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The Goods and Services Tax (GST) system in India was implemented on July 1, 2017, with the aim of simplifying the indirect tax structure of the country. Since its implementation, there have been several amendments made to the GST laws to make it more effective and efficient. In this article, we will discuss the various amendments made to the GST laws in India.
Amendments made to the GST Laws:
1. Increase in Threshold Limit: In January 2019, the government increased the threshold limit for GST registration from Rs. 20 lakhs to Rs. 40 lakhs for businesses located in the North-Eastern and hilly states of India. This was done to reduce the compliance burden on small businesses.
2. Extension of Due Dates: Due dates for filing various GST returns have been extended multiple times since the implementation of GST. In March 2020, the due dates for filing GSTR-3B returns for the months of February, March, and April 2020 were extended due to the COVID-19 pandemic.
3. Late Fees Waiver: In June 2020, the government waived off the late fees for delayed filing of GST returns for the period of February to July 2020. This was done to provide relief to businesses during the COVID-19 pandemic.
4. Changes in Composition Scheme: The Composition Scheme was introduced to provide relief to small businesses by allowing them to pay a fixed percentage of their turnover as GST instead of the regular GST rates. In January 2019, the threshold limit for availing the Composition Scheme was increased from Rs. 1 crore to Rs. 1.5 crore.
5. E-invoicing: The government introduced e-invoicing for businesses with a turnover of more than Rs. 500 crore in October 2020. This was done to make the invoicing process more efficient and to curb tax evasion.
6. GST Council Decisions: The GST Council is a constitutional body that makes decisions regarding the GST laws in India. The Council has made several important decisions such as reducing the GST rates on various items and simplifying the GST return filing process.
7. Reverse Charge Mechanism (RCM): Under the RCM, the recipient of goods or services is required to pay the GST instead of the supplier. In March 2020, the government deferred the implementation of the RCM for registered taxpayers till March 2021.
8. Input Tax Credit (ITC): ITC is the tax credit that businesses can claim on the GST paid on their purchases. In February 2019, the government introduced restrictions on availing ITC to prevent tax evasion.
9. Changes in GST Rates: The GST rates on various items have been changed multiple times since the implementation of GST. In January 2020, the GST rate on electric vehicles was reduced from 12% to 5%.
10. GST Audit: In August 2019, the government introduced the concept of GST audit to ensure that businesses are complying with the GST laws. Businesses with an annual turnover of more than Rs. 2 crore are required to get their accounts audited by a Chartered Accountant or a Cost Accountant.
Conclusion:
In conclusion, the Goods and Services Tax (GST) system in India has undergone several amendments since its implementation in 2017. These amendments have been made to make the GST laws more effective and efficient and to reduce the compliance burden on businesses. Some of the important amendments made to the GST laws include an increase in the threshold limit for GST registration, changes in the Composition Scheme, introduction of e-invoicing, and changes in the GST rates. It is important for businesses to keep themselves updated with the amendments made to the GST laws to ensure compliance with the GST regulations.In conclusion, the Goods and Services Tax (GST) has been a major reform in the indirect tax structure of India. Since its implementation, there have been several amendments made to the GST laws to make it more efficient and effective. These amendments include changes in the threshold limit for GST registration, extension of due dates, late fees waiver, changes in the Composition Scheme, introduction of e-invoicing, GST Council decisions, deferment of the Reverse Charge Mechanism (RCM), restrictions on availing Input Tax Credit (ITC), changes in GST rates, and introduction of GST audit.
It is important for businesses to stay updated with the amendments made to the GST laws to ensure compliance and avoid penalties. The government has made several efforts to simplify the GST laws and reduce the compliance burden on businesses, especially small businesses. The GST system is still evolving, and it is likely that more amendments will be made in the future to make it more efficient and effective. Overall, the GST system is a positive step towards a simplified and transparent tax structure in India.
