Following are the highlights of Notification No. 39/2021 – Central Tax Dated: 21st December, 2021 which will come into effect from 01.01.2022

1. Section 7 of the CGST Act shall be amended retrospectively w.e.f 1^st July, 2017 to tax supplies between an association and its members.
2. Section 16(2)(aa) has been inserted to provide that ITC would be available only when the details of the invoice or debit note has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37.
   1. As per Section 109 of the Finance Act, 2021, clause (aa) is inserted below section 16(2) (a) of the Act, further stipulating that input tax credit on invoice or debit note is available to a recipient only if the details of such invoice or debit note has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note. U/s. 37 now suppliers have liability to furnish the details of outward suppliers through their returns. By this amendment, for availing by recipients also, the same become mandatory.
3. Explanation 1 to Section 74 has been amended to delink the provisions of penalty under Sec 129 & Sec 130 from Sec 74.
4. Explanation to Section 75 shall be inserted which states that “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.’.
5. The powers of provisional attachment of property under Section 83 has been increased.
6. Section 107 has been amended to provide that an appeal against an order Sec 129(3) shall be filed only when a sum equal to twenty-five per cent. of the penalty has been paid by the appellant.”
7. Section 129 of the CGST Act relating to Detention, seizure and release of goods and conveyances in transit has been amended. Penalty of 200% of tax shall be payable instead of 100%. Time-limit to issue notice and order by the proper officer has been provided in the section itself.
8. Section 130 has been amended to remove the non-obstante clause from sub-section (1). Sub-section (3) has been omitted from said section.
9. Section 151 has been substituted to enlarge the scope of the same. The Commissioner’s power to collect statistics has been substituted with the power to call for information.
10. Section 152 has been amended to allow the information collected under Sec 150 or Sec 151 to be used for the purpose of any proceedings under this Act ONLY after giving an opportunity of being heard to the person concerned.
11. Para 7 of Schedule II to the CGST Act deeming the supply of goods by an unincorporated association or body of persons to members has been omitted retrospectively w.e.f 1^st July, 2017.