A decision of Singhbhum Chamber of Commerce and Industry conducted through president Vijay Anand Moonka met Central GST commissioner, M Rahman, and submitted a memorandum directed to Union finance minister Nirmala Sitharaman in the GST amendments.
The ITC towards the invoices and debit notes would be available only towards the extent which is filed via sellers in GSTR-1 and hence appear inside GSTR-2A/2B of the recipient. No ITC would be given until the information of invoice uploaded through the supplier in Form GSTR-1 is discussed with the recipient (ie as reflected in GSTR 2A/2B Form). The margin of 5% would not be available from January 2022 mentioned in the memorandum.
“We suggest that the recipient should be allowed to take an input tax credit on the basis of GSTR-2A filed by 20th of the following month and not 2B. Because due to some reason the supplier could not file GSTR-1 on or before the due dates but has filed it by the 20th of next month i.e. on or before the due date of filing GSTR-3B. Further, in many judicial pronouncements, it is held that the input tax credit of the recipient cannot be denied if proper documents are available with the recipients at the time of availing the input credit, the memorandum spokes.”
Memorandum brings the attention towards section 75(12) that have changed to furnish that the tax declared beneath GSTR-1 does not come along with the GSTR-3B return form will be actioned as “self-assessed tax” and thus these tax declared beneath section 79 direct recovery of the tax might be applicable excluding providing any show-cause notice.
“Due to this amendment, the officers of the department will be empowered to initiate recovery action directly on the basis of supplies shown in the GSTR 1 return, provided the relevant GSTR 3B return is not filed properly, i.e. wholly or partly of tax. has not been discharged. He will not even need to issue notice. For example, more trouble would be in cases where even 1 is inadvertently shown as 10 or the amount will show up in the wrong tax head, the memorandum mentioned.”
“It is recommended by the memorandum that We suggest that either the assessee should have been given an opportunity before initiating any proceeding under section 79 of the GST Act or the assessee may kindly be allowed to revise his return immediately,”
A full tax is needed to be furnished and a 100% fine towards the release of the seized goods for the breach of the provision concerning the e-way bill under GST and holding the additional documents beneath section 129. But the seized vehicle through the consignment would be released post-filing the fine with 200% of the tax. The tax would be availed via separate proceedings.
“Even 100% fine is too harsh, now 200% fine is not an acceptable move by the government, a memorandum mentioned.”
