Key changes in CGST Rules Notified on 29th December, 2021

• With effect from 1^st January 2022, ITC shall be allowed only to the extent invoice/debit notes are reported in GSTR-1 by the vendors and the availability of ITC has been communicated to the recipient in GSTR-2B. (Rule 36(4))
• Due date for furnishing Annual return in Form GSTR-9(mandatory for registered person whose aggregate turnover is Rs. 2 crore) self-certified reconciliation statement in form GSTR-9C mandatory for registered person whose aggregate turnover is Rs. 5 crore) for the financial year 2020-21 has been extended to 28.02.2022.(Rule 80)
• If the applicant’s Unique Identity Number is not mentioned on the tax invoice, a copy of the invoice must be submitted along with the refund application in FORM GST RFD-10, duly attested by the applicant’s authorized representative. (Rule 96)
• Specified period of issuing notice within 7 days and passing order in next 7 days after issuing notice in case of detention of goods and conveyances in transit (Rule 142)
• New rule is inserted for recovery of penalty by sale of goods or conveyance detained or seized in transit. (Rule 144A)
• Where the person transporting any goods, or the owner of such goods fails to pay the amount of penalty within fifteen days from the date of receipt of the copy of the order passed 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.
• If goods are perishable or hazardous in nature or are likely to depreciate with passage of time, the said period of fifteen days may be reduced.
• Goods or conveyance shall be sold through a process of auction, including e-auction.
• Auction process shall be cancelled where the person transporting said goods or the owner of such goods pays the amount of penalty, including any expenses incurred in safe custody and handling of such goods or conveyance, after the time period of 15 days but before the issuance of notice for auction.
• Pre-bid deposit to be paid by participants of auction and same will be returned to the unsuccessful bidders and forfeited in case the successful bidder fails to make the payment of the full amount.
• Successful bidder should make payment in 15 days after receiving notice. If an appeal is filed, the proceedings for recovering the penalty through the sale of goods or conveyance detained or seized in transit under this rule are deemed to be stayed.
• Manner of disposal of amount so realised from the sale of goods, movable or immovable property is prescribed in rule 154. Now words are substituted and disposal of proceeds of sale conveyance is also added in Rule 154.

Disclaimer:  This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.

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