1. Several amendments to GST rules and notifications were made effective January 1st, 2022 regarding the definition of supply, tax rates for restaurant services supplied through online platforms, availability of input tax credit, and recovery of self-assessed tax without notice. 2. The amendments aim to expand the scope of taxable supplies, increase tax rates for certain services, and streamline input tax credit and tax recovery procedures. 3. The Commissioner is now empowered to provisionally attach property or bank accounts to protect government revenues during tax proceedings.

1. GST Amendment notified from 1st Jan 2022
By
CA L Gopal Shah
Bhubaneswar

2. Define Supply (Basic Fundamental)
Formula to calculate SUPPLY= A + B – C –D
 A - Section 7 (meaning of supply) All four conditions
i) Sale, exchange, barter , disposal
ii) Goods or services
iii) Consideration
iv) In course of furtherance of business
 B - Schedule -1 (Supply without consideration will be
treated as Supply)
 C - Schedule – III (Activities or transaction which shall be
treated neither as a supply of goods nor supply of
services)
 D – Section 11 of CGST Act 2017 – Exemption notification

3. Food delivery apps like Zomato & Swiggy, and
Cloud kitchens brought within the restaurant
services, liable to pay GST @5% with no ITC
 The CBIC vide Notification No. 17/2021- Central Tax (Rate) dated
November 18, 2021 amended Notification No. 17/2017- Central Tax
(Rate) dated June 28, 2017 to bring food delivery apps like Zomato &
Swiggy, and Cloud kitchens brought within the restaurant services as
recommended in GST Council’s 45th meeting was held on September
17, 2021.
 Accordingly, CBIC vide Notification No. 16/2021- Central Tax (Rate)
dated November 18, 2021 amended Services Exemption Notification to
insert proviso in S. No. 15 and 16.
 Similar notifications were issued under IGST Act, 2017 and UTGST Act,
2017

4. Impact of this notification on Restaurants
 Restaurants has to bifurcate the restaurant services supplied through E –
Commerce Operator and restaurant services supplied by them directly for
billing purposes.
 For example, Dominos supplies restaurant services through other E –
Commerce Operators and well as its own app.
 For restaurant services supplied through other E – Commerce Operators,
invoice has to be issued by E – Commerce Operator.
 For restaurant services supplied through its own app, Dominos has to issue
invoice
 There is also compliance burden on restaurants as they have to bifurcate the
restaurant services supplied through E – Commerce Operators and restaurant
service supplied by them directly as they have to report separately in GSTR 1
 How do the Supplier supplying restaurant service through E – Commerce
Operator report the transaction in GSTR 1 and GSTR 3B?
Registered persons supplying restaurant services through ECOs under
section 9(5) will report such supplies of restaurant services made through
ECOs in Table 8 (exempt supply) of GSTR-1 and Table 3.1 (c) of GSTR-3B,
for the time being.

5. Continued : Important FAQ on Restaurant
food delivery through E- Commerce
 CBIC issued various clarifications vide Circular No. 167/23/2021 – GST on 17th
December 2021
 Restaurant registered as Composition dealer cannot supply foods through
online E-Commerce operator only regular GST registered restaurant can
supply
 From 1st April 2022 even GST unregistered restaurant can supply food through
E-commerce operator as the burden of payment of GST shifted from
restaurant to E-Commerce operator ( refer Sec 24 (ix) of CGST Act 2017)
 Items like bakery , ice cream , packed items , milk shake, etc cannot be
supplied online if the restaurant is not registered in GST

6. When GSTR 3B of previous month not filed
then GSTR-1 cannot be filed for current
month
 The CBIC vide Notification No. 35/2021–Central Tax dated
September 24, 2021 amended Rule 59 of the CGST Rules,
2017 to provide that 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 as
recommended in GST Council’s 45th meeting was held on
September 17, 2021.

