17 GST Proposals on 01.02.2022

The Amendments carried out in the Finance Bill, 2022, vide clause 99 to 113 will come into effect from a date to be notified and clause 114 to 123 will come into effect on the date of its enactment.

1. Additional Condition for availment of ITC u/s 16(2)-

ITC can be availed only if the same is not restricted under Section 38 – as per

the details communicated to the purchaser in GSTR-2B.

2. Welcome Amendment on Itc availment limit to be 30th November

Time-limit to avail ITC u/s 16(4) extended till 30th November of next year from 30th September.

3. Composition dealer registration cancellation dependent on non- filing of Gst returns

Section 10 Composition Tax Payer’s Registration can be cancelled suo-moto if they have not filed their GSTR-4 return beyond 3 months from the due date.

4. Non-composition tax payer registration cancellation on non-filing of gst returns

Registration of a person, other than those paying tax under section 10, can be cancelled if has not furnished returns for such continuous tax period as may be prescribed.

5. Extension in time limit to issue credit notes

Credit Notes in respect of supply made in a financial year can be issued by 30th November of next financial year (currently allowed till 30th September).

6. GST 1/ Gst 3B rectification allowed till 30th November

Any rectification of error in GSTR-1/ GSTR-3B is now permitted till 30th

November of next financial year (currently allowed till 30th September).

7. GST Outward Supply process to be amended

a. The two-way communication process in filing GST returns is scrapped.

b. Section 38 of the CGST Act is being substituted for prescribing the manner as well as conditions and restrictions for communication of details of inward supplies and input tax credit to the recipient by means of an auto-generated statement and to do away with two-way communication process in return filing.

Budget 2022- 17 Key Highlights on Goods And Services Tax

8. The due date for filing return by non-resident taxable person is prescribed as 13th day of next month.

9. Section 41 of the CGST Act is being substituted so as to do away with the concept of “claim” of ITC on a “provisional” basis and to provide for availment of self-assessed input tax credit.

10. Sections 42, 43 and 43A of the CGST Act are being omitted so as to do away with two-way communication process in return filing.

11. Section 47 of the CGST Act is being amended so as to provide for levy of late fee for delayed filing of TCS returns under section 52.

12. ITC availment on self-assessment basis

a. Section 49 of the CGST Act is being amended so as to provide for prescribing restrictions for utilizing the amount available in the electronic credit ledger.

b. Section 49 of the CGST Act is being amended so as to allow transfer of amount available in electronic cash ledger under the CGST Act of a registered person to the electronic cash ledger under the said Act or the IGST Act of a distinct person.

c. Section 49 of the CGST Act is being amended so as to provide for prescribing the maximum proportion of output tax liability which may be discharged through the electronic credit ledger.

13. Interest to be levied on ITC wrongly availed and utilized.

If ITC not utilized, then interest will not be levied. Section 50(3) substituted retrospectively wef 01.07.2017.

14. Section 54 dealing with refunds amended

a. Explicit refund claim of any balance lying in Electronic Cash ledger under Section 54.

b. Time limit of 2 years provided for claiming tax refund on inward supplies of both goods or services u/s 55, from last day of the quarter in which said supply was received.

15. GST portal www.gst.gov.in notified

Notified Retrospectively as the common portal for all the functions provided under CGST Rules 2017 except for E way bill generation and for generation of invoices under Rule 48(4) of CGST Rules.

16. Rate of Interest u/s 50(3) prescribed as 18% in all cases.

17. GST Rates rationalization

a. unintended waste generated during the production of fish meal (falling under heading 2301), except fish oil, is being exempted during the period commencing from the 1st day of July, 2017, and ending with the 30th day of September, 2019 (both days inclusive), subject to the condition that if said tax has been collected, the same would not be eligible for refund.

b. Service by way of grant of alcoholic liquor license, against consideration in the form of license fee or application fee or by whatever name it is called by the State Governments, has been declared as an activity or transaction which shall be treated neither as a supply of goods nor a supply of service. Retrospectively wef 01.07.2017. However, no refund shall be made of tax which has been collected, but which would not have been so collected, had the said notifications been in force at all material times.

 

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