45th GST Council Meeting was held on 17th September, 2021 in Lucknow under the chairmanship of FM Smt. Nirmala Sitharaman. The GST Council has inter-alia made the following recommendations relating to GST law and procedure that are now Notified/Clarified:

A. Measures for Trade facilitation:

S. No. Recommendation Notification/ Circular No. Date of Applicability Amendment in
1 Relaxation in filing FORM GST ITC-04:

a. Taxpayers whose ATO in preceding FY > 5 Crores, shall furnish ITC-04 once in six months

b. Taxpayers whose ATO in preceding FY is upto 5 Crores, shall furnish ITC-04 annually

Notification No. 35/2021 – Central Tax dated 24thSep, 2021 with effect from the 1st Oct, 2021 Amendment in Rule 45(3)
2 Section 50(3) to be amended retrospectively, w.e.f. 01.07.2017, to provide that interest is to be paid by a taxpayer on “ineligible ITC availed and utilized” and not on “ineligible ITC availed” NOT YET NOTIFIED
3 Unutilized balance in CGST and IGST cash ledger may be allowed to be transferred between distinct persons
4 Issuance of Circular on various issues to remove ambiguity and legal disputes:

a. Clarification on scope of “intermediary services”;

Circular No. 159/15/2021-GST dated 20th Sep, 2021 NA NA
b. Clarification relating to interpretation of the term “merely establishment of distinct person” in condition (v) of the Section 2(6) of the IGST Act 2017 for export of services. Circular No. 161/17/2021-GST dated 20thSep, 2021 NA NA
c. Clarification in respect of GST related issues:

i. W.e.f. 01.01.2021, the date of issuance of debit note (and not the date of underlying invoice) shall determine the relevant FY for the purpose of section 16(4)

Circular No. 160/16/2021-GST dated the 20th September, 2021 NA NA
ii. No need to carry the physical copy of tax invoice in case of E-Invoice
iii. Only those goods which are actually subjected to export duty i.e., on which some export duty has to be paid at the time of export, will be covered under the restriction imposed under section 54(3) from availment of refund of accumulated ITC
5 Provision to be incorporated in CGST Rules for removing ambiguity regarding procedure and time limit for filing refund of tax wrongfully paid as specified in section 77(1) of the CGST/SGST Act and section 19(1) of the IGST Act Circular No. 162/18/2021-GST dated 25thSep, 2021 NA NA
Notification No. 35/2021 – Central Tax dated 24th Sep, 2021 24th Sep, 2021 Insertion of Rule 89(1A)

B. Measures for streamlining compliances in GST

S. No. Recommendation Notification/ Circular No. Date of Applicability Amendment in

 

1 Aadhaar authentication mandatory for filing refund claim and application for revocation of cancellation of registration. Notification No. 35/2021 – Central Tax dated 24th Sep, 2021 Notified but effective from a future date Insertion of Rule 10B: Aadhaar authentication for registered person
Amendment in Rule 23(1)
Amendment in Rule 89(1)
Insertion of clause (c) in Rule 96(1)
Notification No. 36/2021 – Central Tax dated the 24th Sep, 2021 24th Sep, 2021 Section 25(6A) is inserted in Notification No. 03/2021 -Central Tax for providing exemption to NRTP, Govt. Department, PSU, etc.
2 Late fee for GSTR-1 to be auto-populated & collected in next open return in GSTR-3B. NOT YET NOTIFIED
3 Refund to be disbursed in the bank account, which is linked with same PAN. Notification No. 35/2021 – Central Tax dated 24th Sep, 2021 Notified but effective from a future date
  •  Amendment in Rule 10A
  • Insertion of Proviso in Rule 10A
Insertion of Rule 96C:  Bank Account for credit of refund
4 Rule 59(6) to be amended w.e.f. 01.01.2022 to provide that a RP shall not be allowed to furnish FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for the preceding month. Notification No. 35/2021 – Central Tax dated 24th Sep, 2021 with effect from 1st Jan, 2022 Amendment in Rule 59(6)

  • amendment in clause (a)
  • clause (c) shall be omitted
5 Rule 36(4) of to be amended, once the proposed clause(aa) of section16(2) is notified to restrict availment of ITC, to the extent, invoices/debit notes are furnished by the supplier in Form GSTR-1/IFF and are communicated to the RP in Form GSTR-2B. NOT YET NOTIFIED

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DISCLAIMER: This publication is merely a general guide meant for knowledge purposes only. All the references or content are for educational purposes only and do not constitute a legal advice. We do not accept any liabilities whatsoever for any losses caused directly or indirectly by the use/reliance of any information or conclusion contained in this publication. Prior to acting upon this publication, you’re suggested to seek the advice. This work is entirely in the interest of profession and to contribute into my beloved subject of GST.

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2 Comments

  1. Pramod Shettigar says:

    Request for any update regarding ITC to be allowed for FY 2019-20 if our purchaser have paid tax but filed GSTR1 after September 2020. Please provide any GST update notification

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