Below are some important changes which shall take place in GST law w.e.f. 01.01.2022 with regard to GST rates, GST return, input tax credit and other procedural changes: [Links has been provided for detailed article or notification on major updates]
GST rate updates:
- GST rate on footwear with a sale value of upto Rs. 1000 has been increased from 5% to 12%.
- Works contract service provided to government authority or government entity has been increased from 12% to 18% (except for few specified nature of service.
- GST rate for textile remains unchanged whereas earlier there was plan to increase the same from 5% to 12%.
Input tax credit:
- Now, GST credit can be taken only to the extent outward supplies has been reported by supplier in GSTR 1. Hence only credit available in GSTR 2B shall be available.
- One will not be able to file GSTR 1 return if GSTR 3B for the previous period has not been filed.
Increase in compliance for E-commerce Operator:
- Now E-commerce operator shall be made liable to pay GST in case it is providing services of restaurant, eating joint etc on it’s platform instead of restaurant providing the food. Do remember that this shall be applicable only for restaurant service provided on such platform and not any other goods provided on such platform. The same shall be applicable on E-commerce operator providing service of passenger transportation service by any mode.
There have been various other changes in recovery proceedings, demand proceedings and goods confiscation proceedings which have been mentioned briefly as under:
Goods confiscation proceedings have been delinked with section 129 and now same can be initiated for violating section 130(1).
Now transporter may get the vehicle released under section 129 on payment of penalty or Rs. 1,00,000 whichever is less.
Notice specifying penalty u/s 129 should be issued within 7 days of detention of vehicle.
Appeal against order u/s 129 can be filed only after payment of 25% of penalty.
Aadhar Authentication compulsory from 01.01.2022 for filing application for revocation of cancellation of registration and filing of refund application.
Direct recovery of tax if difference in tax in GSTR 1 and GSTR 3B.
There are some few small amendment other than the one mentioned above.
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