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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

The opinions expressed in this article is compilation of Government Notifications or obtained from CBIC site, do not reflect the opinions of author. Author do not guarantees the accuracy or completeness of any information nor for any errors, omissions, or claims for damages, including exemplary damages, arising out of use, inability to use, or with regard to the accuracy or sufficiency of the information contained. The said works do not constitute legal, medical, or other professional advice.

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4 Comments

  1. Sejal says:

    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.

    1. Atit Shah says:

      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..

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