Clarification on updates under GST (News & Updates)
Introduction : Recently government has clarified and implemented certain regulation (e-invoice, e-way bill blockage) and exemption for the taxpayers (returns to be furnished on quarterly basis); it is therefore important to know that what are the updates and to whom it is applicable.
Updates on Blockage of e-way bill generation facility from 1st December, 2020:
It has been specified that generation facility of a taxpayer will be restricted, in case the taxpayer fails to file their GSTR-3B returns / statement or Form GST CMP-08, for two or more tax periods. (i.e. if assessee fails to furnish GSTR-3B for two consecutive tax period than in that case they will not be allowed to generate e-way bill).
On 1stDecember 2020, the GST system will check the status of returns filed in GSTR-3B or the statements filed in GST CMP-08, for the class of taxpayers to who are liable to generate e-way bill and who are registered on e-way bill portal.
This provision will be applicable irrespective of turnover of entity and their category of registration.
To unblock the blockage given by GST department on e-way bill assessee will be required to furnish the returns in such a manner that default period (pendency of filling GST returns) is not equal to or more than 2 months.
Updates on generation of e-way bill:
It has been specified in our previous article that assessee whose aggregate annual turnover exceeds Rs. 500 Crore in preceding financial year will be mandatorily required to generate e-invoice. Further in this relation government provided relaxations also for 30 days from date of implementation; both the topics were deeply covered by us in our previous articles.
It shall now be now be noted that from 1st January, 2021 assessee will be mandatorily be required to generate e-way bill if in case his annual aggregate turnover is exceeding Rs. 100 Crore in any preceding financial year starting from 2017-18 onwards; i.e. in case it may happen that assessee has lower turnover in current financial year (2020-21) but has turnover which is exceeding the above specified limit in any of the preceding financial year than in that case assessee will be liable to comply will the provisions of e-invoicing.
This step has been taken by government to curb the bogus invoice and to insure transparency against the taxpayers but this will surely result in additional compliance for the assessee.
In this relation to provide the guidance on e-invoicing government has organized the webinar on 27th November, 2020.