You may all know that the GST is updating its
rules day by day according to the situations that are arising in the market.
And now, the GST has introduced rules regarding the liability of the business.
The rules state that the Business that have their turnover of more than Rs. 50
Lakhs mandatorily need to pay the 1 percent of GST liability. So in this blog,
we will discuss the new rules of the GST.
Detailed
Information on the latest rules:-
Central Board of Indirect Taxes and Customs (CBIC)
had made some changes in the rules of Goods and Services Taxes (GST) and it is
done because of the fake invoicing techniques of most of the companies and
organizations.
Rule 86B has introduced by the Central Board of
Indirect Taxes and Customs (CBIC) which restricts the companies to use the
Input Tax Credit (ITC) for discharging the GST liability to 99 percent. Rule
86B will be applicable from the 1st of January 2021.
The CBIC (Central Board of Indirect Taxes and
Customs) said that "The registered person should not use the Electronic
Ledger for discharging of the liability towards output tax in excess of 99
percent of the liability, in the case where the monthly turnover exceeds above
Rs. 50 Lakhs.".
The restriction will not apply to the Managing
Directors or the partners who had paid Rs. 1 Lakh of Income Tax or the
registered persons that had got refunds above Rs. 1 Lakh in the preceding
financial year on account of unused Input Tax Credit (ITC).
The non-filing of the GSTR 3B had been got the
blockage of the e-way bill but the same will result for the GSTR 1.
Finance Minister Nirmala Sitharaman tweeted that
"In order to curb the GST Registration fake invoice frauds, the Govt on the
recommendations of the GST Council's Law Committee has issued a notification to
deal with the menace of fraudsters who avail & pass on ineligible ITC by
fake or fly-by-night firms,".
12 Thousand cases of the Input Tax Credit (ITC)
Fraud were booked by the CBIC (Central Board of Indirect Taxes and Customs) and
has arrested 365 persons in such cases. More than 165 fraudsters have been
arrested over the last six weeks by the CBIC.
In the fraud cases of Input Tax Credit (ITC), the
action of suspension and cancellation would be taken if the companies have
errors in their data analytics.
"The suspected fraudsters will be analyzed by
taking the use of advanced data analytic tools, etc", the CBIC said.
Conclusion:-
The CBIC has made some rules on the Goods and
Services Taxes (GST) due to some of the fraudsters that were doing invoice
frauds. And due to this loss, the CBIC amended the rules of GST and improved it
by applying Rule 86B in GST. In this rule, the organizations that had a
turnover above Rs. 50 Lakhs must have to pay 1 percent of GST liability.
