Important changes notified from 1st October 2022 under GST

Vide the following two important notifications, various changes are notified and made effective from 1

st October 2022 –

As we know, in the case of e-invoice, the government is slowly and steadily decreasing the aggregate turnover limit. Thereby, making e-invoicing applicable to more and more registered persons. Accordingly, vide notification no. 17/2022- Central Tax dated 1

st August 2022, e-invoice is now made mandatory for the registered persons having an aggregate turnover of more than INR 10 Crores. The present article broadly covers and explains the provisions as notified vide notification no. 18/2022- Central Tax dated 28th September 2022.

Extension of time limit for various compliances –

With effect from 1

st October 2022, the following time limits are extended –

1. Time limit for availing input tax credit –

Provisions of section 16(4) of the Central Goods and Services Tax Act, 2017 prescribe the time limit within which the registered person is required to avail of the input tax credit of the respective Financial Year. Earlier provisions and new provisions relating to the same are tabulated hereunder –

1. net return for declaring the details of credit notes in the return –

Provisions of section 34(2) of the Central Goods and Services Tax Act, 2017 prescribe the time limit within which the registered person is required to declare the details of credit notes in the return. Earlier provisions and new provisions relating to the same are tabulated hereunder –

1. Time limit for rectification of error/ omission in the details of outward supplies furnished via GSTR-1 –

The first proviso to section 37(3) of the Central Goods and Services Tax Act, 2017 prescribes the time limit within which the registered person can rectify the error/ omission furnished in GSTR-1. Earlier provisions and new provisions relating to the same are tabulated hereunder –

1. Time limit for rectification of omission/ incorrect particulars furnished in GSTR-3B –

Proviso to section 39(9) of the Central Goods and Services Tax Act, 2017 prescribes the time limit within which the registered person can rectify the omission/ incorrect particulars furnished in GSTR-3B. Earlier provisions and new provisions relating to the same are tabulated hereunder –

1. Time limit for rectification of omission/ incorrect particulars in a statement furnished by a TCS operator furnished in GSTR-3B –

Proviso to section 52(6) of the Central Goods and Services Tax Act, 2017 prescribes the time limit within which the TCS operator can rectify the omission/ incorrect particulars furnished in the statement. Earlier provisions and new provisions relating to the same are tabulated hereunder –

Additional conditions and conditions on restrictions of input tax credit –

The new input tax credit availment condition imposed vide section 16(ba) of the Central Goods and Services Tax Act, 2017 is now made effective from 1

st October 2022. As per the additional condition, the input tax credit reflected in GSTR-2B should not be restricted as per the provisions covered under section 38. As per the new substituted provisions of section 38, the input tax credit reflected in GSTR-2B will consist of two parts i.e. details of input tax credit available to the recipient and details of input tax credit which cannot be wholly or partly availed by the recipient. Notably, availment of availing tax credit will be restricted under the following six situations –

1. Supply is made by the registered person who has obtained GST registration within a specified period;
2. The supplier has defaulted in payment of tax and such default continuous for the prescribed period;
3. When the output tax payable in GSTR-1 of the supplier exceeds the actual output tax paid in GSTR-3B by the supplier;
4. The supplier has availed more input tax credit in GSTR-3B as compared to input tax credit reflected in GSTR-2B;
5. The supplier has defaulted in discharging the tax liability as prescribed under section 49(12) of the CGST Act read with rule 86B of the CGST Rules;
6. Supplier is covered within the prescribed class of persons.

Importantly, all the above restrictions imposed on the recipient are based on the defaults committed by the supplier of goods or services.