CBIC Notifies GST Provision of Details of invoice or debit note to the recipient to be effective from 1st Jan 2022

Sections 108, 109, and 113 to 122 of the Finance Act of 2021 were notified by the Central Board of Indirect Taxes and Customs (CBIC) to take effect on January 1, 2022.

The CBIC said that “in exercise of the powers conferred by clause (b) of sub-section (2) of section 1 of the Finance Act, 2021 (13 of 2021), the Central Government hereby appoints the 1st day of January, 2022, as the date on which the provisions of sections 108, 109, and 113 to 122 of the said Act shall come into force.”

Section 108 of the Finance Act of 2021 aims to amend section 7 of the CGST Act by inserting a clause after clause (a) in sub-section (1), namely “(aa) the activities or transactions, by a person other than an individual, to its members or constituents or vice versa, for cash, deferred payment, or other valuable consideration, by a person other than an individual.”

Section 109 of the Finance Act of 2021 proposes to amend section 16 of the CGST Act by inserting the clause “(aa) the details of the invoice or debit note referred to in clause (a) have been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37” after clause (a).

Section 113 of the Finance Act of 2021 proposes to replace the words and figures “sections 122, 125, 129, and 130” in clause (ii) of section 74 with the words and figures “sections 122 and 125.”

‘For the purposes of this sub-section, the word “self-assessed tax” shall include the tax payable in respect of information of outward supplies submitted under section 37, but not included in the return furnished under section 39,’ says section 114 of the Finance Act of 2021.

Section 115 of the Finance Act of 2021 seeks to amend section 83, namely “(1) Where, after the initiation of any proceeding under Chapter XII, Chapter XIV, or Chapter XV, the Commissioner is of the opinion that it is necessary to do so for the purpose of protecting the interest of the Government revenue, he may, by order in writing, attach provisionally any property, including bank accounts, belonging to the taxable person.”

Section 116 of the Finance Act of 2021 proposes to add a proviso to section 107, sub-section (6), stating: “Provided that no appeal shall be made against an order under sub-section (3) of section 129, unless the appellant has paid an amount equal to twenty-five per cent of the penalty.”

Section 117 of the Finance Act of 2021 seeks to amend section 129 by substituting the following clauses for clauses (a) and (b) in sub-section (1): “(a) on payment of a penalty equal to two hundred percent of the tax payable on such goods and, in the case of exempted goods, on payment of an amount equal to two percent of the value of the goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment (b) on payment of a penalty equal to fifty percent of the value of the goods or two hundred percent of the tax payable on such goods, whichever is higher, and in the case of exempted goods, on payment of an amount equal to five percent of the value of the goods or twenty-five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such penalty;”(3) The proper officer detaining or seizing goods or conveyance shall issue a notice specifying the penalty payable within seven days of such detention or seizure, and thereafter, pass an order for payment of penalty under clause (a) or clause (b) of sub-section (1) within seven days from the date of service of such notice.”; (iv) for sub-section (4), the words “No tax, interest, or penalty” shall be substituted; (v) for sub-section (5), (6) If the person transporting the goods or the owner of the goods fails to pay the penalty under sub-section (1) within fifteen days of receiving a copy of the order passed under sub-section (3), the goods or conveyance so detained or seized may be sold or disposed of in any manner and within such time as may be prescribed in order to recover the penalty payable under sub-section (1). (3). The conveyance shall be freed upon payment of the penalty under sub-section (3) or one lakh rupees, whichever is less, by the transporter. The aforementioned period of fifteen days may be decreased by the proper officer if the detained or seized commodities are perishable or hazardous in nature, or are likely to degrade in value with the passage of time.”

Section 118 of the Finance Act of 2021 proposes the following changes to section 130: (a) in sub-section (1), for the words “Notwithstanding anything contained in this Act, if,” the word “Where” shall be substituted; in sub-section (2), in the second proviso, for the words, brackets, and figures “amount of penalty leviable under sub-section (1) of section 129,” the words “penalty equal to one hundred per cent of the tax payable on such goods”

Section 119 of the Finance Act of 2021 proposes to replace section 151 with a new section that reads, “Power to call for information: The Commissioner or an officer authorized by him may, by order, direct any person to furnish information relating to any matter dealt with in connection with this Act, within such time, in such form, and in such manner as may be specified therein.”

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