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
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