Ease of doing business to Cease of doing business for small business (Notification No. 49/2019 and Circular No. 123/42/2019– GST)

Tax payer having turnover less than 1.5 cr are required to file their GSTR-1 on quarterly basis and GSTR-3B on monthly basis.

New Rule of ITC claim requires taxpayers to match purchase bills before filing GSTR-3B. If bills are reflecting in GSTR-2A then you can claim credit but if bills are not reflecting in GSTR-2A then you can claim only 20% of credit.

Impact on Small Taxpayers

Suppose you have sales bill of Rs. 2 lakh plus gst @ 18% and purchase bill of Rs. 1 lakh plus GST @ 18%.

Old rule New Rule
 Taxable valueGST Taxable valueGST
Sale             200,000   36,000Sale             200,000   36,000
Purchase             100,000   18,000Purchase             100,000   18,000
Tax Payable    18,000not available in 2A due to GSTR-1 is filed quarterly  
      
    Credit available as per new rule      3,600
         32,400
Earlier you need to pay Rs. 18,000 but now you need to pay Rs. 32,400.

 

Download Circular No. 123/42/2019– GST

Download Notification No. 49/2019

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