Key Highlights on Goods and Services Tax

Last Updated On: Feb. 1, 2022, 10:30 p.m.
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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.

  • Section 38 of the CGST Act is being substituted for prescribing the manner as well as conditions and restrictions for communication of details of inward supplies and input tax credit to the recipient by means of an auto-generated statement and to do away with two-way communication process in return filing.
  • The two-way communication process in filing GST returns is scrapped.

 

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.

  • Explicit refund claim of any balance lying in Electronic Cash ledger under Section 54.
  • Time limit of 2 years provided for claiming tax refund on inward supplies of both goods or services u/s 55, from last day of the quarter in which said supply was received.

 

 

11. ITC availment on Self-assessment basis.

  • Section 49 of the CGST Act is being amended so as to provide for prescribing restrictions for utilizing the amount available in the electronic credit ledger.
  • Section 49 of the CGST Act is being amended so as to provide for prescribing the maximum proportion of output tax liability which may be discharged through the electronic credit ledger.
  • Section 49 of the CGST Act is being amended so as to allow transfer of amount available in electronic cash ledger under the CGST Act of a registered person to the electronic cash ledger under the said Act or the IGST Act of a distinct person.


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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