Published on:
February 20, 2023

10 Important New Amendments in GST

The Goods and Services Tax (GST) has been in effect in India since July 1, 2017, and has undergone several changes since then. The GST Council has now announced 10 important amendments to the GST Act, which will come into effect on October 1, 2022.

1. Extension of Due Date for GSTR-1 Filing

The due date for filing GSTR-1, which is the statement of outward supplies, has been extended from the 10th of every month to the 13th of every month. This change will give businesses more time to file their returns and avoid penalties for late filing.

2. QR Code on B2C Invoices

All B2C invoices must now include a QR code that contains certain details about the invoice, such as the GSTIN of the supplier, the invoice number, and the total amount. This change will make it easier for customers to verify the authenticity of the invoice and reduce the possibility of fraud.

3. Changes in Composition Scheme

The composition scheme now includes small service providers with an annual turnover of up to Rs. 50 lakhs. The tax rate for such businesses will be 6%. Additionally, composition dealers are now eligible to avail input tax credit on purchases made from other composition dealers.

4. Interest on Late Payment of Tax

The interest rate on late payment of tax has been reduced from 18% to 9% for registered taxpayers who file their returns on time. However, those who file their returns late will still be liable to pay interest at the rate of 18%.

5. Changes in TDS/TCS Provisions

The threshold for TDS (Tax Deducted at Source) on rent has been increased from Rs. 50,000 per month to Rs. 2.5 lakhs per month. TDS will now be applicable only if the annual rent exceeds Rs. 2.5 lakhs. Additionally, the TCS (Tax Collected at Source) provision will now be applicable to e-commerce operators who facilitate the sale of goods or services through their platform.

6. GST on Goods Transported by Vessels

GST will now be applicable on the transportation of goods by vessels on a forward charge basis. This means that the supplier of the service will be liable to pay the tax instead of the recipient of the service.

7. Changes in GST Refund Provisions

The procedure for claiming GST refunds has been simplified by allowing taxpayers to file a single refund application for all tax periods instead of multiple applications. Additionally, the threshold for filing a refund claim has been increased from Rs. 1,000 to Rs. 5,000.

8. Changes in GST Registration Provisions

The threshold for GST registration for businesses engaged in the supply of goods has been increased from Rs. 20 lakhs to Rs. 40 lakhs. For businesses engaged in the supply of services, the threshold remains at Rs. 20 lakhs.

9. Changes in Input Tax Credit Provisions

Input tax credit will now be available only if the details of the invoice have been furnished by the supplier in the GSTR-1 return. Additionally, input tax credit cannot be availed if the recipient of the goods or services has not paid the supplier within 180 days of the invoice date.

10. Changes in GST Returns

The format of the GSTR-1 and GSTR-3B returns has been modified to include additional details such as HSN (Harmonized System of Nomenclature) codes and tax liability on reverse charge mechanism. Additionally, businesses with a turnover of up to Rs. 5 crores can now file their GSTR-3B return quarterly instead of monthly.These 10 important amendments to the GST Act will have a significant impact on businesses in India. It is important for small and medium business owners and startup founders to familiarize themselves with these changes and make the necessary adjustments to their business processes and systems.


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Updated on:
March 16, 2024