GST Update No 303 on Press release regarding extension of timelines

The amendments made in section 100 to 114, except clause (c) of section 110 and section 111 of the Finance Act, 2022 are made effective from 01.10.2022 vide Notification No. 18/2022-Central tax dated 28.09.2022. The in-depth analysis of these amendments was discussed by us in GST Update No. 301/2022 dated 05.10.2022. However, looking at the ongoing confusions regarding applicability of the extended timelines to the financial year 2021-22, trade and industry demanded clarification as regards to applicability of the said provisions for the financial year 2021-22. The CBIC therefore acknowledged the issues raised by the business houses and has recently issued a Press Release as on 04.10.2022 in this respect. The analysis of this press release is subject matter of discussion of our present update.
The trade and industry raised various queries regarding the recent Notification No. 18/2022 dated 28.09.2022. It is now clarified that firstly the extended time frames of 30th November of next financial year or furnishing of annual return of the relevant financial year, whichever is earlier, is applicable for the following compliances tabulated as follows:
S. No.
Provision of CGST Act, 2017
Compliances
1.
Section 16(4)
Claiming of input tax credit related to any invoice or debit note
2.
Section 34(2)
Declaration of details of credit notes in the return
3.
Proviso to Section 37(3)
Rectification of details furnished in outward supplies i.e. GSTR-1
4.
Proviso to Section 39(9)
Rectification of details furnished in the return i.e. GSTR-3B
5.
Proviso to Section 52(6)
Rectification of details furnished in the statement by TCS operator under GSTR-8
The above amendment is undertaken to streamline and harmonise the due dates of all the compliances. It has proved to be an added advantage for the trade and industry providing them an additional period of one monthIn alignment with the above, the press release put an end to the existing disputes as regards to whether the extended time limits related to declaration of credit notes is applicable for the financial year 2021-22 as well? In this respect, it is stated that the said time frames are applicable for Financial Year 2021-22 also. Furthermore, these compliances can be carried out in the relevant return or the statement filed/ furnished upto 30th November of the next financial year, or the date of furnishing annual return for the said financial year, whichever is earlier. It is to be noted that the same point of view was also upheld by CBIC Mitra Help Desk floated as on 30.09.2022. We had also opined in our GST Update No. 301/2022 dated 05.10.2022 that the extended time limit will be applicable for the financial year 2021-22 also except for declaration of credit notes as the time limit for the same has been expired as on 30.09.2022. However, the clarification also provides extension of benefit in case of declaration of credit notes in returns and rectification of returns such as GSTR-1, GSTR-3B and TCS.
The press release further intends to clarify that no extension of due date of filing monthly return/statement for the month of October or quarter ending September is made vide the Notification No. 18/2022-Central Tax dated 28.09.2022.
The above press release is a welcome initiative and clarifications like these from the Government’s end are expected by the trade and industry in the future as well.

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GST Update No 303 on Press release regarding extension of timelines

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