GST Notification 39/2021 | Seeks to bring into force certain clauses of Finance Act, 2021 with effect from 1st January, 2022

GST Notification 39/2021-Central Tax ,dt. 21-12-2021

1. Scope of Supply expanded by way of adding new clause (aa) in section 7, in sub-section (1), after clause (a)
Retrospective effect from 01.07.2017 to include all activities or transactions between a person other than individual and its members or constituents for cash, deferred Payments or other valuable consideration by undertaking suitable amendments.
Above entry did not include supply of services.
2. In section 16 of the Central Goods and Services Tax Act, in sub-section (2), after clause (a), the following clause shall be inserted, namely:–– Amendment of section 16. “(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37;”.
Mandatory mapping of inwards in GSTR 2A/2B

There are 4 criteria’s for availing ITC. An additional criteria is being prescribed by way of an amendment4 to that ITC of a particular invoice/debit note is available only when the same is furnished by the supplier in his statement of outward supply i.e. FORM GSTR-1 and it has been communicated to the recipient in the prescribed manner i.e. in FORM GSTR-2A/2B.

3. In section 74 of the Central Goods and Services Tax Act, in Explanation 1, in clause (ii), have removed provision “129 and 130”, meaning thereby
Seizure and confiscation of goods and conveyances in transit a separate proceeding from recovery of tax required.

4. In section 75 of the Central Goods and Services Tax Act, in sub-section (12), the following Explanation shall be inserted, namely:–– ‘Explanation.––For the purposes of this sub-section, the expression “self-assessed tax” shall include the tax payable in respect of details of outward supplies furnished under section 37(GSTR 1), but not included in the return furnished under section 39 (GSTR 3B)
5. In section 83 of the Central Goods and Services Tax Act, for sub-section (1), the following sub-section shall be substituted, namely:–– “(1) Where, after the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue it is necessary so to do, he may, by order in writing, attach provisionally, any property, including bank account, belonging to the taxable person or any person specified in sub-section (1A) of section 122, in such manner as may be prescribed.”.
The powers of provisional attachment of property under Section 83 has been increased
6. In section 107 of the Central Goods and Services Tax Act, in sub-section (6), the following proviso shall be inserted, namely:–– “Provided that no appeal shall be filed against an order under sub-section (3) of section 129, unless a sum equal to twenty-five per cent. Of the penalty has been paid by the appellant.”.
The taxpayer is required to pay 25% of the penalty as pre-deposit in cases where an appeal is filed for cases pertaining to detention or seizure of goods or conveyance.
7. Penalty of 200% of tax shall be payable instead of 100% in case of section 129 of the CGST Act relating to Detention, seizure and release of goods and conveyances in transit.
8. In Schedule II of the Central Goods and Services Tax Act, paragraph 7 shall be omitted and shall be deemed to have been omitted with effect from the 1st day of July, 2017.
Supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration omitted with effect from the 1ST day of July 2017.
9. Provisions relating to Zero Rated Supply:
a) The term zero-rated supply18 has been amended to that zero rated supply of goods or services or both means such supplies provided for authorised operations to a Special Economic Zone developer or a Special Economic Zone unit.
b) The mechanism for claiming refund of zero-rated supplies of goods has been amended19 to state that refund claimed u/r 89 of the CGST Rules, 2017 is linked to the time limit prescribed under FEMA Act, 1999. In case of non-realization of export proceeds the said refund should be deposited along with applicable interest.
c) The Government may notify such class of taxpayers who may make zero rated supply on payment of integrated tax and claim refund of tax.
d) The Government may notify such goods or services which may be exported on payment of integrated tax and the supplier of such goods or services may claim refund of tax so paid.

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