Provisions of Finance Act, 2022 related to GST which shall be effective from October 1st, 2022

Updated on: 29th September 2022

The CBIC has notified the provisions of Finance Act, 2022 related to GST which shall be effective from October 1st, 2022. The key changes include extension in time limit of availment of ITC till 30th November of next financial year, amendment to GSTR 1 return till 30th November of next financial year, credit notes can be issued till 30th November of next financial year, Form GSTR-2 has been done away with, extension in time-limit to rectify errors or omission in Form GSTR -1 or GSTR-3B, omission of sections 42, 43 and 43A etc.

CBIC issues guidelines for filing / revising TRAN-1 / TRAN-2

Updated on: 9th September 2022

As per the directions of Hon‘ble Supreme Court, the facility for filingTRAN-1/ TRAN-2 or revising the earlier filed TRAN-1/TRAN-2 on the common portal by an aggrieved registered assessee will be made available by GSTN during the period from 01.10.2022 to 30.11.2022. In order to ensure uniformity in implementation of the directions of Hon‘ble Supreme Court, the CBIC has issued guidelines for the applicants for filing TRAN-1/TRAN-2 or revising earlier filed TRAN-1/TRAN-2.

Mandatory e-invoicing for Businesses having Rs. 10 Crores turnover w.e.f October 01, 2022

Updated on: 1st August 2022

The CBIC issued Notification No. 17/2022–Central Tax dated August 01, 2022 to amend Notification No. 13/2020 – Central Tax, dated March 21, 2020 to decrease the e-Invoicing aggregate turnover limit from 20 crore to 10 crore w.e.f. October 01, 2022. Hence, w.e.f. 01-10-2022 onwards Einvoice is applicable if aggregate turnover of taxpayer is exceeding Rs.10 crores in any one of the years from FY 2017-18 onwards.

The major Recommendations by GST Council in their 47th Meeting held on 28th and 29th June 2022

Updated on: 1st July 2022

Increase in Tax Rates

  1. GST Rate on LED lamps, lights and fixtures proposed to be increased to 18% from 12%
  2. GST Rate on Works Contract for construction of Road, Bridges etc proposed to be increased to 18% from 12%
  3. GST Rate on Sale of E Waste proposed to be increased from 5% to 18%

Withdrawal of Exemption

  1. Renting of residential dwelling to business entities
  2. Hotel Accommodation priced at less than Rs 1000 to be taxed at 12%
  3. Training or Coaching in Recreation Activity relating to Arts, Culture and Sports – To be exempt if provided by an Individual
  4. Room rent (excluding ICU) exceeding Rs5000 per day per patient charged by a hospital shall be taxed to the extent of amount charged for the room at 5% without ITC.

Clarifications

  1. Electric Vehicle with or without battery to attract GST at the rate of 5%
  2. Ice Cream Parlours paying GST at 5% during July 1, 2017 to October 5, 2021 – To be regularized to avoid litigation
  3. Preferential Location Charges charged alongwith the lease rentals for land – To be treated as composite supply of lease rentals for land
  4. Honorarium paid to Guest Actors on TV Channels to be liable to GST
  5. Higher Toll for vehicles without FasTAG not to be treated as service but toll charges only
  6. Sale of Land after levelling, laying down of drainage pipe etc to be treated as sale of land and hence not liable to GST
  7. Services in form of Assisted Reproductive Technology (ART) /In vitro fertilization (IVF) are covered under the definition of health care services for the purpose of exemption under GST

Other Changes

  1. Proposal for comprehensive changes in FORM GSTR-3B to be placed in public domain for seeking inputs/suggestions of the stakeholders.
  2. Waiver from compulsory registration for supplies made through E Commerce Operators subject to certain conditions
  3. Tax Payers under Composition Scheme to be allowed to make intra state supplies through E Commerce Operators
  4. Amendment to the formula prescribed for computation of refund under inverted duty structure
  5. Waiver of late fee for delay in filing FORM GSTR-4 for FY2021-22 and extension of due date for filing FORM GST CMP-08 for Q1 of FY2022-23:
  6. Present exemption of IGST on import of goods under AA/EPCG/EOU scheme to be continued and E-wallet scheme not to be pursued further.
  7. Exemption from filing annual return in FORM GSTR-9/9A for FY2021-22 to be provided to taxpayers having AATO upto Rs.2crores
  8. Explanation 1 after rule 43 of CGST Rules to be amended to provide that there is no requirement of reversal of input tax credit for exempted supply of Duty Credit Scrips by  the exporters.
  9. All taxable service of Department of Posts would be subject to forward charge. Hitherto certain taxable services of Department of post were taxed on reverse charge basis
  10. Goods transport agency (GTA) is being given option to pay GST at 5% or 12% under forward charge; option to be exercised at  the beginning of Financial Year. RCM option to continue

Payment for taxpayers under QRMP scheme for the month of April 2022 has been extended from 25th May 2022 to 27th May 2022

Updated on: 17th May 2022

GSTR 3B for the month of April 2022 has been extended from 20th May 2022 to 24th May 2022 for all states. This is due to technical glitches in the auto populated 2B data and auto populated 3B return.

