30 June 2022

47th GST Council Meeting – Changes proposed in GST law and procedure

The 47th GST Council Meeting held on 28th and 29th of June 2022 has recommended number of measures in respect of GST law and procedures, including many changes in the GST rates for various goods and services.

Some of the important measures relating to trade facilitation and those for streamlining compliances are highlighted below.

Measures for trade facilitation:

  • Composition taxpayers would be allowed to make intra-State supply through e-commerce operatorssubject to certain conditions.
  • Mandatory registration for person supplying goods through e-commerce operators will be waived, subject to conditions.
  • Refund of unutilized ITC - Formula prescribed in Rule 89(5) of the Central Goods and Services Tax Rules, 2017 (‘CGST Rules’) for calculation of refund of unutilized Input Tax Credit on account of inverted rated structure, will be revised. This would help taxpayers who are availing of ITC on input services also.
  • IGST refund claims - Rule 96 of the CGST Rules has been recommended to be amended to provide for expeditious disposal of specific IGST refund claims, after due verification by GST officers, thus benefitting exporters who are found to be risky and in respect of cases where there is violation of Customs Act, 1962.
  • Late fee for delay in filing Form GSTR-4 for FY 2021-22 will be waived till 28 July 2022.
  • Due date for filing Form GST CMP-08 for Q1 of FY 2022-23 will be extended.
  • Exemption from filing annual return in Form GSTR-9/9Afor FY 2021-22 to be provided to taxpayers having AATO up to INR 2 crores.
  • Explanation 1 after Rule 43 of CGST Rules to be amended to provide that there is no requirement of reversal of ITC for the exempted supply of Duty Credit Scripsby the exporters.
  • UPI & IMPS to be provided as an additional mode for payment of GST to taxpayers under Rule 87(3) of CGST Rules.
  • Refunds pertaining to supplies to SEZ Developer/Unit - Explanation to be inserted in Rule 89(1) of CGST Rules to clarify that “specified officer” under the said sub-rule shall mean the “specified officer” or “authorized officer”, as defined under SEZ Rules, 2006.
  • Export of electricity - CGST Rules to be amended to provide for refund of unutilized ITC on account of export of electricity.
  • Supplies from Duty Free Shops (DFS) at international terminal to outgoing international passengers to be treated as exports by DFS and consequential refund benefit to be available to them on such supplies.

 Measures for streamlining compliances

  • Comprehensive changes to be made in Form GSTR-3B. Proposal to be placed in public domain for seeking inputs/suggestions of the stakeholders.
  • Automatic revocation of suspension of registration proposed in cases where returns are filed later.
  • Limitation for refund claims and for demand/order in respect of erroneous refunds – Time period from 1 March 2020 till 28 February 2022 to be excluded.

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