Important changes in GST W.e.f 01-Oct-2022:

1. Time limit extensions with effect from 1st October 2022:

Time period extended for claiming ITC related to previous financial year now extended to 30th November 2022.
Time limit to issue credit notes against invoices of FY 2021-22 is now extended to 30th November 2022.
Time limit to rectify the errors in GST returns of FY 2021-22 is now extended to 30th November 2022.
Time limit to avail ITC for invoices/ debit notes of FY 2021-22 is now extended to 30th November 2022.

2. Other critical changes effective 1st October 2022:

ITC availment by recipient is now linked to the timely tax compliance by the suppliers.
Cancellation of GST returns for non-filers of GST returns.
Restriction on filing of GSTR-3B if the GSTR-1 for the same period is not filed.
Restriction on filing of GTSR-1 if the GSTR-1 for the preceding periods is not filed.

3. GST on International freight charges:

Through notification No 07/2021, granted complete exemption from IGST liability for outbound International freight charges, which was extended till 30th September 2022.Upon expiry of the said notification w.e.f 01st October 2022 would be subjected to levy of GST as no further extension of exemption has been notified:-

Ocean export freight billed to a person in India to be charged at 5%
Air export freight billed to a person in India to be charged at 18%

Things to be considered while filing GSTR 3B

from 01-Oct-2022

With effect form 01-Oct-2022, while claiming Input in GSTR 3B following criteria needs to be met:

1.     ITC is claimed based on appropriate Invoice or Debit note
2.     Goods or service or both are fully received
3.     Credit claimed in the GSTR 3B Return is reflected on your GSTR 2B
4.     The supplier has paid tax on such credit availed by you
5.     The supplier of such supplies has filed the return (GSTR 1 & 3B)
6.     The credit availed should not be a “Restricted credit” based on the following items
Related to suppliers who have taken new registration for such period as may be prescribed.
When the Supplier not paid the tax to the government and based on his return ITC Credit should not be availed.
When supplier has paid less tax in GSTR 3B as compared to the output tax payable as per GSTR 1
A supplier who has availed input credit in his GSTR 3B in excess of credit available to him in his GSTR 2B
If the supplier has defaulted in discharging his tax liability in accordance with the provisions of Section 49(12) i.e., ITC can be used up to 99% of their output liability. Balance 1% has to be paid by Cash, otherwise if would result as default in discharge of liability.

Now tax credit can claimed only if your supplier is tax-compliant.

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