New GST Rule may Affect Business

Kochi:  All Kerala GST practitioners association said on Wednesday that input tax credit (ITC) reversal on account of the rule 37 A will dampen business as it puts the burden of tax liablitiy on the buyer if the seller doesn't pay the tax,

In other words if the supplier does not have the money to pay the in time the buyer will have to pay the tax and intrest on his be-half. The GST law mandates that the selling entity files the GST return showing tax as per the bill issued 

but under the newly introdused rule if the supplier who made the sale filed only GSTR-1 cantaning information about the bills for the respective month the buying firm showld ensured that GSTR 3B,which is a continuation of GSTR 1

is filed within the time limit other wise the input tax creitd (ITC) shown on the bill received by them should be paid to the department along with intrest. When these  are strict provision in the GST system to take the tax received from

the hands of the person who made the sale things will come to a situation where the burden will be doubled on the shoulders of the buyer and he will be in trouble GST practitioner santosh Jacob said. The newly introduced rule 37A 

says that if there are any problems in the tax return of the financial year 2022-23 they should be checked before November 30 2023, and reverse the portion of ITC Other wise the buyer will have to pay the excess tax plus intrest he added.

Thanking You 

Kathuria & Associates 

Prince Kathuria