UPDATE ON RECENT AMENDMENTS INTRODUCED BY GOVERNMENT

UPDATE ON RECENT AMENDMENTS INTRODUCED BY GOVERNMENT

Continuous efforts are made by the government for the easy execution and smooth implementation of GST and make it more user friendly. Recent update is in regard to some of the cardinal decisions taken by the government in this context.
1. One of the welcoming changes made by the government is that now GSTN has enabled online filing of letter of undertaking (LUT) for export thereby making it easy for the users. Following are the directives issued :
• Go to User Services and Select the Tab “Furnishing Letter of Undertaking.
• Select the Financial Year for which you want to furnish the LUT
• If you have already furnished LUT Offline, for previous period, please attach the same here and continue to file your application.
• If you're filing LUT, please read and select all the three checkboxes for accepting the conditions prescribed in Letter of Undertaking
• Enter the details of two independent witnesses.
• Primary Authorized signatory or other Authorized signatory can sign the Application Form.
• Once signed and filed, Form cannot be edited.
2. One more Circular dated 23rd February, 2018 has been issued by the Government. Through this circular, Government declared that Cenvat Credit for which show cause notice or order-in –appeal has already been issued, the transitional credit is inadmissible. This credit will be referred to as disputed credit till the time the order in appeal, holding the credit inadmissible is in existence. Such credit shall not be utilized by the registered taxable person to discharge his tax liability under any Act.
The same will be considered for the purpose of blocked credit which means any registered person shall not take in his electronic credit ledger any Cenvat credit which has been made ineligible under section 17(5) of CGST Act 2017. Further if the same has been credited to the electronic credit ledger, it should not be utilized by the registered person to discharge his tax liability under any Act.
For any blocked credit or disputed credit, if the amount of CENVAT Credit exceeds Rs.10 lac, a undertaking is to be given to the jurisdictional officer by the registered taxable person. Through such undertaking it is to be declared that such credit shall not be utilized or shall not been availed as transitional credit.
If the person illegally uses that inadmissible credit, then the person will be liable to pay the amount of credit utilized along with the interest from his own pocket.

The content of this GST update is for educational purpose only and not intended for solicitation.

You can reach us at www.capradeepjain.com, at our facebook page on https://www.facebook.com/GSTTODAYBYPRADEEPJAIN/ as well as follow us on Twitter at https://www.twitter.com/@capradeepjain21

Comments

UPDATE ON RECENT AMENDMENTS INTRODUCED BY GOVERNMENT

Post a Comment

Query