7. Composite supply of works contract services to
Governmental Authority or Government Entity
taxable @ 18%
 The CBIC vide Notification No. 15/2021-Central Tax (Rate) dated November 18, 2021,
has further amended the S. No. 03 of the Services Rate Notification in order to make
composite supply of works contract services supplied to Governmental Authority or
Government Entity taxable @ 18%. Notification No.11/2017- Central Tax (Rate), dated
the June 28, 2017 and amendments of such notification(Service Rate Notification)
 Similar changes have been made in Serial No. 3 (i.e., pure services) and 3A (i.e.,
Composite supply of goods and services in which the value of supply of goods
constitutes not more than 25% of the value of the said composite supply) Notification
No.12/2017- Central Tax (Rate), dated the June 28, 2017 (“Services Exemption
Notification”) vide Notification No. 16/2021-Central Tax (Rate) dated November 18,
2021 to exclude Governmental authority and Government Entity. Thus, services
mentioned in Serial No. 3 and 3A provided to Governmental authority and Government
Entity shall no longer be exempt from January 01, 2022 and shall attract GST as
applicable under Services Rate Notification.
 Similar notifications were issued under IGST Act, 2017 and UTGST Act, 2017

8. Important definition for such Amendment
 “GOVERNMENT”: As per Section 2(53) of the CGST Act, 2017, ‘Government’ means the Central
Government, similarly as per the respective State GST Acts, ‘Government” means the State Government’
As per Clause (23) of Section 3 of the General Clauses Act, 1897 the ‘Government’ includes both the
Central Government and any State Government.
 “CENTRAL GOVERNMENT”: As per Clause (8) of Section 3 of the General Clauses Act, 1897, the ‘Central
Government’, in relation to anything done or to be done after the commencement of the Constitution,
means the President. As per Article 53 of the Constitution, the executive power of the Union shall be
vested in the President and shall be exercised by him either directly or indirectly through officers
subordinate to him in accordance with the Constitution. Further, in terms of Article 77 of the Constitution,
all executive actions of the Government of India shall be expressed to be taken in the name of the
President. Therefore, the Central Government means the President and the officers subordinate to him
while exercising the executive powers of the Union vested in the President and in the name of the
President.
 “STATE GOVERNMENT”: As per clause (60) of section 3 of the General Clauses Act,1897, the ‘State
Government’, as respects anything done after the commencement of the Constitution, shall be in a State
the Governor, and in an Union Territory the Central Government. As per Article 154 of the Constitution,
the executive power of the State shall be vested in the Governor and shall be exercised by him either
directly or indirectly through officers subordinate to him in accordance with the Constitution. Further, as
per Article 166 of the Constitution, all executive actions of the Government of State shall be expressed to
be taken in the name of Governor. Therefore, State Government means the Governor or the officers
subordinate to him who exercise the executive powers of the State vested in the Governor and in the

9. Continued:
 “LOCAL AUTHORITY”: As per Section 2 (69) of the CGST Act, 2017,
“local authority” means: (a) a “Panchayat” as defined in clause (d) of
Article 243 of the Constitution; (b) a “Municipality” as defined in
clause (e) of Article 243P of the Constitution; (c) a Municipal
Committee, a Zilla Parishad, a District Board, and any other authority
legally entitled to, or entrusted by the Central Government or any
State Government with the control or management of a municipal or
local fund; (d) a Cantonment Board as defined in section 3 of the
Cantonments Act, 2006 (41 of 2006); (e) a Regional Council or a
District Council constituted under the Sixth Schedule to the
Constitution; (f) a Development Board constituted under article 371
[and article 371J] of the Constitution; or (g) a Regional Council
constituted under article 371A of the Constitution

10. Continued : GOVERNMENTAL AUTHORITY omitted–
So higher rate of GST @ 18% wef: 1st Jan 2022
 GOVERNMENTAL AUTHORITY: As per Explanation under Section 2 (16) of the
IGST Act, 2017, the expression “governmental authority” means an authority
or a board or any other body, –
 (i) set up by an Act of Parliament or a State Legislature; or
 (ii) established by any Government, with ninety per cent. or more
participation by way of equity or control, to carry out any function entrusted
[to a Panchayat under Article 243G or] to a municipality under article 243W of
the Constitution; However, with effect from 13.10.2017, the following
definition was inserted for the purposes of Notification 11/2017 C.T. (Rate) &
12/2017 C.T. (Rate): “(zf) “Governmental Authority” means an authority or a
board or any other body, – 8/10 (i) set up by an Act of Parliament or a State
Legislature; or (ii) established by any Government, with 90 per cent, or more
participation by way of equity or control, to carry out any function entrusted
to a Municipality under article 243W of the Constitution or to a Panchayat
under article 243G of the Constitution.
 Examples: Competition Commission of India, SEBI, BDA, CDA , IDCO, etc