Updated on: 17th May 2022

CBIC reduces threshold limit in the applicability of GST E-invoicing from Rs.50crores to Rs. 20 Crores with effect from 1st April 2022.

Updated on: 07th March 2022

GST Updates

Updated on: 21st December 2021

Input Tax Credit is available to the buyer only if the supplier file their return w.e.f. 01-01-2022 onwards.  Notification number and reference document

As per the Central Tax notification number 39/2021, the new condition in clause (aa) of Section 16(2) of the CGST Act is implemented giving effect to Section 109 from the Finance Act, 2021 effective from 1st Jan 2022.

While Section 16(2) of the CGST Act had conditions for recipients to fulfil before claiming Input Tax Credit (ITC) in their GSTR-3B, the GST Council suggested an amendment to Rule 36(4) during the 45th meeting in September 2021 and notified during December 2021 through the Central Tax notification no. 39 & 40/2021. As per this notification, additional condition got added to claim Input Tax Credit (ITC) in GSTR-3B. Now, registered person shall be entitled to take the credit of any input tax only if the supplier furnish the details of invoice/Debit note in GSTR-1 and the relevant invoice is populating in GSTR-2B of registered person.

39 / 2021 Central Tax dated 21st Dec 2021

40/2021 Central Tax dated 29th Dec 2021

Exempts / reduces GST rate on Covid related drugs for the period upto 31st Dec 2021

Updated on: 14th October 2021

Notification issued to bring supply of some essential oils under the ambit of reverse charge mehcanism. Amendment to original notification 04/2017

Updated on: 14th October 2021

Notification issued to amend GST exemption on Seeds, fruits and spores covered under chapter heading 1209. Amendment to original notification notification 02/2017

Updated on: 14th October 2021

Notification issued to amend GST rates on some goods mentioned in the notification. Amendment to original notification 01/2017 and 39/2017

Updated on: 14th October 2021

Notification issued to amend GST rates on some goods mentioned in the notification. Amendment to original notification 01/2017 and 39/2017

Updated on: 14th October 2021

Notification issued to amend exemption list of some services mentioned in the notification.-Amendment to original notification number 12/2017.

Updated on: 14th October 2021

Notification issued to amend GST rates of some services mentioned in the notification. Amendment to original notification number 11/2017.

Updated on: 14th October 2021

The GST Council’s 45th meeting has made the following recommendations relating to changes in GST rates on supply of goods and services and changes related to GST law and procedure.

