GST Amendments -July, 2022 – A Bird’s-eye View

No. & Date & Subject

–Amendments in Section 50 & Section 52 –

2. The limitation for rectification of any incorrect particulars under section 52(6) has been extended from 30^th September to 30^th November following the end of financial year.

The provisions to above effect proposed in Finance Act, 2022,  made applicable from 05.07.2022.

–Annual Return-

-Date Extension-

-Date Extension-

Limitation Extended

ii) Excludes the period from the 1^st day of March, 2020 to the 28^th 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 1^st day of March, 2020 to the 28^th 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

Deemed Revocation of Cancellation of Registration 

– Tax 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.”

-Erroneous Refund-

–Additional mode of Tax Deposit- 

a) Unified Payment Interface (UPI)

b) Immediate Payment Services (IMPS)

Mandate Form 

Transfer of Cash Ledger balances from one GSTIN to another GSTIN 

Interest Liability

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.

Amendments to Rule 89 (Refund

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.

Change in Documentary evidence for Refund

*Inserted by present notification

Documentary evidence for Refund on account  of  export  of electricity

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”

Value of goods exported explained

“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.”

Formula for computing refund amount modified

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……

Provision regarding claim of Refund by certain person deleted