New GST rule may affect business
In other words, if the supplier does not have the money to pay the tax in time, the buyer will have to pay the tax and interest on his behalf.
The GST law mandates that the selling entity files the GST return showing tax as per the bill issued. But under the newly introduced rule, if the supplier who made the sale files only GSTR 1 containing information about the bills for the respective month, the buying firm should ensure that GSTR 3B, which is a continuation of GSTR 1, is filed within the time limit. Otherwise, the input tax credit (ITC) shown on the bill received by them should be paid to the department along with interest.
“When there are strict provisions in the GST system to take the tax received from the hands of the person who made the sale, things will come to a situation where the burden will be doubled on the shoulders of the buyer and he will be in trouble,” one of the GST practitioner said.
The newly introduced rule 37A says that if there are any problems in the tax returns of the financial year 2022-23, they should be checked before November 30, 2023, and reverse the portion of ITC. Otherwise, the buyer will have to pay the excess tax plus interest, he added.
