Last updated on December 22nd, 2021 at 09:14 am
GST sections amended in Finance Act 2021
Finance Act 2021 made around sixteen amendments which include insertions and substitutions made in the CGST Act 2017 as well as the IGST Act 2017. They were covered by section 108 to section 123 of the Finance Act, 2021 (13 of 2021). All the amendments leaving one amendment in IGST Act, 2021 are notified from the amendments made in the Finance Act, 2021. Following notifications have been issued by the Ministry of Finance in order to notify the applicability and the effective date of the amended/introduced sections.
Notifications issued for the effective date of the sections of Finance Act, 2021 (13 of 2021)
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|
Sec No. of Fin Act 2021 |
Amended/Introduced Section with a brief description | Effective Date |
Notification |
|
108 |
Sec 7(1)(aa) – The term ‘Supply’ has been expanded to include private clubs and associations, and their members. | 01.01.2022 | CGST Ntf No. 39 dated 21.12.2021 |
| 109 | Sec 16(2)(aa) – Additional condition to avail ITC laid down | 01.01.2022 | |
|
110 |
Sec 35(5) – GST Audit being abolished by the omission of sub-section | 01.08.2021 | CGST Ntf No. 29 dated 30.07.2021 |
| 111 | Sec 44 – Self-certification for GST Reconciliation | 01.08.2021 | |
|
112 |
Sec 50(1) – Interest on net cash liability retrospectively | 01.06.2021 | CGST Ntf No. 16 dated 01.06.2021 |
| 113 | Sec 74 – Separate proceeding for Supplier and Transporter | 01.01.2022 | |
|
114 |
Sec 75(12) – Self-assessed tax redefined | 01.01.2022 | CGST Ntf No. 39 dated 21.12.2021 |
| 115 | Sec 83(1) – Provisional Attachment will be valid from initiation of proceedings till the order is passed | 01.01.2022 | |
|
116 |
Sec 107(6) – Appeal against order of detention/seizure after depositing 25% penalty | 01.01.2022 | CGST Ntf No. 39 dated 21.12.2021 |
| 117 | Sec 129 – For releasing detained goods If the owner comes forward then pay a penalty equal to 200% of tax payable. If the owner doesn’t come forward then pay a penalty higher of 200% tax payable or 50% value of goods. For releasing detained vehicle Pay the lower from the following Rs 1 lakh or a penalty calculated above |
01.01.2022 | |
|
118 |
Sec 130 – If the Officer gives an option to the owner to pay in lieu of confiscation of goods then the penalty shall be equivalent to 100% of the tax payable (Note: The penalty shall not be more than the market value of goods ignoring the tax) |
01.01.2022 | CGST Ntf No. 39 dated 21.12.2021 |
| 119 | Sec 151 – Empowers Jurisdictional commissioner to call upon any person for information relating to GST | 01.01.2022 | |
|
120 |
Sec 152 – Any information shall not be used for any proceedings, without giving an opportunity of being heard |
01.01.2022 | CGST Ntf No. 39 dated 21.12.2021 |
| 121 | Sec 168 – Section 44 shall be substituted in place of section 44(1) relates to the amendment of the GST audit | 01.01.2022 | |
|
122 |
Schdeule II – Paragraph 7 has been omitted | 01.01.2022 | CGST Ntf No. 39 dated 21.12.2021 |
| 123 | IGST Sec 16 – Supply of goods or services to SEZ will be treated as zero-rated supplies only if it is for authorized operations. | – |
Yet to be notified |
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Note: The amendments are first proposed as Finance Bill then approved in both the Houses of Parliament and further get assent from the President of the Nation. Changes made in the Act are to be notified by Central Government in the Official Gazette. These amendments do not require approval in the GST Council Meeting. 
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