Analysis of Notifications giving effect to Recommendations of 47th GST Council Meeting
A flurry of notifications has been issued on 05.07.2022 by the CBIC to give effect to some of the recommendations of the 47th GST Council Meeting held in Chandigarh on 29th & 30th June, 2022. Summary of the same is hereunder:
Notification No. 10/2022 – Central Tax has been issued to notify that the registered person whose aggregate turnover in the financial year 2021-22 is up to two crore rupees is exempted from filing annual return in FORM GSTR-9 for the said financial year.
Notification No. 11 /2022 – Central Tax has been issued to extend the due date or furnishing FORM CMP-08 for Q1 of F.Y 2022-23 from 18th July, 2022 to 31st July, 2022.
Notification No. 12/2022 – Central Tax has been issued to waive the late fees for furnishing FORM GSTR-4 for the F.Y 2021-22 till 28th July, 2022.
Notification No. 13/2022 – Central Tax has been issued retrospectively W.e.f 1st March, 2020 to extend certain timelines invoking Sec 168A of the CGST Act.
- Time limit to issue order u/s 73 for F.Y 2017-18 has been extended to 30th Sep, 2023.
- Period from 1st March, 2020 t0 28th Feb, 2022 shall be excluded for computation of period of limitation under sub-section (10) of section 73 of the said Act for issuance of order under sub-section (9) of section 73 of the said Act, for recovery of erroneous refund.
- Period from 1st March, 2020 t0 28th Feb, 2022 shall be excluded for computation of period of limitation for filing refund application under section 54 or section 55 of the said Act.
Notification No. 14/2022 – Central Tax has been issued to notify the Central Goods and Services Tax (Amendment) Rules, 2022. The key changes to come into effect are as follows:
- Rule 21A has been amended to provide that where the registration has been suspended under sub-rule (2A) for contravention of the provisions contained in clause (b) or clause (c) of sub-section (2) of section 29 and the registration has not already been cancelled by the proper officer under rule 22, the suspension of registration shall be deemed to be revoked upon furnishing of all the pending returns.
- Explanation 1 to Rule 43 has been amended to provide that value of supply of Duty Credit Scrips shall not be included for the purpose of reversal of common credits.
- Rule 46 has been amended to include a declaration in the tax invoice by those taxpayers who are excluded from the purview of e-invoicing.
- Sub-rule (4B) has been inserted in Rule 86 to provide for FORM PMT-03A for re-crediting the amount of erroneous refund paid back by the taxpayers. The format of the said form has also been notified.
- Rule 87 has been amended to include the options of UPI and IMPS as an accepted mode of payment of GST.
- Sub-rule (14) has been inserted in Rule 87 to provide for transfer of any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under the Act to the electronic cash ledger for central tax or integrated tax of a distinct person as specified in sub-section (4) or, as the case may be, sub-section (5) of section 25, in FORM GST PMT-09.
- Rule 88B has been inserted retrospectively W.e.f 1st July, 2017 to provide for the manner of calculation of interest as per Sec 50.
- Rule 89(1) has been amended to provide that “specified officer” means a “specified officer” or an “authorised officer” as defined under rule 2 of the Special Economic Zone Rules, 2006.’
- Rule 89(2) has been amended to provide for documentary evidences in cases of refund on account of export of electricity.
- Explanation has been added in Rule 89(4) to provide that the value of goods exported out of India shall be the FOB value as per shipping bill, or the value declared in tax invoice/Bill of supply, whichever is less.
- Rule 89(5) has been amended to provide for a revised formula in cases of refund in inverted duty structure. The said amendment is on the lines of observation made by SC in the case of VKC Footsteps.
- Rule 95A relating to Refund of taxes to the retail outlets established in departure area of an International Airport beyond immigration counters making tax free supply to an outgoing international tourist has been omitted W.e.f 1st July, 2019.
- Rule 96 has been amended retrospectively W.e.f 1st July, 2017 to provide for refund withheld in cases of risky exporters. Such refund claims shall be transmitted online to the proper officer in FORM GST RFD-01 and shall be processed by the relevant P.O
- FORM GSTR-3B has been amended to provide for the following changes:
- Details of supplies on which tax is paid by E-Commerce Operator u/s 9(5) of the CGST Act are to be shown separately.
- Reversal as per Rules 38,42 & 43 and Sec 17(5) to be shown separately.
- “Other details” table now to include “ITC reclaimed which was reversed under Table 4(B)(2) in earlier tax period” and “Ineligible ITC under section 16(4) and ITC restricted due to PoS provisions”
- FORM GSTR-9 and GSTR-9C have been notified for the F.Y 2021-22 with following changes:
- The registered person shall report Non-GST supply (5F) separately and shall have an option to either separately report his supplies as exempted and nil rated supply or report consolidated information for these two heads in the “exempted” row only.
- It shall be mandatory to report in Table 17, HSN code at six digits level for taxpayers having annual turnover in the preceding year above ₹00 Cr and at four digits level for all B2B supplies for taxpayers having annual turnover in the preceding year up to ₹ 5.00 Cr.
- FORM GST PMT-06, PMT-07, PMT-09, & RFD-01 have been changed to incorporate the above-mentioned changes.
The views expressed are strictly personal. The above information is for educational purpose only and do not constitute any legal opinion or advice. The author can be reached at [email protected]