GST sections amended in Finance Act 2021

GST Sections amended in Finance Act 2021
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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)

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

CGST Ntf No. 39 dated 21.12.2021

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

CGST Ntf No. 29 dated 30.07.2021

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

CGST Ntf No. 39 dated 21.12.2021

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

CGST Ntf No. 39 dated 21.12.2021

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 129For 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

CGST Ntf No. 39 dated 21.12.2021

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

CGST Ntf No. 39 dated 21.12.2021

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

CGST Ntf No. 39 dated 21.12.2021

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

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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About CA Ankita Khetan 188 Articles
Ankita is a Chartered Accountant in practice and holds a Diploma in IFRS (from ACCA, UK). She is also a Commerce PG and Certified Independent Director (from IICA). She holds a certification in Forex and Treasury Management. Her area of expertise is GST and Income tax. She is passionate about reading, writing, and sharing knowledge on areas related to finance and taxation.

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