11. Continued : GOVERNMENTAL ENTITY omitted– So
higher rate of GST @ 18% wef: 1st Jan 2022
 GOVERNMENT ENTITY:
 With effect from 13.10.2017, the following definition was inserted for the
purposes of Notification 11/2017 C.T. (Rate) & 12/2017 C.T. (Rate): “(zfa)
“Government Entity” means an authority or a board or any other body
including a society, trust, corporation,
 (i) set up by an Act of Parliament or State Legislature; or
 (ii) established by any Government, with 90 per cent, or more
participation by way of equity or control, to carry out a function
entrusted by the Central Government, State Government, Union Territory
or a local authority”
 Example: Odisha Construction Corporation Ltd (OCC)

12. Section 75(12)- Recovery of self-assessed tax without
notices if there is difference between GSTR 1 and
GSTR 3B
 The CBIC vide Notification No. 39/2021–Central Tax dated December 21, 2021
notified the amendment made vide Section 114 of the Finance Act, 2021 w.e.f.
January 01, 2022:
 The following Explanation has been inserted in section 75(12) of CGST Act-
 ‘For the purposes of this sub-section, the expression “self-assessed tax” shall
include the tax payable in respect of details of outward supplies furnished under
section 37, but not included in the return furnished under section 39.’
 Previously the Government could initiate Demand / Recovery Proceedings Only if
Liability was furnished in GSTR 3B. Such Practical Difficulty has now been
removed vide the Explanation inserted and any Liability as furnished in GSTR 1
and not paid through GSTR 3B Is liable to be recovered without any SCN u/s
74/75
 Refer CBIC GST policy wing Instruction 01-/2022 dated 7th Jan 2022 – guideline or
Section 75(12) – Hope GST officer will implement this guideline

13. Continued:
 Section 75 (12) states that “Notwithstanding anything contained in
section 73 or section 74, where any amount of self-assessed tax in
accordance with a return furnished under section 39 remains unpaid,
either wholly or partly, or any amount of interest payable on such tax
remains unpaid, the same shall be recovered under the provisions of
section 79.” >
 Explanation For the purposes of this sub section, the expression “self-
assessed tax” shall include the tax payable in respect of details of
outward supplies furnished under section 37 but not included in the
return furnished under section 39.
 Earlier, Self-assessed tax were to be determined on the basis of
liabilities declared in Section 39. >
 In pursuance of above, the tax payable in respect of invoices
reported in GSTR-1 but not covered in GSTR 3B could not be
recovered because it could not be considered as selfassessed tax.
 With this amendment, Difference between GSTR-3B and GSTR-1 may
be recovered u/s 79 without any SCN u/s 74/75

14. GST leviable on services provided by Club or
Association to its members retrospectively
w.e.f. July 01, 2017
 The CBIC vide Notification No. 39/2021–Central Tax dated
December 21, 2021 notified amendments made vide Section
108 (inserted new clause (aa) in Section 7(1) of the CGST
Act, 2017) and 122 (omitted para 7 of Schedule II of the GST
Act, 2017) of the Finance Act, 2021 w.e.f. January 01, 2022
to be effective from July 01, 2017 retrospectively to widen
the scope of term ‘supply’ by including therein activities or
transactions of supply of goods or services or both between
any person (other than individual) to its members or
constituents or vice versa for cash, deferred payment or
other valuable consideration.

15. Continued:
 Explanation: For the purposes of this clause, it is hereby
clarified that, notwithstanding anything contained in any other
law for the time being in force or any judgment, decree or
order of any Court, tribunal or authority, the person and its
members or constituents shall be deemed to be two separate
persons and the supply of activities or transactions inter se
shall be deemed to take place from one such person to
another;
 This basically negates (nullify) the Honourable SC decision in
the case of Calcutta Club Ltd. Where it was held that
club/association and its members are not Distinct Persons .

