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The government issued notifications on 05.07.2022 thereby giving effect to the changes proposed by the GST Council in their 47th GST Council Meeting held on 28.06.2022 & 29.06.2022.

In this article, an attempt is made to understand the changes made.

S. No. Notification No. Section / Rule No. Amendment Made Effect of the amendment made The Effective date of the amendment
1 09/2022 – Central Tax a.            Section 110 (C ) of the Finance Act 2022

 

b.            Section 49(10) of CGST Act  2017 – Payment of Tax, interest, penalty, and other amounts

Appointed 05.07.2022 as the date on which the provisions of Section 110 (C ) & 111 of Finance Act 2022 shall come into effect. Allows the registered person (RP) to transfer any amount available in the electronic cash ledger inter head & intra head and within distinct persons having the same PAN.
The transfer would not be possible if the RP has any unpaid liability in the electronic liability ledger
05.07.2022
Section 111 of Finance Act 2022
Section 50 of CGST Act 2017 – Interest on delayed payment of Tax
This section states that the interest must only be charged on the amount of ITC claimed and utilized and not on mere claiming of input tax credit. 01.07.2017
2 10/2022 – Central Tax Section 44 of the CGST Act 2017 – Annual Return Exempts RPs whose aggregate turnover in the Financial year 2021-22 is up to two crore rupees from the filing of annual return in form GSTR-9 for the FY 2021-22 05.07.2022
3 11/2022 – Central Tax Rule 62 – Furnishing of statement or return Extends the due date for making payment of tax for composition persons in Form GST CMP-08 for Q-1 of the FY 2022-23 from 18.07.2022 to 31.07.2022 05.07.2022
4 12/2022 – Central Tax Rule 62 – Furnishing of statement or return Extension of waiver of late fees till 28.07.2022 for delay in furnishing of form GSTR-4 for FY 2021-22[Annual return for composition scheme] 05.07.2022
5 13/2022 – Central Tax Section 73 – Demands and recoveries Extends the time limit for issuance of order under section 73(10) for short payment of tax non-payment of tax or erroneous refund till 30.09.2023 The government vide this notifications have provided the time for the tax officers for issuance of notice to the RPs for the FY 2017-18 till 30.06.2023 01.03.2020

Section 54 – Refunds
Excludes the time period from 1st March 2020 to 28th Feb 2022 for computation of period of limitation for filing refund application under Section 54 of the CGST Act 2017 This is the best opportunity for those RPs who have missed filing their refund application the due dates for filing refund application for easy reference is provided in Annexure – 1
6 14/2022 – Central Tax CGST Rules This notification has amended various rules and inserted new rules. The detailed discussion is enclosed as Annexure – II

Time Limit for filing refund application after taking into cognizance the Notification No. 13/2022 Central Tax dated 05.07.2022

