15 Key takeaways of GST Proposals in Finance Bill 2022

Love Taneja | Last updated: 01 February 2022

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Quick Summary

The Finance Bill 2022 introduced several significant changes to the Goods and Services Tax (GST) system. Key updates include extended deadlines for claiming Input Tax Credit (ITC) and issuing credit notes, now set for 30th November of the following year. The bill also clarifies conditions for ITC availment, restricts its use, and introduces new provisions for late fees on TCS returns and interest on wrongly availed ITC.

1. Time-limit to avail ITC u/s 16(4) extended till 30th November of next year from 30th September. 2. Additional Condition for availment of ITC u/s 16(2)- ITC can be availed only if the same is not restricted in GSTR-2B. 3. Composition Tax Payers Registration can be cancelled suo-moto if they

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FAQ :

The time limit to avail ITC under Section 16(4) has been extended to 30th November of the next financial year, previously 30th September.

ITC can now only be availed if it is not restricted in your GSTR-2B.

Credit notes can be issued until 30th November of the next financial year, an extension from the previous 30th September deadline.

A composition taxpayer's registration can be cancelled suo-moto if they haven't filed their GSTR-4 return for more than 3 months past the due date.

Yes, Section 41 of the CGST Act is being substituted to remove the concept of claiming ITC on a provisional basis.

The rate of interest for wrongly availed and utilised ITC under Section 50(3) is prescribed as 18% in all cases, applicable retrospectively from 1st July 2017.