Under the newly proposed Finance Bill, 2022 the Union Ministry has proposed to extend the time limits under sections 16(4), Section 34 & Section 37 , Section 52 by two months.
A new clause (ba) to sub-section (2) of section 16 of the CGST Act is being inserted to provide that input tax credit with respect to a supply can be availed only if such credit has not been restricted in the details communicated to the taxpayer under section 38.
Further, sub-section (4) of section 16 of the CGST Act is being amended so as to provide for an extended time for availment of input tax credit by a registered person in respect of any invoice or debit note pertaining to a financial year upto thirtieth day of November of the following financial year.
Sub-section (2) of section 34 of the CGST Act is being amended so as to provide for an extended time for issuance of credit notes in respect of any supply made in a financial year upto thirtieth day of November of the following financial year.
Also, section 37 is amended to (i) provide for prescribing conditions and restrictions for furnishing the details of outward supply and for communication of the details of such outward supplies to concerned recipients; (ii) do away with two-way communication process in return filing; (iii) provide for an extended time upto thirtieth day of November of the following financial year for rectification of errors in respect of details of outward supplies furnished under sub-section (1); (iv) provide for tax period-wise sequential filing of details of outward supplies under sub-section (1).
Sections 42, 43 and 43A of the CGST Act are being omitted so as to do away with two-way communication process in return filing.
The Finance Bill also proposed to amend Section 47 of the CGST Act so as to provide for levy of late fee for delayed filing of return under section
Further, reference to section 38 is being removed consequent to the amendment in section 38 of the CGST Act.4. Late fee has been provided for filing of GST Returns under section 52.
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