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In this article, we will discuss about section 43A in detail.
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Latest Updates
17th December 2022
The following are recommendations from the 48th GST Council meeting-
(1) CGST Rule 37(1) is going to be amended retrospectively from 1st October 2022 for reversing ITC as per the second proviso to Section 16 of CGST Act, only to the extent of the invoice value not paid to the supplier versus the value of the supply, along with tax payable.
(2) GST Council will insert Rule 37A in CGST Rules that will define steps to reverse ITC claimed on taxes not deposited by the supplier within a specified date. Further, the process of re-availing such ITC where the supplier pays it subsequently will be provided in compliance with Section 16(2)(c) of the CGST Act.
(3) Procedure will be given to verify ITC differences between GSTR-3B and GSTR-2A for FY 2017-18 and 2018-19. It would reduce the need for litigations and give much-needed clarity to taxpayers and officers.
(4) ITC will be available for the scenario stated in Section 12(8) of the IGST Act – the place of supply is a foreign country, but the GST-registered recipient is in India, in cases of goods transportation/courier/mail services.
Section 43A has been added to the Central Goods and Services Tax Act, 2019 (CGST Act). This section deals with the procedure for furnishing returns and availing input tax credit.
There have been various changes in the GST return reporting framework since the introduction of GST. The intent of inserting this section is to merely operationalise the changes in the return reporting framework as and when the same is introduced by the CGST Rules. The GST Council in its 27th meeting had proposed this simplified return filing structure for taxpayers.
Currently, taxpayers are filing two monthly GST returns – GSTR-3B and GSTR-1. As of now filing of GSTR-2 and GSTR-3 has been suspended.
Under the proposed new scheme that later got suspended, every registered taxpayer would have to file only one monthly return. The facility to upload invoices on a real-time basis will be made available. Suppliers can upload invoices anytime during the month before a cut-off and the invoices would be visible to buyers.
The buyers will be eligible to claim the credit on a self-declaration basis even if the supplier hasn’t uploaded all invoices during the interim period of transition. The new GST return scheme aims to simplify the return filing procedure to a great extent.
Section 43A is important and much-needed relief to taxpayers and will reduce the concerns of the industry to a great extent. However, note that it is not notified and hence currently not applicable.
Taxpayers must claim ITC in their GSTR-3B only to the extent of the amount appearing in their GSTR-2B/GSTR-2A. This has been outlined in the provision of Section 16(2)(aa) of the CGST Act with effect from 1st January 2022. Until then, taxpayers could claim 5% additional ITC along with ITC appearing in GSTR-2B while filing GSTR-3B.