Now taxpayers can avail ITC pertaining to outward supplies not declared by their suppliers in form GSTR-1/IFFF Only to the extent of 5% (So form earlier original 20% limit, reduced to 10% later, is now further reduced to 5%).
Rule59(4) :-
(a) a registered person shall not be allowed to furnish the details of outward supplies of goods or services or
both under section 37 in FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for preceding
two months.
(b) a registered person, required to furnish return for every quarter under the proviso to sub-section (1) of section
39, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in
FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3B
for preceding tax period.
(c) a registered person, who is restricted from using the amount available in electronic credit ledger to discharge
his liability towards tax in excess of ninety-nine per cent. of such tax liability under rule 86B, shall not be allowed
to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or
using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3B for preceding tax
period.
“86B. Restrictions on use of amount available in electronic credit ledger. -Notwithstanding anything contained in these rules, the registered person shall not use the amount available in electronic credit ledger to discharge his liability towards output tax in excess of ninety-nine per cent. of such tax liability, in cases where the value of taxable supply other than exempt supply and zero-rated supply, in a month exceeds fifty lakh rupees: -
Provided that the said restriction shall not apply where –
(a) the said person or the proprietor or Karta or the managing director or any of its two partners, whole-time
Directors, Members of Managing Committee of Associations or Board of Trustees, as the case may be, have
paid more than one lakh rupees as income tax under the Income-tax Act, 1961(43 of 1961) in each of the last
two financial years for which the time limit to file return of income under subsection (1) of section 139 of the
said Act has expired; or
(b) the registered person has received a refund amount of more than one lakh rupees in the preceding financial
year on account of unutilised input tax credit under clause (i) of first proviso of sub-section (3) of section 54; or
(c) the registered person has received a refund amount of more than one lakh rupees in the preceding financial
year on account of unutilised input tax credit under clause (ii) of first proviso of sub-section (3) of section 54; or
(d) the registered person has discharged his liability towards output tax through the electronic cash ledger for an
amount which is in excess of 1% of the total output tax liability, applied cumulatively, up to the said month in
the current financial year; or
(e) the registered person is –
(i) Government Department; or
(ii) a Public Sector Undertaking; or
(iii)a local authority; or
(iv) a statutory body:
Provided further that the Commissioner or an officer authorised by him in this behalf may remove the said restriction after such verifications and such safeguards as he may deem fit.”.
Rule 2A(2A) - inserted giving the power to officer to suspend and cancel the registration of taxpayers if he believes there is significant discrepancy in details reported in between returns filed by taxpayer. (GSTR 1 vs GSTR 3B vs GSTR 2A). Form GSTR Reg-31 also notified for this Purpose.
In this situation we Arun K Sharma & Associates stands with you and help tou to manage your cash flow by managing your compliance part.We offer below services to all business, GST Services,Accounting Services ,Income tax Compliance,payroll Compliance and Audit and Assurance services.