Important Updates and Due Date Compliances under GST for October 2022

Important clarifications/ amendments issued by the Government on GST in September/ October 2022 along with compliance timelines in October 2022:

Compliance timelines

Note 1:

• List 1 States - Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep
• List 2 States - Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi.

Updates in the month of September/ October 2022

1. Guidelines for filing/revising TRAN-1/TRAN-2 between 01.10.2022 to 30.11.2022

In terms of order dated 22.07.2022 & 02.09.2022 of Hon'ble Supreme Court in the matter of Union of India vs. Filco Trade Centre Pvt. Ltd., CBIC has issued a Circular on the Guidelines for filing/revising TRAN-1/TRAN-2 between 01.10.2022 to 30.11.2022.

As per the Circular, the applicant may file declaration in FORM GST TRAN-1/TRAN-2 or revise earlier filed TRAN-1/TRAN-2. The applicant shall at the time of filing or revising the declaration in FORM GST TRAN-1/TRAN-2, also upload on the common portal a pdf copy of a declaration in the format as given in the circular.The declaration in FORM GST TRAN-1/TRAN-2 filed/revised by the applicant will be subjected to necessary verification by the concerned tax officers. After the verification of the claim, the jurisdictional tax officer will pass an appropriate order thereon post which the credit will be reflected in the Electronic Credit Ledger of the applicant on the common portal.

(Circular No.180/12/2022-GST dt. 9th September, 2022)

GSTN would open the common portal for filing transitional credit through Tran 1 and Tran 2 w.e.f. 01/10/2022.

2. Advisory on Filing TRAN-1/2 Forms to claim Transitional Credit

The Hon'ble Supreme Court had provided a one-time opportunity to all the aggrieved taxpayers to file Form TRAN-1/ TRAN-2 and claim their transitional input tax credit in GST system. In compliance with the Hon'ble Court's Order, the facility for filing TRAN-1/ TRAN-2 or revising the earlier filed TRAN-1/ TRAN-2 on the GST common portal by aggrieved taxpayers have been made available by GSTN from 01.10.2022, which will be available till 30.11.2022.

The TRAN filing process has been enhanced and the user interface of the portal has been made more intuitive to make it simple and easy for the taxpayer to file their forms TRAN-1/2. For smooth and easy filing of TRAN-1/2 a detailed advisory and a step by step, frame by frame guide has also been prepared. Please click on the following link to download the detailed advisory and help manuals: Click Here

3. E-Way Bill generation option for movement of Gold is now available on E-Way Bill Portal

E-Way Bill generation has been provisioned for movement of Gold (HSN Chapter 71) for all Intrastate and Interstate transactions. The e-Waybill for Gold is available as a separate option in the main menu. The E-Waybill for Gold has all the same parameters as that of normal e-waybill except that such e-waybills will not be updated with Part-B details. The validity of such e-Waybill is calculated based on the pin to pin distance of origin and destination.

4. New functionalities for taxpayers on GST Portal in August 2022

GSTN has issued an update to inform about the new functionalities made available for taxpayers on GST Portal. These functionalities pertain to different modules such as Registration, Returns, Refund and other miscellaneous topics. The key changes include enabling core amendment link for taxpayers who fail to update bank account, HSN based validation implemented in Form GSTR-9, etc.

5. CBIC notifies exchange rates effective from September 16th, 2022

CBIC has notified the rate of exchange of conversion of the foreign currencies into Indian currency or vice versa, with effect from 16th September 2022, for import and export of goods. In this regard, notification has been issued in supersession of the Notification No. 73/2022-Customs (N.T.), dated September 1st, 2022

(Notification No. 78/2022 - Customs (N.T.) dated September 15th, 2022)

6. WBSGST - New initiative to make the tax administration more accessible to the taxpayers

The Government of West Bengal is committed to lend its support to increase the scope and expanse of the Ease of Doing Business (EODB). In keeping with the continuous endeavour to bring the benefits of governance to the people, the Directorate of Commercial Taxes under the Finance Department of the Government of West Bengal has undertaken a new initiative to make the tax administration more accessible to the taxpayers and responsive to their needs.

It has been decided that Senior Tax Officials of the Directorate will meet and interact with the registered taxable persons and all other stakeholders under their jurisdictional area during dedicated timeslots. These are Tuesdays & Fridays from 3:30 P.M. to 5:30 P.M. on both days. The names, phone numbers and e-mail addresses of the designated tax officials as mentioned above are available on the Directorate Website at https://wbcomtax.gov.in under the tab EODB.

(Trade Circular No.06/2022, dated: 15.09.2022)

7. CBIC notifies amendments of Finance Act, 2022 w.e.f. October 1st, 2022

CBIC has notified the provisions of Finance Act, 2022 related to GST which shall be effective from October 1st, 2022. The key changes are as follows:

1. Extension in time limit of availment of ITC till 30th November of next financial year
2. Credit notes can be issued till 30th November of next financial year
3. Extension in time-limit to rectify errors or omission in Form GSTR-1, GSTR-3B or GSTR-8 till 30th November of next financial year
4. Omission of sections 42, 43 (prescribing for two-way communication process between the supplier and recipient through GSTR-1, 1A, 2A and 2) and 43A
5. ITC not to be availed if it is in restricted category of GSTR-2B
6. Cases which will fall within the restricted category of ITC to be auto-populated in GSTR 2B
7. Cancellation of registration due to non-filing of returns even for a shorter time period
8. Exceptions to sequential filing of GSTR-1, as may be specified
9. Due date of filing GSTR-5 for registered non-resident taxable person would now be 13th rather than 20th of the next month
10. Levy of late fees for GSTR-8 (Return for E-Commerce operators required to collect TCS).

(Notification No.18/2022- Central Tax dated September 28th, 2022)

8. CBIC issues Central Goods and Services Tax (Second Amendment) Rules, 2022

CBIC has issued the Central Goods and Services Tax (Second Amendment) Rules, 2022 to give effect to the changes introduced by the Finance Act, 2022 which have been notified through Notification No.18/2022- Central Tax dated September 28th, 2022. These changes shall be effective from October 1st, 2022.

(Notification No.19/2022- Central Tax dated September 28th, 2022)

9. CBIC rescinds Notification No. 20/2018-CT extending time limit for refund by UIN entities

CBIC has rescinded Notification No. 20/2018-CT which prescribed the extended time limit of eighteen months from the last date of the quarter in which such supply is received for refund by UIN entities. This notification had become irrelevant due to amendment introduced by Finance Act, 2022. The Finance Act 2022 has amended the time-limit and it has been provided that refund claim can be made till the expiry of 2 years from the last day of quarter in which such supply was received. Hence the time limit for refund claims on inward supply by UIN holders has been increased from 6 months to 2 years from the last day of quarter in which such supply was received.

(Notification No.20/2022- Central Tax dated September 28th, 2022)