Central Goods and Services Tax (Tenth Amendment) Rules 2021

Central Goods and Services Tax (Tenth Amendment) Rules 2021

The Central Goods and Services Tax Rules, 2017 have been further amended by Notification No. 40/2021 –Central Tax dated 29.12.2021

Restriction on ITC

Rule 36 has been amended to provide that no input tax credit (ITC) shall be availed by a registered person in respect of invoices or debit notes the details of which are required to be furnished under sub-section (1) of section 37 unless,-

(a) the details of such invoices or debit notes have been furnished by the supplier in the statement of outward supplies in FORM GSTR-1 or using the invoice furnishing facility; and

(b) the details of such invoices or debit notes have been communicated to the registered person in FORM GSTR-2B under sub-rule(7) of rule 60.

Extension of due date for filing Annual Return FORM GSTR-9 and Reconciliation Statement FORM GSTR-9C for FY 2020-21 

It has been provided that the annual return for the financial year 2020-2021 shall be furnished on or before the twenty-eighth day of February, 2022. Also, self-certified reconciliation statement shall be furnished along with the said annual return on or before 28th February, 2022.

Refund

Where Unique Identity Number of the applicant is not mentioned in a tax invoice, the refund of tax paid by the applicant on such invoice shall be available only if the copy of the invoice, duly attested by the authorized representative of the applicant, is submitted along with the refund application in FORM GST RFD-10

Further amendments have been made in rules for demand and recovery, disposal of proceeds of sale of goods or conveyance and movable or immovable property. A new Rule 144A has been inserted for Recovery of penalty by sale of goods or conveyance detained or seized in transit.

• ITR was not non est for no e-verification when AO took cognizance of returned income
• Section 43CB & ICDS-III is applicable to contractors not to real estate developers
• Expenses of ESOP are allowable as revenue expenditure u/s 37(1) of Income Tax Act.
• Compliance history of supplier can’t be used to invalidate genuine business transactions of buyer
• Reassessment quashed as AO issued notice u/s 148 instead of 153C as reopening was based on search