Goods and Service Tax (“GST”) has gone through various changes since implementation and government is making all the efforts to make sure that ITC is claimed only to the extent which is appearing in GSTR-2A and all the practises of passing of fake Input Tax Credit without actual movement of goods is avoided to the maximum. Also, provisions with respect to e-way bill have also been made stringent to make sure that no movement of goods is made without accompanying e-waybill.
In this directions, CBIC has announced some major amendments in Goods and Service Tax which are to be made effective from 01.01.2022. Following are the key changes becoming applicable from 01.01.2022:
1. Aadhar Authentication for Registered Person
- With effect from 01.01.2022, every person registered under GST shall get his Aadhar Authentication done.
- Aadhar Authentication shall be carried out of authorised signatory and following persons:
| Nature of Entity |
Person required to get his Aadhar Authentication done |
| Proprietorship Concern |
Proprietor |
| Partnership Concern |
Any of the partner |
| HUF |
Karta |
| Company |
Managing Director or any of Whole Time Director |
| AOP/BOI/Society |
Any of the Members of the Managing Committee |
| Trust |
Trustee in the Board of Trustees |
- In case of failure to complete Aadhar Authentication, the entity shall not eligible for following actions on GST Portal:
- Filing of application for revocation of cancellation of GST Registration
- File Application of refund in Form GST RFD-01 under Rule 89
- Refund of IGST paid on export of goods
- If Aadhar number has not been alloted to the concern person then he shall submit the following documents for identification:
- Aadhaar Enrolment ID slip and
- Bank passbook with photograph/ Voter ID Card/ Passport/ Driving Licence
- However, Aadhar authentication should be completed within 30 days of Allotment of Aadhar number
2. GST Leviability on activities or transactions between any person, other than individual, and its members
- Under existing provisions, as per Para 7 of Schedule II of CGST Act, 2017, supply of goods by unincorporated associations or BOI to its members for consideration are treated as “Supply of Goods” and therefore, such supply is liable to GST.
- There has been a lot of litigations around applicability of GST on goods supplied or services provided by AOP/Society/BOI to its members. There are various precedences on the same.
- In the matter of STATE OF WEST BENGAL & ORS. VERSUS CALCUTTA CLUB LIMITED AND CHIEF COMMISSIONER OF CENTRAL EXCISE AND SERVICE & ORS. VERSUS M/S. RANCHI CLUB LTD. [2019 (10) TMI 160 - SUPREME COURT], Hon’ble Supreme Court held that there can be no sale of goods or provision of service between Unincorporated persons and its members due to principle of mutuality. Society/clubs etc. and its members are treated as the same person.
- To remove the effect of such precedence, Section 7 of CGST Act, 2017 has been amended to incorporate that the activities or transactions by a person (other than an individual) to its members or constituents or vice-versa for consideration shall be considered as “supply”. Therefore, the same shall be liable to GST.
- Further, as per explanation, such person and its members or constituents shall be deemed to be two separate persons.
- To override precedence of Hon’ble supreme court, such amendment has been given retrospective effect from 01.07.2017.
- Further, the corresponding entry in Schedule No. II has been deleted with effect from 01.07.2017 itself.
3. ITC limited to invoices appearing in GSTR-2A/GSTR-2B
- Provisions related to eligibility to claim ITC are given under Section 16 of CGST Act read with Rule 36 of CGST Rules, 2017.
- As per Rule 36(4) of CGST Rules, 2017, every registered person is entitled to claim ITC with respect to invoices which are uploaded by supplier in GSTR-1 and which are correspondingly appearing in GSTR-2A/2B of the recipient.
- However, for the invoices not uploaded by the supplier in GSTR-1, the registered person shall be entitled to claim ITC to the extent of 5%.
- With effect from 01.01.2022, liberty of additional ITC of 5% has also been taken away. As per amendment in Section 16 of CGST Act, a registered person shall be entitled to claim ITC with respect to those invoices or debit notes which are uploaded by supplier in his GSTR-1 and same are appearing in GSTR-2A/2B of the recipient.
