Know Top 10 changes in GST Law effective from January 1st, 2022

23-Dec-2021 Admin 4 Central Board Of Indirect Taxes And Customs, CBIC, GST Law, GSTR 3B, GSTR 1, GST Refund, CGST 1656 Views

The Central Board of Indirect Taxes and Customs (CBIC) has notified various changes in GST Law effective from January 1st, 2022. Here are the top 10 changes you need to know.

1. Blocking of GSTR-1 for non filing of GSTR 3B

From 1st January 2022, the GSTR-1 return filing facility will be blocked if you have not submitted the return in FORM GSTR-3B for the previous two return periods. For example, if a taxpayer has not filed GSTR-3B for October 2021 and November 2021, the GSTR-1 filing facility will be blocked from the 1st January 2022.

2. Rules related to Mandatory Aadhaar authentication for GST Refund & Revocation application

The Central Board of Indirect Taxes and Customs (CBIC) has notified that Rules related to Mandatory Aadhaar authentication for GST Refund and Revocation application are to be effective from 1 January 2022.

3. GST Provision related to communication of Details of invoice or debit note to the recipient

Section 109  of the Finance Act, 2021 seeks to amend section 16 of the CGST Act wherein sub-section (2), after clause (a), the clause shall be inserted, namely “(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37.

4. Self-assessed tax shall include the tax payable in respect of details of outward supplies

Section 114  of the Finance Act, 2021 seeks to Amend section 75, in sub-section (12), the Explanation shall be inserted, namely “For the purposes of this subsection, the expression “self-assessed tax” shall include the tax payable in respect of details of outward supplies furnished under section 37, but not included in the return furnished under section 39.”

5. New GST Burden On E-Commerce Operators Zomato, Swiggy, Ola, Uber

On September 17, it was decided at the Goods and Services Tax Council meeting that e-commerce operators be made liable to pay tax on services provided through them namely transport of passengers, by any type of motor vehicles restaurant services or restaurant services provided, with some exceptions This will become effective January 1, 2022, said a statement issued by the Finance Ministry after the GST Council meeting.

6. Correction in Inverted Duty structure in Footwear and Textiles sector

The GST Council decided to introduce GST rate changes from January 2022 in order to correct the inverted duty structure in the Footwear and Textile Sector. All footwear, irrespective of prices will attract GST at 12 percent while barring cotton, all textile products including readymade garments will have GST at the rate of 12 percent.

7. Commissioner empowered to attach provisionally, any property, including bank account

Where, after the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue it is necessary so to do, he may, by order in writing, attach provisionally, any property, including bank account, belonging to the taxable person or any person specified in sub-section (1A) of section 122, in such manner as may be prescribed. Section 115 of the Finance Act, 2021 seeks to Amend section 83, for sub-section (1), the sub-section shall be substituted, namely “(1)

8. No appeal to be filed against section 129(3) order, unless a sum equal to 25% of the penalty is paid

Section 116 of the Finance Act, 2021 seeks to Amend section 107, in sub-section (6), the proviso shall be inserted, namely “Provided that no appeal shall be filed against an order under sub-section (3) of section 129, unless a sum equal to twenty-five percent of the penalty has been paid by the appellant.”

9. Commissioner’s Power to call for information

Section 119 of the Finance Act, 2021 seeks to Substitute of new section for section 151 namely “Power to call for information: The Commissioner or an officer authorized by him may, by an order, direct any person to furnish information relating to any matter dealt with in connection with this Act, within such time, in such form, and in such manner, as may be specified therein.”

10. Proper officer detaining or seizing goods or conveyance to issue notice within 7 days of such detention or seizure

The proper officer detaining or seizing goods or conveyance shall issue a notice within seven days of such detention or seizure, specifying the penalty payable, and thereafter, pass an order within a period of seven days from the date of service of such notice, for payment of penalty.

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