Summary of GST changes w.e.f. 1st January 2022

Praveen Sharma | Last updated: 06 January 2022

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From January 1st, 2022, significant changes to the GST regime came into effect, impacting tax rates and procedures. Key updates include mandatory Aadhar authentication for refunds and registration revocation, and stricter conditions for claiming Input Tax Credit (ITC). The annual return filing deadline for FY 2020-21 was extended to February 28, 2022, and GSTR-2A has been replaced by GSTR-2B on the GST portal.

1. GST regime will see a host of tax rate and procedural changes coming into effect from January 1, 2022. In this regard, some of the important changes have been mentioned below for your reference.

2. Vide Notification No. 39/2021-Central Tax dated 21.12.2021, Section 108, 109 and 113 to 122 of Finance Act 2021 have been made effective from 01.01.2022. The key changes are listed below:

With effect 01.07.2017, GST to be levied on services provided by Club or association or to its members.
Change in condition for availing Input Tax Credit under Section 16 of CGST Act, 2017. As per the newly inserted clause 16(2)(aa) ITC claims will be allowed only when details of invoice or debit note have been furnished by supplier in the GST returns.
Changes in provisions pertaining to detention, seizure, and confiscation of goods.
Recovery of Self assessed tax without Show Cause Notice on account of differences between GSTR-1 and GSTR-3B.
Under revised section 83 of CGST Act, commissioners can pass an order for provisional attachment to protect revenue in certain cases.
Proviso inserted in Section 107 of CGST Act, wherein no appeal shall be filed against an order under section 129(3), unless a sum equal to twenty-five per cent of the penalty has been paid by the appellant.
Vide Notification No. 38/2021-Central Tax dated 21.12.2021, following changes have been notified w.e.f. 01.01.2022:
Aadhar authentication made mandatory for filing of refund application and for filing application for revocation of cancellation of registration.
Registered persons cannot file GSTR-1 if they have not furnished GSTR-3B for the preceding month.

3. Vide Notification No. 40/2021-Central Tax dated 29.12.2021, following changes have been notified:

Last date of furnishing of Annual Return and Self-Certified Reconciliation statement for FY 2020-21 has been extended to 28.02.2022.
Revised rule 36(4) restricts availability of Input Tax Credit on a provisional basis (@105% of matched credit). Therefore, only matched credit to be availed in input tax credit register with effect from 01.01.2022

GST Changes 2022: Key Updates from January 1st

4. On account of implementation of new Harmonized System (HS) Nomenclature 2022 w.e.f 01.01.2022, CBIC in order to give effect to such changes made certain amendments by way of the Notifications as under:

Notification No. 18/2021- CT (R) dated 28.12.2021 amends Tax Rate Notification No. 01/2017-CT (R) dated 28.06.2017 wherein changes have been made in Tax rate Schedules of 2.5%, 6%, 9%, 14%.
Notification No. 19/2021-CT (Rate) dated 28.12.2021 amends Exemption Notification No. 02/2017- CT(R) dated 28.06.2017 wherein a few entries of the notification stand amended.
Notification No. 20/2021-CT (R) dated 28.12.2021 make the amendments to the Notification No. 01/2017- CT(R) dated 28.06.2017 which provides for concessional CGST rates on handicraft items.

5. E-commerce operator providing restaurant services liable to pay tax @ 5% without claiming ITC.

6. Composite supplies of works contract services to governmental authorities or governmental entities are taxable @18%.

7. GSTR-2A removed from GST PORTAL from the month of JANUARY 2022* now only GSTR-2B available because of applicable notification w.e.f. 01.01.2022. (GSTR-2A available only for the m/o DEC 2021).