Errors are part of human nature. It is not a concern regarding GST mistakes or errors. As part of this discussion, we look at some mistakes that are made by assessees under GST. There may be some glitches, but preventing them would be beneficial. 

Not Yet Done Aadhaar Card Authentication

Aadhaar authentication under GST registration for the registered individuals is mandatory from 1st January 2022 through Rule 10B

  • The application for revocation of cancellation of registration must be completed and submitted.
  • A refund application should be filed in Form RFD-01
  • An IGST refund is provided under rule 96 of the IGST on goods exported out of India.

Incomplete Aadhaar authentication would disclose the issue for the assessee who had his enrollment canceled and saw to revocation and discovered that there were differences between Aadhaar and GST database details. Under GST, this approach is suggested to finish Aadhaar Authentication instantly for all assesses.

Misuse of GST Rule 86B

Starting 1st January 2021, rule 86B “Restriction on use of amounts in electronic cash ledger” will apply. A GST rule 86B stipulates that an enrolled individual cannot release his output tax liability beyond 99% of his liability on the basis of the amount available in the electronic credit ledger for the month when the taxable values of supplies other than exempt and zero-rated supplies in the month are greater than Rs 50 lakh. 

Because the limitation mentioned above would not apply:

  • According to the Income-tax Act, 1961(43 of 1961), the proprietor or the managing director or any of its two partners, all of whom are full-time Directors, members of the Managing Committee of Associations, or the Board of Trustees, has paid more than Rs 1 lakh in income taxes in each of the last two fiscal years where the deadline for filing the income return under section 139 has expired.
  • As a result of unused ITC under clause (i) of the first proviso of section 54 sub-section (3), the enrolled individual obtained a refund amount exceeding Rs 1 lakh in the previous Fiscal year.
  • Under clause (ii) of sub-section (3) of section 54, the enrolled individual has obtained a refund exceeding Rs 1 lakh for the previous fiscal year.
  • By releasing his output tax due via an electronic cash ledger, an enrolled individual has released his output tax liability in excess of 1% of the total output tax due cumulatively up to the month stated in the present financial year.
  • This is the person who registered:
    • Department of Government
    • Incorporating into the public sector
    • The local authority
    • Organ of a statutory nature

The assessee received notices from the Revenue Council in recent times for non-compliance with Rule 86B. This has led to the suggestion that the assessee’s monthly taxable value of supplies should be examined according to Rule 86B.

Unclaimed TDS and TCS credits

There is a lack of knowledge and clarity among the assessees regarding TDS and TCS under GST. Under the GST registration Act, the central and state governments, local authorities, and government agencies have to deduct TDS at the rate of 1% when the total value supplied beneath a contract exceeds Rs 2,50,000 in the invoice without GST. This TDS needs to be deposited into the government’s account, and it can be claimed by the recipient. As part of the GST liability as well as RCM liability, TDS will also be reported on the taxpayer’s electronic cash ledger. 


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