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Let us discuss amendments brought down in Union budget in very simplified manner:

1. Amendment in Section 16 of CGST ACT 2017

 Two important changes in Section 16-

Firstly, Recipient can avail input tax credit with respect to supply only if such credit has not been restricted in GSTR-2B. What it means – Ineligible credit not allowed to be taken.

Secondly, Time limit for availment of input tax credit by a registered person in respect of any invoice or debit notes pertaining to a financial year upto 31st November of the following financial year. In simple words, 40 days additional time to avail itc as earlier we can claim upto 20th October of following financial year.

2. Amendment regarding cancellation of registration-

Registration of person liable for cancellation in case of

i. Composition taxpayers – in case you have not furnished the return for a financial year beyond three months from the due date of furnishing of the said return. In other words, 3 months after due date of return after end of F.Y.

ii. In case of other taxpayers- if returns not furnished for such continuous tax period as specified later on—

3. Amendment in Section 34 of CGST ACT- Extended time limit for issuance of credit notes in respect of any supply made in a financial year upto thirtieth day of November of the following financial year.

4. Amendment in Section 37 of CGST ACT 2017-

In simple words, Conditions and restrictions for furnishing details of outward supplies and communicating to recipients, errors can be rectified upto 3oth Nov of next F.Y

And now no more two –way communication process in return filling.

5. Amendment in Section 38 of CGST ACT 2017- Now there will be no more two-way communication and invoice will be uploaded by supplier and wiil be communicated to recipient through GSTR-2B

6. Amendment in Section 39 of CGST ACT 2017-

  • Non-resident taxable person shall furnish the return for a month by thirteenth day of the following month;
  • Errors in GSTR-3B also can be rectified up to 30th Nov of next financial year.
  • GSTR-3B cannot be filed if GSTR-1 cannot be filed for said tax period.

7. Section 41 – No more input tax credit to be availed on provisional basis and to provide for availment of self-assessed input tax credit subject to such conditions and restrictions as may be prescribed.

Key Highlights on Goods and Service Tax-Finance bill 2022 Simplified

8. Amendment in Section 47 of CGST ACT 2017- Levy of Late fees for delayed filling of return u/s 52 i.e TCS RETURN

9. Very important amendment in Section 49 of CGST ACT 2017-

Three important changes-

i. Restrictions for utilising the amount available in the Electronic Credit ledger.

ii. Allow transfer of cash available in Electronic cash ledger under CGST ACT to Electronic cash ledger under said act or IGST ACT of distinct person.

iii. Also provide maximum proportion of output tax liability which may be discharged through electronic credit ledger.

10. Amendment in Section 50 of CGST ACT 2017- Interest to be levied only on input tax credit wrongly availed and utilised w.ef 01.07.2017 at rate of 18 %.

11. Amendment in Section 52 of CGST ACT 2017 –Time limit for rectification of errors in GSTR-1 and GSTR-3B extended upto 3oth November

12. Last important change related to refund related to amount available in Electronic cash ledger can now be easily available by filling prescribed form and no more requirement to file GSTR-3B.


I have summed up important changes  in simplified manner ,still have any doubt can be mailed at and due date of annual return also approaching so queries related to annual return can also be mailed.

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June 2024