The Goods and Services Tax (GST) was introduced in India in 2017 to simplify the indirect tax structure in the country. The GST Council has been continuously making amendments to the GST law to make it more effective and efficient. Recently, a revised draft of the GST law was released, which included some miscellaneous provisions. In this article, we will discuss these provisions in detail.
Under the revised draft of the GST law, the validity of the e-way bill has been extended. Previously, the validity of the e-way bill was determined based on the distance between the source and destination. Now, the validity of the e-way bill will be determined based on the date of generation of the e-way bill. The new validity period of the e-way bill will be one day for every 200 km or part thereof, as against the previous validity of one day for 100 km or part thereof.
The revised draft of the GST law introduces an electronic cash ledger. This ledger will maintain the cash balance of the taxpayer, which will be used for payment of taxes and other liabilities. The electronic cash ledger will be updated in real-time as and when the taxpayer makes payments or receives refunds.
Under the revised draft of the GST law, the cancellation of GST registration will be initiated only after the expiry of the taxpayer’s return filing due date for the last period of registration. This provision will help in preventing the misuse of GST registration by unscrupulous taxpayers.
The revised draft of the GST law also includes provisions related to the refund of taxes. One of the significant changes introduced under the new draft is the introduction of a provision for the payment of interest on delayed refund of taxes. The interest rate will be notified by the government from time to time.
Under the revised draft of the GST law, taxpayers with an annual turnover of more than Rs. 5 crores will have to get their accounts audited every year by a chartered accountant or a cost accountant. This provision will help in ensuring the accuracy of the tax returns filed by such taxpayers.
The revised draft of the GST law has also made some changes to the composition scheme. Under the new provisions, taxpayers with an annual turnover of up to Rs. 1.5 crores can opt for the composition scheme. The taxes under this scheme will be payable at a lower rate as compared to the regular GST rates.
Under the revised draft of the GST law, taxpayers will have to file their returns quarterly instead of monthly. The new provisions also allow the filing of returns through electronic means.Conclusion:The revised draft of the GST law has introduced some significant provisions that will help in simplifying the GST regime in India. These provisions will also help in ensuring the accuracy of tax returns filed by taxpayers and preventing the misuse of the GST registration system. It is essential for small and medium businesses and startup founders to be aware of these provisions to ensure compliance with the GST law.
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