Recent Changes in GST Applicable from 2021

Ministry of Corporate Affairs (MCA) has suggested certain changes in GST law to tackle tax evasion and fake invoicing incidents in India. So, in this blog we have tried listing out all the important and recent changes in GST law applicable from 2021:

S.No.	GST Laws	Recent GST Changes	Notification No. And Related Section
1	Section 10 (Composition Levy)	As per this recent change in GST law, the taxpayer rendering services can now also opt-in from the composition scheme. Previously, only the taxpayer supplying goods were allowed to opt-in to the composition scheme.	Notification No.92/2020-Central Tax  Section 119 of Finance Act 2020
2	Section 16 (Eligibility to claim Input Tax Credit)	According to this recent change in the GST section, ITC cannot be claimed for an invoice or debit note received after 30th September from the financial year-end or date of filing annual GST return, whichever is earlier.	Notification No.92/2020-Central Tax  Section 120 of Finance Act 2020
3	Section 29 (Cancellation/Suspension of GST registration)	The language has been simplified to further clarify that the person who has taken voluntary registration under GST cannot cancel the same on their own.	Notification No.92/2020-Central Tax  Section 121 of Finance Act 2020
4	Section 30 (Revocation of GST cancellation)	The taxpayer can now appeal the taxpayers within 30 days and get the deadline extended by 30 days by additional commissioner or joint commissioner by providing proper reason for the same.	Notification No.92/2020-Central Tax  Section 122 of Finance Act 2020
5	Section 31 (GST Invoice)	This recent change in GST law has widened the scope of the central government’s power as new Point inserted in proviso according to that Government by notification may specify the categories of services or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed;	Notification No.92/2020-Central Tax  Section 123 of Finance Act
6	Section 51 (Tax Deduction at Source)	According to this recent change in Section 51(3) and Section 51(3) of the GST Act, A certificate of tax deduction at source shall be issued in such form and in such manner as may be prescribed and Subsection (4) penalty obligations removed.	Notification No.92/2020-Central Tax  Section 124 of Finance Act, 2020
7	Section 122 (Penalty for Offences)	Subsection (1A) added, according to which Any person who retains the benefit of a transaction covered under clauses (i), (ii), (vii) or clause (ix) of sub-section (1) of Section 122, The taxpayer now has to pay an increased amount of penalty that will be either equal to the tax evaded or input tax credit claimed or passed on to any other party.	Notification No.92/2020-Central Tax  Section 126 of Finance Act, 2020
8	Section 132 (Punishment for offenses)	According to this change, the purview of punishment for certain offenses has widened as now all those persons(s) who have committed, helped to commit, and retail benefits arising out from offences (Section 132(1) Apart from that  avails input tax credit using the invoice or bill referred to in clause (b) or fraudulently avails input tax credit without any invoice or bill (Section 132 (C)	Notification No.92/2020-Central Tax  Section 127 of Finance Act 2020
9	GST Rule 21 (Cancellation of Registration in Some Instances)	As per the recent amendment in the GST rule 21, there are certain instances where the GST registration of the taxpayer can be canceled. They are When the taxpayer claims ITC by violating rules or provisions mentioned under section 16 of the CGST Act, 2017. In case when the amount of outward supplies furnished in GSTR-1 is more than the amount of outwards supplies furnished in their GSTR-3B for the said tax periods. When the taxpayer violates the provisions of Rule 86B of the CGST Rules 2017.	Notification No.94/2020-Central Tax
10	Rule 21A (Suspension of GST Registration)	This recent change in GST law has widened the scope of tax officer’s power as they can now suspend the GST registration of a taxpayer without giving an opportunity to be heard. Moreover, the tax officer can restrict the amount of GST refund during the said period of GST registration suspension.	Notification No.94/2020-Central Tax
11	Rule 36(4) (Conditions and Document required to claim ITC)	As per this recent change in GST law,    1. Now filing of Invoice or Debit Note is required for ITC claim as the uploaded word is substituted with furnished  2. Now GSTR-1 and will and Invoice Furnish functionality   3. ITC cannot be availed for more than 5% against the missing invoices not filed by the supplier in GSTR-1 or IFF.	Notification No.94/2020-Central Tax
12	Rule 59(5) (Blocking of GSTR-1 Filing facility)	As per this recent change in GST law, a taxpayer will not be able to furnish GSTR-1 if the taxpayer has not filed GSTR-3B for the preceding 2 months in case of monthly return and in case of the quarterly filer if he/she has not filed GSTR-3B will not be able to furnish GSTR-1 using invoice furnishing facility. Or, When the taxpayer is restricted to use an e-credit ledger to pay the output tax liability in excess of 99% of tax liability shall not allow filing GSTR-1 or using the IFF if GSTR-3B for the preceding tax period not filed. Read this to know how to unblock the GSTR-1 facility.	Notification No.94/2020-Central Tax
13	Rule 86B (Restricting the amount available in the e-credit ledger)	As per this recent change in the GST law, the taxpayer cannot use the amount available in the e-credit ledger to pay their output tax liability above 99% in the case when the taxable supply value (other than exempt supply and Zero-Rated Supply in a month) exceeds INR 50 Lakhs. However, authorized tax officer may remove these restrictions if they deem fit.	Notification No.94/2020-Central Tax
14	Rule 138(10) (Validity of E-way bills Extended)	According to this recent change in the GST law, the validity of an e-way bill has been extended to 200 Km per day instead of 100 Km and for every 100 km. or part thereof thereafter one additional day in cases other than Over Dimensional Cargo.	Notification No.94/2020-Central Tax
15	Implementation of E-invoicing	As per this recent change in the GST law, every taxpayer whose aggregate turnover is 100 Crore INR or more and who deals in export and B2B supplies needs to adopt a new e-invoicing system. Moreover, the government is planning to implement e-invoicing to all the taxpayers irrespective of their turnover.	Notification No.88/2020-Central Tax
16	Scope of Quarterly Return Monthly Payment (QRMP) Scheme Extended	CBIC introduced the QRMP scheme to reduce the burden of the taxpayer who is required to file GSTR-3B monthly whose turnover is less than INR 5 Crores or less, during the previous FY. They can now file GSTR-3B quarterly. However, if the turnover of such taxpayer exceeds 5 Crore INR during any quarter then he will not be eligible for the QRMP scheme from the following quarter.	Circular No. 143/13/2020- GST
17	Schedule II – Amendment	In Schedule II to the CGST Act, in paragraph 4, the words “whether or not for a consideration,” shall be omitted and shall be deemed to have been omitted with immediate effect.	Notification No.92/2020-Central Tax Section 131 of Finance Act 2020

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