GST News and Updates – December 2021

 

Rate Changes for HSN applicable from 1 Jan 2022

 

Notification No. 14/2021 (Rate) – Central Tax dated 18th November 2021 (w.e.f 1 st January 2022)

  • Amends Notification No. 01/2017(Rate) dated 28th June 2017
  • Correction of inverted rate structure in textiles and footwear
  • GST rate harmonised across the textile chain (Tow, Fibre, fabric, articles) and footwear
  • Uniform rate structure across the textile value chain at 12%,
  • Footwear (Any Value)- 12%

Notification No. 15/2021 (Rate) – Central Tax dated 18th November 2021

  •  Amends Notn No.11/2017- Central Tax (Rate), dated the 28th June 2017; Effective w.e.f 1 st January 2022
  • Composite supply of works contract to Govt. Entity or Govt. Authority will be taxable – @18 percent
  • Job Work by way of Dyeing and Printing of Textile and Textile Products will be taxable – @12 percent

Notification No. 16/2021 (Rate) – Central Tax dated 18th November 2021

  • Amends Notn No.12/2017- Central Tax (Rate), dated 28th June 2017; Effective w.e.f 1 st January 2022
  • Exemption removed for following services-
    • Pure services and composite supply of goods and services where goods constitute not more than 25 percent value, provided to a Govt. Entity or Govt. Authority
    • Non-AC contract Carriage or State Carriage or metered Cabs or Auto/e-rickshaws if supplied through e-commerce operators

Payment of GST by E-commerce operator under section 9(5) of CGST Act

 

Notification No. 17/2021 (Rate) – Central Tax dated 18th November 2021

  • Amends Notn No.17/2017- Central Tax (Rate), dated 28th June 2017; Effective w.e.f 1st January 2022
  • Tax shall be paid by e-commerce operator under section 9(5) of CGST Act for supply of –
    • services by way of transportation of passengers by omnibus or any other motor vehicle
    • restaurant service other than the services supplied by restaurant eating joints etc. located at specified premises. Online food delivery apps now liable to pay GST.

Amendment to CGST Rules 2017

 

Notification No.37/2021 – Central Tax 1st December 2021

  • Tenure of the National Anti-Profiteering Authority has been extended to five years; Rule 137 of CGST Rules 2017 amended w.e.f 30th November 2021
  • A new cause of payment has been added in Form DRC-03 for payment of tax ascertained through Form GST DRC-01A
  •  “Intimation of tax ascertained through FORM GST DRC01A” inserted in heading as well as column 3 of Form DRC03

Certain changes from 1st Jan 2022 applicable to all assesses

 

  1. VALUES DECLARED IN GSTR 1 IS ALSO A LIABLITY
    1. If you made an error in reporting of tax liability in GSTR 1
    2. Same is not corrected and GSTR 3B is filed with Correct liability.
    3. Officer can consider wrong numbers in the GSTR 1 as Assessed Liability and recovery proceedings can be initiated
  2. Your ITC WILL NOT BE AVILABLE IF NOT REFLECTED IN GSTR 2A/2B
    1. Input Tax Credit shall not be available unless details of invoices uploaded by supplier in Form GSTR-1
    2. Additional 5% given in 36(4) will be phased out, so be aware of all your vendors
  3. PROVISIONAL ATTACHMENT OF ASSETS : BOGUS BILLING BENFICIARIES ARE COVERED
    1. In case of Fake billing and bill trading, Not only supplier and recipients , but assets of the beneficiaries of bogus billing can also be provisionally attached.
  4. INCREASE IN SCOPE OF PROVISIONAL ATTACHMENT
    1. Provisional attachment is made applicable in all cases of proceedings of Assessment, Inspection, Search, Seizure and Arrest or Demands and recovery.
    2. Now, provisional attachment of property, like bank accounts, can be done not only in the case of Show Cause Notices and investigation but also for other proceedings like
    3. Scrutiny of Returns and tax collected but not paid.
  5. E-WAY BILL: 200% PENALTY TO RELEASE GOODS
    1. Current Tax + 100% penalty is required to be paid to release the goods which are seized for violation of E-way Bill
    2. Now, goods will be released on payment of penalty equal to 200% of tax
    3. Tax will be recovered through separate proceedings.

Mandatory Aadhaar authentication for registered person

The Central Government vide Notification No. 38/2021-CT dated 21.12.2021 has notified January 1, 2022 as the implementation date for Rule 10B of CGST Rules, 2017.

In the said rule, it is mandatory for the registered person to undergo Aadhaar authentication for the below purposes,

  1. Filing of application for revocation of cancellation of registration in FORM GST REG-21 under Rule 23 of CGST Rules, 2017
  2. Filing of refund application in FORM RFD-01 under Rule 89 of CGST Rules, 2017
  3. Refund of the IGST paid on goods exported out of India under Rule 96 of CGST Rules, 2017.

The taxable person, who have not yet authenticated their Aadhaar, may like to go through this authentication process before filing the above two applications and enabling GST system to validate and transmit the IGST refund data from GST system to ICEGATE system.

If Aadhaar number has not been assigned to the concern person for Aadhaar authentication as specified above, such person may undergo e-KYC verification by furnishing the following:

    1. (a) She/he will feed Aadhaar Enrolment ID and upload the acknowledgement; and
    1. (b) She/he shall also upload any one of the following documents:
    • (i) Bank passbook with photograph; or
      1. (ii) Voter identity card issued by the Election Commission of India; or
      1. (iii) Passport; or
      1. (iv) Driving license issued by the Licensing Authority under the Motor Vehicles Act, 1988 (59 of 1988):

Provided further that such person shall undergo the Aadhaar authentication within a period of thirty days from allotment of the Aadhaar number.

GST Revenue for November

 

The gross GST revenue collected in November 2021 is ₹ 1,31,526 crore of which CGST is ₹ 23,978 crore, SGST is ₹ 31,127 crore, IGST is ₹ 66,815 crore (including ₹ 32,165 crore collected on import of goods) and Cess is ₹ 9,606 crore (including ₹ 653 crore collected on import of goods).

The revenues for November 2021 are 25% higher than the GST revenues in the same month last year.

During the month, revenues from import of goods was 43% higher and the revenues from domestic transaction (including import of services) are 20% higher than revenues from these sources during the same month last year.

The recent trend of high GST revenues has been a result of various policy and administrative measures taken to improve compliance. Enforcement agencies have detected large tax evasion cases, mainly cases relating to fake invoices, with the help of various IT tools developed by GSTN that use the return, invoice and e-way bill data to find suspicious taxpayers.

Tax Information Portal

Tax Information Portal launched for enhanced view of all Indirect Tax Acts, Rules, Regulations and Forms- https://taxinformation.cbic.gov.in/

CBIC launched a revamped tax information portal, through which all indirect tax legislations, rules, regulations and forms will be available for ease of reference of taxpayers.

Eventually, information under all categories in Customs, GST, Central Excise and erstwhile Service Tax will be available.

Effective date of Suspension in Taxpayer Profile

The effective date of suspension of a taxpayer is also displayed on the Portal when his/her profile is accessed using “Search Taxpayer” functionality

Removal of validation for all minor head except Tax/Cess in Form GSTAPL 01 for Refund Module

To allow the applicant to file Appeal for interest on delayed grant of refund, the earlier validation on value of the Interest and Penalty amounts to not exceed the claimed amount/amount in the original order, has been removed from the Appeal form APL-01