Changes in GST through Finance Act 2022 – NN 18/2022
A brief of relevant provisions of Finance Act, 2022 which become effective through Notification No. 18/2022–Central Tax Dated: 28/09/2022.
|FA Section||CGST Law Section||Detailed||Short Summary||Remarks|
|100||16(2)||Section 16(2)(ba) newly inserted to put restriction on availment of ITC: ITC shall be available in 3B only if ITC appearing in GSTR 2B has not been restricted. As per section 38, ITC can be restricted on the basis of conditions specified u/s 38||New Restriction on ITC: ITC Available status “Yes” in GSTR 2B can be availed only in 3B (Decision of ITC Available or not is given under section 38)|
|100||16(4)||A registered person shall not be entitled to take ITC in respect of any invoice or debit note for supply of goods or services or both after the 30th day of November following the end of financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier.||ITC for previous FY dated invoices can be availed upto 30th Nov of next FY. Eg: For FY 2022-23 till 30.11.2023.
(Earlier last date was 30th Sept.)
|Kind Attention: As per rule 36, ITC can be availed only on the basis of GSTR 2B. A outward supply can also be amended till 30th Nov. In a case where the supplier filed his GSTR-1 after due date say, 15th Nov or 30th Nov. Correspondingly, ITC will appear in GSTR 2B for Nov month generated in Dec. In such case, last date for availment of ITC being 30th Nov which has already been passed. Please ensure to file the GSTR-1 of Oct month on or before 11th or 13th as the case may be.|
|102||34(2)||Any registered person who issues a credit note in relation to a supply of goods or services or both shall declare the details of such credit note in the return for the month during which such credit note has been issued but not later than 30th day of
November following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier, and the tax liability shall be adjusted in such manner as may be prescribed.
|Credit Note can be issued & reported in GSTR-1& 3B by 30th Nov. (Earlier it can be reported by 30th Sept.)|
|103||37(3)||Rectification of error or omission in respect of the outward detail allowed to amended till 30th Nov.||Rectification of error or omission in respect of the outward detail allowed to amended till 30th Nov. (Earlier it can be amended by 30th Sept.)|
|103||37(4)||New sub-section (4) inserted to restrict the supplier to furnish all pending GST Returns before furnishing of current month GST Return||GST Return of current month can be furnished only after furnishing of all previous returns.|
|104||38||Section 38 substituted in such manner that will decide whether ITC Available or not to the recipient appeared in GSTR 2B. Decision Factors: –
1. Supplier defaulted in payment of tax.
2. Tax Liability in GSTR-1> Tax paid in GSTR 3B.
3. Supplier avail ITC which exceeds ITC available as appeared in GSTR 2B
4. Supplier discharge the tax liability by utilising the ITC (more than 99% as per section 49(12)). – not yet become effective
|GSTR 2B shall contain whether ITC available or not for particular transaction.||Conditions/Decision factors are rationales but the recipient should not be penalized for the default/action by supplier. This is well settled law that “Protect the innocent, and punish the guilty”.|
|107||42,43,43A||Section 42, 43 & 43A omitted to ineffective the provision related to GSTR 2 & 3||GSTR 2 & it’s related provision omitted|
|108||47||Late fee shall also attract on late filing of GSTR-8 by Rs. 100 per day.
Maximum late fees: 10,000/-
|Late fee shall also attract on late filing of GSTR-8 by 100 Rs. Per day|
|110||49(10)||Balance Available in E-Cash Ledger can be transferred to another GSTIN on same PAN.||Balance Available in E-Cash Ledger can be transferred to another GSTIN on same PAN.|
|110||49(12)||Section 49(12) inserted which provide the power to Govt. to specify such maximum portion of output tax liability can be paid by utilizing the E- credit ledger||Govt. has power to specify the maximum portion of E-Credit Ledger which can be utilized for paying outward liability||Not yet become effective|
|111||50(3)||Where the ITC has been wrongly availed and utilized – interest shall be payable @ 24%||Only on utilization of wrongly availed ITC – interest shall be applicable @ 24%||Not yet become effective|
|112||52||Rectification of error or omission in GSTR 8 is allowed to amended till 30th Nov.||Time period Extended for rectification in GSTR 8|
View expressed herein above are personal. The author shall not accept any liability for any damage or loss occurred to any person by relying on the above.