If the monthly turnover is more than Rs 50 lakh, the rules of GST have been changed, this cash has to be paid

Monthly Rs. Traders with a turnover of more than Rs 50 lakh will have to pay one per cent of the GST amount payable in compulsory cash. The decision was taken by the Union Finance Ministry today to curb the evasion of goods and services tax through bogus invoices. For this, CBIC has introduced new rule number 3B. Those who do not deposit one per cent in cash will be prevented from using the input tax credit.

Those who do not deposit one per cent in cash will be prevented from using the input tax credit

Traders who do not comply with the new rule introduced by the finance ministry will not be able to use the amount in their electronic credit ledger to discharge their GST obligation. Taxable supply over a period of one month is Rs. This rule has been introduced for traders exceeding Rs 50 lakh. Under this rule, when calculating turnover, the amount of trade of goods which are not eligible for GST or the amount of sale of goods with zero GST is Rs. 20 lakh turnover will not be taken into account in the definition.

The amount of sale of goods with GST is Rs. 20 lakh turnover will not be taken into account in the definition

However, the control under this rule which the Managing Director of the company or any partner has to pay Rs. Income tax of more than Rs. This provision will not be applicable to those who have received a refund of more than Rs 1 lakh in the next financial year. Yes, since he did not use the input tax credit, he was fined Rs. Refund of more than Rs 1 lakh should be received.

As he did not use the input tax credit, he was fined Rs. Refund of more than Rs 1 lakh should be received

Tax experts say the government has so far introduced Section 3B to curb the use of input tax credit which can be used without any hindrance. Thus, they are allowed to use only 3% of their tax liability credit. The government has also made exceptional exceptions to the rule, which has led to a crackdown on misuse of input tax credits. This is being misused by traders taking bogus input tax credit.

The Finance Ministry and the CBIC have also amended GSTR-1. The details of sale of goods are filled in this form. A system of filing GSTR-1 has been introduced for traders who have not paid tax for the previous period by filing GSTR-2B. Until now, those who did not file GSTR 3B were restricted from issuing e-way bills. Now they will not be able to file GSTR-1. If they go to upload GSTR-1, it will not be uploaded. Thus the government will also block their GSTR-1. The government will also stop traders who have not paid the old taxable amount by filing GSTR-2B from filing GSTR-1. The move has put a damper on the government to pass input tax credit to traders who have not paid their GST liability.