Amendments related to GST Law in the Union Budget 2022
The Union Budget of India 2022 was presented by the Finance Minister As on 1st February 2022. Now, herein, the changes that were proposed in the Budget, shall come into effect from the date, when the Central Board of Excise and Customs shall come up with a notification.
Table of Contents
Amendments in the provisions in GST law in the Union Budget 2022
Some other changes related to Input Tax credit
- A new clause of section 16(2)(ba) which states that the Input Tax Credit availed only if it is not restricted via communication under section 38 or GSTR-2B in case of supply to the registered person.
- After 30th of November of the following financial year to which such invoice pertains to or Filing of Annual GST Return whichever is earlier. A registered taxpayer will not be able to utilise Input Tax credit on any invoice or debit note.
- Before this amendment/ changes in previous laws of GST related to this section is restricted to claim Input Tax Credit on any invoice or debit note before the filing of annual return or filing of return for the month of Sept. whichever is earlier.
Changes in GST law related to cancellation of GST registration by specified Officer
- In the union Budget of 2022 provide the section 29 amendment which states that Goods and Service Tax registration will be cancelled by the authorised officer in the following case :
- Non Filled GSTR-4 return on or before the 30th April of the following financial year by the Composition taxable person who is required to pay tax U/s 10 of CGST
- Registered taxpayer other than a composition taxable person has not filed a GSTR Return for a FY for such a continuous period as specified time to time.
Allow for extension of time period for issuance of credit notes
- Amendment also make provision for of an extended time limit for issuance of credit notes up to the 30th of Nov following the end of the FY or date of filing the annual GSTR return, whichever is earlier.
Amendments related in furnishing details of outward supplies
- In GSTR -1 providing details of an outward supply and in GSTR-2B the same details filed and verify by the recipients.
- Because of the suspension of the GSTR- 2 return, the two way communication process while filing the return was cancelled.
- An extended time limit up to 30th Nov of the following FY was provided for make the errors rectification regarding outward supplies as reported in GSTR-1.
- Amendments also provides for sequential filing of GSTR outward supplies without any skipping tax periods.
Changes/modification to cancellation of GST Registration by officers
- In the Budget of 2022 section 29 also amended which states that Goods and Service Tax registration will be cancelled by the authorised officer if:
- Before the 30th April of the following financial year if composition taxable person who is required to pay tax under section 10 of GST. Not file GSTR -4.
- Person not filed return on time, other than composition taxable person.
- In GSTR -1 providing details of an outward supply and in GSTR-2B the same details filed and verify by the recipients.
- Because of the suspension of the GSTR- 2 return, the two way communication process while filing the return was cancelled.
- For rectification/correction of errors regarding outward supplies as reported in GSTR-1, the time limit extended up to 30th November of the financial year.
- It also helps in providing sequential filing of supplies without skipping tax periods.
Amendment in section 38 of CGST Act on Input Tax Credit Claims
- Provision of in sec 38(1) of CGST Act is improved & upgraded in relation to its terms & conditions related to filing detailed of inward supply & Input Tax Credit to the recipient by way of auto-generated statement and so doing away with the Two -Way communication process.
Amendment related to the provisions regarding filling of GST returns under GST Act
- Monthly GSTR-5 file by the non-resident taxable person should be file by the 13th of the following month.
- The option available to the person while filing GSTR Return under Sub-section (1) by either paying the self-assessed tax or the amount prescribed
- The time limit extended up to the 30th of November of the following F.Y. for the rectification /correction of the errors in Form GSTR-3B.
- As a condition filing of GSTR-1 was added to filing GSTR-3B for the said tax period.
Few changes relating to prescribed conditions for utilization of the balance the Credit balance available in the electronic credit ledger.
Availing the balance available in the electronic credit ledger, some conditions are prescribed.
- This changes will helps and grant permission in the transfer of an amount from the electronic credit ledger of one person to another person.
- Also specified the maximum proportion of output tax which may discharged via an electronic credit ledger.
Few changes relating to the provisions of claiming refund of unutilized Input Tax Credit
- GST Refund of any balance it the electronic cash ledger can be availed only in the specified manner which is explicitly provides in this act.
- Claiming the GST Refund on Input Tax Credit on inward supplies can be done or made within Two years from the last day of the quarter in which supply was received.
- The scope of this sub section in applicable on all kind of GST Refund.
Section 41 Amendment
- As per amended Section 41 of CGST Act, which provide regarding claiming Input Tax Credit to dissolve the concept of “claim” of eligible Input Tax Credit on a provisional basis & provided for availing self-assessed Input Tax Credit as per specified terms & conditions.
Sections removed – 42, 43,43A under CGST Act,
Following sections of CGST Act are deleted which are mentioned as below:
- Section-42 regarding matching, reversal & reclaim of Input Tax Credit
- Section – 43A regarding the procedure for furnishing returns and availing ITC of the CGST Act. and
- Section-43 regarding matching, reversal and reclaim of reduction in output tax liability
Some miscellaneous amendments
- The reference of section 38 was removed relating to the provision of the resignation of the director.
- Some changes in the provision of levy late fees for delay in filing GSTR-8.
- No interest charged on Input tax Credit claimed wrongly but not utilize under section 50 of the CGST Act, Some changes in the provision will Applicable retrospectively with effect from 1st July 2017
- The time limit extended up to the 30th of November of the following financial year for the rectification of errors in Tax Collected at Source (TCS) values in GSTR-8.
**********************************************************
If this article has helped you in any way, i would appreciate if you could share/like it or leave a comment. Thank you for visiting my blog.
Legal Disclaimer:
The information / articles & any relies to the comments on this blog are provided purely for informational and educational purposes only & are purely based on my understanding / knowledge. They do noy constitute legal advice or legal opinions. The information / articles and any replies to the comments are intended but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as a legal advice or an indication of future results. Therefore, i can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog. You are advised not to act or rely on any information / articles contained without first seeking the advice of a practicing professional.