GST News and Updates – July 2022

 

Central Tax Notifications

 

Central Tax Notification No. 16/2022 dated 14^th July 2022 –

The notification No. 04/2022 –Central Tax, dated the 31st March, 2022  has been amended. The exemption for availing composition scheme to suppliers of Brick Kilns where the description for fly ash bricks of 90% or more ash content has now been removed w.e.f 18th July 2022.

Central Tax Notification No. 15/2022 dated 14^th July 2022 –

The notification No. 03/2022 –Central Tax, dated the 31st March, 2022 has been amended. The condition for compulsory GST registration even under Rs.40 lakh turnover limit for supply of goods, being suppliers of Brick Kilns where the description of fly ash bricks had a condition of 90% or more ash content has now been removed w.e.f 18th July 2022.

Central Tax Notification No. 14/2022 dated 05^th July 2022 –

 

1.New Table 3.1.1 in GSTR-3B for reporting supplies notified u/s 9(5) 

• • As per Section 9(5) of CGST Act, Electronic Commerce Operator (ECO) is required to pay tax on supply of services if such services are supplied through ECO.
  • A new Table 3.1.1 is being added in GSTR-3B where both ECOs and registered persons can report supplies made under Section 9(5) as mentioned

Description	Total Taxable Value	Integrate d Tax	Central Tax	State/UT Tax	Cess
(1)	(2)	(3)	(4)	(5)	(6)
(i)     Taxable      supplies      on     which     electronic commerce operator pays tax under Sub-section (5) of Section 9 [To be furnished by the electronic commerce operator]
(ii) Taxable supplies made by the registered person through electronic commerce operator, on which electronic commerce operator is required to pay tax under Sub-section (5) of Section 9 [To be furnished by the registered person making supplies through electronic commerce operator].

 

• • An ECO is required to report supplies made u/s 9(5) in Table 1.1(i) of GSTR-3B and shall not include such supplies in Table 3.1(a) of GSTR-3B. The applicable tax on such supplies shall be paid by ECO in Table 3.1.1(i) of GSTR-3B in cash only and not by ITC.
  • A registered person who is making supplies of such services as specified u/s 9(5) through an ECO, shall report such supplies in Table 3.1.1(ii) and shall not include such supplies in Table 3.1(a) of GSTR-3B. The registered person is not required to pay tax on such supplies as the ECO is liable to pay tax on such supplies.

2. PMT-09 is modified to accommodate transfer of CGST cash balance from one GSTIN to another.

3. Rule 21A: Proviso added- Suspension of GSTIN for non-filing of returns (by composition and regular taxpayers) can be cancelled or revoked when the taxpayer files all the pending returns.

4. Rule 46: clause (s) added- Suppose taxpayers’ total turnover exceeds the limit of Rs.20 crore in any year from FY 2017-18, notified for issuing e-invoices but also issues regular invoices for some non-e-invoicing cases. They must declare that although they are subject to e-invoicing, they need not raise e-invoices for such cases.

5. Rule 86: sub-rule (4B) added- Re-credit back into the electronic credit ledger for any erroneous refund of accumulated ITC will be done using form PMT-03A.

6. Rule 87: sub-rules (3) and (5) modified- Immediate Payment Services (IMPS) and Unified Payment Interface (UPI) are the newly added options for depositing GST.

7. Removal of 95A rule on GST refund for tax-free sales by the retailers in the International Airport to outgoing international tourists.

8. Modifications were carried out in GSTR-9 and GSTR-9C formats to cover FY 2021-22 in the instructions.

9. Suitable modifications were made to the formats of PMT-09, RFD-01, PMT-07, PMT-06, and insertion of a new format for form PMT-03A (Order of re-credit of the amount to electronic credit ledger) for the above rules.

Central Tax Notification No. 13/2022 dated 05^th July 2022 –

The tax officers have gotten extension up to 30th September 2023 to issue demand orders to taxpayers (non-fraud cases) for unpaid or underpaid taxes, interest, fees, and penalties. The pandemic period between 1st March 2020 and 28th February 2022 must be excluded to arrive at the limitation period for issuing a demand order under this provision.

These conditions are applicable from 1st March 2020. The notification also excludes the above pandemic period to arrive at the limitation period for filing GST refund applications under Sections 54 or 55 of the CGST Act.

 

Central Tax Notification No. 12/2022 dated 05^th July 2022 –

The late fee has been waived for filing of GSTR-4 for FY 2021-22 on or before 28th July 2022.

Central Tax Notification No. 11/2022 dated 05^th July 2022 –

The due date to submit form CMP-08 by composition taxpayers for April-June 2022 has been extended to 31st July 2022 from 18th July 2022.

Central Tax Notification No. 10/2022 dated 05^th July 2022 –

The taxpayers with a yearly turnover of more than Rs.2 crore during the financial year 2021-22 are required compulsorily file GSTR-9 or annual returns.

Central Tax Notification No. 9/2022 dated 05^th July 2022 –

The following two provisions were notified-

1. Section 110 of the Finance Act 2022 – Amended Section 49 of the CGST Act. It now allows one GSTIN to transfer the Central Goods and Services Tax (CGST) available in its electronic cash ledger to another GSTIN’s electronic cash ledger as CGST or IGST.
2.  Section 111 of the Finance Act 2022 – Made a retrospective amendment to Section 50 of the CGST Act. Interest will be charged at 24% per annum on any excess Input Tax Credit (ITC) either wrongly claimed in returns or utilised from the ledger from 1st July 2017.

Central Tax Notification No. 8/2022 dated 05^th July 2022 –

Particular e-commerce operators listed in the notification who are filing GSTR-8, but failed to file it due to technical glitches, but deposited TCS between December 2020 and January 2021 get a relief from interest payment till date of actual filing.

 

Implementation of mandatory mentioning of HSN codes in GSTR-1

 

2. Vide Notification No. 78/2020 – Central Tax dated 15^th October, 2020, it is mandatory for the taxpayers to report minimum 4 digits or 6 digits of HSN Code in Table-12 of GSTR-1 on the basis of their Aggregate Annual Turnover (AATO) in the preceding Financial
3. To facilitate the taxpayers, these changes are being implemented in a phase-wise manner on GST Portal as below:

Phases		Taxpayers with AATO of up-to 5 cr.	Taxpayers with AATO of more than 5 cr.
Phase 1	Part I	Taxpayers are required to mandatorily report 2-digit HSN codes for goods & services.   Manual user entry is allowed for entering HSN or description and warning or alert messageshall be shown in case of manual HSN.   However, taxpayers will be able to file GSTR-1 after manual entry.	Taxpayers are required to mandatorily report 4-digit HSN codes for goods & services.   Manual user entry is allowed for entering HSN or description and warning or alert message shall be shown in case of incorrect HSN code.   However, taxpayers will be able to file GSTR-1 after manual entry.
	Part II	Same as above	Taxpayers will now have to mandatory report 6-digit HSN code. No change in other conditions

 

3. Part 1 of Phase I has already been implemented from 01^st April 2022 and is currently live on GST Portal. From 01^stAugust, 2022, Part-II of Phase-I would be implemented on GST Portal and the taxpayers would need to report HSN in table 12 of GSTR-1 as per below mentioned

 

Taxpayers with AATO of up-to 5 cr.	Taxpayers with AATO of more than 5 cr.
To continue as it is.	Taxpayers would be required to mandatorily report 6-digit HSN code. Manual user entry would be allowed for entering HSN or description and in case of a wrong HSN reported warning or alert message will be shown. However, taxpayers will still be able to file GSTR-1. Taxpayers would be expected to correct HSN where there is an error and a warning message shown.