GDP Growth
India’s economic trajectory, as outlined by Finance Minister Nirmala Sitharaman, paints a picture of resilience and potential amidst global uncertainties.
Trading community recently urged the Finance Minister Nirmala Sitharaman and GST Council to withdraw few provision introduced on December 22 and some other rules are set to be applicable from January 1, 2021.
In a memorandum, Federation of All India Vyapar Mandal, a national body of small traders, advocating for a single- point GST collection, urged for certain changes in the recently issued GST notification.
“Scrap Rules 86B and 36(4), to be effective from 1st January 2021. These provisions are against the fundamental spirit of GST as it obstructs seamless input tax credit,” association general secretary V K Bansal said.
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The Central Board of Indirect Taxes and Customs (CBIC) has introduced Rule 86B in GST Rules, to be applicable from January 1, 2021, which restricts use of input tax credit for discharging GST liability to 99 per cent.
This means businesses with monthly turnover of over Rs 50 lakh will have to mandatorily pay at least 1 per cent of their GST liability in cash, the letter to the minister said.
However, this restriction will not apply where the managing director or any partner has paid more than Rs 1 lakh as income tax or the registered person has received a refund amount of over Rs 1 lakh in the preceding financial year on account of unutilised input tax credit.
Rule 36(4) restricts claim of Input Tax Credit (ITC) in respect of invoices/debit notes not furnished by the suppliers which has now been reduced from 10 per cent to 5 per cent of the credit available in GSTR 2B.
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