Budget 2022 – Important GST Related Changes [Applicability Dates will be notified later]

– Insertion of Section 16(2)(ba):
Even if Restricted ITC Reflecting in GSTR-2A/2B, it won’t be eligible for Credit and same to be excluded while comparing with GSTR-2A /2B.

Deadline to take ITC of Last year increased from “Due date of filling Sept month’s return of next year” to “30th Day of November of next year” (Or before filling Annual Return, WIE)

Also, for Invoices issued in a Financial Year, the time limit to issue CN / DN u/s 34 has been extended to the next Financial Year’s 30th day of November. (Or before filling Annual Return, WIE)

Cancellation of Registration for Composite Person

Now, if a composite taxable person has not filled the Return (Yearly return), after the 3 months of the due date, cancellation proceedings may be started.

Previously, if a regular Taxable person (other than a composite taxable person) has not filed the returns for more than 6 consecutive periods, his registration may get canceled, now the 6 month period has been removed, and it may be started even before 6 months as may be prescribed in Rules

The Old system of GSTR-1-2A-2-1A-3 (as introduced in July 2017) has been replaced
with GSTR-1-2B-3B System in the law itself amending the sections 37,38,39,41 – Matching, Reversal and Reclaim of ITC as mentioned in Section 42, 43, and 43A has been
scrapped.

– Late fee introduced for GST-TCS (Tax Collectors).

– Section 50(3) has been substituted and now interest is to be paid only if “ITC wrongly
availed and utilized” as well.

Previously when they amended the Relevant Date in Finance Act, 2018, they altogether Removed the “Relevant Date” for supplies made to SEZ Units / SEZ Developers. Now, the Relevant date for Supply made to SEZ Unit, etc. has been added in the Explanation. The Relevant date is now the due date of filing return u/s 39.