Dated: 05 Jan 2022
1. GST DEADLINES
1.1. Deadlines | Jan 22
● GST Compliance Calendar – Jan 2022
·● GST Annual Return and Reconciliation Statement (GSTR9 and GSTR9C)
Due date 28st Feb 2022 for FY 20-21.
2. Circulars or Clarifications
2.1. 1,29,780 crore gross GST Revenue collection for December 2021
(Press Release; Dated: 01/01/2022)
The revenues for the month of December2021 are 13% higher than the GST revenues in the same month last year and 26% higher than the GST revenues in December 2019. During the month, revenues from import of goods was 36% higher and the revenues from domestic transaction (including import of services) are 5% higher than the revenues from these sources during the same month last year.
3. GST PORTAL UPDATES
3.1 Mandatory Aadhaar authentication for registered person
(Advisory Dated: 22/12/2021)
The Central Government vide Notification No. 38/2021-CT dated 21.12.2021 has notified January 1, 2022 as the implementation date for Rule 10B of CGST Rules, 2017. In the said rule, it is mandatory for the registered person to undergo Aadhaar authentication for the below purposes,
1. Filing of application for revocation of cancellation of registration in FORM GST REG-21 under Rule 23 of CGST Rules, 2017
2. Filing of refund application in FORM RFD-01 under Rule 89 of CGST Rules, 2017
3. Refund of the IGST paid on goods exported out of India under Rule 96 of CGST Rules, 2017
3.2 Implementation of Rule-59(6), as amended, on GST Portal.
(Advisory Dated: 03/01/2022)
As per Notification No. 35/2021 – Central Tax dated 24th September 2021, clause (a) of the sub-rule (6) of Rule 59 of CGST Rules, 2017 was amended. By way of this amendment, for the words “for preceding two months”, the words “for the preceding month” were substituted with effect from 1st January 2022. This means that from 1st January 2022 onwards, if a monthly filer has not filed the GSTR-3B for the preceding month, then such taxpayer will not be allowed to file the GSTR-1 for the subsequent month, till the GSTR-3B for the preceding month is filed.
3.3 GSTN removes GSTR-2A from GST Portal for January 2022 onwards
(Advisory Dated: 03/01/2022)
The Goods and Service Tax Networks (GSTN) has removed GSTR-2A from the GST Portal for January 2022 onwards. Now only GSTR-2B is available because of applicable notification w.e.f. January 1, 2022.
3.4 Reporting of supplies notified under section 9(5) / 5(5) by E-commerce Operator in GSTR-3B
(Advisory Dated: 04/01/2022)
1. As per the GST Council decision to notify “Restaurant Service” under section 9(5) of the CGST Act, 2017 along with other services notified earlier such as motor cabs, accommodation and housekeeping services wherein the tax on such supplies would be paid by electronic commerce operator if such supplies made through it, Notification No. 17/2021-Central Tax (Rate) and 17/2021-Integrated Tax (Rate) dated 18.11.2021 have been issued. Accordingly, the tax on supplies of restaurant service supplied through e-commerce operators shall be paid by the e-commerce operator with effect from the 1st January 2022.
2. In the light of the above, E-commerce operator and the registered person would report taxable supplies notified under section 9(5) of CGST Act, 2017 and similar provisions in IGST/SGST/UTGST Act in the following manner:
4. NOTIFICATION
4.1 GST Annual Return: CBIC extends deadline of GSTR-9 and GSTR-9C
Notification No. 40/2021-Central Tax; 29th Dec, 2021
The Central Board of Indirect Taxes and Customs ( CBIC ) has extended the deadline of GST Annual Returns ( GSTR-9 and GSTR-9C) for the financial year 2020-21 to February 28th, 2021. In view of the difficulties expressed by the taxpayers in meeting this time limit, the Government has decided to further extend the due date for furnishing GSTR-9 and GSTR-9C for the financial year 2019-20 to 31.03.2021 with the approval of the Election Commission of India.
4.2 Existing rates in textile sector to continue beyond 1st January, 2022
Notification No.21/2021-Central Tax (R); 31st Dec, 2021
The GST Council has recommended to defer the decision to change the rates in textiles recommended in the 45th GST Council meeting. Consequently, the existing rates in the textile sector would continue beyond 1st January, 2022,” the press release read.