- Corresponding amendments are also made in Rule 36(4) of CGST Rules, 2017.
4. Tax payable with respect to sales disclosed in GSTR-1 but not included in GSTR-3B (Section 75 of CGST Act, 2017)
- Till 31st December, 2021, As per Section 75(12) of CGST Act, 2017, if any self assessed tax remains unpaid in accordance with details furnished in GSTR-3B then such self assessed tax shall be recovered from the assessee alongwith interest.
- For determining tax liability, details furnished in GSTR-3B shall be considered.
- With Effect from 01.01.2021, Provisions of Section 75 has been amended to include that if any sales has been disclosed in GSTR-1 and same has not been disclosed in GSTR-3B then tax on such sales is also recoverable from the registered person alongwith interest.
- Such amendment has been made to avoid malpractice of fake invoices wherein supplier issues passes on the ITC to the recipient by disclosing the sales in GSTR-1 but does not includes such sales in GSTR-3B to avoid tax payment.
- E.g.
|
GSTR-1 |
GSTR-3B |
| Taxable Turnover |
10,00,000 |
4,00,000 |
| Output GST Liability @ 18% |
1,80,000 |
72,000 |
| Input GST |
Not Disclosed |
50,000 |
- So till 31st December, 2021, registered person is liable to pay GST of INR 22,000 alongwith interest, if any.
- However, with effect from 01.01.2022, self assessment tax payable is INR 1,30,000 (180000-50000) alongwith interest, if any.
- However, such an amendment can be harsh for genuine mismatch errors in filing of GSTR-1 and GSTR-3B.
5. Enhanced power of provisional attachment of property (Section 83 of CGST Act)
- Till 31st December, 2021, GST authorities could carry out provisional attachment of property only when proceedings were pending under any of the following sections:
- Section 62-Assessment of non-filers of returns
- Section 63-Assessment of unregistered persons.
- Section 64-Summary assessment in certain special cases.
- Section 67-Power of inspection, search and seizure
- Section 73-Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts.
- Section 74-Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts.
- Further, attachment was permitted only of the properties of the concerned taxable person.
- With effect from 01.01.2022, power of GST Authorities to provisionally attach property has been extended much beyond. Provisional attachment can be carried after initiation of proceedings under Chapter XII, Chapter XIV or Chapter XV of CGST Act.
- Further, provisional attachment can also be undertaken against the person who has colluded and retained the benefits of the any transactions.
- Such amended has given blind authorities to the GST Authority which can lead to coerce taxpayers into depositing tax demands without following the due process of law
6. Pre-deposit of 25% of penalty amount for filing appeal (Section 107 of CGST Act)
- Según las disposiciones vigentes, el contribuyente debe realizar un depósito previo del 100 % de la deuda tributaria admitida y del 10 % del importe en disputa antes de presentar un recurso ante la Autoridad de Apelación.
- Sin embargo, a partir del 01.01.2022, se ha añadido una nueva condición de depósito previo del 25 % del importe de la sanción. Por lo tanto, no será posible presentar un recurso sin haber abonado dicho 25 %.
