This is to update you regarding the notifications issued by CBIC on 21 December 2021 viz. Notification No. 38/2021 – Central Tax and Notification No. 39/2021 – Central Tax providing 1 January 2022 as the appointed date for various amendments/ new provisions introduced in the GST law:
I. Notification No. 38/2021 – Central Tax
The said Notification has made certain Rules introduced/ amended vide CGST (Eighth Amendment) Rules, 2021 (Notification No. 35/2021 – Central Tax) effective from 1 January 2022. Summary of the same is provided hereunder:
Insertion of Rule 10B [Rule 2(2) as per Notification No. 35/ 2021]: A registered person who has been issued a registration certificate under Rule 10 of the CGST Rules, shall undergo authentication of Aadhaar Number for the purpose of filing an application for revocation of cancellation of registration, refund application in the form RFD-01 and refund of IGST paid on export of goods outside India,
a. Proprietor in case of proprietorship firm;
b. Partner in case of partnership firm;
c. Karta in case of HUF;
d. MD or any whole-time director in case of a company;
e. Any of the members of managing committee of association of persons or body of individuals or society; and
f. Trustee in the board of trustees in case of a trust
Amendment in Rule 23 [Rule 2(3) as per Notification No. 35/ 2021]: A registered person may file an application for revocation of cancellation of registration, subject to Rule 10B (authentication of Aadhaar number as highlighted in point above).
Amendment in Rule 89 [Rule 2(6)(i) as per Notification No. 35/ 2021]: A registered person may file a refund application subject to Rule 10B (authentication of Aadhaar number as highlighted in point above).
Amendment in Rule 96(1) [Rule 2(7) as per Notification No. 35/ 2021]: A registered person may be granted a refund of IGST paid on export of goods outside India, subject to rule 10B (authentication of Aadhaar number as highlighted in point above).
II. Notification No. 39/2021 – Central Tax
The said Notification has made certain provisions of Finance Act, 2021 effective from 1 January 2022. Key provisions which have been effective are provided hereunder:
1. Section 16(2)(aa)– Input tax credit on invoice or debit note may be availed only when the details of such invoice or debit note has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient.
2. Section 107– No appeal shall be filed against an order of detention or seizure of goods or conveyance made under sub-section (3) of section 129, unless a sum equal to 25% of penalty has been paid by the appellant.
3. Section 129– Penalty for detention and seizure cases increased as under:
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- Where goods are being released by owner of the goods – Penalty increased to 200% of tax payable (which was earlier 100%)
- Where goods are being released by a person other than owner of the goods – Penalty increased to higher of 50% of value of the goods or 200% of tax payable on such goods (which was earlier 50% of value of the goods less tax amount paid thereon)
4. Section 151– Power given to jurisdictional commissioner to collect information relating to any matter under the CGST Act.
