Updates on 47th GST Council Meeting dated 28th and 29th June and subsequent notifications

Hon’ble Finance Minister Nirmala Sitharaman chaired the 47th GST Council Meeting held on 28th and 29th June in Chandigarh. The major outcomes of the meeting are as follows:

1) Amendment in GSTR 3BGST Council proposed amendment/ rectification of GSTR-3B (Monthly GST return). Further, it proposed auto-population of most details in Form GSTR-3B and Form GSTR-9 for better compliance and ease in compliance.

2) Goods transport agency (GTA) is being given an option to pay GST at 5% or 12% under forward charge. They have to exercise this option at the beginning of Financial Year. If not opted for the same, recipient taxpayer will be liable to pay GST under Reverse Charge Mechanism.

3) GSTR 9 (Annual Return): Exemption have been given to taxpayer in filling annual return in FORM GSTR 9/9A for FY 2021-22 having annual aggregate turnover up to INR 2 Crores which has been notified through notification no 10/2022- Central Tax dated 05th July 2022.

4) E-Commerce Operators (ECOs): GST council agreed to ease compliance of mandatory registration under section 24(ix) of CGST Act for person supplying goods through E-Commerce Operators . Person supplying goods through ECOs do not have to mandatorily registered under GST, if turnover of the taxpayer is not exceeding 40 lakh in case of supply of goods and 20 lakh in case of supply of services or the person is not making any interstate taxable supply. If Person supplying Goods through ECO is doing intra state supply he can be registered under composition scheme which will be implemented from 1st Jan 2023.

5) Composition Dealer: Late fee waiver has been granted for Annual return of composition dealer (GSTR 4) of FY 2021-22 till 28th July 2022 earlier it was up to 30th June 2022.

Also Due date of CMP 08 for April –June of FY 2022-23, has been extended till 30th July 2022, earlier it was 18th July 2022.

6) Pending IGST Refund Claims : Where the exporter is identified as risky exporter requiring verification by GST officers, or where there is a violation of provisions of Customs Act, the refund claims in respect of export of goods are suspended/withheld, the council has recommended for Amendment in rule 96 of the CGST Rules to provide for transmission of such IGST refund claims on the portal in a system generated FORM GST RFD-01 to the jurisdictional GST authorities for processing. This would result in expeditious disposal of such IGST refund claims, after due verification by GST officers, thus benefitting such exporters.

7) Re-credit of amount in electronic credit ledger : Re-credit of amount in electronic credit ledger to be provided in those cases where erroneous refund amount was sanctioned to a taxpayer on account of accumulated ITC or on account of IGST paid on zero rated supply of goods or services, in contravention of rule 96(10) of the CGST Rules, is deposited by him along with interest and penalty, wherever applicable. A new FORM GST PMT-03A is introduced for the same. This will enable the taxpayers to get re-credit of the amount of erroneous refund, paid back by them, in their electronic credit ledger.

8) UPI & IMPS are added as an additional mode for payment of Goods and Services Tax to taxpayers under Rule 87(3) of CGST Rules through notification no 14/2022- Central Tax dated 5th July 2022.

9) Retrospective amendment in section 50(3) of CGST Act: -Interest will be payable on wrongly availed ITC only when the same is utilized which is notified through notification no 14/2022- Central Tax dated 05th July 2022.

10) Provision for automatic revocation of suspension of registration in cases where suspension of registration was done by the system under Rule 21A(2A) of CGST Rules, for non-compliance in terms of clause (b) or clause (c) of sub-section (2) of section 29[continuous non-filing of specified number of returns], once all the pending returns are filed on the portal by the taxpayer. (Amendment in rule 21A)

11) Amendment in sub-section (10) of section 49 of CGST Act: -To allow transfer of balance in Electronic Cash ledger of a registered person to electronic cash ledger of a distinct person. (Applicable to Multiple GSTIN under same PAN)

12) Refund of Inverted Duty Structure : Formula for calculating Refund related to Inverted duty structure has been amended though notification no 14/2022- Central Tax dated 05th July 2022. The formula shall now include utilization of ITC on account of inputs as well as input services for payment of output tax on inverted rated supplies in the same ratio in which ITC has been availed on inputs and input services during the said tax period.

Apart from above changes, below are the things notified under notifications issued by CBIC dated 5th July 2022:

1) E invoice : If taxpayer is required to issue E invoice as per rule no 48 and he is not issuing the same, he shall provide the declaration for the same on invoice as below-
“I/We hereby declare that though our aggregate turnover in any preceding financial year from 2017-18 onwards is more than the aggregate turnover notified under sub-rule (4) of rule 48, we are not required to prepare an invoice in terms of the provisions of the said sub-rule.”

2) Interest on delayed payment of tax liability : In case where the supplies made by registered taxpayer is furnished in return for the said period and the date of furnishing return is after due date of the said return , the interest on tax payable in respect of such supplies shall be calculated on portion of tax which is paid by taxpayer through cash ledger.

3) GSTR 3B : Separate tab for reporting taxable supply by ECOs have been inserted. Also, ineligible ITC under section 16(4) (time limit to avail ITC) and ITC restricted sue to PoS should be reported separately in GSTR 3B.

4) GSTR 9 : Exemptions regarding GSTR 9 available in FY 2019-20, FY 2020-21 shall be available for FY 2021-22 except that the registered taxpayers having Annual Turnover of INR 5 crore or more in preceding year, are required to report HSN (Six Digit) summary for supply of sale.

Notification No. 09/2022–Central Tax

Notification No. 10/2022–Central Tax

Notification No. 11/2022–Central Tax

Notification No. 12/2022–Central Tax

Notification No. 13/2022–Central Tax

Notification No. 14/2022–Central Tax

Notification of 47th GST Council Meeting

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