7. Disposiciones estrictas sobre la detención, incautación y liberación de mercancías y medios de transporte en tránsito (Sección 129 de la Ley CGST de 2017)
7.1 Pago de sanciones e impuestos para la liberación de mercancías
- Para garantizar que las mercancías se trasladen con las facturas y guías de remisión correctas, se ha incrementado el pago para la liberación de mercancías y medios de transporte detenidos de la siguiente manera:
| Particulars |
Existing Provisions of payment for release of detained goods |
Amended Provisions of payment for release of detained goods |
| where the owner of the goods comes forward for payment of such penalty |
In case of Taxable Goods:
(1.) Applicable Tax
(2.) Penalty-100% of tax payable
In case of exempted goods, least of the following:
(1.) 2% of the value of goods; or
(2.) INR 25,000 |
In case of Taxable Goods:
(1.) Tax Payment-no requirement
(2.) Penalty-200% of tax payable
In case of exempted goods, least of the following:
(1.) 2% of the value of goods; or
(2.) INR 25,000 |
| where the owner of the goods does not come forward for payment of such penalty |
In case of Taxable Goods:
(1.) Applicable Tax
(2.) Penalty-50% of value of the goods reduced by tax amount paid thereon
In case of exempted goods, least of the following:
(1.) 5% of the value of goods; or
(2.) INR 25,000 |
In case of Taxable Goods:
(1.) Tax Payment-no requirement
(2.) Penalty: Higher of the following amount:
(2.1) 5% of value of goods or
(2.2) 200% of tax payable
In case of exempted goods, least of the following:
(1.) 5% of the value of goods; or
(2.) INR 25,000 |
7.2 Plazo para la emisión de notificaciones y órdenes
- Se ha establecido un plazo para la emisión de notificaciones y la resolución de sanciones sobre mercancías detenidas o incautadas. Anteriormente, no existía un límite temporal definido para notificar o dictar órdenes sobre la detención o incautación de bienes o medios de transporte especificando impuestos y sanciones.No obstante, a partir del 01.01.2022, el funcionario competente deberá emitir una notificación en un plazo de 7 días tras la detención o incautación y dictar la orden definitiva en los 7 días siguientes a la fecha de notificación.
7.3 Venta de mercancías incautadas
- Si una persona no realiza el pago de los impuestos y sanciones determinados respecto a las mercancías detenidas, estará sujeta a los procedimientos de la Sección 130 de la Ley CGST de 2017 (Confiscación de bienes o medios de transporte y aplicación de sanciones).
- A partir del 01.01.2022, las secciones 129 y 130 han sido completamente desvinculadas. Si no se abonan los intereses y la deuda tributaria en un plazo de 15 días tras recibir la orden, las mercancías o el medio de transporte podrán ser vendidos o dispuestos de otra forma.
- Asimismo, el medio de transporte será liberado tras el pago, por parte del transportista, de la sanción determinada por orden o 100 000 INR, lo que sea menor.
8. Facultad de recopilación de información (Sección 151 de la Ley CGST)
- Anteriormente, el comisionado o cualquier persona autorizada por él tenía la facultad de solicitar información o declaracionesa la persona interesada.
- A partir del 01.01.2022, el Comisionado o un funcionario autorizado por él tendrá la facultad de solicitar informacióna cualquier persona.
9. Restricción en la presentación del GSTR-1 para quienes no presentan el GSTR-3B (Regla 59(6) de las Reglas CGST de 2017)
- La Regla 59(6) de las Reglas CGST de 2017 ha sido modificada para establecer que no se permitirá la presentación del GSTR-1 si no se ha presentado el GSTR-3B del mes anterior.
- Esta medida estricta se ha adoptado para reducir la facturación falsa, ya que los proveedores seguían presentando el GSTR-1 para transferir el ITC sin presentar el GSTR-3B para evitar el pago de la deuda del GST. Sin embargo, a partir del 01.01.2022, el portal del GST no permitirá presentar el GSTR-1 si el GSTR-3B del mes anterior está pendiente.
10. Modificación de las tasas del GST
- Se han realizado modificaciones en las tasas del GST de diversos bienes y servicios mediante las Notificaciones N.º 18/2021, 19/2021 y 20/2021, todas con fecha 28-12-2021 - Tasa CGST.
- Algunas de las principales modificaciones que entrarán en vigor el 01.01.2022 son las siguientes:
| Product |
Existing GST Rate |
Amended GST Rate |
| Footwear of sale value not exceeding ₹ 1000 per pair. |
5% |
12% |
| Textiles* |
5% |
12% |
| Job Work Service with respect to dyeing and printing of textile and textile products* |
5% |
12% & 18% |
* Se ha aplazado la decisión de aumentar las tasas del GST en productos textiles del 5 % al 12 %. Anteriormente, la tasa se había incrementado mediante la Notificación N.º 14/2021-Impuesto Central (Tasa), de fecha 18 de noviembre de 2021.
