GST Law Amended Multiple Times: A Comprehensive Guide

Goods and Services Tax (GST) is an indirect tax which has been levied on the supply of goods and services in India. It came into effect on 1st July 2017 to replace multiple indirect taxes such as central excise duty, service tax, value-added tax (VAT), and octroi. Since its inception, the GST law has been amended multiple times to simplify the tax structure and remove the complexities in compliance.

The GST law was implemented with the aim of making India a unified market and to remove the cascading effect of taxes. In the initial months of its implementation, there were several challenges faced by businesses, such as the lack of clarity on tax rates, filing procedures, and the online GST portal's technical glitches.

To address these challenges and simplify the GST structure, the government has made several amendments to the GST law since its implementation.

Amendments to GST Law

The GST law has undergone several amendments, some of which are discussed below:

1. GST Rates

In November 2017, the GST Council revised the GST rates for several goods and services. Some of the key changes made were:

The GST rate on restaurants was reduced from 18% to 5% (without Input Tax Credit (ITC)
The GST rate on several goods, such as diesel engine parts, computer monitors, and stationery items, was reduced from 28% to 18%

2. GST Returns

The GST Council has made several amendments to the GST returns filing process to make it more user-friendly. Some of the key changes made are:

The GSTR-3B form, which is used to file summary returns, was made available for the entire financial year, rather than monthly
The GSTR-1 form, which is used to file outward supplies, was made available for small taxpayers on a quarterly basis

3. GST Composition Scheme

The GST Composition Scheme is a scheme for small businesses with an annual turnover of less than Rs. 1.5 crore. The scheme enables small taxpayers to pay a fixed percentage of their turnover as GST, rather than the regular GST rates. The government has made several amendments to this scheme, some of which are:

The GST rate for businesses under the Composition Scheme was reduced from 1% to 0.5%
Businesses under the Composition Scheme were allowed to supply services up to Rs. 5 lakh per annum

4. GST Refunds

The GST law provides for the refund of excess GST paid by taxpayers. The government has made several amendments to the GST refund process, some of which are:

The time limit for filing refund claims was increased from 2 years to 4 years
The GST refund process was made more user-friendly by introducing a single-window system for all refund claims

5. GST Compliance

Compliance with the GST law is mandatory for all businesses registered under GST. The government has made several amendments to make GST compliance easier for businesses. Some of the key changes made are:

The government simplified the GST registration process by introducing a one-page registration form for small taxpayers
Businesses were allowed to claim Input Tax Credit (ITC) on invoices that were uploaded by their suppliers, even if they did not upload the invoices themselves

Conclusion

The GST law has undergone several amendments since its implementation to simplify the tax structure and make it more user-friendly. The government has taken several steps to address the challenges faced by businesses in complying with the GST law, such as simplifying the GST returns filing process, reducing GST rates, and making the GST refund process more user-friendly. These amendments have helped to make GST compliance easier for businesses and have enabled them to focus on their core operations.