GST: Amendments made in Finance Act 2022 notified w.e.f 1st Oct 2022

GST update : Amendments made in Finance Act 2022 notified w.e.f 1st Oct 2022 vide Notification S.O. 4569(E). No. 18/2022 – Central Tax, F.No.CBIC-20013/1/2022-GST, Dated 28th September, 2022

Notify Date as 01-10-2022 of Section 16, 29, 34, 37, 38, 39, 41, 47, 48, 49, 52, 54, 168 and omitted 42, 43, 43A, of CGST Act 2017

Brief summary of relevant changes / relaxations:

– Amendment of section 16: A new sub-section has been inserted i.e. Section 16(2)(ba) to restrict the ITC to the extent available in lines with Section 38 (i.e. auto generated statement or GSTR 2B). Further, Last date to claim ITC has been extended till 30 day of November following the end of the FY to which such ITC pertains.

– Amendment of section 29 : cancellation of registration for non filing of GST return for specified taxpayers.

– Amendment of section 34: Last date to report & avail tax adjustment of credit note has been extended till 30 day of November following the end of the FY to which such credit note pertains.

– Amendment of section 37: Last date for rectification or error in respect of outward supplies can be made till 30 day of November following
the end of the FY to which such invoice pertains.

– Substitution of new section for section 38 :Only the eligible ITC which is available in the GSTR-2B (Auto generated statement) can be availed by the recipient. Now, GSTR-2B will become the main document relied upon by the tax authorities for verification of the accurate ITC claims.

– Amendment of section 39 : Rectification in respect of particulars can be made till 30 day of November following the end of the FY to which such particulars pertains.

– Substitution of new section for section 41. The amendment has put concept of availing input tax credit on a “provisional” basis” to an end.
Going forward, ITC availment shall be restricted to the conditions provided under section 16 of the CGST Act read with Section 38.

– Omission of sections 42, 43 and 43A: Provision claim of ITC done away hence, the provisional ITC claim process, matching and reversal are eliminated.

– Amendment of section 47 : Section 47 is amended to provide for a late fee levy for delayed filing of return under Section 52 (TCS return GSTR-8 ) and Section 38 reference has been removed.

– Amendment of section 49. The restriction shall be imposed by the government apart from the conditions which are mentioned in section 16 of the CGST Act including the amended provision of section 38 of the CGST Act.

Note: The above interpretation is based on personal views.