16. GST ITC available only when supplier pay and
file GSTR 1, which matches with GSTR 2A/ 2B
 The CBIC vide Notification No. 39/2021–Central Tax dated December
21, 2021 notified the amendment made vide Section 109 of the
Finance Act, 2021 w.e.f. January 01, 2022 to insert the new clause
‘(aa)’ in Section 16(2) of the CGST Act, 2017, that provides an
additional condition to claim ITC based on GSTR-2A and newly
introduced GSTR-2B, i.e., ITC on invoice or debit note can be availed
only when details of such invoice/debit note have been furnished by
the supplier in his outward supplies (GSTR-1) and such details have
been communicated to the recipient of such invoice or debit note.
 Consequently, w.e.f. January 01, 2022 there would be no relevance of
5% limit mentioned in Rule 36(4) of the CGST Rules, 2017 as the
recipient would not be able to take any ITC if the same is not coming
in recipients GSTR-2A and/or 2B.

17. Commissioner can pass Order for Provisional
Attachment of property/ bank account of taxable or
any person to protect Govt. revenues
 The CBIC vide Notification No. 39/2021–Central Tax dated December 21, 2021
notified the amendment made vide Section 115 of the Finance Act, 2021
w.e.f. January 01, 2022 in Section 83 of the CGST Act, 2017
 to widen the scope of the power to provisionally attach any property by
replacing specified Sections covered therein with complete Chapters of the
CGST Act, 2017. Also, it is provided that provisional attachment shall remain
valid for the entire period starting from the initiation of any proceeding
under Chapter XII (assessment), Chapter XIV (inspection, search, seizure and
arrest) or Chapter XV (Demands and Recovery) till the expiry of a period of
one year from the date of order made thereunder.
 In addition, the Commissioner is now empowered to provisionally attach,
property belonging to any persons who retain the benefits arising out of an
offence or at whose instance the offence is committed.{Sec 122 (1A)}

18. Continued: Section 122A : wef from 1st Jan 2021
 (1A) Any person who retains the benefit of a transaction covered under
clauses (i), (ii), (vii) or clause (ix) of sub-section (1) and at whose instance
such transaction is conducted, shall be liable to a penalty of an amount
equivalent to the tax evaded or input CHAPTER XIX OFFENCES AND PENALTIES
154 tax credit availed of or passed on.
 (i) supplies any goods or services or both without issue of any invoice or
issues an incorrect or false invoice with regard to any such supply;
 (ii) issues any invoice or bill without supply of goods or services or both in
violation of the provisions of this Act or the rules made thereunder;
 (vii) takes or utilises input tax credit without actual receipt of goods or
services or both either fully or partially, in contravention of the provisions of
this Act or the rules made thereunder;
 (ix) takes or distributes input tax credit in contravention of section 20, or
the rules made thereunder;

19. Aadhaar authentication is compulsory under
GST w.e.f. January 01, 2022 for filing refund
claim and application for revocation of
cancellation of registration
 The CBIC vide Notification No. 38/2021–Central Tax dated
December 21, 2021 has notified the amendments w.r.t
Rule 10B, 23(1), 89(1), 96(1)(c) of the CGST Rules, 2017
made vide Notification No. 35/2021–Central Tax dated
September 24, 2021 for mandatory aadhaar authentication
of registration for being eligible for filing refund claim
and application for revocation of cancellation of
registration under GST w.e.f. January 01, 2022 as
recommended in GST Council’s 45th meeting was held on
September 17, 2021.

20. Bar on disclosure of information
 The CBIC vide Notification No. 39/2021–Central Tax dated
December 21, 2021 notified the amendment made vide Section
120 of the Finance Act, 2021 w.e.f. January 01, 2022 to amend
Section 152(1) of the CGST Act, 2017 to clarify that no
information obtained
 under Sections 150 (Obligation to furnish information return – 16
different departments like Stock exchange, RBI, Income tax
dept, Land registrar office , etc.) and
 Section 151 (Power to collect statistics) of the CGST Act, 2017,
shall be used by the commissioner or any officer authorized by
him, for the purposes of any proceedings under CGST Act, 2017,
without giving an opportunity of being heard to the person
concerned.

