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February 2022 went by in a jiffy! The month was fairly decent for businesses as the third wave of COVID subsided without any lockdown announcement by the government. The major highlight of the month in terms of GST was that the finance ministry released the union budget 2022 and the finance bill 2022. Major GST changes were made in the finance bill along with other updates made by the GSTN. We have collated the top GST news and GST updates from the month of February here:

Important GST Notification released in February 2022

GST Notification 01/2022 dated 24-02-2022: E-invoicing has been made mandatory for companies with a turnover of Rs. 20 Cr. or more in any FY from 2017-18 onwards with effect from 1st April 1, 2022.

E-invoicing Changes

The government has made a new announcement regarding the e-invoicing mandate. The e-invoicing threshold has been reduced further from Rs. 50 Cr.to Rs. 20 Cr turnover. As per the latest GST Notification 1/2022 released on 24th February 2022, e-invoicing has been made mandatory for all the B2B transactions from 1st April 2022 for all the entities with an aggregate annual turnover of Rs. 20 Cr. or more in any financial year from 2017-18 onwards. 

Read the complete update related to e-invoicing and SEZ, B2C, etc. here: E-invoicing Changes – Feb 2022

Budget 2022 Highlights

Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman announced the official budget for 2022 on 1st February. Some major decisions have been made for healthcare, infrastructure development, tech-enabled development, productivity enhancements, sunrise opportunities, and several decisions under the PM Gati Shakti scheme. Announcements have also been made regarding the digital economy, bitcoin, and climate actions. You can read them here: Budget 2022 Highlights

GST Changes as per the Finance Bill 2022

Union Budget 2022 was recently announced by the finance minister Smt. Nirmala Sitharaman wherein some crucial decisions were made in different areas of development. The finance bill 2022 was also announced the same day that listed key changes in GST that can significantly impact taxpayers and business owners across all spheres. Changes are in the areas of ITC, Provisional ITC, GSTN Cancellation, Changes in Return Filing, ECL and so on. Get a detailed explanation here: Important GST Changes: Union Budget 2022

GST Collection – February 2022

The GST collection for the month of February 2022 is Rs. 1,33,026 crore. It is 18 per cent higher than the same month last year!

GST Updates

• • GSTR 1/IFF Changes: Quarterly GSTR-1 filers have been provided with an optional Invoice Furnishing Facility (IFF) for reporting their outward supplies to registered persons (B2B supplies) in the first two months of the quarter.
  • Window to opt for Composition Scheme has been made available on the official GST portal for the year 2022-23. Eligible taxpayers can apply before 31st March 2022.
  • GST enables a new facility for filing LUT (Letter of Understanding) for the financial year 2022-23.
  • Module wise new functionalities deployed on the official portal for taxpayers

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November 2021 witnessed the celebration of one of the biggest festivals in the country – Diwali. And, Diwali is synonymous with shopping, thus a great time for businesses throughout the country. Also, along with the festivities, the COVID cases in most parts of India were in control. On the GST front, there were a few changes and GST updates that were released. Sharing all the latest GST news and GST updates from the month here…

Important GST Notifications and Circulars released in November 2021

GST Collection – November 2021

The gross GST revenue collected in the month of November 2021 is Rs 1,31,526 crore.

Updates on GST Compliance:

• • GST Rate hike: The Central Board of Indirect Taxation and Customs (CBIC) recently released a new GST notification 14/2021 related to the GST rate hike on fabrics, apparel, and footwear from 5%. This change will come into effect from 1st January 2022 onwards. Read the full update here:  GST Rate hike on apparel, footwear and fabrics.
  • GSTR 2B: The GSTIN once again updated the manual advisory for the auto-drafted ITC statement GSTR 2B form for the normal taxpayer.
  • Central Board of Indirect Taxation and Customs department has notified the fresh instructions on the issuance of SCNs.
  • Cancellation of Registration: There is an update related to form REG-16 on the government portal. Taxpayers can now withdraw their application for cancellation of registration (filed in Form REG-16) unless the tax officer has initiated action on it.
  • GSTR 1 Filing Improvements: The government has updated and improved the GSTR 1 filing process making it more user friendly. You can read about the upcoming expected changes in GSTR 1 filing.

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In an attempt to reduce the rising COVID cases, the entire month of July 2021 in India went by in partial/ complete lockdown in different states. Staying abreast with what’s new is important, especially during current times when businesses are affected so much. There have been a few GST news updates this month that we have compiled here for your reference.

