As per November 2016 Model GST Law, the taxpayer has to file for refund within 2 years in all cases except by United Nations Organization or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), Consulate or Embassy of foreign countries where the time limit is 6 months if they want to claim refund of tax paid by them on their inward supplies.
The Model GST was released in June 2016 to the public for their review and also make the industry plan for the rollout of GST. Basis the MGL published in June, the trade and industry and professionals have taken a very critical view of the same and submitted the feedback to the Government. Basis of the feedback, the suggestions have been incorporated in the Model GST Law and released to the public in November 2016 as Revised MGL.
This article gives a glimpse of the changes announced in the June MGL and Revised MGL published in November 2016.
In table 14 of the GSTR – 1 report, starting number and ending number of each series of tax invoice has to be shown along with the net number of tax invoices issued and number of tax invoices canceled. Though the model GST Law or Draft invoice rules have no provision for cancellation of tax invoice, GSTR – 1 has provision to report the same.
TDS_GST deducted by the deductor, the deductee can utilize the same for payment of out liability of GST or can apply for the refund as per section 48 of the Revised Model GST Law. The deductor can also apply for the refund under section 48 of the Revised Model GST Law.
The threshold limit for applicability of deduction of tax at source is reduced from Rs 10 Lacs to Rs 5 Lacs in the Revised Model GST Law released in November 2016.
Maximum Tax Levy under the composition levy has increased from one percent to two and half percent in the revised Model GST Law released in November 2016.
A Taxpayer can obtain registration under Composition Levy if the turnover is less than Rs 50 Lacs and desires not maintain all records as per GST but pay a flat rate of tax at the end of the period. Under this levy, the taxpayer cannot take input tax credit or issue a tax invoice.