The union budget 2022 has brought multiple proposals as well as amendments to the goods and services tax (GST) law and act. The Nirmala Sitharaman with his 4th union budget presentation made some GST proposals in the parliament in the Finance Bill 2022.
Major Key Changes of GST in Finance Bill 2022
Let us check out all the GST changes made by the government and are due to be applicable from the release of notification.
- The time limit to claim ITC u/s 16(4) would get extended till 30th November of the subsequent year from 30th September.
- Another condition to claim the ITC u/s 16(2)- ITC would be performed on the condition that if that is not restricted inside the GSTR-2B.
- The composition assessee’s enrollment would get cancelled suo-moto when they do not furnish their GSTR-4 return beyond 3 months from the last date.
- The credit notes towards the supply furnished in the fiscal year would be provided by the date 30th November of the subsequent fiscal year which is presently permitted till 30th September.
- If there is an amendment for the error then GSTR-1 or GSTR-3B would now get allowed till 30th November of next financial year (currently allowed till 30th September).
- The two-way communication methodology for furnishing the GST returns is discarded.
- The last date for furnishing the return by the non-resident of the taxable individual is mentioned as the 13th day of the subsequent month.
- Section 41 of the CGST Act gets exchanged so that it would get finished for claiming the ITC on the provisional grounds.
- Section 47 of the CGST act gets rectified so to impose the late fee for the late furnishing of the TCS returns.
- Section 49 of the CGST act gets rectified so to furnish the limitation for using the amount present in the electronic credit ledger.
- Section 49 of the CGST act gets rectified so to permit the transfer of the amount present in the e-cash ledger under GST of the enrolled individual to the e-cash ledger for the district individual.
- Section 49 of the CGST act gets rectified for prescribing the maximum proportion of output tax liability that gets released via electronic credit ledger.
- Section 50(3) of the CGST Act gets replaced retrospectively w.e.f. 1st July 2017 for giving the levy of the interest on the ITC claimed wrongly. (Implying thereby Interest would not be charged if ITC is not used).
- The refund availed for any balance inside the electronic cash ledger would be performed.
- For all the cases the interest rate u/s 50(3) is mentioned as 18%.
