September, 2021 – Issue No. III


Hon’ble Supreme Court upholds Rule 89(5) – a formula for the refund of ITC on account of inverted duty structure.

GST rate changes in order to correct inverted duty structure, in footwear and textiles sector, will be implemented with effect from 01.01.2022.

Validity of GST exemption on transport of goods by vessel and air from India to outside India is extended upto 30.9.2022.

45th GST Council Meeting Recommendations:

  1. Filing of ITC -04 – annual aggregate turnover in preceding financial year is above Rs. 5 crores –  once in six months; annual aggregate turnover in is upto Rs. 5 crores – to be filed annually.
  2. Interest provision to be amended retrospectively, w.e.f. 01.07.2017;  interest of 18% is to be paid on “ineligible ITC availed and utilized” and not on “ineligible ITC availed”.
  3. Unutilized balance in CGST and IGST cash ledger to  be allowed to be transferred between distinct persons (entities having same PAN but registered in different states);
  4. Clarification to be issued on “intermediary services”;
  5. Clarification relating to interpretation of the term “merely establishment of distinct person” in condition (v) of the Section 2 (6) of the IGST Act 2017 for export of services to be issued.
  6. W.e.f. 01.01.2021, the date of issuance of debit note (and not the date of underlying invoice) shall determine the relevant financial year for the purpose of section 16(4) of CGST Act, 2017;
  7. Only those goods on which some export duty has to be paid at the time of export will be covered under the restriction imposed under section 54(3) of CGST Act, 2017 from availment of refund of accumulated ITC.
  8. Provision to be incorporated in in CGST Rules, 2017 for removing ambiguity regarding procedure and time limit for filing refund of tax wrongfully paid as specified in section 77(1) of the CGST/SGST Act and section 19(1) of the IGST Act.
  9. Aadhaar authentication of registration to be made mandatory for filing refund claim and application for revocation of cancellation of registration.
  10. Late fee for delayed filing of FORM GSTR-1 to be auto-populated and collected in next open return in FORM GSTR-3B.
  11. Refund to be disbursed in the bank account, which is linked with same PAN on which registration has been obtained under GST.
  12. With effect from 01.01.2022 a registered person shall not be allowed to furnish FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for the preceding month.
  13. Rule 36(4) of CGST Rules, 2017 to be amended to restrict availment of ITC in respect of invoices/ debit notes, to the extent the details of such invoices/ debit notes are furnished by the supplier in FORM GSTR-1/ IFF and are communicated to the registered person in FORM GSTR-2B.

Time limit for intimation of Aadhaar number to the Income tax Department for linking of PAN with Aadhaar has been extended to 31st March, 2022.

The due date for completion of penalty proceedings under the Act has also been extended  to 31st March, 2022.

Further, the time limit for issuance of notice and passing of order by the Adjudicating Authority under the Prohibition of Benami Property Transactions Act, 1988 has also been extended to 31st March, 2022.

No TDS on payment in the nature of interest, other than interest on securities, made by a scheduled bank located in a specified area, to a member of Scheduled Tribe.


Anti-dumping duty imposed on imports of ‘Aluminium foil’ from China PR, Malaysia, Thailand, Indonesia for a period of five years.

Customs Duty on Lentils imported from the USA – 20%.


The last date of submitting applications under MEIS, SEIS, ROSCTL, ROSL and 2% additional ad hoc incentive has been notified to be 31.12.2021.

“Free” Import policy for Tur /Pigeon Peas and Urad is extended for the period up to 31st December 2021. Further, import consignments of these items with Bill of Lading issued on or before 31st December, 2021 shall not be allowed by Customs beyond 31st January 2022.

Applicants who applied for the Restricted import Authorisation for Moong, Tur and Urad for period 2021-22 as per the previous Notifications may choose to apply for refund of application fees in view of the policy change.

The Indian Tax Advisors