On July 1st, 2017, India introduced its Goods and Services Tax (GST) system. Since then lots of business owners have had a hard time and didn't always agree with the new tax rules.
But don't worry, we're here to help.
In this blog, we’ll guide you through the most recent updates on GST laws. We'll take you through something called the GST Case Law Compendium — July Edition.
What's the GST Case Law Compendium?
Many businesses continue to find it hard to understand indirect taxes, especially GST. That's where the GST Case Law Compendium — July Edition comes in to help! It compiles latest court rulings and decisions related to GST. This gives you all the important information about how GST rules are changing.
From setting examples for the future cases to helping you with compliance, this compendium is an amazing source of information for all businesses- big or small.
Why should business owners care about the GST Case Law Compendium?
- Helps avoid penalties: The compendium is like a guidebook that helps you understand unclear and tricky GST rules. It makes complicated tax things easier to understand and tells you what you need to do to follow the rules and avoid getting in trouble. It can also help you plan your operations better by helping you avoid penalties.
- Sets example for future cases: The judicial rulings in the compendium serve as models for future cases. You can use these models to defend your existing tax cases or prevent any new ones from coming up.
- Helps make sure businesses follow government rules and regulations: Staying up to date with the GST laws can help you get better at avoiding penalties and any unnecessary legal trouble with tax authorities.
The latest GST law updates that apply to small businesses
More businesses will need e-invoicing: Starting from August 1, 2023, there's a new rule. All registered businesses that made more than 5 crores each year (according to PAN) in any year since 2017-18 must make e-invoices. Before, this rule only applied to businesses with more than 10 crores in yearly income.
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Taxpayers are responsible to see if they can use GSTIN:
Before July, businesses were using GSTINs based only on their earnings. But now, the taxpayers need to make sure they fit the rules mentioned in the notification. So, it's the duty of both buyers and sellers to follow the law and make sure they're doing things right.
Self-enabled e-invoicing on GST portal:
In case a taxpayer who is otherwise not auto-enabled on the e-invoice portal, can self-enable for e-invoicing using the functionality provided on the portal.
E-invoice verification simplified:
The GSTN has provided a new functionality called the EInvoice Verifier App. This will be a convenient solution for verification of information in e-invoice. The app allows the users to scan the QR code on an e-invoice and authenticate the value embedded in it.
More clarifications in the GST laws:
There were clarifications made in the existing GST law in 4 areas: Input credit tax (ITC), Place of Supply Determination, Tax rate and Time of Supply. There are many cases within these 4 areas. For example, in one of the cases it was declared that Rent on Accommodation buildings located outside the boundaries of religious places are chargeable to GST. Understanding these cases can help you manage your working capital better, manage cash flow and pricing accordingly. In case you need a detailed breakdown of the changes relevant for your business, it is best to go to a finance professional or chartered accountant for a consultation.
Remember this before you go:
We know how tiring the changing Goods and Services Tax (GST) system can be. But keeping a track of the latest court decisions and rulings can help make your business operations, pricing and tax planning much smoother. When you know what happened before in court, you can make smarter choices, avoid arguments, and follow GST rules more easily. We are always here to make this easier for you.
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