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New GST Rates

With the start of new calendar year 2022, the GST law also enters into its new era by enacting various amendments in GST Law which was proposed in the Finance Act, 2021. The list of changes being made effective from 1st of January, 2022 is as below

GOODS HSN CODE WITH NEW AND OLD GST TAX RATES:

 

Sr.No.	HSN	Particulars	Old GST Tax Rates	New GST Tax Rates
01.	5007, 5111, 5112, 5113, 5208, 5210, 5211, 5212, 5309, 5310, 5311, 5402, 5403, 5404, 5405, 5406, 5407, 5408, 5501,5502,5503,5504 5505,5506,5507, 5512, 5513, 5514, 5515, 5516,5607, 5608, 5801, 5806, 5809,5810, 6001, 6002, 6003, 6005, 6006, 61,62, 6301, 6302, 6303,6304, 6305,6306, 6307, 6308,6309,6310	All Textile Products	5%/12%/18%	12%
02.	64	Footwear of sale value not exceeding Rs. 1000 per pair	5%	12%

 

SERVICE SAC CODE WITH NEW AND OLD GST TAX RATES:

 

Sr.No.	HSN	Particulars	Old GST Tax Rates	New GST Tax Rates
01.	9988	Job Work by way of Dyeing and Printing of Textile and Textile Products for registered principal	5%	12%
02.	9954	Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied to the Governmental Authority or a Government Entity by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of, - (a) a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958); (b) canal, dam or other irrigation works; (c) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal.	12%	18%
03.	9954	(119) of section 2 of the Central Goods and Services Tax Act, 2017, {other than that covered by items (i), (ia), (ib), (ic), (id), (ie) and (if) to the Governmental Authority or a Government Entity by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of - (a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; (b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or(iii) an art or cultural establishment; or (c) a residential complex predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the Central Goods and Services Tax Act, 2017.	12%	18%
04.	9954	Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017 provided by a sub-contractor to the main contractor providing services specified above (Sr. No. 1 & 2) to the Governmental Authority or a Government Entity.	12%	18%
05.	9954	Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, involving predominantly earth work (that is, constituting more than 75 per cent. of the value of the works contract) provided to the Governmental Authority or a Government Entity.	5%	18%
06.	9964	Service of transportation of passengers, with or without accompanied belongings, by- (e) metered cabs or auto rickshaws (including erickshaws) if such services are supplied through an electronic commerce operator, and notified under sub-section (5) of Section 9 of the Central Goods and Services Tax Act, 2017.	NIL	5%

 

Other Amendments:

1. Penalty applicable in case of detention of goods shall be revised as under:

	upto 31.12.2021	w.e.f 01.01.2022
Where the owner of the goods comes forward for payment	Taxable Goods: Tax - 100% of Tax Penalty - 100% of Tax	Taxable Goods: Penalty - 200% of Tax
	Exempted Goods: 2% of value of Goods or Rs. 25,000, Less	Exempted Goods: 2% of value of Goods or Rs. 25,000, Less
where the owner of the goods does not come forward for payment	Taxable Goods: Penalty - 50% of value of Goods - Tax paid	Taxable Goods: Penalty - 50% of value of Goods or 200% of Tax, Higher
	Exempted Goods: 5% of value of Goods or Rs. 25,000, Less	Exempted Goods: 5% of value of Goods or Rs. 25,000, Less

 

2. Power to recover tax where GSTR 3B not filed

Explanation inserted to section 75(12) by virtue of which department shall have power to recover tax where a taxpayer has furnished GSTR 1 but not filed its GSTR 3B

 

3. Filing of GSTR 1 not allowed if GTSR 3B not filed

Currently a taxpayer who has not filed GSTR 3B for preceding 2 months was barred from filing of GTSR 1. However, by virtue of amendment in Rule 59(6), a taxpayer who has not filed his GSTR 3B for the preceding month shall be not allowed to file GSTR 1

 

4. Adhaar Authentication made mandatory

• New rule 10B is being inserted to make Adhaar authentication mandatory in case of following situation:
• For filing of application for revocation of cancellation of registration in FORM GST REG-21 under Rule 23
• For filing of refund application in FORM RFD-01 under rule 89
• For refund under rule 96 of the integrated tax paid on goods exported out of India

5. Claim of ITC:

Finance Ministry has notified January 1, 2022, as the date for norms making 100 per cent invoice matching mandatory under the Goods & Services Tax (GST) regime. This means an assesse will get input tax credit (ITC) only to the extent of invoices matched

 

RUSHABH SHAH