GST latest amendments effective from 1st Oct 22

Provisions of sections 100 to 114, except clause (c) of section 110 and section 111 of Finance Act 2022 notified via Notification No. 18/2022-Central Tax dt. 28.09.2022

Amendment in Section 16 of the CGST Act, 2017

• As per sec.16 (2) (ba) ITC communicated to recipient in respect of a supply should not have been restricted under Section 38.
• Section 43A (procedure for furnishing return and availing ITC) have been completely omitted
• Time limit for entitlement of ITC has been extended 'from the due date of furnishing return of September following the end of FY or annual return, whichever is earlier' to '30th November following the end of FY or filing of the annual return, whichever is earlier'.

Amendment in Section 29(2) of the CGST Act, 2017

Proper officer may cancel the registration now: -

• Person filing return u/s 10 (composition levy) fails to furnish the return for a FY beyond 3 months from the due date.
• In case of other registered persons who have not furnished the returns for such continuous tax period, as may be prescribed.

Amendment in Section 34(2) of the CGST Act, 2017

• Extension of time period of issuing credit note from 'the due date of furnishing return for the month of September following the end of FY or annual return, whichever is earlier' to '30th November following the end of FY or annual return, whichever is earlier'.

Amendment in Section 37 of the CGST Act, 2017

Omission of the references of initially proposed mechanism of communication/reporting of the input and output records as the said procedure has never been implemented in the manner it was prescribed.

Amendment in Section 37(3) of the CGST Act, 2017

• Extend the due date for correction of omission / error from 'furnishing of the return u/s 39 for the month of September' to '30th November', following the end of the financial year to which such details pertain or furnishing of the relevant annual return, whichever is earlier.

Amendment in Section 37(4) of the CGST Act, 2017

• A registered person shall not be allowed to file GSTR-1 if the previous GSTR-1 have

not been filed (subject to certain powers given to the Govt. for allowing any registered person or class of registered persons, even if has not filed the return).

Substitution of Section 38 of the CGST Act, 2017

Section 38- Communication of details of inward supplies and input tax credit:

• The details of outward supplies furnished by the registered persons u/section 37(1) & of such other supplies as may be prescribed, & an auto-generated statement containing the details of input tax credit shall be made available electronically to the recipients of such supplies in such form and manner, within such time, & subject to such conditions & restrictions as may be prescribed.

• The auto-generated statement under sub-section (1) shall consist of––
  • Details of inward supplies in respect of which credit of input tax may be available to the recipient;
  • Details of supplies in respect of which such credit cannot be availed, whether wholly or partly, by the recipient, on account of the details of the said supplies being furnished under section 37(1) –
    • by any registered person within such period of taking registration as may be prescribed; or
    • by any registered person, who has defaulted in payment of tax and where such default has continued for such period as may be prescribed; or
    • by any registered person, the output tax payable by whom in accordance with the statement of outward supplies furnished by him under the said sub-section during such period, as may be prescribed, exceeds the output tax paid by him during the said period by such limit as may be prescribed; or
    • by any registered person who, during such period as may be prescribed, has availed credit of input tax of an amount that exceeds the credit that can be availed by him in accordance with clause (a), by such limit as may be prescribed; or
    • by any registered person, who has defaulted in discharging his tax liability in accordance with the provisions of sub-section (12) of section 49 subject to such conditions and restrictions as may be prescribed; or
    • by such other class of persons as may be prescribed.".

Amendment in Section 39 of the CGST Act, 2017

• Due date for filing GSTR-5 by the non-resident taxable person has been changed,
• First proviso to Section 39(7) has been amended and also, some correction is done in the provision of Section 39(9),
• Time limit for correction of omission or mistake in GSTR-3B, GSTR-4, GSTR-5, GSTR-6 & GSTR-7 has been changed from 'the due date of furnishing return for the month of September following the end of FY or annual return, whichever is earlier' to '30th November following the end of FY or annual return, whichever is earlier'.
• Registered person is not be allowed to file a return under Section 39 if the return for previous period. Now additionally, GSTR-1 of the said month is also made mandatory (subject to exceptions allowable by Govt.).

Substitution of Section 41 of the CGST Act, w.e.f. 1st July 2017 and this section prescribes the manner of availing of ITC

Section 42, 43 and 43A of the CGST Act, 2017 have been omitted.

Section 47 of the CGST Act, 2017 related to levy of late fee has amended for the effect that references of "inward supply reporting" & "Section 38" have been omitted. Also, after the words and figures "section 39 or section 45", the words and figures "or section 52" are inserted.

Section 48 of the CGST Act, 2017 related to GST practitioners has amended for the effect that reference of 'Section 38' has been omitted.

Substitution of Section 49(10) of the CGST Act, 2017

• The section now enables the transfer of amount available in e-cash ledger of a registered person to the e-cash ledger of the distinct person. Further, a restriction is inserted that liability should not be there in the e-liability ledger where transfer of balance from e-cash ledger is happening.

Amendment to Section 52(6) of the CGST Act, 2017

• To extend the time period for correcting any omission or mistake in TCS return from 'the due date of furnishing return for the month of September following the end of FY or annual return, whichever is earlier' to '30th November following the end of FY or annual return, whichever is earlier'.

Amendments to Section 54 of the CGST Act, 2017

• Mainly, relevant date for refund application has been inserted now for the case of supply to SEZ as the due date of furnishing of return under Section 39.

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