Summary of recent GST amendments

(1)?Section 110?and?section 111?of the?Finance Act, 2022?notified

• Section 110?(Section 49?of?CGST Act, 2017): To provide for transfer of balance in electronic cash ledger of a registered person to electronic cash ledger of CGST and IGST of a distinct person.
• Section 111?(Section 50?of?CGST Act, 2017): Retrospective amendment in?section 50(3)?of?CGST Act, with effect from 01.07.2017, to provide that interest will be payable on the wrongly availed ITC only when the same is utilized.

(These amendments have been notified to come into force from 05.07.2022.)

(2)?Exemption from filing Annual Return

• Tax payers being aggregate turnover upto Rs. 2 crore have been exempted from the requirement of filing Annual Return under?section 44?of the?CGST Act, 2017?for the financial year 2021-22.
• If the aggregate turnover exceeds Rs. 20 crore, annual return will have to be filed.
• Annual return is filed in?Form GSTR 9/?9A.

(3)?Exemption for filing return by Composition Taxpayer

• Form GST CMP-08?is a statement for payment of self-assessed tax by persons under?section 10?of?CGST Act, 2017, i.e., composition scheme.
• Due date of filing quarterly return in?Form GST CMP-08?for the quarter – April to June, 2022 has been extended till 31.07.2022.
• The return in?Form GST CMP-08?is required to be filed by 18th?July, 2022 for first quarter (April – June, 2022).

(4)?Waiver of late fee payable by Composition Taxpayer

• The due date for filing Annual Return in?Form GSTR-04?by composition taxpayer for the financial year 2021-22 is 30th?April, 2022.
• If the return is not filed within the stipulated period, late fee is triggered and payable under?section 47?of the?CGST Act, 2017.
• The levy of late fee has been further waived beyond the existing waiver period (from 1.5.2022 to 30.06.2022) by four weeks to 28th?July, 2022.
• The same may be now filed without late fee till 28th?July, 2022.

(5)?Limitation period under?section 73?to exclude Covid period for Refund

• Limitation period of 3 years under?section 73(10)?of?CGST Act, 2017?has been extended for the period of financial year 2017-18 upto 30th?September, 2023.
• For counting the period, the period from the 1st day of March, 2020 to the 28th day of February, 2022 will be excluded for computation of period of limitation under?sub-section (10) of section 73?of the?CGST Act?for issuance of order under sub-section (9) of?section 73?for recovery of erroneous refund.
• For counting the period, the period from the 1st day of March, 2020 to the 28th day of February, 2022 will be excluded for computation of period of limitation for filing refund application under?section 54?or?section 55.
• Thus, the time limit for passing order under?Section 73 (10)?for the year 2017-18 has been extended upto 30th September, 2023 and while computing the period of limitation for recovery of erroneous refund & filing refund application, the period between 01.03.2020 to 28.02.2022 shall be excluded.
• This is because of Covid pandemic during the said period.

(6)?Amendment in?CGST Rules, 2017

• Various amendments have been made in?CGST Rules, 2017.
• Amendment have been made on?Rules 21A,?43,?46,?86,?87, 88B,?89,?95A?and?96.
• Changes have been made in?Form GSTR-3B,?GSTR-9C,?GST-PMT-03,?GST PMT-06,?GST PMT- 09,?GST RFD-01?and?GST RFD-10B.
• New?Rule 88B?in relation to manner of calculating interest on delayed payment of tax and?rule 96?relating to refund of integrated tax paid on goods or services exported outside India shall be effective with retrospective effect from 1st?July, 2017.
• The gist of amendments is as follows:-

1. Deemed revocation of suspension of registration.
2. Determination of ITC on respect of capital goods.
3. Declaration in tax invoice.
4. Re-credit of amount of erroneous in electronic credit ledger.
5. UPI and IMPS as additional modes of payment.
6. Manner of calculating interest on delayed payment of tax.
7. Refund application.
8. Rule 95A?omitted in relation to refund of integrated tax to international tourists.
9. Changes in Forms.