This articles covers the latest gst updates September-2022. It contains all the Notifications and Circulars issued in September-2022 which covers all GST Updates September-2022. All these amendments have been presented hear topic wise and reference of relevant latest gst notifications and latest gst circulars have been given at bottom of each topic. As well as, I have given our own analysis wherever it is necessary.
Sections of Finance Act, 2022 coming in to force from 01-10-2022.| GST Updates Summary September-2022
Following sections of Finance Act,2022 are effective from 01-10-2022
| Sr No | Sections of Finance Act,2022 | Summary |
| 1 | Section-100 of Finance Act,2022 | ITC may be availed only when such credit has not been restricted in the detail communicated to the registered person under Section-38 of CGST Act,2017. (Section 16) |
| 2 | Section-101 of Finance Act.2022 | The proper officer may cancel the registration of a person paying tax under section 10 has not been furnished return for a financial year beyond three months from the due date of furnishing the said return (Section 29) |
| 3 | Section -102 of Finance Act.2022 | In Section 34 the time limit for taking ITC and issuing credit notes is being enhanced to 30th November |
| 4 | Section 103 of Finance Act,2022 | The first proviso of Section 37(1), Section 37(2) is Omitted and in Section 37(3) amendment is made for rectification of errors and omissions in annual return allowed up to 30th November following the end of the financial year to which such details pertain, or furnishing of the relevant annual return, whichever is earlier. Sections 42 & 43 are omitted. |
| 5 | Section 103 of Finance Act,2022 | Section 37(4) is inserted. Registered persons shall be entitled to file GSTR-1 only if GSTR-1 for earlier tax periods have been filed |
| 6 | Section 104 of Finance Act,2022 | Newly inserted Section 38 of CGST Act 2017 for Communication of details of inward supplies and input tax credit i.e. GSTR-2B |
| 7 | Section 105 of Finance Act,2022 | (a) Due date of GSTR-5 is being changed to 13th day after the end of calendar month (Section 39(5)) (b) registered person shall have option to pay tax of other amount instead of self-assessment tax determined as per return (Section 39(7)) (c) Time limit for rectification of error or omission or incorrect particulars in GSTR-3B (return) & GSTR-8 is 30th November following the end of the financial year to which such details pertain, or the actual date of furnishing of relevant annual return, whichever is earlier. (Section 39(9)) (d) registered person shall not be allowed to file GSTR-3B for tax period if GSTR-1 of that tax period is not filed.(Section 39(10)) |
| 8 | Section 106 of Finance Act,2022 | Section 41: Self –assessed credit will subject to payment of tax paid by the supplier |
| 9 | Section 107 of Finance Act,2022 | Section 42, 43 & 43A of CGST Act,2017 are omitted |
| 10 | Section 108 of Finance Act,2022 | Section-47 Amendment: Late fees for inward supply is abolished & Late fee for GSTR-8 is introduced |
| 11 | Section 109 of Finance Act,2022 | Amendment in Section 48 of CGST Act, 2017 |
| 12 | Section 110 of Finance Act,2022 | Amendment in Section 49(4): The amount available in Electronic Credit Ledger is used for payment of output tax in prescribed manner and subject to conditions as prescribed. Section 49(12) of CGST Act is introduced for Maximum liability that can be discharged by electronic credit ledger |
| 13 | Section 112 of Finance Act,2022 | Amendment of Section 52 of CGST Act,2017 |
| 14 | Section 113 of Finance Act,2022 | Substitution of Section 54(2): Time limit for claiming refund in case of agency like UNO is enhanced. Amendment in Section 54(10): proper office will be entitled to withhold the refund if registered person claiming such refund has defaulted in filling of return or in making payment dues to government. Sub-clause (ba) of section 54 is inserted for relevant date for refund in the case of zero-rated supply to SEZ Unit/Developer |
| 15 | Section 114 of Finance Act,2022 | Amendment in Section 168 of CGST Act,2017 |
Note: All the above sections of the Finance Act, 2022 have already been discussed in our old presentation named GST Budget 202 as per clauses of the Finance Bill.
Notification No.20/2018 are no longer in effect | GST Updates Summary September-2022
The notification No.20/2018 dated March 28, 2018, which pertains to the extension of the due date for filing refund applications under section 55 by notified agencies, has been rescinded.
Notification No.20/2018 is related to how certain specified organizations can claim a refund on taxes they paid for specific goods or services. These organizations include specialized UN agencies, certain financial institutions, foreign embassies, and others. They can claim this refund as long as they meet certain conditions outlined in the Central Goods and Services Tax Rules, 2017.
