BUDGET 2022: KEY HIGHLIGHTS ON GOODS AND SERVICES TAX
Today 1st February 2022, Union Minister Nirmala Sitharaman has proposed various amendments. Let us know the key Highlights on Goods and Services Tax in this article.
KEY HIGHLIGHTS:
1. Amendment on ITC availment limit to be extended to be 30th November.
Time-limit to avail ITC u/s 16(4) extended till 30th November of next year from 30th September.
2.Non-composition tax payer registration cancellation on non-filing of gst returns
If a person is registered under Goods and Services Tax Act, other than those paying tax under section 10, can be cancelled if has not furnished or file their returns for continuous tax period.
3.Additional Condition for availment of ITC u/s 16(2)-
ITC can be availed only if the same is not restricted under Section 38. GSTR-2B called furnishing of inward supplies, is amended completely to remove reference of earlier GSTR-2 and replace it with GSTR-2A and GSTR-2B with new heading as ‘Communication of details of inward supplies and input tax credit’.
4.Extension in time limit to issue credit notes
Credit Notes in respect of supply made in a financial year can be issued by 30th November of next financial year (currently allowed till 30th September).
5. GST 1/ Gst 3B rectification allowed till 30th November
If there is any rectification of error in GSTR-1/ GSTR-3B is now permitted till 30th November of next financial year (currently allowed till 30th September).
6. Process of outward supply of GST to be amended.
7.Filing of GST Return if NRI due date extended
The due date to file GSTR-5 by Non-resident taxable persons is revised from 20th of next month to 13th of next month.
8. Removal of certain section:
Sections 42, 43, and 43A pertaining to matching, reversal of tax credits have been removed.
9. Interest on ITC for wrongly availed and utilized.
If ITC not utilized, then the interest will not be levied. As per section 50(3) substituted retrospectively wef 01.07.2017.
10.Amendment in refunds respect to section 54.
11. ITC availment on Self-assessment basis.
12. Composition dealer registration cancellation dependent on non- filing of Gst returns
As per Section 10 Composition Tax Payer’s Registration can be cancelled suo-moto if they have not filed their GSTR-4 return beyond 3 months from the due date.
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