Tarun Kr. Gupta
Important clarifications/ amendments issued by the Government on GST in November/ December 2022 along with compliance timelines in December 2022
Compliance timelines
| Form No. | Description | To whom applicable | Period | Due date |
|---|---|---|---|---|
| GSTR-7 | Details of Tax deducted at source (TDS) under GST | Tax deducted at source (TDS) deductors | November 2022 | 10th December 2022 |
| GSTR-8 | Details of Tax collected at source (TCS) under GST | Tax collected at source (TCS) deductors | November 2022 | 10th December 2022 |
| GSTR-1 | The return of outward supplies | Tax payers (Monthly Filers) | November 2022 | 11th December 2022 |
| IFF | Invoices of outward supplies | Tax payers (Quarterly Filers under QRMP) | November 2022 | 13th December 2022 |
| GSTR-6 | Details of inputs to be distributed | Input Service Distributor | November 2022 | 13th December 2022 |
| GSTR-5 | Summary of outward and inward supplies | Non-resident foreign taxpayer | November 2022 | 13th December 2022 |
| GSTR-5A | Summary of outward supplies | Online Information and Database Access or Retrieval (OIDAR) service providers | November 2022 | 20th December 2022 |
| GSTR-3B | Summary of outward and inward supplies and payment of tax liability | Tax payers (Monthly Filers) | November 2022 | 20th December 2022 |
| PMT 06 | Payment of tax liability | Tax payers (Quarterly Filers under QRMP) | November 2022 | 25th December 2022 |
| GSTR 9 | Annual Return | Tax payers with AATO over 2 crores | FY 2021-22 | 31st December 2022 |
| GSTR 9C | Reconciliation Statement | Tax payers with AATO over 5 crores | FY 2021-22 | 31st December 2022 |
Updates in the month of November/ December 2022
1. CBIC issues guidelines for verification of GST Transitional Credit Claims
CBIC has issued guidelines for the verification of GST transitional credit claims by jurisdictional Tax Officers. The said verification would be carried out within 90 days after completion of the filing window of two months, i.e. within 90 days from 01.12.2022 i.e. up to 28.02.2023. The Transitional Credit claimed by the applicant shall be credited in his electronic credit ledger to the extent allowed by the jurisdictional tax officer through an order after carrying out the necessary verifications. (Circular No. 182/14/2022-GST dated November 10th, 2022)
2. CBIC issues clarification on applicability of recent changes related to refunds under the Inverted Duty Structure
CBIC has issued a circular to clarify that the amended formula for grant of refund in cases of inverted duty structure under sub-rule (5) of rule 89 of the CGST Rules, 2017 for calculation of refund of input tax credit would be applicable in respect of refund applications filed on or after 05.07.2022. It has also been clarified that the restriction imposed vide Notification No. 09/2022-Central Tax (Rate) dated 13.07.2022 on refund of unutilised input tax credit on account of inverted duty structure in case of specified goods falling under chapter 15 and 27 would apply prospectively only and would be applicable in respect of all refund applications filed on or after 18.07.2022 and would not apply to the refund applications filed before 18.07.2022. (Circular No. 181/13/2022-GST dated November 10th, 2022)
3. CBIC issues Notification to amend instructions of GSTR-9 to give effect of increased time period for claiming ITC & other amendments for FY 2021-22
Pursuant to the changes as per Finance Act, 2022 wherein the time limit to avail Input Tax credit, claim adjustment of tax relating to credit note, the rectification of GSTR 1 and GSTR 3B, etc. had been changed from September return to November 30th, CBIC has issued a Notification amending the instructions of Form GSTR-9 in order to give effect to the same. The words 'April 2022 to September 2022' have now been substituted with 'April 2022 to October 2022 filed up to 30th November 2022' in the relevant places. These changes were made effective from October 1st, 2022 and are applicable to FY 2021-22 too. (Notification No. 22/2022–Central Tax dated November 15th, 2022)
4. GSTN now part of AA network to facilitate cash flow lending to MSMEs: RBI
In a major development, the Goods and Services Tax Network (GSTN) has been included to the account aggregator (AA) network as a financial information provider (FIP) to facilitate cash flow lending to the micro, small, and medium enterprises (MSMEs). "Department of revenue shall be the regulator of GSTN for this specific purpose and GST returns, viz. Form GSTR-1 and Form GSTR-3B, shall be the financial information", the RBI said. The AA network had been in discussion with the GSTN network for their onboarding for a long time as this would give financial institutions access to data regarding small businesses, which would help them to extend loans to such businesses.
5. Govt. appoints Competition Commission of India to deal with Anti-Profiteering matters under Section 171(2)
The Government has empowered the Competition Commission of India established under Section 7(1) of the Competition Act, 2002 as an authority under Section 171(2) of the Central Goods and Services Tax Act, 2017 with effect from December 1, 2022. Notably, Section 171(2) allows the Central Government to constitute or empower, through notification, any authority to examine whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services supplied by him. Further, the relevant rules under the Central Goods and Services Tax Rules, 2017 have also been modified accordingly. In this regard, Rules 122, 124, 125, 134, and 137 have been omitted. Also, Rule 127 and Rule 137 have been amended. (Notification No. 23/2022 – Central Tax & Notification No. 24/2022 – Central Tax, both dated 23-11-2022)
6. CBIC issues instructions providing a manner of processing & sanctioning refunds of IGST paid by risky exporters
Rule 96 of the CGST Rules, 2017 was recently amended to provide that the refund of IGST paid on exports of goods may be withheld in case of risky exporters identified by DGARM. In this regard, CBIC has issued a detailed instruction providing the manner of processing and sanctioning refund in such cases. In view of these detailed instructions, the SOPs earlier issued, dated 23-01-2020 and 20-05-2020, prescribing the procedure to be followed for verification of the risky exporters are superseded by these instructions. (Instruction No. 04/2022-GST dt. 28 Nov 2022)
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