New Delhi: The default business on a summary of the archive back and paying monthly GST will not be able to file a return on sales of GSTR-1 from the following month from January 1 next year.
The GST council at the Lucknow meeting on September 17 has decided to take a number of steps to streamline compliance, including Aadhaar’s mandatory authentication for businesses to submit a refund claim.
These steps will help prevent income leakage due to tax avoidance of goods and services (GST), which was launched on July 1, 2017.
The Board decided to change the rule of 59 (6) of the Central GST rules with the effect of January 1, 2022, to provide that person Registered will not be allowed to provide the form of GSTR-1, if it has not completed the return in the form of GSTR-3B for the previous month.
At present, the law limits the submission of returns for external inventory or GSTR-1 if a business fails to submit GSTR-3B before two months.
While the business submitted a GSTR-1 from a certain month on the next 11th month, GSTR-3B, through which the business paid taxes, filed in a staggering way between the 20th day of the following month.
The Board has also made Aadhaar authentication from GST registration mandatory to qualify to submit a refund claim for revocation of registration cancellation.
The indirect Customs and Customs Board (CBIC) has noted aadhaar authentication for GST registration with the effect of August 21 2020.
This notification also provides that in terms of business does not provide aadhaar numbers, then GST registration will only be given after physical verification from Business place.
The Board has now decided that the business must now connect their GST registration with Biometric Aadhaar because claiming tax returns also apply the revocation of registration cancellation.
The council, consisting of the Central and State Finance Minister, in the 45th meeting also decided that GST refunds will be disbursed in bank accounts, which are related to the same pan where registration has been obtained under GST.