S. No. 5 – Annexure – 1 – Time Limit for filing refund application after taking into cognizance the Notification No. 13/2022 Central Tax dated 05.07.2022**
Month
Time period starts from
Total number of days available for filing refund application
Excluded from
Time completed expired before Covid
Remaining time limit
Excluded till
Time limit for filing refund application
Apr-18
20/05/2018
731
01/03/2020
651
80
28/05/2022
16/08/2022
May-18
20/06/2018
731
02/03/2020
621
110
28/05/2022
15/09/2022
Jun-18
20/07/2018
731
03/03/2020
592
139
28/05/2022
14/10/2022
Jul-18
20/08/2018
731
04/03/2020
562
169
28/05/2022
13/11/2022
Aug-18
20/09/2018
731
05/03/2020
532
199
28/05/2022
13/12/2022
Sep-18
20/10/2018
731
06/03/2020
503
228
28/05/2022
11/01/2023
Oct-18
20/11/2018
731
07/03/2020
473
258
28/05/2022
10/02/2023
Nov-18
20/12/2018
731
08/03/2020
444
287
28/05/2022
11/03/2023
Dec-18
20/01/2019
731
09/03/2020
414
317
28/05/2022
10/04/20 23
Jan-19
20/02/2019
731
10/03/2020
384
347
28/05/2022
10/05/20 23
Feb-19
20/03/2019
731
11/03/2020
357
374
28/05/2022
06/06/ 2023
Mar-19
20/04/2019
731
12/03/2020
327
404
28/05/2022
06/07/ 2023
Apr-19
20/05/2019
731
13/03/ 2020
298
433
28/05/2022
04/08/ 2023
May-19
20/06/2019
731
14/03/2020
268
463
28/05/2022
03/09/ 2023
Jun-19
20/07/2019
731
15/03/2020
239
492
28/05/2022
02/10/ 2023
Jul-19
20/08/2019
731
16/03/2020
209
522
28/05/2022
01/11/2023
Aug-19
20/09/2019
731
17/03/2020
179
552
28/05/2022
01/12/2023
Sep-19
20/10/2019
731
18/03/2020
150
581
28/05/ 2022
30/12/2023
Oct-19
20/11/2019
731
19/03/2020
120
611
28/05/ 2022
29/01/2024
Nov-19
20/12/2019
731
20/03/2020
91
640
28/05/ 2022
27/02/ 2024
Dec-19
20/01/2020
731
21/03/2020
61
670
28/05/ 2022
28/03/ 2024
Jan-20
20/02/2020
731
22/03/2020
31
700
28/05/ 2022
27/04/ 2024
Feb-20
20/03/2020
731
23/03/2020
3
728
28/05/2022
25/05/ 2024
Mar-20
20/04/2020
731
24/03/2020
731
28/05/2022
28/05/ 2024
Apr-20
20/05/2020
731
25/03/2020
731
28/05/2022
28/05/ 2024
May-20
20/06/ 2020
731
26/03/2020
731
28/05/2022
28/05/ 2024
Jun-20
20/07/2020
731
27/03/2020
731
28/05/2022
28/05/ 2024
Jul-20
20/08/2020
731
28/03/2020
731
28/05/2022
28/05/ 2024
Aug-20
20/09/2020
731
29/03/2020
731
28/05/ 2022
28/05/ 2024
Sep-20
20/10/2020
731
30/03/2020
731
28/05/ 2022
28/05/ 2024

Annexure – II  – Sl. 6 – Amendments made in CGST Rules 2017 vide Notification No. 14/2022 – Central Ta dated 05.07.2022

1. The government has amended Rule 21A of the CGST Rules 2017 (Suspension of Registration) wherein it has stated that where the registration has been suspended for non-filing of returns and the registration has not already been canceled by the proper officer, the suspension of registration shall be deemed to be revoked upon the furnishing of all the pending returns.

2. The government has amended Rule 43 of the CGST Rules 2017 (Reversal of ITC) clarifying that there is no requirement of reversal of ITC for the exempted supply of Duty Credit Scripts by the exporters

3. The government has inserted clause s in Rule 46 of the CGST Rules 2017 (Tax Invoice) mandating those RPs whose turnover is greater than 20 Crores in any of the FY from 2017-18 till today but are not required to generate e-invoice to provide a declaration in the invoice mentioning that ““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.”

4. Insertion of sub – rule 4B in Rule 86, to provide that where the erroneous refund amount is sanctioned to a taxpayer on account of accumulated ITC or on account of IGST paid on zero rated supply in contravention of Rule 96(10), and the taxpayer has deposited the said amount along with interest and penalty in Form DRC-03 by debiting the electronic cash ledger, on his own or on being pointed out. Then the same amount would be re-credited in Form PMT-03A thereby enabling the taxpayers to get credit of the amount of erroneous refund, paid back by them in the electronic credit ledger.

5. The government has made amendment in Rule 87, to provide UPI and IMPS as an additional mode of payment under GST

6. The government has issued form GST PMT-09 for the transfer of amount available in the electronic cash ledger of one distinct person to another distinct person having the same PAN.

7. The Government has inserted Rule 88B for the manner of calculation of interest which is as under

88B. Manner of calculating interest on delayed payment of tax.-

(1) In case, where the supplies made during a tax period are declared by the registered person in the return for the said period and the said return is furnished after the due date in accordance with provisions of section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period, the interest on tax payable in respect of such supplies shall be calculated on the portion of tax which is paid by debiting the electronic cash ledger, for the period of delay in filing the said return beyond the due date, at such rate as may be notified under sub-section (1) of section 50.

(2) In all other cases, where interest is payable in accordance with sub section (1) of section 50, the interest shall be calculated on the amount of tax which remains unpaid, for the period starting from the date on which such tax was due to be paid till the date such tax is paid, at such rate as may be notified under sub-section (1) of section 50.

