MM TAX CLUB

Central Board of Indirect Taxes and Customs (CBIC) vide Notification No. 40/2021 – Central Tax dated 29th December, 2021 issued CGST (Tenth Amendment) Rules, 2021. Whereby following Amendments in rule have been made;-

1. Amendment in sub rule (4) of Rule 36.

Not input tax credit available to the registered taxpayers in respect of invoices or debit note issued by supplier unless;

1. The details of such invoice furnished in GSTR-1 or using Invoice furnishing facilities. And
2. The details of such invoices and debit note communicated to recipient in Form GSTR-2B.

Meaning thereby,

                Now with effect from 1^st January 2022 a registered taxpayer can only avail GST input tax credit if the invoice or debit note details reflect in their GSTR-2B.

2. Amendment in Rule 80

1. Sub rule (1A) inserted after sub rule (1) of Rule 80.

“(1A) Notwithstanding anything contained in sub-rule (1), for the financial year 2020-2021 the said annual return shall be furnished on or before the twenty-eighth day of February, 2022.”

2. Sub rule (3A) inserted after sub rule (3) of Rule 80.

“(3A) Notwithstanding anything contained in sub-rule (3), for the financial year 2020-2021 the said self-certified reconciliation statement shall be furnished along with the said annual return on or before the twenty-eighth day of February, 2022.”

Meaning thereby;

                GST Annual Return and Reconciliation statement in form GSTR-9 & GSTR-9C respectively for financial year 2020-21 can be filed on or before 28^th February 2022.

3. Amendment in Rule 95

Proviso to sub rule 3 of rule 95 after clause (c) inserted w.e.f 1^st April 2021.

“Provided that where Unique Identity Number of the applicant is not mentioned in a tax invoice, the refund of tax paid by the applicant on such invoice shall be available only if the copy of the invoice, duly attested by the authorized representative of the applicant, is submitted along with the refund application in FORM GST RFD-10.”

Meaning thereby;

                While filing refund application in Form GST RFD-10 for taxes paid on inward supplies, if unique identification not mention on tax invoice issued by the supplier such invoice needs to be duly attested by the authorised representative of the applicant, and to be submitted along with FORM GST RFD-10.

4. Amendment in Rule 142

Amendment has been made in sub rule (3) and sub rule (5) applicable with effect from 1^st January 2022;

1. in sub-rule (3), for the words and letters, “fourteen days of detention or seizure of the goods and conveyance”, the words, brackets and figures, “seven days of the notice issued under sub-section (3) of Section 129 but before the issuance of order under the said sub-section (3)” shall be substituted;

2. in sub-rule (5), for the words, “tax, interest and penalty payable by the person chargeable with tax”, the words, “tax, interest and penalty, as the case may be, payable by the person concerned” shall be substituted;

Meaning thereby;

                In sub rule (3), concerned person can have file DRC-03 if payment of Tax, Interest, penalty made within 14 days of detention or seizer of goods and conveyance, but now with effect from 1^st January 2022, DRC-03 can be filed if payment made within 7 days of detention or seizer under sub section (1) of section of section 129 but before issuing order by proper officer for payment of penalty under subsection (3) of Section 129. As if goods are detained or seized under sub section (1) of Section 129, the proper officer has to issue order within seven days of such detention or seizer for recovery of penalty.

5. After rule 144 rule 144A inserted w.e.f 1^st January 2022.

Recovery of penalty by sale of goods or conveyance detained or seized in transit

1. Where the person transporting any goods or the owner of such goods fails to pay the amount of penalty under sub-section (1) of section 129 within fifteen days from the date of receipt of the copy of the order passed under sub-section (3) of the said section 129, the proper officer shall proceed for sale or disposal of the goods or conveyance so detained or seized by preparing an inventory and estimating the market value of such goods or conveyance:

Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of fifteen days may be reduced by the proper officer.

2. The said goods or conveyance shall be sold through a process of auction, including e-auction, for which a notice shall be issued in FORM GST DRC10 clearly indicating the goods or conveyance to be sold and the purpose of sale:

Provided that where the person transporting said goods or the owner of such goods pays the amount of penalty under sub-section (1) of section 129, including any expenses incurred in safe custody and handling of such goods or conveyance, after the time period mentioned in sub-rule (1) but before the issuance of notice under this sub-rule, the proper officer shall cancel the process of auction and release such goods or conveyance.

3. The last day for submission of bid or the date of auction shall not be earlier than fifteen days from the date of issue of the notice referred to in sub-rule (2):

Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of fifteen days may be reduced by the proper officer.

4. The proper officer may specify the amount of pre-bid deposit to be furnished in the manner specified by such officer, to make the bidders eligible to participate in the auction, which may be returned to the unsuccessful bidders, forfeited in case the successful bidder fails to make the payment of the full amount, as the case may be.

5. The proper officer shall issue a notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within a period of fifteen days from the date of auction:

Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of fifteen days may be reduced by the proper officer.

6. On payment of the full bid amount, the proper officer shall transfer the possession and ownership of the said goods or conveyance to the successful bidder and issue a certificate in FORM GST DRC-12.

7. The proper officer shall cancel the process and proceed for re-auction where no bid is received or the auction is considered to be non-competitive due to lack of adequate participation or due to low bids.

8. Where an appeal has been filed by the person under the provisions of subsection (1) read with sub-section (6) of section 107, the proceedings for recovery of penalty by sale of goods or conveyance detained or seized in transit under this rule shall be deemed to be stayed:

Provided that this sub-rule shall not be applicable in respect of goods of perishable or hazardous nature.

6. Amendment in rule 154 w.e.f 1^st Jan 2021

Disposal of proceeds of sale of goods or conveyance and movable or immovable property.

. (1) The amounts so realised from the sale of goods or conveyance, movable or immovable property, for the recovery of dues from a defaulter or for recovery of penalty payable under sub-section (3) of section 129 shall,-

(a) first, be appropriated against the administrative cost of the recovery process;

(b) next, be appropriated against the amount to be recovered or to the payment of the penalty payable under sub-section (3) of section 129, as the case may be;

(c) next, be appropriated against any other amount due from the defaulter under the Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017 and the rules made thereunder; and

(d) the balance, if any, shall be credited to the electronic cash ledger of the owner of the goods or conveyance as the case may be, in case the person is registered under the Act, and where the said person is not required to be registered under the Act, the said amount shall be credited to the bank account of the person concerned;

(2) where it is not possible to pay the balance of sale proceeds, as per clause (d) of sub-rule (1), to the person concerned within a period of six months from the date of sale of such goods or conveyance or such further period as the proper officer may allow, such balance of sale proceeds shall be deposited with the Fund;

7. Amendment to Section 159 w.e.f 1^st January 2022

1. in sub-rule (2)-

1. after the words ―copy of the order of attachment‖, the words, letters and figures “in FORM GST DRC-22” shall be inserted;

2. after the words “Commissioner to that effect.”, the words and figures, “and a copy of such order shall also be sent to the person whose property is being attached under section 83” shall be inserted;

2.  in sub-rule (3)-

1. for the words “and if the taxable person”, the word “and if the person, whose property has been attached”, shall be substituted;

2. for the words “by the taxable person”, the words, “by such person” shall be substituted;

3. in sub-rule (4), for the words “the taxable person” occurring at both the places, the words “such person” shall be substituted;

4. in sub-rule (5), for the words brackets and figure, “within seven days of the attachment under sub-rule (1), file an objection”, the words, letters and figures “file an objection in FORM GST DRC-22A” shall be substituted;

Format of the DRC forms are given in notifications which can be access from below notification.

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