Changes Proposed In GST – Union Budget 2021

The Finance Minister Nirmala Sitharaman has proposed several reforms in the CGST Act, 2017 & IGST Act, 2017 to restrain input credit frauds and safeguard Government revenues. Also, added changes to the goods and services tax framework pointed at helping small and medium businesses to tide over pandemic-induced disruptions. In this article, we will talk on Changes Proposed In GST – Union Budget 2021.

About Union Budget 2021-22

Finance Minister Nirmala Sitharaman introduced the Union Budget 2021-22 for the year 2021-22. In this budget, where bumpers were announced for health and disinvestment, there was no announcement for salaried class. At the same time, the elderly, whose age is 75 years or more, are relieved from filing income tax.

During the Corona era, it was believed that the health sector would get something special from the Modi government. In the view of Corona, the Modi government has increased the budget for the health sector and has also introduced a special scheme. The Modi government gave the gift of self-reliant health scheme to the people of the country through the budget.

Finance Minister Nirmala Sitharaman has granted an inclusive budget of Rs 34,83,236 crore for 2021-22. This is only slightly higher than the amended estimate of Rs 34,50,305 crore for the current financial year. The capital expenditure in this is Rs 5,54,236 crore, which is higher than the revised estimate of Rs 4,39,163 crore for 2020-21.

According to the budget document, the expenditure on the revenue account is estimated at Rs 29,29,000 crore, while according to the revised estimate for 2020-21, the expenditure is shown to be Rs 30,111,42 crore.

Also, the Budget lays concentrate on the seven pillars for strengthening the economy – Health and Wellbeing, Physical and Financial Capital and Infrastructure, Inclusive Growth for Aspirational India, Reinvigorating Human Capital, Reform and R&D, and Minimum Government Maximum Governance.

Changes Proposed In GST – Union Budget 2021

The Budget 2021, have introduced specific changes in the CGST Act, 2017 & IGST Act, 2017 to curb input credit frauds and safeguard Government revenues. The lists of proposed changes from Clause 99 to Clause 114 are reviewed as under:

Compulsory Audit Requirement Relaxed

The finance minister has now announced that businesses having a turnover above Rs 5 crore won’t be obliged to get their accounts audited by a chartered accountant. Thus, the earlier need for an external certification of annual reconciliation statement has abolished. Now, enterprises can rely on self-certification for this view.

Interest Payable Only On Net Liability

The GST law obliges a registered person to deposit tax obtained by it before the deadline prescribed by the government. Businesses usually set off the unutilised input tax credit possible in the electronic ledger before paying the tax to the government. In case of a delay in keeping tax, businesses require to shell out interest up to the rate of 18%. Further, the government has now introduced an amendment to the CGST Act which specifies that interest will only apply on the net tax liability. Know more about Changes Proposed In GST

The author is an associate editor for Gst Registration, ISO Certificaton in India.