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Please find tax updates in Newsletter 22 dated 30.12.2021 as below:

Index

1. GST Update

GST Update

1) 29.12.2021 : Notification No.40/2021-Central Tax dated 29.12.2021 is issued by CBIC. Following are the changes made vide this notification --

A) GST ANNUAL RETURN
GSTR-9 and 9C Due date - Due date of filing GST Annual Return in Form GSTR-9 and 9C has been extended from 31.12.2021 to 28.02.2022 vide Notification No. 40/2021-Central Tax dated 29.12.2021.

Rule 80 of CGST Rules, 2017 has been amended to insert following provisions-

after sub-rule (1), the following sub-rule shall be inserted, namely:-
“(1A) Notwithstanding anything contained in sub-rule (1), for the financial year 2020-2021 the said annual return shall be furnished on or before the twenty-eighth day of February, 2022.

(b) after sub-rule (3), the following sub-rule shall be inserted, namely:-
(3A) Notwithstanding anything contained in sub-rule (3), for the financial year 2020-2021 the said self-certified reconciliation statement shall be furnished along with the said annual return on or before the twenty-eighth day of February, 2022.

B) INPUT TAX CREDIT

Rule 36(4) shall be substituted with effect from 01.01.2022 as below:

“(4) No input tax credit shall be availed by a registered person in respect of invoices or debit notes the details of which are required to be furnished under sub-section (1) of section 37 unless, -
  • the details of such invoices or debit notes have been furnished by the supplier in the statement of outward supplies in FORM GSTR-1 or using the invoice furnishing facility; and
  • the detail of such invoices or debit notes have been communicated to the registered person in FORM GSTR-2B under sub-rule (7) of rule 60.”;
Author’s view: The above mentioned amendment in Input tax credit provision has put all confusion into rest as it gives clarity that the recipient can claim input tax credit only when the invoices or debit note on which he wants to claim input tax credit are appearing/populated in GSTR-2B. Effective from 01.01.2022.

As of now, Rule 36(4) has allowed 5% ITC extra if the invoices or debit notes are not available in GSTR-2A report. In this regard, there was difference of opinion as regard validity of rule 36(4) as the Act did not provided any backing for this rule. So there were taxpayers who claimed input tax credit as per there books of account and also some who were claiming credit following the said rule. Now, all these difference has been clarified by CBIC. As per the amended Sec.16(2)(aa) read with rule amended rule 36(4) with effect from 01.01.2022, the taxpayer is allowed to claim input tax credit only as per GSTR-2B.

C) REFUND

Rule 95 of CGST Rules, 2017 provides for refund of tax to certain persons as specified u/s 55 of CGST Act, 2017. Sec. 55 specifies –
  1. any specified agency of the United Nations Organisations or
  2. any Multilateral Financial Institution and Organisation notified under the United Nations (privileges and Immunities) Act, 1947,
  • Consulate or Embassy of foreign countries and
  1. any other persons or class of persons as may be specified in this behalf
as specified persons entitled to claim a refund of taxes paid on the notified supplies of goods or services or both received by him.

Sub-rule (3) prescribes conditions to claim credit. The condition in clause (b) of said sub-rule is “name and Goods and Services Tax Identification Number or Unique Identity Number of the applicant is mentioned in the tax invoice.

In order to relax the aforesaid condition, below given proviso is inserted.

“Provided that where Unique Identity Number of the applicant is not mentioned in a tax invoice, the refund of tax paid by the applicant on such invoice shall be available only if the copy of the invoice, duly attested by the authorized representative of the applicant, is submitted along with the refund application in FORM GST RFD-10.”

The aforesaid provision states that if the invoice does not contain “Unique Identity Number of the applicant” then the copy of the invoice, duly attested by the authorized representative of the applicant shall be required.

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Hope the above updates is of use to you. Please share your feedback at [email protected]
Thank you,

Regards,
OTU Team

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