Prakhar Softech Services Ltd.

Article Dated 10th January, 2022

LATEST AMENDMENTS IN CGST ACT & RULES

Changes in CGST Act effective w.e.f 1st January 2022

Notification No. 39/2021-Central tax dated 21st December 2021

Sr. No.

Section of CGST Act

Effect of amendment

1.

Section 7

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.

2.

Section 16

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

3.

Section 74

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.

4.

Section 75

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.

5.

Section 83

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

6.

Section 107

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.

7.

Section 129

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.

8.

Section 130

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)

9.

Section 151

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

10

Section 152

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

11.

Section 168

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

Sr. No.

CGST Rule Number

Amendment

1.

Rule 36(4)

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.

2.

Rule 80

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.

3.

Rule 95

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.

4.

Rule 142

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

5.

Rule 144A

Rule 144A

New rule on Recovery of penalty by the sale of goods or conveyance detained or seized in transit inserted

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