A Revised Draft of Section 33 of Goods and Services Tax Act

The newly revised draft of Section 33 of Goods and Services Tax Act which has been introduced earlier

GST or Goods and Services Tax Law drafts has been released by the government for CGST, IGST, and State Compensation bills. The bills are revised and proposed in the parliament to get finalized by the authority. The drafts have been revised to make it more acceptable and transparent for the businesses. Also, another focus was to make it more beneficiary for the common citizen. There were many concerns made overt the first model GST law and government has worked hard to make it clearer. The hard work can be seen in the revised model of many sections so that businesses find it easier to understand and also transit into it smoothly.

Many of the sections of GST are still under revision to improvise it further. Section 33 of the GST act has been recently revised and an updated draft has been prepared for the same. This new draft has a number of modifications introduced in it which are completely different from the old draft. The modifications have been introduced to make it easier for the inward suppliers. Section 33 describes all the details for inward supply and the rules that will be furnished under this section.

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In this article, we will discuss the new changes introduced in Section 33 of GST law. Also, will describe the rules regarding filing inward return which is mentioned in this section. GST law requires the supplier and the receiver to file three monthly returns and one annual return. However, the return filing rules are separate for the NRFs, Input Service Distributors, taxpayers registered under the Composite Levy Scheme and the entities who deducts TDS/TCS on their services.

In this new draft, NRFs, Input Service Distributors, entities and taxpayers falling under the Composite Levy Scheme, deducting TCS/TDS who have tax liabilities are not required to furnish details of input supply for the goods and service. Also, in this new draft of Section 33, GSTR-1 can be filed after 10th of succeeding month but compulsorily need to be done on or before 15th of that month. Also, commissioners can notify any person whose income tax return filing limit has been extended. In a way, in this new draft, extending limit for filing return can be done by the central/state commissioner.

Let’s have a look at the new provision prescribed in this new draft of Section 33:

  • A registered taxpayer can verify, validate, modify or, delete the outward supply details including credit or debit notes mentioned under sub-section (1) of section 32 to prepare their own inward supply details. However, the taxpayer category such as NRFs, Input Service Distributors (ISD) and taxpayers falling under section 9, section 46 or section 56 cannot edit the inward supply details by themselves after furnishing the return. The details that have not been provided from the supplier end can be edited by them as prescribed under the sub-section (1) of section 32.
  • According to IGST Act, the registered taxpayers must furnish the inward supply details online for the taxable goods and service that has reverse charge applicable on In a simple word, the return must be filed electronically or through online mode. This taxpayer category excludes the NRFs, Input Service distributors, and taxpayers falling under section 9, section 46 or section 56. The credit and debit note of such details can be filed by 10th of the succeeding month but must be done before 15th of the same succeeding month. This should be done in the following manner:
  • Commissioners may extend the filing period for such taxpayers for a valid and sufficient reason by producing official
  • The extension of limit provided must need to approve by the Commissioner of [Central/ State] Goods and Services Tax.
  • Any details of edited information made by the recipient furnished under sub-section (2) must be communicated to the concerned supplier within the prescribed time.
  • The supplier and the receiver, both are required to file the inward supply details while furnishing the GST return. If the supply details that were modified or deleted or edited by the receiver then it must be communicated to the supplier within the prescribed time. The details that are concerned here are the ones that will be mentioned in the sub-section (2) or (4) of section 34 of GST return.
  • If any mismatch according to section 37 or section 38 found in the details provided by a taxpayer under sub-section (2) must pay the tax interest in the case of short tax payment for that period upon identifying those errors. In the case of the details mentioned in the sub-section (2) for a certain tax period does not match with the details provided in section 37 or 38, then it can attract a penalty interest on the tax amount. So it is recommended that the concerned taxpayer must rectify the errors with the correct details to avoid paying interest on the tax. Once the return is furnished under Section 34 in the month of September following the end of financial year or after filing annual return whichever is earlier, no rectification or change will be permitted for details provided under Sub-section (2). So the rectification must be done within the September of the financial year or must be done before the deadline of annual return submission.

These modification has been proposed to improve the GST bill and these changes prescribed in this draft are still under the provision. This new draft will omit all issues caused due to excluding securities from goods definition. It will impose liberal credit rules on the input services such as telecommunication, pipelines, and structural business. The government is more focused on making it beneficiary not only for the commoners but also for the government.

The GST return must be filed online through the common GSTN portal. This online filing requires companies, organizations, and businesses to go digital to be comprised with this law. The online platform is meant to give clarity to the law and the revised drafts explain the point of clarity more wisely.