The notification also mentions that these organizations need to apply for a refund within six months from the end of the quarter in which they received the goods or services. Recently, a system has been set up on the common portal to make it easier for them to claim these refunds.
Now, based on the powers granted by the Central Goods and Services Tax Act, the government is specifying that these specified organizations need to apply for the refund within eighteen months from the end of the quarter in which they received the supplies.
Guidelines for Filling and revising Transitional Credit Forms | GST Updates Summary September-2022
Directions issued by Hon‘ble Supreme Court vide order dated 22.07.2022 in the matter of Union of India vs. Filco Trade Centre Pvt. Ltd.
The GSTN (the online platform for tax-related activities) has been told to allow the filing of certain forms related to claiming Transitional Credit for two months starting from September 1, 2022, to October 31, 2022
Taxpayers who were affected by certain situations and didn’t file the required forms before can now do so, regardless of whether they filed a petition in the High Court or if their case was handled by the ITGRC (Information Technology Grievance Redressal Committee).
The GSTN has to make sure that their online system works smoothly during this period.
Tax officials will have 90 days after this period to check the claims for Transitional Credit and make decisions based on the facts, giving a fair chance to everyone involved.
If the Transitional Credit is approved, it will be added to the Electronic Credit Ledger, a record of tax credits.
The GST Council may give additional guidelines to tax officers about verifying these claims. The Supreme Court has settled this matter, and any pending applications related to it are also resolved
The Supreme Court extended the time for opening the GST Common Portal by four weeks
As per this extension, taxpayers can file or revise forms (TRAN-1/TRAN-2) related to Transitional Credit on the common portal from October 1, 2022, to November 30, 2022.
The Board clarifies guidelines for filing or revising these forms:
- Use Form GST TRAN-1/TRAN-2 and electronically verify it on the portal.
- Upload a PDF declaration as per Annexure ‘A’ and, if applicable, a TRANS-3 form.
- Claims for certain types of transitional credits must not be filed.
- Consolidate claims in Form GST TRAN-2 instead of filing tax period-wise.
- Submit a self-certified copy of the filed form and relevant documents to the tax officer within seven days.
This is a one-time opportunity for filing or revising these forms, and once submitted, no further changes are allowed
Tax officers will verify the claims, and if approved, the credit will be reflected in the Electronic Credit Ledger on the portal.
In essence, taxpayers have a limited period to file or revise specific forms related to transitional credits under GST, with strict guidelines and a one-time chance for corrections or submissions.
Guidelines for Prosecution under CGST Act, 2017| GST Updates Summary September-2022
| Heading | Summary |
| What is Prosecution? | It’s when legal action starts against someone for breaking the law. |
| Offences under CGST Act, 2017 | Section 132 lists crimes that can lead to prosecution under this law. |
| Getting Permission for Prosecution | Before prosecuting someone, strong evidence is needed, and cases are assessed individually. Prosecution isn’t for minor issues or technical disagreements. |
| When to Decide on Prosecution | Usually decided right after finding someone guilty in tax cases. However, serious cases may start sooner. The decision isn’t based on whether the person is appealing the tax decision. |
| Monetary Limits for Prosecution | Prosecution typically happens for larger tax frauds, unless the person is a repeat offender or there’s been an arrest. |
| Who Can Approve Prosecution? | Only top officials can approve filing a case against someone. |
| Steps for Prosecution | Cases with arrests should move quickly to court. The evidence should be strong and clearly show wrongdoing. |
| Withdrawing Prosecution | If new evidence shows innocence or a mistake, the prosecution can be stopped. |
| Keeping Track of Cases | Top officials need to monitor progress regularly to ensure cases move forward. |
| Compounding Offences | Some offences can be resolved with a fine instead of going to court. |
| Training and Support | Officers involved in prosecution should receive proper training and guidance. |
| Overall Monitoring and Compliance: | All departments must follow these guidelines closely. |
Note – This summary covers the main points about how and when prosecution can happen under the CGST Act, 2017.
