GST Changes by Budget 2021

GST amendments in budget 2021 are as under

1. One major change in GST in the Finance Bill 2021 is No GST Audit is required. Clause 101 of Finance bill states Sub-section (5) of section 35 of the CGST Act is being omitted so as to remove the mandatory requirement of getting annual accounts audited and reconciliation statement submitted by specified professional.

2. Further, in Clause 102 of Finance bill Section 44 of the CGST Act is being substituted so as to remove the mandatory requirement of furnishing a reconciliation statement duly audited by specified professional and to provide for filing of the annual return on self-certification basis. It also provides for the Commissioner to exempt a class of taxpayers from the requirement of filing the annual return.

3. Clause 99 of Finance Bill provides an additional new clause (aa) in sub-section (1) of Section 7 of the CGST Act which is being inserted, retrospectively with effect from the 1st July, 2017, so as to ensure levy of tax on activities or transactions involving supply of goods or services by any person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration.

4. Consequent to the amendment in section 7 of the CGST Act paragraph 7 of Schedule II to the CGST Act is being omitted retrospectively, with effect from the 1st July, 2017 under clause 113 of the Finance Bill.

5. Section 50 of the CGST Act is being amended under clause 130 of the finance bill. It is amended retrospectively, to substitute the proviso to sub section (1) so as to charge interest on net cash liability with effect from the 1st July, 2017.

6. Clause 100 of Finance bill introduces a new clause (aa) to sub-section (2) of the section 16 of the CGST Act to provide that input tax credit on invoice or debit note may be availed only when the details of such invoice or debit note have been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note.

7. An explanation to sub-section (12) of section 75 of the CGST Act is being inserted under clause 105 of the finance bill to clarify that “self-assessed tax” shall include the tax payable in respect of outward supplies, the details of which have been furnished under section 37, but not included in the return furnished under section 39.

8. Section 83 of the CGST Act is being amended so as to provide that provisional attachment shall remain valid for the entire period starting from the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV till the expiry of a period of one year from the date of order made thereunder as stated in clause 106.

9. Clause 104 of finance bill provides amendment in Section 74 of the CGST Act so as make seizure and confiscation of goods and conveyances in transit a separate proceeding from recovery of tax.