(3) In case, where interest is payable on the amount of input tax credit wrongly availed and utilised in accordance with sub-section (3) of section 50, the interest shall be calculated on the amount of input tax credit wrongly availed and utilised, for the period starting from the date of utilisation of such wrongly availed input tax credit till the date of reversal of such credit or payment of tax in respect of such amount, at such rate as may be notified under said sub-section (3) of section 50.

Explanation. —For the purposes of this sub-rule, —

(1) input tax credit wrongly availed shall be construed to have been utilised, when the balance in the electronic credit ledger falls below the amount of input tax credit wrongly availed, and the extent of such utilisation of input tax credit shall be the amount by which the balance in the  electronic credit ledger falls below the amount of input tax credit wrongly availed. (2) the date of utilisation of such input tax credit shall be taken to be, —

(a) the date, on which the return is due to be furnished under section 39 or the actual date of filing of the said return, whichever is earlier, if the balance in the electronic credit ledger falls below the amount of input tax credit wrongly availed, on account of payment of tax through the said return; or

Summary of Notifications No. 09 to 14-2022-Central Tax dated 05.07.2022

(b) the date of debit in the electronic credit ledger when the balance in the electronic credit ledger falls below the amount of input tax credit wrongly availed, in all other cases.

8. The government has separately mandated a statement to be filed by those RPs where a refund is on account of export of electricity, containing the number and date of the export invoices, details of energy exported, tariff per unit for export of electricity as per the agreement, along with the copy of the 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,

9. The government has provided a clarification on the value of goods exported out of India for those RPs claiming refund of zero-rated supplies of goods and stated that the value of goods exported out of India would be

(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,

Which ever is less.

10. The government has provided a big relief for RPs those claiming the refund of inverted duty structure by amending the formula thereby including the ITC claimed on Input services in the calculation of refund. To keep it short now the RPs can claim a refund of ITC claimed on the inputs of goods as well as the ITC availed on input o services.

11. Supplier from Duty-Free shops (DFS) at the international terminal to outgoing international passengers to be treated as export by DFS and consequential refund benefit to be available to them on such supplies. In this regard, Rule 95A of the CGST Rules is omitted.

12. Report on the export of goods is generally suspended/withheld where the exporters are classified as risky exporters (due to verification by GST officers or violation of Customs laws). In order to expedite the refund of these exporters, an amendment has been made in sub-rule 5 of rule 96, to provide for transmission of such IGST refund claims on a GST portal in a system generated From GST RFD-01 to jurisdictional authorities for processing and the intimation of such transmission shall also be sent to the exporter electronically through the common.

13. Apart from the above the government has made changes in the following forms which are summarized as under

S. No GST Form Amendment made Effect of amendment
1 GSTR-3B 1. In 3.1.1, a table has been added wherein the details of supplies on which the electronic commerce operators are liable to pay tax.
2. Table in 4(D), wherein the following line with respect to reclaim of ITC which was reversed has to be mentioned
1. By the said amendment the RPs and the e-commerce operators have to separately provide the details as to supplies made on the e-commerce operator platform
2. Now the department wants to capture the data on which the RPs have reversed the credit and is reclaiming the said credit separately.
2 GSTR-9 The government has now prescribed the form GSTR-9 for FY 2021-22 The form is the same except for the following changes.
1. The Non-GST supply has to be reported separately.
2. The nil-rated supplies and exempted supplies can be clubbed and be reported in exempted supplies only.
3. Now filing of it shall be mandatory to report HSN code at six digits level for taxpayers having annual turnover in the preceding year above ₹ 5.00 Cr and at four digits level for all B2B supplies for taxpayers having annual turnover in the preceding year up to ₹ 5.00 Cr
3 GSTR-9C The government has now prescribed the form GSTR-9C for FY 2021-22 No Change
4 GST PMT-03A Prescribed the form for the order for re-credit of the amount to the electronic credit ledger
5 GST PMT-06 In the mode of payment, the IMPS has been added
6 GST PMT-07
7 GST PMT-09 The form has been amended to make the transfer of balance n the electronic cash ledger between 2 GSTNs having the same pan
8 GST RFD-01 Added FOB value for refund claimed on the export of goods with and without payment of tax

CA Ajay Kumar Mundada | E mail Id : Ajay@mundadaandco.com

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