March 21, 2023

Key Amendments in Financial Year 2021-22 relevant for GST Audit

Some of the key amendments made during the Financial Year 2021-22 that are relevant for GST audit are:

1. Relaxation in filing of Annual Return: The due date for filing of the annual return in Form GSTR-9 and reconciliation statement in Form GSTR-9C for the financial year 2020-21 has been extended to March 31, 2022.

2. Auto-population of e-invoice details in GSTR-1: With effect from April 1, 2021, the e-invoice details will be auto-populated in the GSTR-1 return of the taxpayer.

3. Changes in the format of GSTR-2B: The format of GSTR-2B has been changed with effect from April 1, 2021. The changes include the inclusion of information on the TCS/TDS credit received, and the facility to download the GSTR-2B data for multiple tax periods.

4. Extension of the time limit for availing ITC: The time limit for availing the input tax credit (ITC) on invoices or debit notes has been extended to the due date of the return for the month of September following the end of the financial year to which such invoice or debit note pertains.

5. Changes in the treatment of goods sent for job work: The time limit for the return of goods sent for job work has been extended from one year to two years. Also, the goods can now be sent directly to the job worker's place of business without being brought back to the premises of the principal.

6. Changes in the filing of refund applications: The filing of refund applications has been made more user-friendly with the introduction of a single refund application form (RFD-01). Also, the facility for the withdrawal of refund applications has been provided.

7. Relaxation in the payment of interest on delayed payment of tax: The rate of interest payable for the delayed payment of tax has been reduced to 9% for the taxpayers who have an aggregate turnover of up to INR 5 crore in the preceding financial year.

Non-Rate Changes which have come effect in FY 2021-22

There have been a number of non-rate changes that have come into effect in the financial year 2021-22 under GST. Some of the key changes are:

1. Introduction of dynamic QR code on B2C invoices: From December 1, 2021, taxpayers with an aggregate turnover of more than Rs. 500 crore are required to include a dynamic Quick Response (QR) code on all business-to-consumer (B2C) invoices.

2. Extension of time limit for completion of assessment: The time limit for completion of assessment under GST has been extended from three years to five years, with effect from April 1, 2021.

3. Requirement of QR code on e-invoices: From October 1, 2021, QR code is required to be printed on all B2B invoices issued by taxpayers having an aggregate turnover of more than Rs. 500 crore. This requirement is meant to help in tracking the invoices and preventing fraudulent activities.

4. Expansion of the scope of the Composition Scheme: The scope of the Composition Scheme has been expanded to cover more businesses, with the threshold limit for eligibility being increased from Rs. 1.5 crore to Rs. 2 crore from January 1, 2021.

5. Reduction in the GST rates on certain items: The GST rates on certain items such as Covid-19 related medicines and equipment, medical oxygen, ambulances, and other medical equipment have been reduced to zero or lower rates to provide relief to the people during the pandemic.

6. Relaxation in filing of GST returns: Various relaxations have been provided in the filing of GST returns for the taxpayers, such as the waiving of late fees and interest for the late filing of returns for the period April 2021 to September 2021 for small taxpayers.

It is important for taxpayers to stay up-to-date with the changes in the GST laws and comply with the new requirements to avoid any penalties or legal issues.

Rate Changes (Goods) which have come effect in FY 2021-22

There have been a few rate changes on goods that have come into effect in the financial year 2021-22. Some of the key rate changes are:

1. Duty on Gold and Silver: The import duty on gold and silver has been increased from 12.5% to 17.5% with effect from 17th July 2021.

2. Exemption of IGST on Imports of COVID-related goods: The government has granted an exemption from IGST and customs duty for the import of COVID-related goods such as medical oxygen, oxygen concentrators, and related equipment, up to 31st October 2021.

3. Increased customs duty on Crude Palm Oil: The customs duty on Crude Palm Oil (CPO) has been increased from 15% to 17.5%, and on Refined Palm Oil (RPO) from 35% to 40%, with effect from 11th August 2021.

4. Lowered customs duty on Masoor Dal: The customs duty on Masoor Dal has been reduced to 10% from the previous rate of 30% with effect from 15th July 2021.

5. Increase in Basic Custom Duty on Iron and Steel Products: The basic custom duty on certain iron and steel products has been increased from 7.5% to 12.5%, with effect from 1st October 2021.

6. Reduction in Basic Custom Duty on Copper Scrap: The basic custom duty on copper scrap has been reduced to 2.5% from the previous rate of 5% with effect from 1st October 2021.

It is important to note that these rate changes are subject to change and one should refer to the latest notifications issued by the government to stay updated.


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