Article Dated 10th January, 2022
Changes in CGST Act effective w.e.f 1st January 2022
Notification No. 39/2021-Central tax dated 21st December 2021
Section of CGST Act
Effect of amendment
GST on supply by any Club or Association to its Members
The person (Other than an individual) and its members or constituents shall be deemed to be two separate persons and the supply of activities or transactions inter se shall be deemed to take place from one such person to another.
Conditions for claiming ITC
ITC to be availed only for those invoices whose details are reflected in GSTR-2B i.e the respective suppliers (vendors) have filed their GSTR-1
Explanation clause to section 74(1)(ii) substituted—
Conclusion of proceedings will lead to conclusion of proceedings u/s. 73 or 74 and the proceedings u/s. 122 and 125 but not the proceedings u/s. 129 and 130. This makes seizure and confiscation of goods and conveyances in transit a separate proceeding from the recovery of tax.
Explanation clause to section 75(12) inserted
Any tax reflected in GSTR-1, but not shown in GSTR 3B shall be considered as self-assessed tax and shall be liable to be recovered straightaway under section 79.
Section 83(1) of CGST Act is substituted as under—
Where after the initiation of any proceedings under Chapter XII, Chapter XIV or Chapter XV the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue, it is necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to the Taxable person or any person specified in subsection (1A) of section 122, in such manner as may be prescribed
Appeal in case of detention and seizure of goods and conveyance
The pre-deposit prior to this amendment was only to the extent of 10% of Tax Liability in case of dispute which is now enhanced to 25% of the penalty amount in case of detention and seizure of goods and conveyance during transit.
Changes in section 129
Instead of 100% tax and 100% penalty, now penalty of 200% of tax payable is applicable
To file appeal, 25% of penalty i.e 50% of tax amount
Transporter can get the conveyance released on payment of penalty or Rs. 1 lakh w/ever is less
The proceedings under section 129 relating to detention, seizure and release of goods and conveyances in transit, delinked from the proceedings under section 130 relating to confiscation of goods or conveyances and levy of penalty.
Changes in section 130
The proceedings under section 130 relating to confiscation of goods or conveyances and levy of penalty delinked from the proceedings under section 129 relating to detention, seizure and release of goods and conveyances in transit.
Penalty of 100% of tax payable is applicable (Section 130(2) amended)
Power to call for information
Section 151 of the CGST Act 2017 amended so as to empower the jurisdictional commissioner to call for information from any person relating to any matters dealt with in connection with the Act
Bar on disclosure of information
Section 152(1) of the CGST Act, 2017 amended so as to provide that no information obtained under sections 150 and 151 shall be used for the purposes of any proceedings under the Act without giving an opportunity of being heard to the person concerned
Power to issue instructions or directions
Section 168 of the CGST Act, 2017 amended so as to enable the jurisdictional commissioner to exercise powers under section 151 to call for information
Amendment in CGST Rules
Notification No. 40/2021 (CT) dated 29th December 2021
CGST Rule Number
Rule 36(4) amended w.e.f 1st January 2022
No Input tax credit unless details are populated in GSTR 2B. Furnishing of details of invoice/Credit note in GSTR-1 or through IFF by the supplier is now mandatory to take credit. A self-policing mechanism for claiming validated ITC.
Rule 80 amended
The due date for Annual Return- GSTR 9 and Self certified reconciliation statement in form GSTR-9C of F.Y. 20-21 extended to 28th February 2022.
Rule 95 amended w.e.f 1st April 2021; following proviso inserted
Provided that where Unique Identity Number of the applicant is not mentioned in a tax invoice, the refund of tax paid by the applicant on such invoice shall be available only if the copy of the invoice, duly attested by the authorized representative of the applicant, is submitted along with the refund application in FORM GST RFD-10.
Rule 142 amended w.e.f 1st January 2022
If Goods are seized in transit, then payment to be made within 7 days (earlier 14 days) of issue of notice under section 129(3) to conclude further proceedings
New rule on Recovery of penalty by the sale of goods or conveyance detained or seized in transit inserted
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