Goods and Service Tax (GST) is now over 54 months old (introduced w.e.f. 1st July, 2017) and we will be completing five years in June, 2022. Yet, it still suffers from numerous short comings. However, GST has been successful on many fronts, e.g., automation, curbing tax evasion, revenue generation and so on.
No law can be perfect unless it is tested and subjected to judicial scrutiny. GST still remains a work-in-progress, both in law and its implementation. This piece captures the major happenings in the field of GST in the year 2021.
2021 : The year that was for GST
- Time limitation extended by Apex Court due to Covid under all tax laws.
- Virtual e-hearings continued for all adjudications and appellate proceedings.
- Highest ever record collections of GST despite post Covid affected environ
- Capacity building and improvisation of GSTN portal.
- Deployment of deep analytics and artificial intelligence to identify tax evaders and fake traders.
- Amendments in CGST Act, 2017 via Finance Act, 2021 –Sections 7, 16, 35, 44, 50, 74, 75, 83, 107, 129, 130, 151, 152, 168, Schedule II and section 16 of IGST Act, 2017.
- GST Council meet for four times, last one being on 31st December, 2021.
- Mandatory e-invoicing and e-way bills.
- GST audit / reconciliation done away with for all taxpayers except turnover based big taxpayers.
- Rationalization / reduction of GST rates in Covid related essential goods / items and other Covid relief measures.
- Auto population of e-invoices in returns.
- Aadhaar based authentication or e-KYC.
- Substantial changes in ITC availment rules.
- Changes in rules relating to revocation of cancellation of registration.
- Extension of due dates of filing returns, whenever need was felt.
- Taxation of specified services via e.com platform
GST Council meetings in 2021
Notifications and Circulars issued in 2021
|
Notifications 2021
|
Number
|
|
Central Tax
|
1 to 40
|
|
Central Tax (Rate)
|
1 to 22
|
|
Integrated Tax
|
1 to 3
|
|
Integrated Tax (Rate)
|
1 to 22
|
|
Union Territory
|
1 to 2
|
|
Union Territory (Rate)
|
1 to 22
|
|
Compensation Cess
|
NIL
|
|
Compensation Cess (Rate)
|
1 to 2
|
|
Circulars 2021
|
Number
|
|
CGST
|
145 to 168
|
Most litigated issues in 2021
- Fake invoices / frauds
- Detention and seizure of goods and conveyances
- Input tax credit
- Investigation and search
- Arrests and Bail
- Transition issues
GST Collections in 2021
|
Month
|
2020
(Rs. in crore)
|
2021
(Rs. in crore)
|
|
January
|
110818
|
119875
|
|
February
|
105366
|
113143
|
|
March
|
97597
|
123902
|
|
April
|
32172
|
139708
|
|
May
|
62151
|
102709
|
|
June
|
90918
|
92849
|
|
July
|
87422
|
116393
|
|
August
|
86449
|
112020
|
|
September
|
95480
|
117010
|
|
October
|
105155
|
130127
|
|
November
|
104963
|
131526
|
|
December
|
115174
|
129780
|
Major changes in GST w.e.f 01.01.2022
- Blocking of GSTR-1 for non-filing of GSTR 3B for the previous two return periods.
- New rules related to mandatory Aadhaar authentication for GST refund & revocation application.
- New GST burden on E-Commerce operators in relation to supply of restaurant services and passenger transport services (Zomato, Swiggy, Ola, Uber etc.).
- Requirement of communication of details of invoice or debit note to the recipient for availing input tax credit.
- Self-assessed tax shall include the tax payable in respect of details of outward supplies for recovery purposes.
- Commissioner empowered to attach provisionally, any property including bank account of any person and send communication.
- No appeal to be filed against section 129(3) order, unless a sum equal to 25% of the penalty is paid.
- Commissioner’s power to call for information without issuing notice.
- Proper officer detaining or seizing goods or conveyance to issue notice within 7 days of such detention or seizure.
- Correction in Inverted Duty structure in Footwear sector which provides that all footwear, irrespective of prices will attract GST at 12 percent. The decision to change the GST rates in textiles w.e.f. 01.01.2022 has been GST Council in deferred by 46th meeting dated 31.12.2021.
- Recovery of penalty from sale of goods or conveyance detained or seized in transit by the department by way of auction.
- New and revised HSN Codes.
- Central Tax (Rate) Notification No. 22/2021 dated 31.12.2021,in the heading “Description of Service”, in items (iii),(vi),(ix) and (x), for the words “Union territory, a local authority, a Governmental Authority or a Government Entity” the words “Union territory or a local authority” shall be substituted from serial 3 being construction services.
- Due date for furnishing annual return in form GSTR-9 and self-certified reconciliation statement in form GSTR-9C for the financial year 2020-21 has been extended from 31.12.2021 to 28.02.2022.
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