GST Amendments -July, 2022 – A Bird’s-eye View
No. & Date & Subject |
Amendment |
No. 9/2022 Central Tax Date : 05.07.2022
–Amendments in Section 50 & Section 52 – |
1. Provisions enabling charging of interest upto 24% for wrongly availing and utilizing input tax credit has been made applicable retrospectively w.e.f. 01.07.2022.
2. The limitation for rectification of any incorrect particulars under section 52(6) has been extended from 30th September to 30th November following the end of financial year. The provisions to above effect proposed in Finance Act, 2022, made applicable from 05.07.2022. |
10/2022 Central Tax Dt. 05.07.2022
–Annual Return- |
Registered person having aggregate turnover in the financial year 2021-22 up to two crore rupees, exempted from filing annual return for the said financial year. |
11/2022 Central Tax Dt. 05.07.2022
-Date Extension- |
Last date for filing Form GST CMP-08 for composition dealers for quarter ending 30th June, 2022 has been extended up to 31st day of July, 2022. |
12/2022 Central Tax Dt. 10.07.2022
-Date Extension- |
Waived the amount of late fee payable for failure to furnish the return in FORM GSTR-4 for 2021-22 upto 28th day of July, 2022 (Composition Dealer Annual Return) |
13/2022 Central Tax Dt. 05.07.2022
Limitation Extended |
i) Extends the time limit for issuance of order under sub-section (9) of section 73 of the CGST Act, 2017 for recovery of tax not paid or short paid or of input tax credit wrongly availed or utilized, in respect of a tax period for the financial year 2017-18, up to the 30th day of September, 2023
ii) Excludes the period from the 1st day of March, 2020 to the 28th day of February, 2022 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 CGST Act, 2017, for recovery of erroneous refund; iii) Excludes the period from the 1st day of March, 2020 to the 28th day of February, 2022 for computation of period of limitation for filing refund application under section 54 or section 55 of the CGST Act, 2017 |
14/2022 Central Tax Dt. 05.07.2022
Deemed Revocation of Cancellation of Registration |
Where the registration has been suspended under Section 29(2)(b) or (c) of CGST Act, 2017 and the registration has not already been cancelled under rule 22, the suspension of registration shall be deemed to be revoked upon furnishing of all the pending returns. |
14/2022 Central Tax Dt. 05.07.2022
– Tax Invoice- |
Dealer or class of dealer who is liable for E-invoicing on account of aggregate turnover exceeding prescribed limit but preparing the invoices in any other manner by virtue of proviso attached to Rule 48(4) of CGST Act, 2017 is required to make following declaration in each invoice: –
“I/We hereby declare that though our aggregate turnover in any preceding financial year from 2017-18 onwards is more than the aggregate turnover notified under sub-rule (4) of rule 48, we are not required to prepare an invoice in terms of the provisions of the said sub-rule.” |
14/2022 Central Tax Dt. 05.07.2022
-Erroneous Refund- |
New Rule 86(4A) inserted which provides that where a registered person deposits the amount of erroneous refund sanctioned to him, along with interest and penalty, wherever applicable, through FORM GST DRC-03, by debiting the electronic cash ledger, on his own or on being pointed out, an amount equivalent to the amount of erroneous refund deposited by the registered person shall be re-credited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-03A. |
14/2022 Central Tax Dt. 05.07.2022
–Additional mode of Tax Deposit- |
In addition to Internet Banking, NEFT, RTGS and Counter Payments the following modes of payments have been provided: –
a) Unified Payment Interface (UPI) b) Immediate Payment Services (IMPS) |
14/2022 Central Tax Dt. 05.07.2022
Mandate Form |
In addition to payment made by way of National Electronic Fund Transfer or Real Time Gross Settlement Mode from any bank Immediate Payment Service has been added for the purpose of generating mandate form |
14/2022 Central Tax Dt. 05.07.2022
Transfer of Cash Ledger balances from one GSTIN to another GSTIN |
A registered person may, on the common portal, transfer 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 to other GSTIN in FORM GST PMT-09. But such transfer shall not be allowed to a registered person having unpaid liability in his electronic liability register |
14/2022 Central Tax Dt. 05.07.2022
Interest Liability |
Interest is made payable where return is filed after due date on the portion of tax which is paid through electronic cash ledger for delayed period.
In other cases, interest is calculated on unpaid amount of tax for the period from due date to actual payment. Interest is made payable on the amount of input tax credit wrongly availed, but only to the extent the balance in the credit ledger falls below the amount of input tax credit wrongly availed. |
14/2022 Central Tax Dt. 05.07.2022
Amendments to Rule 89 (Refund |
A. Explanation is attached after 4th proviso to Rule 89(1) of CGST Rule 89.
a) Explanation. —For the purposes of this sub-rule, “specified officer” means a “specified officer” or an “authorised officer” as defined under rule 2 of the Special Economic Zone Rules, 2006. |
14/2022 Central Tax Dt. 05.07.2022
Change in Documentary evidence for Refund |
Amended Rule 89(2)(c) – A statement containing the number and date of invoices and the relevant Bank Realisation Certificates or Foreign Inward Remittance Certificates, as the case may be, in a case where the refund is on account of the export of services “other than electricity”*
*Inserted by present notification |
14/2022 Central Tax Dt. 05.07.2022
Documentary evidence for Refund on account of export of electricity |
New Rule 89 (2)(ba) inserted to CGST Rules.
