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Notification No. 40/2021 – Central Tax Dated.  29th December 2021

1. Rule 36(4) has been substituted to provide ITC shall not be available to the registered person unless such invoice and debit note has been reflected in GSTR 2B of said person.

2. The due date for GSTR 9 as well as for GSTR 9C for the FY 20-21 extended to 28-02-2022.

3. In the case of UIN holder, the refund of tax paid in respect of invoices in which UIN is not mentioned shall be available only if the copy of the invoice duly attested by the authorized representative of the applicant is submit along with the refund application in FROM GST RFD-10.

4. Rule 142 has been amended from 1st January 2022-

  • where the person concerned makes payment of the amount referred to in section 129(1) within fourteen days of detention or seizure of the goods and conveyance “seven days of the notice issued under sub-section (3) of Section 129 but before the issuance of order under the said sub-section (3)”, he shall intimate the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an order in FORM GST DRC-05 concluding the proceedings in respect of the said Notice
  • In sub-rule (5) summary of the order issued under section 52 or section 62 or section 63 or section 64 or section 73 or section74 or section 75 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130 shall be uploaded electronically in FORM GST DRC-07, specifying therein the amount of tax, interest, and penalty payable by the person chargeable with tax ―tax, interest, and penalty, as the case may be, payable by the person concerned

5. New Rule 144A Recovery of penalty by the sale of goods or conveyance detained or Seized in transit.- has been inserted –

  • Where the person transporting any goods or the owner of such goods fails to pay the amount of penalty section 129(1) within fifteen days from the date of receipt of the copy of the order passed the proper officer shall proceed for sale or disposal of the goods or conveyance so detained or seized by preparing an inventory and estimating the market value of such goods or conveyance:
  • Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with the passage of time, the said period of fifteen days may be reduced by the proper officer.
  • The said goods or conveyance shall be sold through a process of auction, including e-auction, for which a notice shall be issued in FORM GST DRC- 10 clearly indicating the goods or conveyance to be sold and the purpose of sale:

Provided that where the person transporting said goods or the owner of such goods pays the amount of penalty under section 129(1), including any expenses incurred in safe custody and handling of such goods or conveyance, after the time period mentioned in sub-rule (1) but before the issuance of notice under this sub-rule, the proper officer shall cancel the process of auction and release such goods or conveyance.

  • The last day for submission of a bid or the date of auction shall not be earlier than fifteen days from the date of issue of the notice referred to in sub-rule (2)

Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with the passage of time, the said period of fifteen days may be reduced by the proper officer.

  • The proper officer may specify the amount of pre-bid deposit to be furnished in the manner specified by such officer, to make the bidders eligible to participate in the auction, which may be returned to the unsuccessful bidders, forfeited in case the successful bidder fails to make the payment of the full amount, as the case may be
  • The proper officer shall issue a notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within a period of fifteen days from the date of the auction:
  • The proper officer shall cancel the process and proceed for re-auction where no bid is received or the auction is considered to be non-competitive due to lack of adequate participation or due to low bids.
  • Where an appeal has been filed by the person under sections 107(1) & (6), the proceedings for recovery of penalty by the sale of goods or conveyance detained or seized in transit under this rule shall be deemed to stay:

Provided that this sub-rule shall not be applicable in respect of goods of perishable or hazardous nature.

6. Rule 154 ― Disposal of proceeds of the sale of goods or conveyance and movable or immovable Property has been completely substituted with new provisions –

  • The amounts so realized from the sale of goods or conveyance, movable or immovable property, for the recovery of dues from a defaulter or for recovery of penalty payable under section 129(3) shall-
  • first, be appropriated against the administrative cost of the recovery process;
  • next, be appropriated against the amount to be recovered or to the payment of the penalty payable under section 129(3), as the case may be;
  • next, be appropriated against any other amount due from the defaulter under the Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017 and the rules made thereunder;
  • the balance, if any, shall be credited to the electronic cash ledger of the owner of the goods or conveyance as the case may be, in case the person is registered under the Act, and where the said person is not required to be registered under the Act, the said amount shall be credited to the bank account of the person concerned

(2) where it is not possible to pay the balance of sale proceeds, as per clause(d) of sub-rule (1), to the person concerned within a period of six months from the date of sale of such goods or conveyance or such further period as the proper officer may allow, such balance of sale proceeds shall be deposited with the Fund;

7. Rule 159 has been amended to provide that a copy of the order of attachment in FORM DRC-22 shall also be sent to the person whose property is being attached under Sec 83

8. Other minor changes in Rule 159 have been made to incorporate the changes made in Sec 83, providing for attachment of property of a person other than the taxable person i.e any person specified in sub-section (1A) of section 122.

9. Any objection to the order of provisional attachment of property is to be filed in FORM DRC- 22A whose format has also been notified now.

10. Changes have been made in the following form

DRC-10 Notice for Auction of Goods under section 79(1) (b) of the Act”.
DRC-11 Notice to the successful bidder
DRC-12 Sale Certificate
DRC-22 Provisionally attach any property (including bank account)
FORM DRC-22A Objection to the order of provisional attachment of property
DRC-23 Restoration of provisionally attached property/bank account
FORM APL-01 Filing an Appeal against Demand Order

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