GST Provision related to Communication of Details of Invoice or Debit Note to the Recipient to be Effective from 1 January, 2022

The Central Board of Indirect Taxes and Customs (CBIC) notified the sections 108, 109 and 113 to 122 of Finance Act, 2021 to be effective from 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 appoints the 1st day of January, 2022, as the date on which the provisions of sections 108, 109 and 113 to 122 of the said Act shall come into force,” the CBIC said.

Section 108 of the Finance Act, 2021 seeks to amend section 7 of the CGST Act wherein in sub-section (1), after clause (a), the 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 members or constituents or vice versa, for cash, deferred payment or other valuable consideration.

Section 109 of the Finance Act, 2021 seeks to amend section 16 of the CGST Act wherein sub-section (2), after clause (a), the clause shall be inserted, namely “(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37”.

Section 113 of the Finance Act, 2021 seeks to amend section 74, in Explanation 1, in clause (ii), for the words and figures “sections 122, 125, 129 and 130”, the words and figures “sections 122 and 125” shall be substituted.

Section 114 of the Finance Act, 2021 seeks to Amend section 75, in sub-section (12), the Explanation shall be inserted, namely “For the purposes of this sub-section, the expression “self-assessed tax” shall include the tax payable in respect of details of outward supplies furnished under section 37, but not included in the return furnished under section 39.’

Section 115 of the Finance Act, 2021 seeks to Amend section 83, for sub-section (1), the sub-section shall be substituted, namely “(1) Where, after the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue it is necessary so to do, he may, by order in writing, attach provisionally, any property, including bank account, belonging to the taxable person or any person specified in sub-section (1A) of section 122, in such manner as may be prescribed.”.

Section 116 of the Finance Act, 2021 seeks to Amend section 107, in sub-section (6), the proviso shall be inserted, namely “Provided that no appeal shall be filed against an order under sub-section (3) of section 129, unless a sum equal to twenty-five per cent of the penalty has been paid by the appellant.”.

Section 117 of the Finance Act, 2021 seeks to Amend section 129, in sub-section (1), for clauses (a) and (b), the following clauses shall be substituted, namely “(a) on payment of penalty equal to two hundred per cent of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two per cent of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such penalty; (b) on payment of penalty equal to fifty per cent of the value of the goods or two hundred per cent of the tax payable on such goods, whichever is higher, and in case of exempted goods, on payment of an amount equal to five per cent of the value of goods or twenty-five thousand rupees, whichever is less, where 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) The proper officer detaining or seizing goods or conveyance shall issue a notice within seven days of such detention or seizure, specifying the penalty payable, and thereafter, pass an order within a period of seven days from the date of service of such notice, for payment of penalty under clause (a) or clause (b) of sub-section (1).”; (iv) in sub-section (4), for the words “No tax, interest or penalty”, the words “No penalty” shall be substituted; (v) for sub-section (6), the following sub-section shall be substituted, namely “(6) Where the person transporting any goods or the owner of such goods fails to pay the amount of penalty under sub-section (1) within fifteen days from the date of receipt of the copy of the order passed under sub-section (3), the goods or conveyance so detained or seized shall be liable to be sold or disposed of otherwise, in such manner and within such time as may be prescribed, to recover the penalty payable under sub-section (3). Provided that the conveyance shall be released on payment by the transporter of penalty under sub-section (3) or one lakh rupees, whichever is less. Provided further that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of fifteen days may be reduced by the proper officer.”.

Section 118 of the Finance Act, 2021 seeks to section 130, (a) in sub-section (1), for the words “Notwithstanding anything contained in this Act, if “, the word “Where” shall be substituted; in 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 hundred per cent of the tax payable on such goods” shall be substituted; sub-section (3) shall be omitted.

Section 119 of the Finance Act, 2021 seeks to Substitute of new section for section 151 namely “Power to call for information: The Commissioner or an officer authorised by him may, by an order, direct any person to furnish information relating to any matter dealt with in connection with this Act, within such time, in such form, and in such manner, as may be specified therein.”.

Section 120 of the Finance Act, 2021 seeks to amend section 152 in sub-section (1), (i) the words “of any individual return or part thereof” shall be omitted; after the words “any proceedings under this Act”, the words “without giving an opportunity of being heard to the person concerned” shall be inserted; and sub-section (2) shall be omitted.

Section 121 of the Finance Act, 2021 seeks to amend section 168, in sub-section (2), for the words, brackets and figures “sub-section (1) of section 44”, the word and figures “section 44” shall be substituted; the words, brackets and figures “sub-section (1) of section 151,” shall be omitted.

Section 122 of the Finance Act, 2021 seeks to amend Schedule II. — In Schedule II of the Central Goods and Services Tax Act, paragraph 7 shall be omitted and shall be deemed to have been omitted with effect from the 1st day of July, 2017.