Certain changes in CGST Rules applicable from 01-10-2022| GST Updates Summary September-2022
| Rules of CGST Act,2017 | Clause of Rules |
| Rule -21 Registration to be cancelled in certain cases | (h) – Added w.e.f 01-10-2022 (i)- Added w.e.f 01-10-2022 |
| Rule 36- Documentary Requirement and condition for claiming ITC | Sub-rule (2)- the words, letters and figure “and the relevant information, as contained in the said document, is furnished in FORM GSTR-2 by such person” omitted w.e.f 01-10-2022 Sub-rule (4) clause (b) after the words “the details of”, the words, “Input tax credit in respect of “ shall be inserted; |
| Rule -37 Reversal of input tax credit in the case of non-payment of consideration | Sub rule (1) & (2) substituted w.e.f 01-10-2022. Sub rule (3)- The registered person shall be liable to pay interest at the rate notified under sub-section (1) of section 50 for the period starting from the date of availing credit on such supplies till the date when the amount added to the output tax liability, as mentioned in sub-rule (2), is paid.” shall be omitted w.e.f 01-10-2022. |
| Rule – 38 Claim of credit by a banking company or a financial institution | (a) (ii) – the word, letters and figure, “in FORM GSTR-2” omitted w.e.f 01-10-2022 (c ) – for the words, letters and figure, ”and shall be furnished in FORM GSTR 2A” the words, letters and figure, “and the balance amount of input tax credit shall be reversed in FORM GSTR-3B” shall be substituted w.e.f 01-10-2022 (d ) – Omitted with effect from 01-10-2022 |
| Rule -42 Manner of determination of input tax credit in respect of inputs or input services and reversal thereof | Sub rule (1) clause (g) the words, letters and figure, “at the invoice level in FORM GSTR-2 and” -omitted w.e.f 01-10-2022 |
| Rule -43 Manner of determination of input tax credit in respect of capital goods and reversal thereof in certain cases. | in sub-rule (1), the words, letters and figure, “FORM GSTR-2 and “ at both the places where they occur -Omitted w.e.f |
| Rule-60 Form and manner of ascertaining details of inward supplies. | In sub rule (7) the word “ auto drafted”, the words “auto generated’ substituted w.e.f 01-10-2022. |
| Rule -69 Matching of claim of input tax credit. | Omitted w.e.f 01-10-2022 |
| Rule-70 Final acceptance of input tax credit and communication thereof.— | Omitted w.e.f 01-10-2022 |
| Rule-71 Communication and rectification of discrepancy in claim of input tax credit and reversal of claim of input tax credit | Omitted w.e.f 01-10-2022 |
| Rule-72 Claim of input tax credit on the same invoice more than once. | Omitted w.e.f 01-10-2022 |
| Rule-73 Matching of claim of reduction in the output tax liability. | Omitted w.e.f 01-10-2022 |
| Rule-74 Final acceptance of reduction in output tax liability and communication thereof. | Omitted w.e.f 01-10-2022 |
| Rule-75 Communication and rectification of discrepancy in reduction in output tax liability and reversal of claim of reduction | Omitted w.e.f 01-10-2022 |
| Rule -76 Claim of reduction in output tax liability more than once | Omitted w.e.f 01-10-2022 |
| Rule-77 Refund of interest paid on reclaim of reversals. | Omitted w.e.f 01-10-2022 |
| Rule-79 Communication and rectification of discrepancy in details furnished by the e-commerce operator and the supplier. | Omitted w.e.f 01-10-2022 |
| Rule-83 Provisions relating to a goods and services tax practitioner | in sub-rule (8), in clause (a), the words “and inward” omitted w.e.f 01-10-2022. |
| Rule-85 Electronic Liability Register | in sub-rule (2), in clause (b), for the words “said person”, the words “said person; or “ substituted w.e.f 01-10-2022 clause (c) omitted w.e.f 01-10-2022 |
| Rule-89 Application for refund of tax, interest, penalty, fees or any other amount | After the words “claiming refund of”, the words, brackets and figures “any balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49 or “ inserted w.e.f 01-10-2022. Rule 89 -First proviso -Omitted w.e.f 01-10-2022 in the second proviso, for the words “Provided further that”, the words “Provided that” substituted w.e.f 01-10-2022 in the third proviso, for the words “Provided also that”, the words “Provided further that” substituted w.e.f 01-10-2022 in sub-rule (3), for the words, letters and figures, “FORM GSTR-3 or FORM GSTR-3B, as the case may be”, the letters and figure, “FORM GSTR-3B “shall be substituted |
| FORM GSTR-1A, FORM GSTR-2 and FORM GSTR-3 of the said rules shall be omitted; | |
| Form GST PCT-05 | in Part-A, in the table, against Sr. No.1, under the heading “List of Activities”, the words, “and inward “, shall be omitted. |
Read similar article