Union Budget 2022 has been presented today by the Honorable Finance Minister. Highlights of the proposed changes related to GST are summarized as follows:
♦ A new clause (ba) to sub-section (2) of section 16 of the CGST Act is being inserted to provide that input tax credit with respect to a supply can be availed only if such credit has not been restricted in the details communicated to the taxpayer under section 38.
♦ Sub-section (4) of section 16 of the CGST Act is being amended to provide that ITC can now be claimed upto 30th November of the following financial year instead of due date of filing September return.
♦ Clause (b) and (c) of sub-section (2) of section 29 of the CGST Act related to cancellation of GST registrations are being amended.
♦ Section 34 is being amended to provide extended time for issuance of credit note upto 30th
♦ Sections 37 & 38 are being amended to do away with two-way communication in respect of return filing and prescribing additional restrictions for availing ITC.
♦ NRTP has to file monthly return till 13th of the following month instead of 20th.
♦ Section 41 is being amended to allow claim of ITC based on self-assessment instead of being on a provisional basis.
♦ Sections 42,43 & 43A are being omitted.
♦ Late fees is proposed to be applied in cases of returns under Sec 52 as well.
♦ Section 49 is being amended to allow transfer of amount available in electronic cash ledger under the CGST Act of a registered person to the electronic cash ledger under the said Act or the IGST Act of a distinct person. Also, maximum proportion of output tax liability which may be discharged through the electronic credit ledger is also being prescribed.
♦ Section 50(3) is being amended to levy interest retrospectively on ITC wrongly availed AND utilized. Interest rate notification has also been amended to provide for 18% interest rate.
♦ Section 54 is being amended to provide that:
♦ Refund under cash ledger shall be made in a prescribed form & manner.
♦ Scope of withholding or recovery of refund has been extended to all types of refund claims.
♦ Relevant date has been prescribed in case of zero rated supplies to SEZ.
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