Businesses that default in filing summary return and paying monthly GST will not be able to file GSTR-1 sales return for the next month with effect from January 1 of the following year.
The GST Council in its Lucknow meeting on September 17 has decided to take several measures to streamline compliance, including mandatory Aadhaar authentication for businesses to file refund claims.
These steps will help in curbing revenue leakage due to evasion of Goods and Services Tax (GST), which was launched on July 1, 2017.
The Council decided to amend Rule 59(6) of the Central GST Rules with effect from January 1, 2022, to provide that a registered person shall not be allowed to furnish Form GSTR-1, if he has submitted Form GSTR Return not submitted. -3b for the previous month.
Currently, the law prohibits filing of return for outward supplies or GSTR-1, if a business fails to file GSTR-3B for the last two months.
While businesses file GSTR-1 for a particular month by the 11th day of the following month, GSTR-3B, through which businesses pay taxes, has to be filed in a sequential manner between 20-24th day of the next month. goes.
The council has also made Aadhaar authentication mandatory for GST registration to enable it to file refund claims and apply for cancellation of registration.
The Central Board of Indirect Taxes and Customs (CBIC) had notified Aadhaar authentication for GST registration with effect from August 21, 2020.
The notification also provides that if businesses do not provide Aadhaar number, GST registration will be granted only after physical verification of the place of business.
The council has now decided that businesses will now have to link their GST registration with biometric Aadhaar to claim tax refund and apply for cancellation of registration.
The Council of Union and State Finance Ministers in its 45th meeting also decided that the GST refund will be disbursed in the bank account, which is linked to the same PAN on which registration under GST has been obtained.