Amendment in CGST Rules

Suspension of Registration

• Authorities can now suspend registration without affording a reasonable opportunity of being heard;

• Authorities can now suspend registration in the following circumstances-

1. Where comparison of GSTR-1 & GSTR-3B show significant differences or anomalies;

2. Where comparison of ITC in GSTR-2A & GSTR-3B show significant differences or anomalies.

Reasons for cancellation of registration has been widened to include following:

1. Availment of ITC in violation of GST provisions, basically in excess of 5% of matched ITC;

2. Outward supply declared in GSTR-3B < GSTR-1;

3. Utilize ITC in excess of 99% as provide in rule above.

ITC Matching (w.e.f. 1st January 2021)

1. ITC to be availed restricted to 5% (earlier 10%) of matched ITC. If availed in excess, registration may be cancelled;

2. Matching to be basis invoices reflecting with counter filing status as ‘Yes’ and invoices uploaded using IFF by Quarterly taxpayer.

Restriction to furnish GSTR-1/IFF

1. Taxpayers who have not filed GSTR-3B for preceding two months;

2. Quarterly taxpayers who have not filed GSTR-3B for previous tax periods;

3. Taxpayers who are restricted to use >99% ITC, if they have not furnished GSTR-3B for preceding tax period.

E-way Bill

1. Restriction on creation of E-way Bill in respect of taxpayers whose registration has been suspended by tax authorities;

2. Validity of E-way Bill now changed from 1 day per 100 km to 1 day per 200 km (w.e.f. 1st January 2021);