GST Updates-Dec 2021

29th Dec 2021

(1) The 46th GST Council meeting was held on 31st December 2021 in New Delhi. Union FM Nirmala Sitharaman led meeting has decided to defer the GST rate hike to 12% for textiles.

(2) CGST Rule 36(4) is amended to remove 5% additional ITC over and above ITC appearing in GSTR-2B. From 1st January 2022, businesses can avail ITC only if it is reported by supplier in GSTR-1/ IFF and it appears in their GSTR-2B.

(3) The due date to file GSTR-9 & self-certified GSTR-9C for the FY 2020-21 has been extended up to 28th February 2022.

(4) Further amendments are carried out to seizure and detention rules, penalties related to the same, and certain forms such as DRC-10, DRC-22, DRC-23 and APL-01 stands amended with the addition of new form DRC-22A as per Central Tax notification no. 40/2021.

21st Dec 2021

Following are the changes with effect from 1st January 2022-

(1) ITC claims will be allowed only if it appears in GSTR-2B as per Section 16(2)(aa). So, the taxpayers can no longer claim 5% provisional ITC under the CGST Rule 36(4) and ensure every ITC value claimed was reflected in GSTR-2B.

(2) The officer can issue notice under Section 74 to multiple persons for tax short paid or excess ITC claims by fraud. Now, it is amended that the officer can confiscate and seize goods or vehicles even after concluding proceedings against all persons liable to pay specific or general penalties.

(3) The taxpayers cannot file GSTR-1 if the previous period’s GSTR-3B was not filed.

(4) The GST officers can initiate recovery proceedings without any show-cause notice against taxpayers who under-report sales in GSTR-3B compared to GSTR-1, under Section 75(12).

(5) All the e-commerce aggregators into food delivery services or cloud kitchens under Section 9(5) will be liable to pay tax on services provided through them. However, restaurants with accommodation with a tariff per unit of more than Rs.7,500 per day are kept out of the scope.

(6)The scope of passenger transport motor vehicles is expanded to include service rendered through omnibus and any other motor vehicle, but not just radio taxi or cab under Section 9(5).

(7)Following facilities will henceforth require taxpayers’ aadhaar authentication- – To apply for a refund under the CGST Rules 89 (Excess tax, interest, penalty, fees paid) and 96 (IGST paid on goods or services exported out of India) in RFD-01. – To apply for revocation of cancelled GST registration under the CGST Rule 23 in REG-21.

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