The Government keeps on updating and amending the tax-related provisions. Updating according to these provisions is not always easy for online businesses. And hence, the Woocommerce GST plugin is often helpful to make changes to the GST settings of your e-commerce website. But the government has recently put up a lot of work on our shoulders too. Want to know how?
Recently, what has caught everyone’s eye is the Union Budget 2022. The Union Budget stands as the most important event for the revival of the Indian Economy. There are many debates after the presentation on the Union Budget 2022 on the 1st of February. Along with that, a lot of confusion is observed about what would be taxed and what wouldn’t.
We are here for the breakdown of the amendments in the Central Goods and Service Tax(GST) introduced in the Finance Bill, 2022 of the Union Budget 2022. This year, strong revenues have been observed. The record collection of Rs.1,40,986 crore gross GST revenues was achieved in January 2022. It is the highest since the GST outset. This assures the Indian Economy is on the right track post-pandemic.
Check out the changes to be adapted in your GST transactions.
Note – These amendments in the GST law will apply once notified by the CBIC.
Section 29 of the CGST Act is amended for the cancellation of GSTIN by the officer.
The GST registration will be cancelled by the officer if:
Section 38, which deals with furnishing the inward supplies, is substituted by prescribing terms and conditions for detailing the inward supplies. The section is amended completely to remove reference to earlier GSTR-2 and replace it with GSTR-2A and GSTR-2B with a new heading as ‘Communication of details of inward supplies and input tax credit’.
The section now prescribes the manner, conditions and restrictions for availing the input tax credit. The motive behind this amendment is to set up a two-way communication process while filing the return.
The Finance bill stated conditions for providing details of an outward supply in GSTR-1 and communication of such details to the recipients via GSTR-2B. Whereas, in the outward supplies, due to the suspension of the GSTR-2 return, the two-way communication process while filing the return was cancelled.
As reported in GSTR-1, the deadline for rectifying the errors regarding outward supplies is now extended up to 30th November of the following financial year. It availed sequential filing of outward supplies without skipping the tax periods. The current time limit is upto the due date of furnishing GSTR-3B of September month of next financial year.
Section 41 of the CGST Act is being modified to –
The following sections have been removed to eliminate the two-way communication process in the return filing.
The non-resident taxpayer shall furnish the return for a month by the 13th of the following month
Under proviso to sub-section (1), there’s given an option to the person filing the return to pay either the self-assessed tax or an amount that may be prescribed.
The furnishing of details of outward supplies (GSTR-1) was added as a condition for filing GSTR-3B for the said tax period.
An amendment has been made in section 49 of the CGST Act to prescribe the restrictions for utilising the amount in the electronic credit ledger.
This amendment allows the transfer of the amount available in the electronic cash ledger under the CGST Act of a registered person to the electronic cash ledger under the CGST Act or the IGST Act of a distinct person for prescribing the maximum proportion of output tax liability which may be excluded through an electronic credit ledger.
This important amendment avails the taxpayers with multiple GSTINs to transfer excess cash balances from state to state.
The amendment in Section 34(2) is substituted to provide an extended time limit for the issuance of the credit note. The deadline is now extended up to the 30th of November following the end of the financial year or the annual return filing date, whichever is earlier; over the September following the end of the financial year
Sub-section (3) of section 50 of the CGST Act has been proposed to be backdated to
This amendment puts pressure on businesses to report the ITC in an accurate manner and every so often. The disorganization in such a case might cost a huge penalty to the business and lead to a major loss.
All these amendments and updates are being made to acquire ease in transactions and understanding the concept and provisions under GST law. Online GST consultants, reference data, previous and new updates since the output of GST, GST invoice formats, GST invoice plugin, GST slab rates, all this is a click away.
And Woocommerce GST plugin is one of those clicks. We bring ease to all the GST transactions of your woocommerce website. We adapt the new updates with great efficiency and are working hard to provide better support to our consumers every day. We also work to make the very familiar term ‘GST understandable. A good understanding of the concept of ‘One Nation, One Tax’ is very important for every tax-paying citizen, isn’t it? Let us know your thoughts in the comments below.
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