Changes in gst law effective from january 1st 2022

Changes in GST Law effective from January 1st 2022

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

GSTR-1 return filing facility will be blocked on failing of submitting GSTR 3B for two previous periods.

2. GST Provision related to Input Tax Credit to the recipient:-

The provisions of Section 16 of the CGST Act has been amended wherein clause 16(2) (aa) inserted. As per this provision, the details of the purchase invoice or debit note referred to in clause (a) should be furnished by the supplier in the statement of outward supplies (i.e. GSTR 1) and such details should be communicated to the recipient of such invoice or debit note in the manner specified under section 37 i.e. in GSTR 2A/2B for availing the Input Tax Credit by the recipient.

In other words, to avail Input Tax Credit, five conditions have to be satisfied.

1. Recipient must possess the valid documents i.e. Tax Invoice/Debit Notes
2. Recipient must have received the goods or services
3. The GST liability must be paid to Government by the supplier through GSTR 3B
4. The supplier must have filed GSTR 1 and the same should be reflecting in GSTR 2A/2B
5. Recipient must file GSTR 3B

3. Self-assessed tax shall include the tax payable in respect of details of outward supplies furnished in GSTSR 1

In the Provisions of section 75(12),a new explanation has been inserted. As per this new insertion the “self-assessed tax” shall include the tax payable as furnished in GSTR 1 but not included in the liability as per GSTR 3B.”  So whatever is declared in GSTR-1 shall also be treated as a Self-Assessed liability.

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

Section 107 (6), has been amended with an insertion of new proviso, namely “Provided that no appeal shall be filed against an order under section 129(3), unless a sum equal to twenty-five percent of the penalty has been paid by the appellant.”  This will add additional compliance burden in respect of penalties imposed in the Adjudicating Orders while filing appeals.

5. Mandatory Aadhaar authentication for GST Refund & Revocation application:-

Aadhaar authentication for claiming GST Refunds (all types of refunds and irrespective of the amount of claim involved) and Revocation application has been made Mandatory.

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

When the proper officer has detained or seized goods or conveyance, he 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. The time lines have been set clearly.

7. New GST Compliance obligation for E-Commerce Operators providing restaurant Services.

E-Commerce Operators like Zomato, Swiggy, etc. providing “Restaurant Services” will be liable to pay 5% GST instead of the hotel suppliers.

8. Correction in Inverted Duty structure in Footwear and Textiles sector:-

The GST Council recommended 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.