New GST notifications: Due date of GSTR-9 & 9C gets extended

It’s raining GST notifications this December 2021! The CBIC issued Central Tax notification 40/2021 on 29th December 2021. The government announced two crucial changes, among others, through the Central Goods and Services Tax (Tenth Amendment) Act, 2021.

Firstly, the due date to file annual GST returns in form GSTR-9 is from 31st December 2021 to 28th February 2022. The self-certified reconciliation statement in form GSTR-9C was extended until 28th February 2022. 

Many professionals will heave a sigh of relief as this deadline clashed with the income tax return filing due date for individuals and non-audit tax assessees. They were finding it difficult to manage compliance quickly, while the glitches on the government’s income tax website continue to date.

With the MCA also extending annual compliance dates, the new GSTR-9 due date provides sufficient time for businesses to close their audits. It allows them to report consistent annual information across tax laws.

Secondly, the much-awaited CGST Rule 36(4) stands revised to accommodate the amended Section 16(2) of the CGST Act. The revised rule has removed the 5% additional Input Tax Credit (ITC) claim beyond the GSTR-2B. It states that a taxpayer can claim ITC only if their suppliers or vendors report those invoices in corresponding GSTR-1 or Invoice Furnishing Facility (IFF). Further, such ITC must appear in GSTR-2B of the taxpayer.

With these changes, a taxpayer has no choice but to follow GSTR-2B regularly for purchase invoices eligible for ITC claims. GSTR-2B is made available on the 14th of every month. If a taxpayer does not find it, they must approach the concerned vendor or supplier at the earliest. They should nudge their vendors to upload or report invoices more frequently. If they fail to carry this out, they will lose ITC, negatively affecting their working capital.

Among other changes, related rules on the seizure of goods and conveyance got amended, such as the recovery of penalties, time limit to intimate payment towards demand order, etc., in cases of seizure.

Rule 142 on GST notice and demand order is amended for Subrules 3 and 5. Under Subrule 3, you must make payment and intimate in Form DRC-03 within seven days of seizure of goods and conveyance under Section 129. Earlier, this was 14 days of such a seizure. Further, Subrule 5 now extends to tax, interest and penalty payable by any concerned person and not just the persons chargeable to tax.

A new rule 144A has been inserted on steps to recover penalty by selling goods-in-transit seized or conveyance detained. The taxpayer has to pay the penalty within fifteen days from the date of seizure or detention. In case of failure, the officer can dispose of the seized goods or detained conveyance through e-auction. He can issue a notice in Form DRC-10 intimating this decision. It further lays down the bidding process with the timelines.

Rule 154 on the disposal of sale proceeds after the auction of movable goods, conveyance or immovable property stands amended. Further, rule 159 on the provisional attachment of property is amended to expand its applicability to persons involved in the contravention, other than the taxpayer. Also, the format of DRC-22 for the order stands revised to that effect. 

Moreover, the government has inserted a new form, DRC-22A, for application to file an objection against the provisional attachment of property. Also, a few minor amendments are carried out to Form DRC-23 that is an order to restore provisional attachment of taxpayer’s property by any requisite authorities. The government has revised table 15(a) of Form APL-01 with effect from 1st January 2022.

Most of these amendments streamline the adjudication process under the GST law. The GST Council will be meeting tomorrow at 11 a.m. It will discuss whether or not to withdraw its earlier decision to charge GST cloud restaurant and passenger services on e-commerce operators. The 46th GST Council meeting will primarily have rate rationalisation discussions on its agenda.

For any clarifications/feedback on the topic, please get in touch with the writer at annapoorna.m@cleartax.in