Important recommendations in 45th GST Council meeting dated 17th September 2021

Important recommendations in 45th GST Council meeting relating to GST law and procedure

periodicity for filing Form ITC-04: 45th GST Council meeting

1) Relaxation in the requirement of filing FORM GST ITC-04: Change in periodicity for filing ITC-04

Revised periodicity for filing Form ITC-04*:

a) Taxpayers whose annual aggregate turnover in preceding financial year is above Rs. 5 crores shall furnish ITC-04 once in six months;

b) Taxpayers whose annual aggregate turnover in preceding financial year is up to Rs. 5 crores shall furnish ITC-04 annually.

*Notification No. 35/2021 – Central Tax Dated 24/09/2021

2) Interest on ineligible ITC availed and utilised will be levied @18% w.e.f. 01/07/2017. However no interest will be charged on ineligible ITC availed but not utilised. 

3) Unutilized balance in CGST and IGST cash ledger may be allowed to be transferred between distinct persons (entities having same PAN but registered in different states), without going through the refund procedure, subject to certain safeguards.

4) W.e.f. 01.01.2021, the date of issuance of debit note (and not the date of underlying invoice) shall determine the relevant financial year for the purpose of section 16(4) of CGST Act, 2017;

5) Provision to be incorporated in in CGST Rules, 2017 for removing ambiguity regarding procedure and time limit for filing refund of tax wrongfully paid as specified in section 77(1) of the CGST/SGST Act and section 19(1) of the IGST Act.

6)Aadhaar authentication of registration to be made mandatory for being eligible for filing refund claim and application for revocation of cancellation of registration.

7) Late fee for delayed filing of FORM GSTR-1 to be auto-populated and collected in next open return in FORM GSTR-3B.

8) Refund to be disbursed in the bank account, which is linked with same PAN on which registration has been obtained under GST.

9) Rule 59(6) of the CGST Rules to be amended with effect from 01.01.2022 to provide that a registered person shall not be allowed to furnish FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for the preceding month.

10) Rule 36(4) of CGST Rules, 2017 to be amended, once the proposed clause (aa) of section 16(2) of CGST Act, 2017 is notified, to restrict availment of ITC in respect of invoices/ debit notes, to the extent the details of such invoices/ debit notes are furnished by the supplier in FORM GSTR-1/ IFF and are communicated to the registered person in FORM GSTR-2B.


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