New GST notifications, circulars, and advisories keep taxpayers updated with all the latest changes and upgrades in the GST law. Taxpayers are majorly affected by the changes made in the GST return filing arena since it is a monthly/quarterly activity for them. The GSTN has released a new advisory on 10-05-2022 regarding the 6% reporting rate in GSTR-1.
As per GST Notification No. 02/2022 dated 31st March 2022, a new tax rate of 6% IGST or 3% CGST+ 3% SGST has been introduced on certain commodities. Taxpayers who must report items at this rate may do so temporarily by reporting the entries under the 5% category and then manually increasing the system computed tax amount to 6%.
You can do this by entering the value in the ‘Taxable value’ column next to the 5% tax rate. Later, you can then increase the system computed tax amount to 6% IGST or 3% CGST + 3% SGST in the ‘Amount of Tax’ column under the relevant Table, namely B2B, B2C, or Export i.e. whatever is applicable. As a result, the right tax amount will be declared in GSTR-1.
Recently, the GSTN made GSTR 1 filing process changes, in which GSTR 1/IFF enhancements have been mentioned. As per the new process, the summary generation on the GST system needs to be initiated by the taxpayer and it will not be auto-generated after the ‘save process’ is completed. In tune with this change in the GST system, we have updated our GSTR 1 filing process. You can read it here: GSTR 1 filing process changes 2022.
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