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Alerts:

Indirect Tax Alert - CBIC clarifications on the time limit for compliances pursuant to Union Budget Amendments

06 October 2022

CBIC vide notification no:18/2022-Central Tax dated 28 September 2022 had notified that the amendments made by Union Finance Act, 2022 will be effective 1 October 2022. As per the amendments, the time limit for undertaking compliances stands extended to 30 November following the end of the financial year or the furnishing of the relevant annual return, whichever is earlier.

In this regard, CBIC has issued a Press Release dated 4 October 2022 and clarified as follows:

Sl. No.

Provision

Amendment

Clarification as regards the relevant requirement

1.

Section 16(4)

The time limit to avail of input tax credit (ITC) in respect of invoices/debit notes issued during a financial year has been extended till 30 November following the end of the financial year or the date of furnishing of annual return, whichever is earlier

Claiming of ITC in respect of any invoice or debit note in the return

2.

Section 34(2)

The time limit for issuing Credit Notes has been extended to 30 November following the end of the financial year in which the supply was made or the date of furnishing of the annual return, whichever is earlier

Declaration of the details of credit notes in the return

3.

Proviso to Section 37(3)

The time limit for rectification of error or omission in Form GSTR-1 (Return for outward supplies) has been extended till 30 November following the end of the financial year or the date of furnishing of annual return, whichever is earlier

Rectification of particulars in details of outward supplies

4.

Proviso to Section 39(9)

The time limit for rectification of error or omission in Form GSTR-3B (Monthly return) has been extended till 30 November following the end of the financial year or the date of furnishing of the annual return, whichever is earlier

Rectification of particulars furnished in a return

5.

Proviso to Section 52(6)

The time limit for rectification of error or omission in Form GSTR-8 (Return by e-commerce operator) has been extended till 30 November following the end of the financial year or the date of furnishing of annual return, whichever is earlier

Rectification of particulars in the statement furnished by the e-commerce operator.

 

  • Applicability of the revised time limits to FY 2021-22: It has been clarified that the extended time limits for undertaking the aforementioned compliances are applicable to the compliances for FY 2021-22 onwards.
  • It has also been clarified that no extension for the due date of filing monthly returns/statements for the month of October (due in November) or the due date of filing quarterly returns/statements for the quarter ending September has been made.

BDO Comments

Considering the language of the amendments, there has been the possibility of divergent interpretations with different due dates and the effective date of the amendments. The Press Release now clarifies these issues and is welcome. Importantly, the Press Release clarifies the intent to allow such extensions for compliances for the year FY 2021-2022 and the same has been well received by the industry at large.

Importantly, as regards the clarification on the date by which compliance requirements under Section 34(2) relating to issuance credit under CGST law, the same appears to be at variance with the provisions of Section 34(2) of the CGST Act which stipulates that the time limit for issuance of credit notes have been extended to 30 November (which would be reported in the November return filed in December). However, the Press Release has given a uniform clarification that all such due dates are to be complied with the returns to be filed till 30 November. It is expected this issue would be addressed through suitable clarification in the future.

[Press Release dated 4 October 2022]