Central Board of Excise and Customs (CBEC) has given a new draft rule regarding the implication of popular taxation regime GST on Tuesday. The format on GST return and refunds required assessees to file monthly returns and specifying procedure for claiming refunds of taxes, interest, and fees.
The new rules of the draft have been presented in front of stakeholders and given a timeline till Wednesday to give any comment or suggest any improvision. All the draft rules will be finalized in the second meeting of GST council which will be held on 30 September.
The CBEC on Monday announced three draft rules and formats which were related to registration, invoice, and payments for public comments.
The rule which was announced demand every registered taxable person to furnish a monthly return in specified form (GSTR-3). And another provision which said that taxable person and supplier should do an electronic furnishing of annual return.
Further adding to the rule book, it says every taxable person whose aggregate turnover during a financial year exceed Rs 1 crore will be required to submit annually a duly certified audited statement.
Rajat Mohan, Director- Indirect Taxation, Nangia & Co, throw some light into the drafting rules, “have prescribed the form and manner of submission of quarterly returns by composition supplier, returns by non-resident taxable person, input service distributor, persons required to deduct tax at source and the form and manner of submitting statement of supplies effected through e-commerce.”
He further added, “The rules, also provide for matching of input tax credit claim on inward supplies and procedure for output tax liability reduction claim, Where application relates to refund of input tax credit, electronic credit ledger shall be debited by the applicant by an amount equal to the refund so claimed…refund in case of export of taxable goods or services without payment of tax under bond or letter of undertaking, shall be granted on the basis of a prescribed formula,”
While the supplies made to SEZ units, the application should be filed by SEZ units itself, or recipient of deemed export supplies.
