GIST OF RECENT CBIC NOTIFICATIONS

[Dr. Sanjiv Agarwal]

47^th GST meeting of the GST Council was held recently on 28-29 June, 2022 wherein many decisions on GST – taxability, rates, exemptions and procedure etc. were taken. These inter alia relate to:

• GST rate changes
• Rate rationalization to remove inverted duty structure
• Withdrawal of certain exceptions including concessional in relation to goods and services
• Clarifications in GST rates on goods and services
• Trade facilitation measures

• Amendment in formula prescribed in sub-rule (5) of rule 89 of CGST Rules, 2017 for calculation of refund of unutilized Input Tax Credit on account of inverted rated structure
• Amendment in CGST Rules for handling of pending IGST refund claims
• Re-credit of amount in electronic credit ledger
• Section 110 and section 111 of the Finance Act, 2022 to be notified by Central Government
• Waiver of late fee for delay in filing FORM GSTR-4 for FY 2021-22 and extension of due date for filing FORM GST CMP-08 for Q1 of FY 2022-23

• Streamlining of  compliances and so on

Consequently, CBIC has issued six notifications, i.e., Notification No. 9 to 14/2022-CT, all dated 05.07.2022 to notify amendments. Further, CBIC has issued Circular Nos. 170 to 176, all dated 06.07.2022 to explain and clarify the changes.

This writes up explains and provide the gist of CBIC Notifications issued on 05.07.2022 to implement decisions of GST council.

Section 110 and section 111 of the Finance Act, 2022 notified

• Finance Act, 2022 had made the following amendments

1. 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.

2. 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 .

(Source: Notification No. 9 /2022- Central Tax dated 05.07.2022)

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.

(Source: Notification No. 10 /2022- Central Tax dated 05.07.2022)

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 18^th July, 2022 for first quarter (April – June, 2022)

(Source: Notification No. 11 /2022- Central Tax dated 05.07.2022)

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 30^th 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 28^th July, 2022.
• The same may be now filed without late fee till 28^th July, 2022.

(Source: Notification No. 12 /2022- Central Tax dated 05.07.2022)

Limitation period under section 73 to exclude Covid period for Refund

• Limitation period of 03 years (three) under section 73(10) of CGST Act, 2017 has been extended for the period of financial year 2017-18 upto 30^th 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,

1. The time limit for passing order under Section 73 (10) for the year 2017-18 has been extended upto 30th September, 2023.
2. 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.

(Source: Notification No. 13 /2022- Central Tax dated 05.07.2022)

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 1^st July, 2017.
• The gist of amendments is as follows:

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

(Source: Notification No. 14 /2022- Central Tax dated 05.07.2022)

These Notifications may be read along with relevant Circulars.