GST Rules - Changes Effective 1st Jan'21


Maximum permissible limit for ITC over and above GSTR 2A amount is reduced from 10% to 5%.


o Henceforth, mere uploading of invoice in GSTR-1 will not suffice; GSTR1 has to be mandatorily FILED by supplier.

o GSTR 1 cannot be filed if GSTR 3B is not filed for preceding 2 months / one tax period (under QRMP scheme)


Persons with Taxable Turnover > 50 lakhs per Month/tax period shall pay at least 1% of tax through cash ledger compulsorily even though the balance is available in credit ledger. (New Rule 86B inserted – subject to exemptions)


Changes in GST rule Effective from 22nd Dec 2020:-

CANCELLATION of Regn. Certificate(RC):

Now the officer can proceed for cancellation of GSTIN where a taxpayer :

  • Avails Input Tax Credit (ITC) exceeding than what is permissible
  • Declares liability in GSTR 3B < GSTR 1 in a particular month
  • Fails to pay 1% of tax liability as cash if turnover is > Rs. 50 Lakhs (subject to conditions)

SUSPENSION of Regn. Certificate:-

Now, NO opportunity of being heard shall be given for SUSPENSION OF GSTIN, i.e., GSTIN will be suspended if the officer has reasons to believe that the registration of the person is liable to be cancelled.


When a GSTIN is suspended:

  • No refund can be availed by the taxpayer
  • E-way bill cannot be generated

E-Way Bill:-

E-way bill travel time reduced. Minimum kms. to be covered has been increased from 100 kms/day to 200 kms/day.


  • The maximum time to review and grant registration is increased to 7 days instead of 3 days.
  • The time limit for physical verification for grant of registration is increased to 30 days instead of 7 days.
  • Where the applicant does not do Adhaar authentication or
  • Where department feels fit to carry out.

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