The budget for 2022 is just approaching and also people have some exceptions from the Hon’ble Finance Minister in GST. the subject is towards the relief for the MSMEs so that the compliance and the concerned cost reduces for MSMEs and they need to provide the simplicity of performing the businesses. The current 3rd wave of covid poses a burden on the MSME sector and relief on the specific things is to be needed. There are 10 majorities that are needed immediately:
Interest Rates Relief Under GST
Towards the case of delay in the GST payment interest @18% is subjected to pay in which the case of the wrong claim of the ITC interest of 24% is subjected to pay. The relief on that is needed as many times the non-payment or wrong claim is on the grounds of the real mistake. Towards the case of the taxpayer in which his Aggregate Annual Turnover is up to 5 crores might be permitted with the interest relief of 6% in both the cases.
E-way Bills Exemption Under GST
E-way bills are needed for all assignments exceeding Rs. 50,000/ Rs. 1,00,000/- (varies from state to state). But within the case of the small issues inside the e-way bill under GST (Goods and Services Tax), the taxpayer needs to suffer heavy issues and needs to furnish the fine of 200%. This holds the bigger issues from MSMEs because the smaller glitches delays the supplies and even one penalty would vanish the profit for the complete year. Towards the case that the taxpayer whose aggregate annual turnover is over Rs 5 crore might get privileged from the need of the e-way bills. A tax invoice or challan including the goods in the transit should be ok.
Receipt Basis GST Payment
On raising the invoice GST should be furnished by the taxpayer whatever the payment obtained from the customer. The same poses a bigger working capital cost for MSMEs. Towards the concern of the taxpayer whose Aggregate Annual Turnover is up to Rs 5 cr might provide the facility to furnish GST on the receipt basis that is on the collection of the invoice and not on the invoice raising.
Filing GST Annual Returns Relief
The taxpayer who has the Aggregate Annual Turnover exceeding 2 crores needs to furnish the annual return in the form of GSTR-9. The same surges the compliance load and the cost along with that for the taxpayer. Towards the case of the taxpayer whose Aggregate Annual Turnover is up to 5 crores might be privileged from the requirement of filing GSTR 9.
Matching of Invoices Exemption for Availing GST ITC
The taxpayer has been permitted to claim ITC only on the invoice matching in GSTR 2B and is imposed from 1st January 2022. But towards the case in which the supplier does not upload the invoice, the taxpayer stride twice because on one side he furnished GST to the supplier while on another side he furnished GST to the department since he would not claim the ITC. The same poses bigger working capital costs for MSMEs. Towards the case that if the taxpayer who has the Aggregate Annual Turnover is up to 5 crores might get privileged from the matching concept and would be permitted to claim the ITC upon the grounds of the self-assessment.
Payment on Quarterly and GSTR 1 Filing on a Half-Yearly Basis
At the current time, the taxpayer whose Aggregate Annual Turnover of 5 crores would choose the QRMP scheme that is rendered towards the quarterly returns and the monthly payment scheme. This is a compliance load on the small taxpayers and subsequent relief is to be provided to diminish the compliance load. Towards the case of the taxpayer whose Aggregate Annual Turnover is up to 5 crores might get permitted to furnish GSTR-1 on a half-yearly grounds and the payments would be permitted on the quarterly grounds.
Compulsory GST Registration in Case Selling of E-commerce Exemption
When the taxpayer sells via an e-commerce site then GST enrollment is mandatory. From this, a compliance load will get increase. The normal exemption of 40 lakhs/ 20 lakhs (special category states) might indeed get permitted to the taxpayer who sells it on e-commerce.
LUT for Services Export Exemption Over Small Assessees or Alternatively Increasing the Validity to Life other than 1 Year
Towards the small taxpayer seeing the export of services, obtaining the LUT, is not difficult but increases the compliance for LUT is forgotten there are bigger costs for the non-compliance. Towards the case in which the taxpayer with an Aggregate Annual Turnover is up to 5 crores (services only) might not get permuted for relief for LUT. through the other method, the validity of LUT would get surged to a lifetime of 1 year.
Pre-deposit in Filing Appeals Relief
Towards the case in which the appeal must be furnished a pre-deposit of 10% (up to a maximum of 50 crores) is needed in 1st appeal and a pre-deposit of an additional 20% (up to a maximum of 100 crores) is needed in 2nd plea. The same is a bigger cost to the small taxpayer and working capital blockage. Towards the concern of taxpayers whose Aggregate Annual Turnover is up to 5 crores might be permitted with the advantage on furnishing of the appeals on the grounds as mentioned:
1st Appeal – 5% (up to a maximum of 1Cr)
2nd Appeal – Further 10% (up to a maximum of 2Cr)
Opt-out GST e-invoice in Case T.O. Falls Below 50 CR Facility
If the turnover of the taxpayer is more than Rs 50 cr then he is needed to follow the e-invoice rules. But if his turnover resists below Rs 50 cr then he still needs to carry on the e-invoice under GST as there would be no opt-out scheme from the e-invoice. Towards the case in which the turnover is less than Rs 5 cr, the taxpayer must not get permitted for the opt-out to an e-invoice policy.
Hon’ble Finance Minister hopefully noted the same concerns as mentioned above and furnished the needed relief to the MSME sector.
Published by Arpit Kulshrestha
Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous.View more posts
