CBIC: GST Provision, communication of Details of invoice or debit note to the recipient, effective from 1 January, 2022

CBIC: GST Provision, communication of Details of invoice or debit note to the recipient, effective from 1 January, 2022

The Central Board of Indirect Taxes and Customs (CBIC) notified the sections 108, 109, and 113 to 122 of the Finance Act, 2021 to take effect on 1 January 2022.

"In exercise of the powers conferred by clause (b) of sub-section (2) of section 1 of the Finance Act, 2021 (13 of 2021), the Central Government hereby determines the 1st day of January 2022, as the date when the provisions of sections 108, 109 and 113 to 122 of the said Act shall come into force," the CBIC stated.

The Finance Act, 2021's Section 108 proposes to amend section 7 of the CGST Act, wherein, in sub-section (1), after clause (a), the following clause shall be inserted and shall be deemed to have been inserted, namely "(aa)." The activities or transactions by a person other than an individual to its associates or constituents or vice versa for cash, deferred payment, or other valuable consideration.

The Finance Act, 2021's Section 109 proposes to amend section 16 of the CGST Act by inserting a sub-section following clause (a), which reads "(aa) the details of the invoice or debit note are listed by the provider in the statement of outward supplies and are communicated to the recipient in accordance with section 37".

The Finance Act of 2021's Section 113 proposes to amend section 74, in Explanation 1, in clause (ii), to replace the words and figures "sections 122, 125, 129, and 130", with the words and figures "sections 122 and 125".

The Finance Act, 2021's Section 114 proposes to amend section 75 by inserting in sub-section (12) the following explanation: "For the purpose of this sub-section, the expression "self-assessed tax" includes the tax payable in respect of details of outward supplies furnished under section 37, but not included in the return furnished under section 39."

As per section 115 of the Finance Act, 2021, the following sub-section shall be substituted for sub-section (1), namely "(1) Where, after the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV. Accordingly, the purpose of protecting the Government revenue, he may, by order in writing, attach provisionally any property, including bank accounts, belonging to the taxable person or any person specified in sub-section (1A) of section 122, in such a manner as may be prescribed by the Commissioner."

In section 116 of the Finance Act, 2021, the proviso shall be inserted in sub-section (6) of section 107, namely "Provided that no appeal shall be filed against an order under sub-section (3) of section 129 unless a sum equal to 25 percent of the penalty has been paid by the appellant."

Section 117 of the Finance Act, 2021 proposes to amend section 129, in sub-section 1, the following provisions will be substituted for clauses (a) and (b), namely "(a) on payment of a penalty equal to two hundred percent of the tax payable on such goods, in case of exempted goods, on payment of an amount equal to two percent of their value." or Rs 25,000, whichever is lower, if the owner of the goods submits a claim for penalty; (b) on payment of penalty equal to 50 percent of the value of the goods or 200percent of the tax payable on such goods, whichever is higher and in case of exempted goods, on payment of five percent of the value of the goods or "if the owner of the goods does not come forward for payment of such penalty;"; (ii) sub-section (2) shall be omitted; (iii) for sub-section (3), the following sub-section shall be substituted, namely "(3)" On detaining or seizing goods or conveyances, the appropriate officer shall issue a notice within seven days of the detainment or seizure, specifying the penalty payable, thereafter, pass an order within seven days for payment of penalty under clause (a) or clause (b) of sub-section (1);" (iv) for sub-section (4), the words "No tax, interest, or penalty" shall be substituted for "No penalty;" (v) for sub-section (6), the following sub-section shall be substituted: "(6) If the person transporting goods or the owner of those goods fail to pay the amount of penalty under sub-section (1) within 15 days of receiving a copy of the order passed under sub-section (3), the goods or conveyance so detained or seized shall be sold or disposed of, in such a way and within such a time as may be prescribed, to recover the penalty payable under sub-section (3). The conveyance shall be released upon payment of the penalty provided under sub-section (3) or Rs 100,000, whichever is less? Provided further that where the detained or seized goods are perishable or hazardous or are likely to depreciate in value with passing of time, the said period of 15 days may be reduced by the proper officer in charge."

Specifically, section 118 of the Finance Act, 2021 seeks to section 130 (a) substitute the word "Where" in subsection (1) for the words "Notwithstanding anything contained in this Act if" Under sub-section (2), in the second proviso, for the words, brackets, and figures "amount of penalty leviable under sub-section (1) of section 129", the words "penalty equal to 100 percent of the tax payable on such goods" shall be substituted; sub-section (3) shall be deleted.

Section 119 of the Finance Act, 2021 seeks to substitute section 151 with a new section namely "Power to call for information: The Commissioner or an officer authorized by him may, by order, request that any person provide information about any matter relating to this Act within whatever time, in whatever form and in whatever manner may be specified therein.".

Section 120 of the Finance Act, 2021 proposes to amend section 152 in sub-section (1) by omitting the words "of any individual return or part thereof". It also proposes to insert, after the words "any proceeding under this Act", the words "without giving the person concerned an opportunity to be heard" shall be inserted; and sub-section (2) shall be deleted.

Section 121 of the Finance Act, 2021 proposes to amend section 168, in sub-section (2), for the words, brackets, and figures "sub-section (1) of section 44", "section 44" shall be substituted; the words, brackets and figures "sub-section (1) of section 151" shall be deleted.

In section 122 of the Finance Act, 2021, Schedule II is intended to be amended. In Schedule II of the Central Goods and Services Tax Act, paragraph 7 shall be removed and shall be deemed to have been removed from the 1st July, 2017.