Changes in GST Effective From 1st January 2022

With the beginning of new year many important changes in GST have been made effective. We have summarized a list of new changes as applicable from 1st January 2022:

A. Mandatory Aadhar authentication: For the purpose of application for GST Refund and revocation application, Aadhar authentication has been made mandatory. (Notification No. 38/2021- Central Tax dated 21st December 2021)

B. Blocking of GST Return filing: A registered taxpayer shall not be allowed to file his GSTR 1 Return in case his GSTR 3B has not been filed for the preceding month. (Notification No. 35/2021- Central Tax dated 24th September 2021)

C. Changes for taking ITC: ITC claims will be allowed only when the details of such invoice or debit note have been furnished by the supplier in his GSTR 1 and subsequently, it appears in GSTR 2A/2B. No additional 5% ITC can be claimed. (through amendment in Section 16(2) of CGST Act, 2017 by inserting clause (aa))

D. Power to recover tax where GSTR 3B is not filed: Department shall have power to recover tax where a taxpayer has furnished GSTR 1 but not filed GSTR 3B return or have declared more output liability in GSTR 1 and paid less output liability through GSTR 3B return . GST Officials to make surprise recovery visits and the department is not required to give any notice for the same. (through explanation added to Section 17(12) of CGST Act, 2017)

E. Scope of Supply: Any activities or transactions by a person other than an individual to its members or constituents or vice versa for cash, deferred payment or other consideration shall be considered as a supply. (through amendment in section 7(1) of CGST Act, 2017 by inserting clause (aa) retrospectively from 1st July 2017)

F. GST Burden on E Commerce Food Delivery platforms: Food delivery platforms shall be made liable to pay tax on services provided by them. These food delivery apps will have to collect and deposit 5% GST with the Government in place of restaurants for deliveries made by them. (through 45th GST Council Meeting dated 17th September 2021)

G. Revision of GST Rates on various textile products and job work: As per Notification No. 14/2021- Central Tax (Rate) and Notification No. 15/2021- Central Tax (Rate) dated 18th November 2021, there will be revision in GST Rates on textile products and job work on them.

H. Changes in Provision related to Detention, Seizure and confiscation of Goods: Penalty applicable in case of detention has been increased from 100% of tax to 200% of tax in case of taxable goods and 2% of value of goods or INR 25,000 whichever is less for exempted goods.

I. Attachment of Property and Bank Accounts: New amendment shall allow attachment of Property including Bank Accounts on initiation of any proceeding. It further allows attachment of property and bank accounts of beneficiary as well.  

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