Updated on: 22nd September 2021

  1. Recommendations relating to GST law and procedure
    1. Requirement of filing FORM GST ITC-04 under rule 45 (3) of the CGST Rules has been relaxed as under:
      • Taxpayers whose annual aggregate turnover in preceding financial year is above Rs. 5 crores shall furnish ITC-04 once in six months;
      • Taxpayers whose annual aggregate turnover in preceding financial year is upto Rs. 5 crores shall furnish ITC-04 annually.
    2. There was no clarity on whether to pay interest for ineligible credit at the time of availment or after both availment and utilization for payment of tax.  Council decided that interest in such cases should be charged on ineligible ITC availed and utilized at 18% w.e.f. 01.07.2017.
    3. Unutilized balance in CGST and IGST cash ledger may be allowed to be transferred between distinct persons (entities having same PAN but registered in different states), without going through the refund procedure, subject to certain safeguards
    4. Issuance of the following circulars in order to remove ambiguity and legal disputes on various issues, thus benefiting taxpayers at large  (Circulars awaited)
      • Clarification on scope of “intermediary services”
      • Clarification relating to interpretation of the term “merely establishment of distinct person” in condition (v) of the Section 2 (6) of the IGST Act 2017 for export of services.  This was applicable for transaction between Head office and foreign branch of Head office.
      • W.e.f. 01.01.2021, the date of issuance of debit note (and not the date of underlying invoice) shall determine the relevant financial year for the purpose of section 16(4) of CGST Act, 2017;.  As per section 16(4), there is a time limit upto September or filing of annual return whichever is earlier to avail the Input Tax Credit for a FY.  Now, it is clarified that date of Debit Note to be considered for time limit.
      • There is no need to carry the physical copy of tax invoice in cases where invoice has been generated by the supplier in the manner prescribed under rule 48(4) of the CGST Rules, 2017 i.e. under e-invoicing provisions.
  2. Measures for streamlining compliances in GST:
    • Aadhaar authentication of registration to be made mandatory for being eligible for filing refund claim and application for revocation of cancellation of registration
    • Late fee for delayed filing of FORM GSTR-1 to be auto-populated and collected in next open return in FORM GSTR-3B.
    • Refund to be disbursed in the bank account, which is linked with same PAN on which registration has been obtained under GST.
    • Rule 59(6) of the CGST Rules to be amended with effect from 01.01.2022 to provide that a registered person shall not be allowed to furnish FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for the preceding month.
    • Rule 36(4) (Limit of additional credit on unmatched credit upto 5%) of CGST Rules, 2017 to be amended, once the proposed clause (aa) of section 16(2) of CGST Act, 2017 is notified, to restrict availment of ITC in respect of invoices/ debit notes, to the extent the details of such invoices/ debit notes are furnished by the supplier in FORM GSTR-1/ IFF and are communicated to the registered person in FORM GSTR-2B.  As per clause (aa) of section 16(2) of CGST Act, 2017, condition to avail ITC is supplier files GSTR 1 return and available to the receiver in his 2B.  Hence, after implementation of this provision, it looks like the intention of the government is to remove additional 5% provided under rule 36(4) of CGST Rules.
    • GST Council has also recommended amendments in certain provisions of the Act and Rules which will be notified soon.
  3. Changes pertaining to rate of Goods:
    • COVID-19 relief measure in form of GST rate concessions:  Extension / further reduction of concessional GST rates on certain drugs for Covid 19 treatment.  This is applicable upto 31st Dec 2021.
    • Reduced / Increased rates on some goods like Retro fitment kits for vehicles used by the disabled, Fortified Rice Kernels etc.
    • Supply of mentha oil from unregistered person has been brought under reverse charge.
    • Brick kilns would be brought under special composition scheme with threshold limit of Rs. 20 lakhs, with effect from 1.4.2022. Bricks would attract GST at the rate of 6% without ITC under the scheme. GST rate of 12% with ITC would otherwise apply to bricks.
    • Correction in Inverted Duty structure in Footwear and Textiles sector
    • In terms of the recent directions of the Hon’ble High Court of Kerala, the issue of whether specified petroleum products should be brought within the ambit of GST was placed for consideration before the Council. After due deliberation, the Council was of the view that it is not appropriate to do so at this stage.
  4. Changes pertaining to rate of Service:
    • Validity of GST exemption on transport of goods by vessel and air from India to outside India is extended upto 30.9.2022.
    • Exempted Services by way of grant of National Permit to goods carriages on payment of fee
    • Exempts Skill Training for which Government bears 75% or more of the expenditure [ presently exemption applies only if Govt funds 100%].
    • Licensing services/ the right to broadcast and show original films, sound recordings, Radio and Television programmes [ to bring parity between distribution and licencing services].  Rate increased from 12% to 18%.
    • Printing and reproduction services of recorded media where content is supplied by the publisher (to bring it on parity with Colour printing of images from film or digital media). Rate increased from 12% to 18%.
    • E Commerce Operators are being made liable to pay tax on following services provided through them
      • transport of passengers, by any type of motor vehicles through it [w.e.f. 1st January, 2022]
      • restaurant services provided through it with some exceptions [w.e.f. 1st January, 2022]
  5. Certain clarifications provided in relation to rate on Goods to remove the ambiguity in the law.  Please refer attached press release for list of such clarifications provided.
  6. Certain clarifications provided in relation to rate on Service to remove the ambiguity in the law.   Please refer attached press release for list of such clarifications provided.
  7. The Council decided to set up a GoM to examine the issue of correction of inverted duty structure for major sectors; rationalize the rates and review exemptions from the point of view of revenue augmentation, from GST. It was also decided to set up a GoM to discuss ways and means of using technology to further improve compliance including monitoring through improved e-way bill systems, e-invoices, FASTag data and strengthening the institutional mechanism for sharing of intelligence and coordinated enforcement actions by the Centre and the States.