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CBIC has recently announced many updates to the existing GST rules in various meetings and through notifications. These are going to be in effect within 15 days from 1^st April 2019. We have brought a compilation of all the updates for our users:

1. Persons required to take compulsory registration under section 24
2. Person engaged in the supplies of Ice cream and other edible ice, whether or not containing cocoa , Pan masala and All goods, i.e. Tobacco and manufactured tobacco substitutes (24)
3. Persons engaged in making intra-state supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand
4. Persons exercising option under the provisions of sub-section (3) of section 25, or such registered persons who intend to continue with their registration

• [Notification 10/2019-Central Tax dt. 07-Mar-2019] & [Notification 02/2019-Union Territory Tax dt. 07-Mar-2019]
• 2. Due Date of filing GSTR-1
• The due date for filing GSTR 1 has been notified as follows:

• Period	Turnover Upto	Due Date
  April 19 – June 19 (Quarterly)	1.5 Crore	31.07.2019
  Apr-19	Above 1.50 Crore	11.05.2019
  May-19	Above 1.50 Crore	11.06.2019
  Jun-19	Above 1.50 Crore	11.07.2019

• [Notification 11 & 12/2019-Central Tax dt. 07-Mar-2019]
• 3. Due date of filing GSTR-3B
• The due date for filing GSTR 3B for all the registered person is notified as follows:

• S.NO.	Month	Due Date
  1	Apr-19	20.05.2019
  2	May-19	20.06.2019
  3	Jun-19	20.07.2019

• [Notification 13/2019-Central Tax dt. 07-Mar-2019]
• 4. Threshold limit of composition scheme
• Threshold limit of composition scheme has been increased which has to be opted from 01-04-2019.

• Taxable Person	Turnover
  Taxable person located in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand	75 Lacs
  Taxable person located in states other than above state	1.50 Crore

• [Notification 14/2019-Central Tax dt. 07-Mar-2019]
• 5. New composition scheme for SME and MSME:
• New Composition has been announced for SME and MSME sector First supplies of goods or services or both upto an aggregate turnover of fifty lakh rupees made on or after the 1st day of April in any financial year, by a registered person.  For availing this scheme following condition need to be satisfied:-

1. Supplies are made by a registered person, –

   1. whose aggregate turnover in the preceding financial year was fifty lakh rupees or below;
   2. who is not eligible to pay tax under sub-section (1) of section 10 of the said Act;
   3. who is not engaged in making any supply which is not leviable to tax under the said Act;
   4. who is not engaged in making any inter-State outward supply;
   5. who is neither a casual taxable person nor a non-resident taxable person;
   6. who is not engaged in making any supply through an electronic commerce operator who is required to collect tax at source under section 52; and
   7. who is engaged in making the supplies of Ice cream and other edible ice, whether or not containing cocoa ( 2105 00 00), Pan masala (2106 90 20) and All goods, i.e. Tobacco and manufactured tobacco substitutes (24)

• 2. Where more than one registered persons are having the same Permanent Account Number, issued under the Income Tax Act, 1961(43 of 1961), central tax on supplies by all such registered persons is paid at the rate specified under this notification.

1. The registered person shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax.
2. The registered person shall issue, instead of tax invoice, a bill of supply as referred to in clause (c) of sub-section (3) of section 31 of the said Act with particulars as prescribed in rule 49 of Central Goods and Services Tax Rules.
3. The registered person shall mention the following words at the top of the bill of supply, namely: – ‘taxable person paying tax in terms of notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, not eligible to collect tax on supplies’.
4. The registered person opting to pay central tax at the rate of three percent under this notification shall be liable to pay central tax at the rate of three percent on all outward supplies specified in column (1) notwithstanding any other notification issued under sub-section (1) of section 9 or under section 11 of said Act. 7.
5. The registered person opting to pay central tax at the rate of three percent on inward supplies on which he is liable to pay tax under sub-section (3) or, as the case may be, under sub-section (4) of section 9 of said Act at the applicable rates.

• Explanation: For the purposes of this notification, the expression “first supplies of goods or services or both” shall be for the purposes of determining eligibility of a person to pay tax under this notification, include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the said Act but for the purpose of determination of tax payable under this notification shall not include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the Act.
• In computing aggregate turnover in order to determine eligibility of a registered person to pay central tax at the rate of three percent under this notification, value of supply of exempt services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount, shall not be taken into account.
• [Notification 02/2019-Central Tax (rate) dt. 07-Mar-2019] & [Notification 02/2019-Union Territory Tax (rate) dt. 07-Mar-2019]

2. Circulars

• Following Circulars come into effect from April 2019:

1. Sales Promotions Schemes

Following clarification has been issued w.r.t. doubts related to treatment of sales promotion scheme under GST:

[Circular-No 92/11/2019- GST dt. 07-Mar-2019]

2. Nature of supply of Priority Sector Lending Certificates (PSLC)

• GST on PSLCs for the period 1.7.2017 to 27.05.2018 will be paid by the seller bank on forward charge basis and GST rate of 12% will be applicable on the supply as per Circular No. 62/36/2018-GST dated 12.09.2018
• GST on PSLC trading on reverse charge basis from 28.05.2018 onwards to be paid by the buyer bank as per Notification No. 11/2018-Central Tax (Rate) dated 28.05.2018
• Nature of supply of PSLC between banks may be treated as a supply of goods in the course of inter-State trade or commerce. Accordingly, IGST shall be payable on the supply of PSLC traded over e-Kuber portal of RBI for both periods i.e 01.07.2017 to 27.05.2018 and from 28.05.2018 onwards.
• However, where the bank liable to pay GST has already paid CGST/SGST or CGST/UTGST as the case may be, such banks for payment already made, shall not be required to pay IGST towards such supply.
• [Circular No. 93/12/2019-GST dt. 08-Mar-2019]

