GST UPDATES

45 th COUNCIL
MEETING
T-TAX
R-RECNET
C-CHANGES
Major Decisions of 45th Council Meeting held on 17.09.2021
• GST Returns and Refunds :

✓ Aadhar authentication mandatory for refund claim and revocation of cancellation

of registration

✓ Late fees for delayed filing of FORM GSTR-1 to be auto-populated in next FORM
GSTR-3B

✓ Refund to be disbursed in bank account linked to PAN

✓ W.e.f. 01.01.2022, registered person shall not be allowed to furnish FORM GSTR-1, if
FORM GSTR-3B not furnished for previous month

✓ Rule 36(4) to be amended after notification of clause (aa) of section 16(2) of CGST Act
2017 as proposed by Finance Act 2021 i.e. credit can be claimed in respect of invoices/
debit notes, to the extent the details of such invoices/ debit notes are furnished
by the supplier in FORM GSTR-1/ IFF and are communicated to the registered
person in FORM GSTR-2B.
Major Decisions of 45th Council Meeting held on 17.09.2021:

• Council decided to set up a GoM to examine the issue of correction of inverted duty
structure for major sectors; rationalize the rates and review exemptions from the point of
view of revenue augmentation, from GST.

• Exisiting concessional rates on COVID-19 treatment drugs extended from September 2021
to December 2021. Further, few additional drugs brought into concessional rates.

• Inverted duty structure in footwear and textiles sector in footwear and textile sector shall be
effect from 01.01.2022.

• Relaxation in FORM GST ITC-04 – Taxpayer having turnover above 5 Cr – half yearly,
turnover below 5 Cr – yearly

• Interest at 18% shall be payable on “ineligible ITC availed and utilized” and not on
“ineligible ITC availed” w.e.f. 01.07.2017.
Major Decisions of 45th Council Meeting held on 17.09.2021:

• For “intermediary services”, it is clarified that person incorporated in India under the
Companies Act, 2013 and a person incorporated under the laws of any other country
are to be treated as separate legal entities. Accordingly, no barring under section
2(6)(v) of IGST Act 2017 for export of services

• W.e.f. 01.01.2021, date of issuance of debit note (not financial year to which it
pertains) shall be considered for Section 16(4) of CGST Act 2017

• No need to carry physical copy of Tax Invoice, in case E-invoice is generated by

supplier

• Restriction imposed under section 54(3) of CGST Act, 2017 from availment of refund
under accumulated ITC shall be applicable only on those goods, actually subjected to
export duty

• Unutilised balance in CGST and IGST cash ledger can be transferred between distinct
persons (same PAN), subject to certain safeguards.
From:
Ganesh Narayan
Partner
T R Chadha and Co LLP
Chartered Accountants