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Notification 26/2022 – Central Tax dated 26th December 2022

Key Highlights

Registration

1. OTP

Current Proposed
OTP shall be sent to mobile number and E-mail Address registered with GST Portal OTP shall be sent to mobile number and E – mail address linked to PAN

2. Application for Registration under GST is complete only when Aadhar Authentication is completed

3. Application for Registration will be approved only after physical verification of the premises even after Aadhar authentication if the said person is identified on the common portal based on data analysis and risk parameters, for carrying out physical verification of places of business

4. Cancellation of Registration of persons required to deduct Tax at source or collect Tax at Source

Current Proposed
Only Proper Officer is allowed to cancel the registration Even the registered person can request for Cancellation of Registration

Input Tax Credit

1. Rule 37A inserted (w.e.f. 1st October 2022)

Current Proposed
a. Only matching of Purchase Register with GSTR 2B is required

b. Whether corresponding furnished GSTR 3B is not required to be verified by the recipient

a. Matching of Purchase Register with GSTR 2B is required

b. Verification of furnishing of GSTR 3B by Corresponding Supplier maximum by 30th September following the end of the FY in which the ITC in respect of Invoice or Debit Note has been availed is required.

Consequence of non – furnishing of GSTR 3B by Corresponding Supplier

√ Where GSTR 3B pertaining to ITC in respect of Invoice or Debit Note has not been furnished by the Corresponding Supplier till the 30th day of September following the end of the FY in which the ITC in respect of Invoice or Debit Note has been availed,

√ The said amount of ITC shall be reversed by the said registered person, while furnishing a return in Form GSTR 3B on or before the 30th day of November following the end of such FY

Proviso 1

Where the said amount of ITC is not reversed by the registered person in a return in Form GSTR 3B on or before the 30th day of November following the end of such FY during which such ITC has been availed, such amount shall be payable by the said person with interest thereon under section 50.

Proviso 2

Where the said supplier subsequently furnishes the return in Form GSTR 3B for the said tax period, the said registered person may re – avail the amount of such credit in the return in Form GSTR 3B for a tax period thereafter.

Payment

1. Rule 87(8) proviso inserted

Rule 87(8) proviso:

Where the bank fails to communicate details of Challan Identification Number to the Common Portal, the Electronic Cash Ledger may be updated on the basis of e – Scroll of the Reserve Bank of India in cases where the details of the said e – Scroll are in conformity with the details in challan generated in Form GST PMT – 06  on the Common Portal.

2. Rule 88C inserted

Rule 88C: Manner of dealing with difference in liability reported in statement of outward supplies and that reported in return

When this rule applies?

Tax payable as per GSTR 1 > Tax payable as per GSTR 3B by such amount and such percentage, as may be recommended by the Council

Provision

The said registered person shall be intimated of such difference in Part A of Form GST DRC – 01B, electronically on the common portal and a copy of such intimation shall also be sent to his E-mail address provided on the GST portal, highlighting the said difference and directing him to –

a. pay the differential tax liability, along with interest under section 50, through Form GST DRC – 03; or

b. explain the aforesaid difference in tax payable on the common portal,

within a period of seven days.

Highlights of Notification 262022 Central Tax dated 26th December 2022

Steps to be undertaken by the Registered Person to whom intimation is sent

The Registered Person shall upon receipt of the intimation referred above, either

a) pay the amount of differential tax liability, as specified in Part A of Form GST DRC – 01B, fully or partially, along with interest under section 50, through Form GST DRC – 03 and furnish the details thereof in Part B of Form GST DRC – 01B electronically on the common portal; or

b) furnish a reply electronically on the common portal, incorporating reasons in respect of that part of the differential tax liability that has remained unpaid, if any, in Part B of Form GST DRC – 01B

within a period of seven days

Consequence of non – payment or non – furnishing of reply or reason furnished by the Registered Person to whom the intimation is sent is not acceptable

√ Where the amount specified in the intimation remains unpaid within the period of seven days and

√ where no explanation or reason is furnished by the registered person in default or

√ where the explanation or reason furnished by such person is not found to be acceptable by the proper officer,

the said amount shall be recoverable in accordance with the provisions of section 79 (Recovery of Tax).

Returns

1. Rule 59(6)(d) inserted

Rule 59(6)(d)

√ A registered person, to whom the intimation has been issued on the common portal under the provisions of Rule 88C(1) in respect of a tax period,

√ shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in Form GSTR 1 or using IFF for a subsequent tax period,

√ unless he has either deposited the amount specified in the said intimation or has furnished a reply explaining the reasons for any amount remaining unpaid, as required under the provisions of rule 88C(2)

Tax Invoice, Debit Notes and Credit Notes

1. Rule 46(f) Proviso inserted

Rule 46(f) Proviso

√ Where any taxable service is supplied by or through an electronic commerce operator or by a supplier of OIDAR services to a recipient who is un-registered, irrespective of the value of such supply,

√ A tax invoice issued by the registered person shall contain the name and address of the recipient along with its PIN code and the name of the State and the said address shall be deemed to be the address on record of the recipient

Earlier the name and address of the recipient was required to be mentioned in the tax invoice in case the value of taxable supply is less than Rs. 50,000/- only if the recipient requests for the same

2. Rule 46A proviso inserted

The said single “invoice cum bill of supply” shall contain the particulars as specified under rule 46 or rule 54, as the case may be, and rule 49.

Author Bio

Chartered Accountant by profession, faculty by passion. Faculty for Indirect Taxation for CA, CMA and CS students. Author of Book titled "GST - MCQ's for CA IPCC". Faculty for Certificate course in GST at ICAI. Speaker on GST in various forums and study circles. Email : deepikaaganesan@gmail.com View Full Profile

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