3. TCS Exclusion to compute GST liability:

• Corrigendum to Circular No. 76/50/2018-GST dated 31st December, 2018 issued vide F.No. CBEC- 20/16/04/2018-GST- Reg. TCS amount would be excluded from the value of goods for computing GST liability.
• The CBDT has clarified that TCS is not a tax on goods but an interim levy on the possible “income” rising from the sale of goods by the buyer In a relief to buyers of high value cars and jewellery, the Central Board of Indirect Taxes and Customs (CBIC) has said that the tax collection at source (TCS) amount would be excluded from the value of goods for computing GST liability.
• What is the correct valuation methodology for ascertainment of GST on Tax collected at source (TCS) under the provisions of the Income Tax Act, 1961?

1. Section 15(2) of CGST Act specifies that the value of supply shall include “any taxes, duties cesses, fees and charges levied under any law for the time being in force other than this Act, the SGST Act, the UTGST Act and the GST (Compensation to States) Act, if charged separately by the supplier.”
2. For the purpose of determination of value of supply under GST, Tax collected at source (TCS) under the provisions of the Income Tax Act, 1961 would not be includible as it is an interim levy not having the character of tax.

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1. CBIC mandates every registered person to specify Place of Supply with the name of State in tax invoice in case of inter-State supply:-

• CBIC vide Circular No .90/09/2019- GST dated 18.02.2019 clarify the compliance of rule 46(n) of the CGST Rules, 2017. All Registered persons making supply of goods or services or both in the course of inter-state trade or commerce shall specify the place of supply along with the name of the State in the tax invoice as per the provision contained in section 31 of the CGST Act, 2017. Further the provisions of sections 10 and 12 of the IGST Act, 2017 may be referred to in order to determine the place of supply in case of supply of goods and services respectively.
  Contravention of any of the provisions of the Act or the rules made there under will attracts a penalty of Rs. 25000/- as per sections 122 or 125 of the CGST Act.

2. CBIC mandates every registered person making inter-State supplies to unregistered persons to report the details of such supplies along with the place of supply in Table 3.2 of FORM GSTR-3B and Table 7B of FORM GSTR–1.

• CBIC vide Circular No .89/08/2019- GST dated 18.02.2019 clarifies a registered supplier is required to mention the details of inter -State supplies made to unregistered persons, composition taxable persons and UIN holders in Table 3.2 of FORM GSTR-3B. Further, the details of all inter-State supplies made to unregistered persons where the invoice value is up to Rs 2.5 lakhs (rate-wise) are required to be reported in Table 7B of FORM GSTR-1.  It has been brought to the notice of the Board that a number of registered persons have not reported the details of inter-State supplies made to unregistered persons in Table 3.2 of FORM GSTR-3B. However, the said details have been mentioned in Table 7B of FORM GSTR-1.
• Accordingly, it is instructed that the registered persons making inter-State supplies to unregistered persons shall report the details of such supplies along with the place of supply in Table 3.2 of FORM GSTR-3B and Table 7B of FORM GSTR–1 as mandated by the law. Contravention of any of the provisions of the Act or the rules made there under attracts penal action under the provisions of section 125 of the CGST Act.

3. CBIC clarify regarding tax payment made for supply of warehoused goods while being deposited in a customs bonded warehouse for the period July, 2017 to March, 2018 .

• CBIC vide Circular No .91/10/2019- GST dated 18.02.2019 clarify the Circular No. 3/1/2018-IGST dated 25.05.2018 whereby applicability of integrated tax on goods transferred/sold while being deposited in a warehouse was clarified. In the said circular, it was said that from 1st of April, 2018 the supply of warehoused goods before their clearance from the warehouse would not be subject to the levy of integrated tax.
• It has been notice that during the period from 1st of July, 2017 to 31st of March, 2018, the common portal did not have the facility to enable the taxpayer to report payment of integrated tax, in the details required to be submitted in FORM GSTR-1, for such supplies especially where the supplier and the recipient were located in the same State or Union territory.
• Hence taxpayers making such supplies have reported such supplies as intra-State supplies and discharged central tax and state tax instead of integrated tax accordingly.
• CBIC clarifies, in view of revenue neutral position of such tax payment and that facility to correctly report the nature of transaction in FORM GSTR-1 furnished on the common portal was not available during the period July, 2017 to March, 2018, it has been decided that, as a one-time exception, suppliers who have paid central tax and state tax on such supplies, during the said period, would be deemed to have complied with the provisions of law as far as payment of tax on such supplies is concerned as long as the amount of tax paid as central tax and state tax is equal to the due amount of integrated tax on such supplies.

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