Easing of Income Tax Compliance.

(Time limit for following compliances extended by 15days to two months or more)

Updated on: 11th January 2022

Compliance Extension
Due date for filing of tax audit report in form 3CA/ 3CB & 3CD for the assessment year 2021-22 15-Feb-22
Due date for filing of accountant’s report on international/ specified domestic transactions in form 3CEB under Section 92E for the assessment year 2021-22 15-Feb-22

Due date for filing return of income for the assessment year 2021-22 if the Assessee (Other than Transfer pricing audit u/s.92E) is a

  1. corporate-Assessee or
  2. non-corporate Assessee (whosebooks of account are required to be audited) or
  3. partner of a fi rm whose accounts are required tobe audited or the spouse of such partner if the provisions of secti on 5A applies
15-Mar-22

Due date for filing return of income for the assessment year 2021-22 if the Assessee (subject to Transfer pricing audit u/s.92E) is a

  1. corporate-Assessee or
  2. non-corporate Assessee (whosebooks of account are required to be audited) or
  3. partner of a fi rm whose accounts are required tobe audited or the spouse of such partner if the provisions of secti on 5A applies
15-Mar-22

Easing of Income Tax Compliance.

(Time limit for following compliances extended by 15days to two months or more)

Updated on: 22nd September 2021

Compliance Extension
Extension of time limit to link PAN and Aadhar under Section 139AA 31-Mar-22

Easing of Income Tax Compliance.

(Time limit for following compliances extended by 15days to two months or more)

Updated on: 09 September 2021

Compliance Extension

Due date for filing return of income for the assessment year 2021-22 for all Assessee other than

  1. corporate-Assessee or
  2. non-corporate Assessee (whose books of account are required to be audited) or
  3. partner of a firm whose accounts are required to be audited or the spouse of such partner if the provisions of section 5A applies or
  4. an Assessee who is required to furnish a report under section 92E.
31-Dec-21
Due date for filing tax audit report for the assessment year 2021-22 in the case of assessees/ partnership firms who are subjected to audit under the Income Tax Act. 15-Jan-22
Due date for filing audit report for the assessment year 2021-22 in the case of assessees who have entered into international/ specified domestic transcation under the Income Tax Act. 31-Jan-22
Due date for filing return of income for the assessment year 2021-22 in the case of assessees/ partners of partnership firms who are subjected to audit under the Income Tax Act 15-Feb-22
Due date for filing return of income for the assessment year 2021-22 in the case of assessees who have entered into international/ specified domestic transction under the Income Tax Act. 28-Feb-22
Due date for filing revised/ belated return of income for the Assessment Year 2021-22 under the Income Tax Act. 31-Mar-22

Easing of Income Tax Compliance.

(Time limit for following compliances extended by 15days to two months or more)

Updated on: 25th June 2021

Compliance Extension
Filing TDS Statements From June 30 to July 15
Issuing tax deduction certificate From July 15 to July 31
Filing foreign remittance statement From July 15 to July 31
Submission of registration of trusts and institutions From June 30 to August 31
Submitting form for equalisation levy From June 30 to July 31
Uploading of form of no TDS claims cases From July 15 to August 31
Submitting objection to dispute resolution panel From June 1 onwards to August 31
Submitting option to withdraw cases from settlement commission From June 27 to July 31

Relief to Income Tax Payers

Updated on: 25th June 2021

  • Time to invest in Residential House for tax deduction extension for more than 3months.Investment required to be made on or after 1st April can be made upto 30th September
  • PAN Aadhar Linking extension of 3months from 30th June to 30th September
  • Vivad se Vishwas Payment without interest- extension by 2months (30th June to 30th August)
  • Closing the scheme with interest in the next 2months by 31st October
  • Time for making assessments and pass penalty offer – extension for 3 months 30th June to 30th september

Income Tax Concession for Payments towards Covid Treatment or Death

Updated on: 25th June 2021

Amount paid for medical treatment to an employee by employer or to any person by any other person on account of treatment of Covid for FY 19-20 and subsequent year would not be taxed in the hands employee or the person receiving the benefit.

Ex-gratia payment by an employer to an employee’s family, or by any other person to any person’s family on death of the employee or any other person on account of Covid for FY19-20 or subsequent year would be exempt from tax, restricted to 10lakhs

IT department releases new utility file to check vendor compliance

Updated on: 25th June 2021

IT department has released a new utility file to check for the vendor compliance details which are required to meet new Income Tax TDS provisions w.e.f. 1st July 2021.