Demand for the respite of section 86B of GST, CAT told GST mixed legal system
The Confederation of All India (CAIT), a businessmen’s organization, has demanded the govt to not implement Rule 86B within the Goods and Services Tax (GST). Under this rule, a provision has been made to deposit a minimum of one-hundredth of GST liability in cash to businessmen with a turnover of quite 50 lakhs per month. Calling this provision a ‘counterproductive’ (severely affecting productivity), Kat said that this can increase the compliance burden on traders. aside from this, CAT says that GST may be a very complex legal system. Time has been sought to satisfy the minister of finance about this.
Section 86B will apply to those traders
The Central Board of Direct Taxes and Customs has added the supply of Rule 86B to the GST Act. This provision sets the utmost limit of input decrease to 99 percent while discharging GST eligibility, ie quite a 99 percent input decrease can’t be claimed. However, this restriction won’t apply in circumstances where the director or a partner has paid tax of quite 1 lakh or the registered person has received a refund of quite Rs 1 lakh instead of any unutilized input decrease within the previous fiscal year.
Demand to extend the deadline of audit returns
CAT has written a letter to the minister of finance Nirmala Sitharaman regarding this issue. CAT has called this rule a counter-productive step, drawing the eye of the minister of finance towards Section 86B within the letter, which can increase the burden of compliance on the businessmen and also increase their financial oblation. The business said that it’s requested the minister of finance to postpone the choice to implement 86B with immediate effect. It’s to be implemented next year from 1 January 2021. aside from this, CAT has asked the minister of finance to file GST and increase the deadline for tax audit return from 31 December 2020 to 31 March 2021.
Corona epidemic affected businessmen
CAT general secretary Praveen Khandelwal says that thanks to the Corona epidemic, the domestic business has been badly affected and therefore the businessmen try to save lots of their business. In such a situation, the choice to implement Rule 86B should be postponed. Consistent with Khandelwal, GST has become a complex legal system and wishes to be simplified. Khandelwal told that point has been sought to satisfy the minister of finance on this issue.