1. Extension in time-limit to claim ITC under GST - It seeks to amend section 16(4) of the CGST Act, 2017 so as to provide that a registered person shall not be entitled to take input tax credit in respect of any invoice or debit note after the thirtieth day of November (Earlier this date was 20th Oct i.e. last due date for filing GSTR -3B for September) following the end of the financial year to which such invoice or debit note pertains, or furnishing of the relevant annual return, whichever is earlier.
ASC Interpretation: - As per Finance Bill 2022-23, ITC in respect of invoices pertaining to a financial year can be claimed up to 30th November of the next financial year.
2. Amendment in sub-section (2) of section 34 of the CGST Act so as to provide for thirtieth day of November following the end of the financial year, or the date of furnishing of the relevant annual return, whichever is earlier, as the last date for issuance of credit notes in respect of any supply made in a financial year.
ASC Interpretation: - As per Finance Bill 2022-23 date of issuance of credit note in respect of invoices pertaining to a financial year has been extended till 30th November of next financial year.
3. To amend proviso to sub-section (6) of section 52 (TCS Return) of the CGST Act so as to provide for thirtieth day of November following the end of the financial year, or the date of furnishing of the relevant annual return, whichever is earlier, as the last date upto which the rectification of errors shall be allowed in the statement furnished under sub-section (4).
ASC Interpretation: - Rectification of errors in respect of TCS return has been allowed till 30th November of next financial year.
4. Amended sub-section (10) of section 49 so as to allow transfer of amount 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 a distinct person. It also seeks to insert sub-section (12) so as to provide for prescribing the maximum proportion of output tax liability which may be discharged through the electronic credit ledger.
ASC Interpretation: - Further amount available in Electronic Cash Ledger of a registered person is now transferable to its deemed distinct person (Having same PAN with different GSTN) under the said amendment.
5. Substitute a new sub-section for sub-section (3) of section 50 (Interest on wrongly availed ITC) of the CGST Act, retrospectively, with effect from the 1st July, 2017, so as to provide for levy of interest on input tax credit wrongly availed and utilised, and to provide for prescribing manner of calculation of interest in such cases.
To amend notification number G.S.R. 661(E), dated the 28th June, 2017, so as to notify rate of interest under sub-section (3) of section 50 of the Central Goods and Services Tax Act as 18%, retrospectively, with effect from the 1st day of July, 2017.
ASC Interpretation: - Interest will be levied on wrong availment and utilization of ITC will be covered under section 50 (3) and interest rate will be 18% instead of 24% as provided earlier under the said section.
6. Amendment in section 29(2)(b) of the CGST Act, 2017 so as to provide that the registration of a person paying tax under section 10 (Composite Dealer) is liable to be cancelled if the return for a financial year has not been furnished beyond three months from the due date of furnishing of the said return. It further seeks to amend clause (c) of the said sub-section (2) so as to provide for prescribing continuous tax periods for which return has not been furnished, which would make a registration liable for cancellation, in respect of any registered person, other than a person specified in clause (b) thereof.
ASC Interpretation: - As per Finance Bill 2022-23 Composition Tax Payer’s Registration can be cancelled suo-moto if they have not filed their GSTR-4 return beyond 3 months from the due date.
7. Section 16 of the CGST Act, 2017 by inserting a new clause (ba) in sub-section (2) thereof, so as to provide that input tax credit with respect to a supply may be availed only when such credit has not been restricted in the details communicated to the registered person under section 38.
ASC Interpretation: - A new clause has been inserted under section 16 (2) of CGST Act 2017 namely (ba) for providing restrictions in respect of details communicated to registered person under section 38.
Further, the old section 38 has been replaced with new one to prescribe manner, time, conditions and restrictions for communicating details of ITC through an auto generated system. Also providing for ITC that can be availed or can-not be availed by the recipient.
8. Amendment in sub-section (1) of section 47 of the CGST Act so as to provide for levy of late fee for delayed filing of return under section 52 (i.e. TCS Return) and to remove reference of section 38 as there is no requirement of furnishing details of inward supplies by the registered person under the said section 38.
ASC Interpretation: - Late fee liveability has been extended to delay the filing of TCS returns also.
9. To amend sub-section (4) of section 49 of the CGST Act, so as to provide for prescribing restrictions for utilizing the amount available in the electronic credit ledger.
ASC Interpretation: - New restrictions for utilization of amount available in Electronic Credit Ledger will be provided.
10. GST Refund:- Refund from Electronic Cash Ledger to amend proviso to sub-section (1) of section 54 of the CGST Act, so as to explicitly provide that claim of refund of any balance in the electronic cash ledger shall be made in such form and manner as may be prescribed.
It further seeks to amend sub-section (2) so as to align it with sub-section (1) by providing a time limit of two years from the last day of the quarter in which the supply was received for claiming refund of tax paid on inward supplies of goods or services or both by the person specified in the said sub-section.
It also seeks to amend sub-section (10) so as to extend the scope of the said sub-section to all types of refund claims. It also seeks to insert a new sub-clause (ba) in clause (2) of Explanation in order to provide clarity regarding the relevant date for filing a refund claim in respect of supplies made to a Special Economic Zone developer or a Special Economic Zone unit.
ASC Interpretation: - Application for refund of Electronic Cash Ledger can now be made in a prescribed manner however earlier it could be claimed in the return furnished under section 39. Further, the time limit in respect of sub-section 2 has been changed from 6 months to 2 years from the last day of the quarter in which the supply was received.
Also, restrictions provided in clause 10 is now applicable to all kind of refund claims.
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