Central Board of Indirect Taxes & Customs has issued notifications on 10 November 2020 on procedural aspects related to GST returns and revised the threshold limit for applicability of E-Invoicing.
Few of the key changes like introduction of Invoice Furnishing facility, Applicability of E-Invoicing and format of Form GSTR 2B has been are discussed below:
- Introduction of Invoice Furnishing facility (‘IFF’):
- As per Notification No. 82/2020 – Central Tax, dated 10th November 2020, registered persons required to furnish Quarterly GST returns may furnish the details of outward supplies of goods or services or both to a registered person i.e. B2B supplies, as he may consider necessary, for the first and second months of a quarter, up to a cumulative value of INR 50 Lakhs in each of the months, using IFF electronically on the common portal from the 1st day of the month succeeding such month till the 13th day of the said month.
The details of the same shall be available every month in Form GSTR 2B of the registered persons.
- Further, as per Notification No. 85/2020 – Central Tax, dated 10th November 2020, registered persons who have opted for IFF, shall pay the tax due by way of making a deposit of an amount in the electronic cash ledger (‘E-cash ledger’) equivalent to 35% for each month of tax liability for first 2 months to be paid by debiting E-cash ledger in the return for the preceding quarter (in case of quarterly return filing) or tax liability paid by debiting E-cash ledger in return for preceding month.
Provided that no amount is required to be deposit if adequate balance is there in E-credit ledger or E-cash ledger to setoff the output tax liability.
- The payment of tax due in respect of each of first two months of the quarter shall be done by 25th of the month succeeding such month in Form GST PMT-06.
- The said changes shall be effective from 1st January 2021.
- Revised Applicability of E-Invoicing:
- As per Notification No. 88/2020 – Central Tax, dated 10th November 2020, registered persons whose aggregate turnover exceeds INR 100 Crores shall be liable to generate E-Invoices for supplies made to registered persons i.e. B2B supplies.
- The same shall be effective from 1st January 2021.
- Rollout of format for Form GSTR 2B:
Form GSTR 2B is an auto-drafted statement consisting the details of Input Tax credit which shall be made available to registered persons. Input Tax credit in Form GSTR 2B shall consist of:
- Invoices submitted by registered persons in Form GSTR 1 (Taxpayers opted for Monthly filing);
- Invoices submitted by Input Service Distributor in Form GSTR 6;
- Details of outward supplies furnished by Taxpayers opted for Quarterly filing in Form GSTR 1 or IFF; and
- Details of IGST paid on import of goods or goods brought in from SEZ unit or SEZ developer by filing bill of entry.
