The Government has carried out some major amendment in Central GST Rules, 2017 vide Notification No.94/2020-Central Tax, dated 22 December 2020.

The highlights of the same are below-

• Claim of un-matched input tax credit (GSTR-2A) shall be restricted up to 5% only as against present 10%.

• New Rule 86B has been inserted wherein taxpayers will be allowed to discharge their output tax liability, using ITC, only up to 99% and rest 1% have to be paid in cash.

• The GST registration may be cancelled where taxpayers contravene Rule 86B or outward supplies in GSTR-1 is higher then GSTR-3B and so on.

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