The Union Budget for the Financial Year 2022-23 (‘the Budget’) was addressed in Lok Sabha by Hon’ble Finance Minister Nirmala Sitharaman dated 1st Feb 2022. After the pandemic, the importance of IT in India is been acknowledged this was the 2nd Union budget that was shown on the tablet and not the traditional Bhai Khata. Making the IT infrastructure stronger and related facilities in India would be the major focus of the budget.
Moreover, under the Finance bill, 2022 different revisions have been performed in the customs, central excise, and GST law. Inside the budget, the amendments for the GST are being introduced vide clause 99 to 113 that would be effected from the given date.
New Section 49 Amendments for Tax Payment, Penalty and Interest
The tax payment, penalty, interest and other amounts are one of the major changes performed in the budget 2022-23 under section 49 of the CGST act. The summary of changes performed in the mentioned section is given as:
Section 49(2) Under GST
Current Provision: The ITC as self-assessed in the return of the enrolled individual would be credited to his electronic credit ledger, as per section 41 or section 43A to be maintained in this way as provided.
Proposed in Budget 2022: The ITC as self-assessed in the return of the enrolled individual would be credited to his electronic credit ledger as per section 41 which is needed to maintain in mentioned way.
Section 49(2) Analysis of CGST Act
Inside the central goods and services tax act 2017, Section 43A was added mentioning the steps for filing the returns and claiming the ITC. the purpose of inserting the same section was to process out the amendments in the return reporting the framework and when this is made by the CGST laws.
Insertion of section 43A would outcome with the claim of the input tax credit on the provisional grounds despite not filing any other conditions. The intention of the lawmaker is to permit the assessee to avail the ITC in their GSTR-3B only towards the extent of the amount appearing in their GSTR-2B or GSTR-2A.
Acknowledging that the mentioned section poses redundant it gets eliminated and indeed the reference of that is being eliminated from section 49(2).
Section 49(4) Under IGST Act
Current Provision: The present amount inside the electronic cash ledger might be utilized for making the payment for the output tax beneath this act of the Integrated Goods and Services Tax Act in the way as per the conditions and under the given time as might be mentioned.
Proposed in Budget 2022: The present amount inside the electronic cash ledger might be utilized for furnishing the payment for the output tax beneath this act of the Integrated Goods and Services Tax Act in the way as per the conditions and limitations and in the time as mentioned.
Analysis of Section 49(4) Under GST Law
We know about the conditions and limitations to claim the ITC beneath the GST law. Also, the government is doing the amendments with time as per the ITC laws. After the taxpayers reveal the number of claims of ITC the taxpayers would be permitted beneath the law to use the ITC excluding any limitations.
Orissa High court for the case of the Jyoti Construction vs. Deputy Commissioner of CT & GST and Anr ruled that the electronic cash ledger would not get debited to make the payment of pre-deposit by eliminating the appeal furnished by the applicant beneath section 107(1) of Odisha Goods and Services Tax Act, 2017.
Additional tax liability payment furnished via DRC-03 under GST would be undergone through debiting the credit ledger or not beneath the debate.
Section 49(10) for GST Electronic Cash Ledger
Current Provision: An enrolled individual might be the common portal for the transfer of any tax, interest, penalty, fee, or any other amount available in the electronic cash ledger beneath the same act to the electronic cash ledger for integrated tax, central tax, State tax, Union territory tax or cess, in such form and in the way also the conditions and the limitations would be inserted and the transfer will be considered to be the refunds from the electronic cash ledger.
Proposed in Budget 2022: An enrolled individual might be on the common portal the transfer of any tax, interest, penalty, fee, or any other amount available in the electronic cash ledger beneath this Act, to the electronic cash ledger for (a) integrated tax, central tax, State tax, Union territory tax or cess; or (b) integrated tax or central tax of a different person as defined in sub-section (4) as per the case subsection (5) of section 25, in this form as per the conditions and restrictions are given and this transfer will be considered as the refund from the electronic cash ledger:
- (a) Sustained that no transfer beneath clause
- (b) would be permitted when expressed registered individual has any unpaid liability in his electronic liability register
New Section 49(10) Analysis Under GST
Different examples in which the payment of liability is made by the assessee in incorrect GSTIN anonymously. To surpass that the sub-section 10(b) of Section 49 of the CGST Act, 2017 has been incorporated that permits the amount transfer available in electronic cash ledger under the CGST Act of a registered person to the electronic cash ledger under the said Act or the IGST Act of an individual person. Moreover, the balance in the cash ledger beneath one GSTIN would be transferred to the other GSTIN beneath that PAN.
Section 49(12) for GST E-credit Ledger
Current Provision: None
Proposed in Budget 2022: (12) Notwithstanding anything exits in this act the government might on the suggestion of the administration to these conditions and restrictions mention these maximum proportion of the output tax liability beneath the same law or under the Integrated Goods and Services Tax Act, 2017 that might release via electronic credit ledger with the help of the enrolled individual or the class of the enrolled individual as mentioned.
Section 49(12) Analysis Under GST
The provision of rule 86B in which the assessee who has the taxable supplies more than 50 lakhs were needed to furnish at least 1% of the liability through the payment of cash could be done via machinery. Thus Rule 86B would be legitimate.
Closure:
The same is due to that even after the assessee accepts various conditions occurs beneath section 16 and claim the credits section 49(2) would get limit its claim for the particular purposes.
GST was incorporated with the intention of seamless credit with lower or no limitations but the truth is just opposite to that. The assessee needs to fight for every penny of the credit attained via real tax payments.
