and 100% fine for release of confiscated goods for contravention of provisions relating to e-way bill and carrying other documents under section 129. Now, the confiscated vehicle with the consignment will be released after payment of a fine equal to 200% of the tax. The tax will be recovered through separate proceedings.
“Even 100% fine is too harsh, now 200% fine is not an acceptable move by the government,” the memorandum states.