21. Amendments in Section 129 – Detention, seizure
and release of goods and conveyances in transit:
 The CBIC vide Notification No. 39/2021–Central Tax dated December 21, 2021 notified the
amendments made vide Section 117 and 118 of the Finance Act, 2021 w.e.f. January 01, 2022 in
Section 129 and 130 of the CGST Act, 2017:
 Section 129(1) – 200% Penalty is required to be paid to release the goods which are seized for
violation of E-way Bill provisions.
 Section 129(2) – Omitted à The goods so seized under sub-section shall be released, on a
provisional basis, upon execution of a bond and furnishing of a security, in such manner and of
such quantum, respectively, as may be prescribed or on payment of applicable tax, interest and
penalty payable, as the case may be.
 Section 129(3) – Specified period of issuance of notice (7 days) and passing of order(7 days)
under Section 129(3) of the CGST Act, 2017.
 No penalty shall be determined without giving opportunity of hearing as per amended Section
129(4) of the CGST Act, 2017.
 Specified time limit for selling/ disposing seized goods or conveyance under Section 129(6) of
the CGST Act, 2017
 Delinking Section 129 from Section 130 (Confiscation : Seizure) of the CGST Act, 2017

22. Section 107(6) – Appeals to Appellate
Authority -Minimum Pre-deposit of 25% for
filing appeal against e-way bills violations
 Further, notified the amendment made vide Section 116 of the
Finance Act, 2021 w.e.f. January 01, 2022 to insert a proviso to
Section 107(6) of the CGST Act, 2017, to provide that appeal against
order passed under Section 129(3) of the CGST Act, 2017 in Form MOV-
09, can be filed before the Appellate Authority only after depositing
25% of the penalty imposed to the department in case of detention
and seizure of conveyance and goods during transit.
 Previously payment of 10% of the tax in dispute was enough for the
Assessee to file an appeal against an order u/s 129(3) which has now
been increased to 25% of the penalty.

23. Closure of Proceedings u/s 73/74 (Demand/Recovery)
will be independent of Proceedings u/s
129/130(Detention /Seizure)
 The CBIC vide Notification No. 39/2021–Central Tax dated December 21, 2021
notified the amendment made vide Section 113 of the Finance Act, 2021
w.e.f. January 01, 2022
 Section 74 stated that where the proceedings against the main person have
been concluded under section 73 / 74, the proceedings against all such
persons liable to pay penalty under sections 122, 125, 129 and 130 would
have been deemed to be concluded.
 But after the amendment , Section 129 & Sec.130 has been removed and only
proceedings under 122 & 125 would be deemed to be concluded thus resulting
in proceedings of the detention, seizure & confiscation of goods and
conveyances in transit(Sec.129&130) separate from the demand and recovery
proceedings u/s 73& 74.

24. GST Dept can collect data from any
person under GST
 The CBIC vide Notification No. 39/2021–Central Tax dated December
21, 2021 notified the amendment made vide Section 119 and 121 of
the Finance Act, 2021 w.e.f. January 01, 2022 to substitute Section
151 of the CGST Act, 2017 , in a manner to empower the jurisdictional
commissioners to call for information from any person relating to any
matter dealt with in connection with the CGST Act, 2017, within such
time, in such form, and in such manner, as may be specified therein.

25. Changes in GST rate on textile,
footwear, etc. from 5% to 12%
 The CBIC vide Notification No. 14/2021- Central Tax (Rate) dated November
18, 2021 amended Notification No. 1/2017- Central Tax (Rate) dated June 28,
2017 w.e.f. January 1, 2022 to mitigate inverted duty structure as
recommended in GST Council’s 45th meeting was held on September 17,
2021. Similar notifications were issued under IGST Act, 2017 and UTGST Act,
2017.
 GST Council Meeting on 31st Dec 2021 – Textile rate increase from 5% to 12%
was defer as per press release by CBIC on 31st March 2021

26. Job work services w.r.t dyeing or printing of textile and
textile products falling under Chapter 50 to 63 taxable
@ 12% to registered persons and @ 18% to unregistered
persons
 The CBIC vide Notification No. 15/2021-Central Tax (Rate) dated November 18, 2021, has further
amended the S. No. 26 of the Notification No.11/2017- Central Tax (Rate), dated June 28, 2017
(“Services Rate Notification”). Thus, Job work services w.r.t dyeing or printing of textile and
textile products falling under Chapter 50 to 63 in the First Schedule to the Customs Tariff Act,
1975 provided to registered persons shall be taxable @ 12% and to unregistered persons shall be
taxable @ 18% as the scope of ‘job work’ is restricted to only those processes undertaken on
goods belonging to another registered person.

27. Thank You
By CA L Gopal Shah
Bhubaneswar
Email: ca.lgshah@gmail.com
M: 9437124361