The Government brings new updates from time to time in the Goods and Services Tax. The GST tax mechanism was introduced to ease the complexities of the existing tax system for taxpayers. But the constant updates make things difficult for them instead. The reason for changes and updates could be anything. Mostly, the changes are done to make things easier for taxpayers. The best solution is to stay up-to-date occasionally to ensure compliance.
Keeping up with amendments and updates to GST regulations for regular taxpayers
Listed below are the major GST updates for taxpayers and companies –
- Compliance-related introduction to DRC-01C – defining the difference between GSTR-3B and GSTR-2B Input Tax Credits.
|November 18, 2023,
|November 3, 2023,
Also Read: Amendments And Revisions In GSTR-10
Impact of GST Amendments on Taxpayer Registration
- Cancellation of GST registration does not hold a person liable for any mistakes or offenses done before or after cancellation.
- Per Section 29(3) of the CGST/SGST Act, cancellation does not make a person liable to pay tax or dues. It also does not subject them to discharge obligations for any period before cancellation.
Implementing Updated GST Regulations
Taxpayers must fill out Form GSTREG-14 within 15 days to apply for registration amendment. This updates the information provided during initial registration. There are two registration amendment categories:
- Non-Core Fields: Automatically updated without tax officer approval. Includes business name, address, partners, directors, etc.
- Core Fields: Require tax officer approval to modify major registration details like business activity, promoter’s name, type of taxpayer, etc.
Here is a detailed overview of the core and non-core fields.
|Non-Core fields (approval not needed)
|Core fields (approval needed):
|There are certain exceptions about GST registrations. Apart from these, approval must be granted on all aspects of every GST registration application field.
|The business’s legal name is where there is no change in PAN.
|Deletion or addition of Stakeholders
|A change of state which means a place where the business operation takes place.
|Location for carrying on operations in another state.
Note – All the above information is as of 2023.
The following groups of taxpayers with GST registration are eligible to submit application amendments:
- Normal taxpayers and new enrollees.
- GST practitioner
- UN Bodies, TCS/TDS registrants, Notified persons with UIN, embassies, and others.
- Online retrieval services, data, and access details.
- Non-Resident Taxable Person
Navigating the complexities of regular taxpayer registration compliance
The government has initiated numerous procedural and legal changes towards simplification of the tax. To facilitate the movement or smooth flow of the GST mechanism, the upholding, as well as the changing or updating, is done. Technology adoption in compliance and administration of tax has been promoted by the introduction of goods and services tax. However, even after many changes in their policies, things are not working out as expected.
Although it is not as complicated as other compliance laws, today, there is no simple GST compliance because of its frequent changes. Taxpayers are now finding it hard to comply with reporting rules as well as prepare their tax returns.
In addition, the rights for reexamination of an incorrect reporting in GST are narrowed. Voluntary rectification is not allowed if one is making a mistake while filing returns.
Taxpayers have different reasons why it is difficult to comply with GST.
- Uncertainties surrounding reconciliation statement and annual returns.
- Delays in operations
- The TRAN-1 filing, as well other issues related to glitches in the official GST portal.
As per the current statutes, tax return mistakes can be corrected in GST returns of the following months. This kind of functionality returns utility does not permit correction of errors in original source documents with relevant tax liability adjustments and proper auditable trail for taxpayers. The returns are usually hard on the taxpayers to be matched. Periodically, they have to correspond data into their corporate accounts.
Professional guidance to ensure compliance with GST amendments
It’s an obligation for every trade business with an annual income that goes beyond the threshold amount stipulated by law.
Taxpayers always want to make an input credit claim, noting the goods they bought. Therefore, they should list all the transactions with GST indicated.
A GST invoice should have all the purchase items used for business. In line with their invoicing compliance, they should observe laid down regulations. A penalty due to non-compliance with GST invoicing. For not issuing an invoice, a 100% tax amount or 10,000 rupees is a penalty. A fine of ₹ 25,000 will be levied for incorrect invoicing.
Ensuring timely compliance with amended GST regulations for regular taxpayers
Many changes and modifications have been made to GST since its implementation. Nevertheless, these reforms were designed to improve the condition of the citizens. However, they have had an effect on both individual and business operations.
Businesses need to be aware of the fresh GST laws. Additionally, ensure you keep up with the latest compliance guidelines and tax charges. It will avoid legal complications and penalties while ensuring that laws are obeyed in this way. On top of that, taxpayers should know the effect of GST. This may affect their daily expenses.
Taxpayers must keep themselves updated about new GST law updates. It will allow you to meet your tax obligations. You can also avoid legal complications. Also, you will be saved from penalties. It is also important to keep your tax planning optimized.
You must use the available tools and resources. If needed, consult professionals to understand the impact of updated GST law. It will help you manage your finances and business. You can get the maximum benefits of the tax system. You should stay informed of the latest updates.
Frequently Asked Questions
1. What are the changes in GST until 2023?
Changes under the CGST Act – section 10. The registered taxpayers engaged in the supply of goods by way of ECO should be able to register under this scheme starting October 1, 2023.
2. How can one interpret the amendment of GST?
This entails the updation/changing of information furnished at the time of registering for GST. This allows the registered taxpayers to update their contacts such as an address, contact number, business structure and names, and authorised signatories among others.
3. What are the processes involved in changing information on the GST portal?
The following measures have to be taken to effect the amendments.
- Visit www.gst.gov.in and click on the home page
- Log in using your login credentials.
- Click ‘Services’ then ‘Registration’.
- Then choose “amendment registration core fields.” Make necessary changes.
4. Why was the 33rd GST Amendment issued?
Under chapter thirty-three of the GST amendment, a residential housing GST rate stands at one per cent without any input tax.
5. How much does it cost to register for GST?
The whole GST registration attracts no charges. A ₹10,000 or 10% charge on the taxable amount will serve as the initial fine if a business fails to register within the prescribed time frame. The punishment for tax evasion amounts to up to 100 percent.
6. How many days are you allowed to register for GST?
Every business must provide evidence that its operations are liable to GST and register for GST within 30 days after its commencement.
7. How much is the GST registration amendment fine?”
Any lateness attracts a penalty of one hundred rupees for each act per day. This translates to one hundred rupees each for SGST and CGST, adding up to two hundred per day. For instance, it can range up to ₹5000 as the maximum penalty amount.
8. The amendments that relate to GST invoices.
These modifications can also be done through a separate form called GSTR-1, where cancellations are reported.
9. Who gives GST registration approval?
An authorised officer will receive the reviewed GST application, including the attached documents, and send it for assessment. If all is well, approval is granted. The applicant is registered into the system after the approval has been given within three (3) working days from the date of application submission.
10. What are the various GST registration categories?
Three GST Registration Categories exist.
- Casual Taxable Person
- Normal Taxpayer
- Non-Resident Taxable Person
- Composition Taxpayer