An official notification from the central government stated that the significant Goods and Services Tax (GST) legislation reforms that were included in the Finance Act earlier this year will go into force on October 1st.
The changes include providing additional time for submitting claims for the input tax credit as well as steps intended to further tighten tax compliance.
As a result, the deadline for claiming an input tax credit for the previous fiscal year has been moved from the September GST return filing deadline to the November 30 deadline. Additionally, the deadline for issuing credit notes and declaring information in returns has been moved from September 30 to November 30.
The changes also mean that an invoice's input tax credit can only be used if it hasn't been restricted according to an automatically created tax credit statement made using the information provided by the entity's suppliers.
Additionally, if a registered individual fails to file returns for a continuous tax period that would be specified rather than a continuous period of six months, their GST registration may be terminated.
Rajat Mohan, a partner at the accounting company AMRG Associates, claims that new tax regulations have replaced outdated sections linked to the claim of tax credits, signaling an impending revision of GST compliance.
The deadline for rectifying errors in sales reporting details has also been extended to November 30. Additionally, if the corresponding GST reports for sales and monthly summaries of transactions for a tax period have not already been filed for a prior tax period, they cannot be submitted.
The Central Board of Indirect Taxes and Customs (CBIC) extended the deadline for claiming input tax credits, issuing credit notes, and making corrections to GST filings pertaining to the prior fiscal year from 30 September to 30 November, according to Saurabh Agarwal, Tax Partner, EY.
These modifications would take effect on October 1st. Businesses should take note of this shift and re-align their procedures, which presently regard 30 September as the deadline, according to Abhishek Jain, Partner, Indirect Tax at KPMG in India.