Rule 89 (2)(ba) “a statement containing the number and date of the export invoices, details of energy exported, tariff per unit for export of electricity as per agreement, along with the copy of statement of scheduled energy for exported electricity by Generation Plants issued by the Regional Power Committee Secretariat as a part of the Regional Energy Account (REA) under clause (nnn) of sub-regulation 1 of Regulation 2 of the Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2010 and the copy of agreement detailing the tariff per unit, in case where refund is on account of export of electricity” |
14/2022 Central Tax Dt. 05.07.2022
Value of goods exported explained |
Explanation inserted to Rule 89 (4) of CGST Rules
“Explanation.–For the purposes of this sub-rule, the value of goods exported out of India shall be taken as (i) the Free on Board (FOB) value declared in the Shipping Bill or Bill of Export form, as the case may be, as per the Shipping Bill and Bill of Export (Forms) Regulations, 2017; or (ii) the value declared in tax invoice or bill of supply, whichever is less.” |
14/2022 Central Tax Dt. 05.07.2022
Formula for computing refund amount modified |
Rule 89(5) amended. Amended Rules is as under :-
Rule 89(5)- In the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula:- Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services) x Net ITC÷ Adjusted Total Turnover} – {tax payable on such inverted rated supply of goods and services x (Net ITC’ ITC availed on inputs and input services}* * Current Amendment in Bold Letters . Explanation…… |
14/2022 Central Tax Dt. 05.07.2022
Provision regarding claim of Refund by certain person deleted |
Rule 95A regarding claim of Refund by certain person deem to have been omitted w.e.f. 01.07.2019 |
14/2022 Central Tax Dt. 05.07.2022 | Amendment in rules for Refund of integrated tax paid on goods or services exported out of India, like filing of return in FORM GSTR-3B by applicant and rectification of mismatch between the data furnished by the exporter of goods in Shipping Bill and those furnished in statement of outward supplies in FORM GSTR-1 are made pre conditional refund claim. |
Amendment in Rule 96 | Rule 96(4)(b) inserted for withholding of Refund for the purpose of verification of credentials of the exporter before grant of refund, in order to safeguard the interest of revenue. |
Rule 96(5) omitted | Rule 96(5) omitted regarding Intimation of withholding of Refund under Rule 96(4)(a) |
Rule 96(5A) inserted, | New Rule 96(5A) inserted for transmission of claim electronically to the proper officer with intimation to exporter where refund is withheld under Rule 96(4)(a) or Rule 96(4)(c) |
Rule 96(5B) inserted | New Rule 96(5B) inserted for transmission of claim electronically to the proper officer with intimation to exporter where refund is withheld under Rule 96(4)(b). |
Rule 96(5C) inserted | New Rule 96 (5C) inserted providing that the refund application in terms of sub-rules (5A) and (5B) shall be dealt in accordance with the provisions of rule 89. |
Rule 96(6) & Rule 96(7) omitted | Rule 96(6) & Rule 96(7) regarding passing order in Part A of FORM GST RFD-07 & in FORM GST RFD-06 in Part B of FORM GST RFD 07 respectively omitted. |
Amendment in GSTR Forms | GSTR forms including Form GSTR 3B, FORM GSTR-9 & 9C , FORM GST PMT-03, FORM GST PMT-07 FORM-GST-RFD-01 has been amended. |
Amendment in GSTR Forms | GSTR forms including GSTR 3B, FORM GSTR-9, FORM GST PMT-03, FORM GST PMT-07 FORM-GST-RFD-01 amended. |
Disclaimers
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Instead of Rule 48(4), it has mentioned Section 48(4).
Yes , I correct. Word ‘Section’ has been wrongly mentioned for Rule 48(4).
Thank you very much for correcting.
Interest on ‘unfair utilisation of input credit’ is actually very unfair in many respects. Once the buyer has paid GST to the seller and has a GST invoice with his GST number, there is nothing else he can control. The seller has collected GST as an agent of the Govt and if he does not deposit GST or file invoices, the Govt cannot punish a third party. Many a times, own Govt departments like ICEGATE do not process import bills in same month and GST credit worth lakhs is delayed.
The GST tax payers have to forcefully mention the same.
Yes, Its Totally Unfair.. However Justice will be give by high court. Also at present there are many judgements in favor of assessee, whereby Even though tax not shown in 2A or Not paid by Supplier Clean Chit given by HC..