Chennai, Nov 11:
The Tamil Nadu government has brought into effect three key amendments to the State Goods and Services Tax (SGST) Act to ease tax compliance, facilitate post-sale discount adjustments, and expedite refunds for manufacturers and exporters.
Notified by the Commercial Taxes and Registration Department with effect from November 1, the changes amend Sections 15, 34, and 54 of the Tamil Nadu GST Act, 2017. Under the revised Section 15 and corresponding Section 34, suppliers can exclude post-supply discounts from taxable value by issuing credit notes, eliminating the earlier mandate requiring pre-existing contractual agreements, provided recipients reverse the corresponding input tax credit (ITC).
Furthermore, the amendment to Section 54 extends a 90 per cent provisional refund facility to unutilised ITC resulting from inverted duty structures, while doing away with the minimum Rs 1,000 threshold for refund claims on exported goods. Commercial Taxes officials noted that the streamlined norms will significantly enhance cash flow and reduce working capital blockages for manufacturing units, especially automobile ancillary hubs in Chennai and textile exporters in Tiruppur and Karur.