Key Highlights of GST Proposals in Finance Bill 2022
We are bringing a synopsis of amendments proposed in GST by the Central Government for the purpose of readers. These are summarized as below:
1. Time-limit to avail ITC u/s 16(4) extended till 30th November of next year from 30th September.
2. Additional Condition for availing of ITC u/s 16(2)- ITC can be availed only if the same is not restricted
3. Composition Tax Payer’s Registration can be canceled suo-moto if they have not filed their GSTR-4 return beyond 3 months from the due date.
4. Credit Notes in respect of a supply made in a financial year can be issued by 30th November of next financial year (currently allowed till 30th September)
5. Any rectification of an error in GSTR-1/ GSTR-3B is now permitted till 30th November of next financial year (currently allowed till 30th September)
6. Section 41 of the CGST Act is being substituted. Now any ITC availed for which supplier has not paid would be required to be reversed along with interest @18%. On payment of tax by supplier, credit can be re availed
7. Due date of filing return by non-resident taxpayer prescribed as 13th of next month
8. Section 47 of the CGST Act is being amended so as to provide for a levy of late fees for delayed filing of TCS returns.
9. Section 49 of the CGST Act is being amended so as to allow transfer of amount available in E-cash ledger of a registered person to the E-cash ledger of a distinct person;
10. Section 50(3) of the CGST Act is being substituted retrospectively, with effect from the 1st July 2017, so as to provide for levy of interest on input tax credit wrongly availed AND utilized. (Interest will not be levied if ITC is not utilized)
Rate of interest @ 18%
Courtesy: CA Naman Singhal
Disclaimer: The above article is meant for informative purposes only and Taxwink is not responsible for the correctness of the same. Readers are requested to act diligently and under consultation with any professional before applying the information contained in this article.
