The changes proposed by the Hon’ble Finance Minister in her Budget Speech announced on 01.02.2022 in relation to Goods and Service Tax Act:

Input Tax Credit:

    • Omission of Section 42, 43 and 43A  i.e., matching, reversal, reclaim of ITC and the procedure for furnishing and availing ITC.
    • Substitution of Section 38 to impose restrictions on availment of input tax credit on inward supplies.
    • Insertion of Clause (ba) in section 16(2)to restrict the amount of ITC, on the basis of eligibility or otherwise as per GSTR 2B of the recipient under section 38 of the CGST Act.
    • Substitution of section 41 to provide that input tax credit can be availed on self-assessed basis, subject to conditions that tax is paid by the supplier.
  • Payment of Tax:
    • Transfer of amount of tax, interest, cess and fees from cash ledger by one distinct person to another in the form of IGST and CGST as the case may be
    • Amendment in first proviso to section 39(7) to provide an option to the persons filing quarterly return, to pay either the self-assessed tax or an amount that may be prescribed;
  • Extension of Date : ITC availment, Issuance of Credit Note and any rectification in return can be done till 30th November of subsequent year or Annual Return which-ever is earlier.
  • Interest at 18% on input tax credit wrongly availed and utilized- Section 50(3)
  • Filing of Returns: To block filing of GSTR 1 for a month/quarter if GSTR 1 for any of the previous month/quarter is not filed. Further, filing of GSTR-1 of that month/quarter is mandatory to file GSTR 3B –Section 37(4)
  • Registration: Registration is liable for cancellation, if return is not furnished within 3months from the due date of furnishing of the said return under section 10 or for such continuous tax period as may be prescribed in case of persons other than paying tax under Section 10-Clause (b) & (c) of section 29(2)
  • Refund: Amendments & insertion in refund provisions relating to time line, withholding, sanction of refund – Section 54(10), clause 2(ba) of explanation to section 54, Section 55.
  • Late Fees: Imposition of late fee for delayed filing of return viz. GSTR 8 under section 52- Section 47
  • Exemption: Retrospective exemption to supply of unintended waste generated during the production of fish meal and service by way of grant of alcoholic liquor license against consideration.
  • Common Portal: Notify as the common portal with effect from 22.06.2017 for all functions provided under Central Goods and Services Tax Rules, 2017.

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