4.3 ITC would be available only when reflected in GSTR 2B
Notification No. 40/2021-Central Tax; 1st Jan 2022
ITC on invoices/debit notes would be available subject to the condition that the details of the same are furnished by the supplier in its Form GSTR 1 and such details are communicated to the recipient in Form GSTR 2B.
Rule 36(4) was introduced in the Rule book from October 09, 2019. It was initially allowing the ITC a maximum of up to 20% of the eligible ITC appearing in Form GSTR 2A. The said percentage was changed twice and reduced to 5%. The validity of the impugned Rule is under judicial scrutiny3before various High Courts. There is an argument that this Rule does not have sufficient statutory backup from the parent act. With the given amendment, this litigation may be put to rest prospectively.
Further, we may note that the given restriction, even after amendment under Section 16(2), would apply only to invoices/debit notes required to be uploaded by the supplier and does not apply to IGST paid on imports, documents issued under Reverse charge mechanism, credit received from Input Service Distributor.
4.4 Goods or conveyance detained or seized in transit – Auction instead of confiscation
Notification No. 40/2021-Central Tax; 1st Jan, 2022
Finance Act, 2021 has delinked the proceedings of detention, seizure and release of goods and conveyances in transit with the confiscation proceeds. Now instead of confiscation, the GST authorities have been empowered to auction the goods and conveyance so detained if the person fails to pay the penalty demanded within 15 days from the date of receipt of the order of penalty.
4.5 Changes in the sequence of disposal of sale proceeds of goods/conveyance, etc. detained/seized
Notification No. 40/2021-Central Tax; 1st Jan, 2022
Penalty not paid in respect of goods/conveyance so seized would be used against the sale proceeds of such goods/conveyance after adjusting the administrative cost. Notably the amendment has also been made to provide that if after utilization of specified amounts if something remains balanced then instead of direct payment of the said amount to the concerned person it would be credited in the electronic cash ledger.
4.6 Concessional Rate of 5% available for FRK from 1 Oct 2021
Notification No. 11/2021-Central Tax; 30th Sep, 2021
FRK which is blended with rice grains before distribution of the same can be considered as a premix. Vide notification No. 11/2021-C.T. (Rate) dated 30.09.2021, the Notification 39/2017 dated 18.10.2017, was amended effective from 01.10.2021, by including the terms “Fortified Rice Kernel (Premix) supply for ICDS or similar scheme duly approved by the Central Government or any' State Government” in column (3) and also, the words 'Food Preparation' is amended as 'goods' in column (d) of the Notification. Plain reading of the amended notification indicates that the goods are eligible for concession rate if they are:-
1. FRK(Premix);
2. supplied for schemes approved by Central Government/State Government;
3. subject to end use conditions mentioned in column (4).
5. JUDICIAL PRONOUNCEMENTS
5.1 GSTR-3B is a ‘Return’ specified u/s 39 of GST Act: Supreme Court reverses Gujarat HC’s order
Union of India vs. Bharti Airtel Ltd. & Ors. SC 2021
The Supreme Court has reversed the Gujarat High Court’s judgment wherein the High Court observed that GSTR-3B is not a return specified under section 39 of the Central and State Goods and Services Acts. In the year 2019, the Gujarat High Court held that Section 39(1) of the CGST/GGST Act provides that every taxpayer, except a few special categories of persons, shall furnish a monthly return in such form and manner as may be prescribed. Rule 61 of the CGST Rules/GGST Rules prescribe the form and manner of submission of monthly return. Sub-rule 1 of Rule 61 of the CGST Rules/GGST Rules provides that the return required to be filed in terms of Section 39(1) of the CGST/GGST Act is to be furnished in Form GSTR-3B.
Disclaimer: “This material is intended to provide general information on a particular subject(s) and is not an exhaustive treatment of such subject(s) or a substitute to obtaining professional service or advice. It is strongly recommended to seek professional advice before implementation of any of the aspects covered in the presentation.”)
The author can be reached at ca.hsinghal@gmail.com; +91 99172 11511
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