There are few changes in GST Rules and regulations w.e.f 1st January, 2022. These are listed as follows
Further changes in Tax rates/Exemption in case of contracts/ service provided to Government is covered under our previous blog
- Input Tax Credit (ITC)
A person can now claim ITC of up to only 100% of the amount reflected in GSTR 2B while filing GSTR 3B (monthly/quarterly). Earlier, this was up to 105% of the amount reflected in GSTR 2B.
This effectively means that ITC can now be taken only for those invoices which reflect in 2B in that particular month while filing GSTR 3B. No additional amount shall be allowed on which invoices are recorded in books but do not reflect in 2B
This will force a person to maintain accurate records on invoice level
- Self-Assessed Tax
The meaning of “Self Assessed Tax” has now been explained to mean tax payable on outward supplies declared in GSTR 1 and NOT GSTR 3B.
This means that even if tax has been reported and paid in 3B and not GSTR 1, it will be treated as tax not paid. E.g. An outward supply invoice of Rs 10,000 has been considered in GSTR 3B for the month of Jan, 2022 but not declared in GSTR 1. The above change notified will lead to conclusion that tax on the above invoice has not been paid
- Filing of GSTR-1 to be disallowed
A registered taxpayer shall not be allowed to file his GSTR-1 in case his GSTR-3B iss not filed for preceding month
Earlier the period was preceding 2 months
- Supply
The scope of supply is now being increased to cover activities / transaction between a person other than individual and its members / constituents
- E-way Bill Violation (Detention of vehicles)
(If the owner of goods comes forward to pay the penalty)
The penalty for violation of E-way Bill Conditions has been increased to 200 % of the tax amount OR 2% of value of exempted supply OR Rs. 25,000 whichever is higher
(If the owner of goods does not come forward to pay the penalty)
The penalty for violation of E-way Bill Conditions will be
[For Taxable Goods]
200 % of the tax amount OR 50% of value of goods whichever is higher
[For Exempt Goods]
5% of value of exempted supply OR Rs. 25,000 whichever is higher
Further the above penalty shall not be levied without giving opportunity of heard. Earlier this included tax and interest amount.
- Proceedings under section 129/130 to continue independently
Under the changed provisions once proceeding u/s 73/74 are concluded, the proceedings against all such persons liable to pay penalty under sections 122 and 125 would have been deemed to be concluded.
However proceedings u/s 129/130 would NOT be deemed to be concluded and shall continue independently. Section 129/130 relate to detention, seizure & confiscation of goods and conveyances in transit.
- Appeals to Appellate Authority
A pre-deposit of 10% of the duty demand amount will be required to be made before filing an appeal against order u/s 129(3) . This is in addition to the existing clause of depositing 25 % of the penalty amount prior to filing of appeal against order u/s 129(3).
Order u/s 129(3) relates to detaining or seizing of goods or conveyance in transit.
- Additional powers to commissioner
The Commissioner now shall have power to call for any information relating to GST Act from any person within time, form and manner as may be specified.
The above changes have been brought into effect from 1st January, 2022 vide Notification No 39/2021 CT dt 21.12.2021
Dec 31, 2021 - Blog - Anish
