Key Amendments in Financial Year 2021-22 relevant for GST Audit

a. For turnover more than 5 crores – 9% for first 15 days, 18% thereafter

b. For turnover less than 5 crores – Nil for first 15 days, 9% for next 15 days, 18% thereafter

a. Rule 36(4) has been amended to provide that the condition of availing 105% of eligible ITC (i.e., ITC reflecting in GSTR-2A) in GSTR-3B shall be applicable on cumulative basis for the period April 2021 and May 2021.

b. Rule 59 has been amended to extend the time limit for furnishing the details of B2B invoices for the month of April 2021 using IFF till 28th May 2021.

a. Chapter IV.

b. sub-section (3) of section 10, sections 25, 27, 31, 37, 47, 50, 69, 90, 122, 129.

c. Section 39, except sub-section (3), (4) and (5)

d. Section 68, in so far as e-way bill is concerned; and

e. Rules made under the provisions specified at (a) to (d) above.

B. Rule 90-Acknowledgement of refund application – Exclusion of time period between the date of filing of the refund claim in Form GST RFD-01 and the date of communication of the deficiencies in Form GST RFD-03, in case of fresh filing of refund applications.

Withdrawal of refund application in Form GST RFD-01W at any time before issuance of provisional refund order or final refund order or payment order or refund withhold order or notice.

(Except where the returns are filed after the commencement of proceedings under sections 73 or 74)

Section 35(5) of CGST Act, 2017 has been omitted, thereby doing away with the requirement of getting accounts audited by a CA or CMA.

The taxpayers, other than an input service distributor, a person paying tax under section 51 or section 52, casual taxable person and non-resident taxable person can furnish an annual return which may include a self-certified reconciliation statement.

• Principal, whose annual aggregate turnover in immediately preceding financial year exceeds Rs. 5 crores – Once in six months (commencing on 1st April and 1st October)
• In any other case – Annually

B. Rule 59 – Form and manner of furnishing details of outward supplies – The registered person shall not be able to file Form GSTR-1 if he has not filed the Form GSTR-3B for the previous month. Date of effect would be 01^st January 2022.

C. Rule 89 – Application for refund of tax, interest, penalty, fees or any other amount – Sub-rule (1A) has been inserted in Rule 89 – Any tax paid by him, in respect of a transaction considered by him to be an intra-State supply, which is subsequently held to be an inter-State supply, may, before the expiry of a period of two years from the date of payment of the tax on the inter-State supply, file an application electronically in FORM GST RFD-01

(i) The heading of the Form has been changed as under:

“Intimation of payment made voluntarily or made against the SCN, or statement or intimation of tax ascertained through FORM GST DRC-01A”

(ii) The drop-down list will provide “Audit, inspection or investigation, voluntary, SCN, annual return, reconciliation statement, scrutiny, intimation of tax ascertained through FORM GST DRC-01A, Mismatch (Form GSTR-1 and Form GSTR-3B), Mismatch (Form GSTR-2B and Form GSTR-3B), others (specify)”

(iii) Item no. 5 which require to provide the “details of SCN, if payment is made within 30 days of its issue” has been amended to further include “scrutiny, intimation of tax ascertained through Form GST DRC-01A, audit, inspection or investigation, others (specify)”.

(iv) A separate column mentioning “Fee” has been inserted in the table of serial No. 7 which requires the details of payments made.

B. Insertion of clause (aa) of sub-section (2) of Section 16 – Input Tax Credit regarding invoices and debit notes shall be available only to the extent they are furnished in GSTR-1 by the vendors and thus appear in GSTR-2A / 2B of the recipient. Previously a margin of 5% was made available.

C. Substitution in Explanation 1, clause (ii) of Section 74 – Closure of proceedings under Sec. 73 or Sec. 74 of the Act shall not result in the deemed closure of the proceedings initiated under Sec. 129 & Sec. 130 of the Act.

D. Insertion of Explanation in sub-section (12) of Section 75 – Empowers to initiate recovery proceedings based on the supply shown in the GSTR 1 without issuing a show-cause notice, provided the corresponding month’s GSTR 3B is not appropriately filed.

E. Substitution of sub-section (1) of Sec. 83 – Powers of provisional attachment have been extended to proceeding under Chapter XII, XIV) or XV for attachment of property including bank account belonging to the taxable person or person who has retained benefits of offences under Sec. 122(1A) of the Act.

F. Insertion of proviso in sub-section (16) of Sec. 107 – Quantum of the pre-deposit in cases of e-way bill violations where penalty orders have been passed under section 129(3), pre deposit required would be 25% of the penalty ordered to be paid.

G. Amendment to Sec. 129 – To seek release of the conveyance/goods that have been detained on account of e-way bill violations –

i. Where the owner comes forward & it is taxable goods – 200% of the tax payable

ii. Where the owner comes forward & it is exempt goods – 2% of value of goods or INR 25,000 w.e.less

iii. Where the owner does not come forward & it is taxable goods – 50% of value of goods or 200% of tax payable w.e.higher.

iv. Where the owner does not come forward & it is exempt goods – 5% of the value of goods or INR 25,000 w.e.less

H. Substitution in Sec. 151 – Commissioner has the right to demand any person to furnish information relating to any matter dealt with in connection with this Act.

I. Amendment in Sec. 152 – No information as gathered under section 150 or 151 shall be used without giving opportunity of being heard.

B. Rule 95 sub rule (3) inserted – Refund of tax in certain cases – Refund of tax paid by the applicant on such invoice shall be available only if the copy of the invoice, duly attested by the authorized representative of the applicant, is submitted along with the refund application in FORM GST RFD-10.

C. Rule 142(3) – If the amount referred to in section 129(1) of the CGST Act, 2017 is paid within 7 days of the notice issued under sub-section (3) of section 129 but before the issuance of order under the said section

D. New Rule 144A – Recovery of penalty by sale of goods or conveyance detained or seized in transit – 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 under section 129(3), the proper officer shall proceed for sale or disposal of the goods or conveyance so detained or seized

E. Rule 154 – Disposal of proceeds of sale of goods or conveyance and movable or immovable property – Proceeds from such recovery shall now be appropriated against the amount to be recovered or to the payment of the penalty payable section 129(3), as the case may be, after being appropriated against administrative cost of the recovery process.

F. Rule 159 – Provisional attachment of property – Commissioner shall send the order of attachment in Form GST DRC-22 and a copy of such order shall also be sent to the person whose property is being attached under section 83.

(a) Biogas plant.

(b) Solar power-based devices.

(c) Solar power generator.

(d) Windmills, Wind Operated Electricity Generator (WOEG).

(e) Waste to energy plants / devices.

(f) Solar lantern / solar lamp.

(g) Ocean waves/tidal waves energy devices/plants.

(h) Photo voltaic cells, whether assembled in modules or made up into panels.

with Fruit Juice.

(a) theme parks, water parks and any other place having joy rides, merry- go rounds, go carting, or

(b) ballet, – other than anyplace covered by below –