Page 35 - Union Budget, 2022

Union Budget, 2022

- A registered person shall not be allowed to file GSTR-1, if such person didn’t file the return in GSTR-3B for the preceding
month.
- E-way bill is mandatory for movement of goods (except in certain cases). It was mandated that generating of E-way bill will be
blocked in case of non-filing of GSTR-3B or GST-CMP-08 (for taxpayers opting Composition Scheme) for two or more periods.
The above reforms aim to streamline the primary goal of warranting complete disclosure of supplies and payment of tax and
preventing frivolous ITC claims.
- E-invoicing has been mandated to all registered taxpayers whose aggregate turnover in any of the three preceding financial years
from 2017-18 is more than Rs.50 crores. With the advent of this, B2B suppliers have to accommodate the new standardisation
of invoices, wherein, real-time tracking of invoices and faster availability of ITC is possible. India is actively joining the line of
developed and developing economies who have successfully adopted e-invoicing in tax administration.
Measures focused towards investigations and recovery

- The Commissioner can provisionally attach any property, including bank account, belonging to the taxable person, once the
Commissioner initiates the proceedings under the assessment or recovery provision.
- Payment of tax or penalty for detention or seizure of goods and conveyances in transit have been made stringent to cap the
higher limit in case of taxable goods to 200% of tax payable as against 100% tax payable on such goods earlier, both in the
instances whether the taxable person comes forward or not.
Measures easing procedural aspects

- The date of issue of debit note (not the date of underlying invoice) shall determine the relevant financial year for the purpose of
claiming ITC and computing the period of limitation. There were mismatches in claiming ITC pertaining to subsequent increase
in value of supply vide a debit note.
With around 58% of the Indian population focused on agriculture for its livelihood, dependence on direct taxes as a steady source of
revenue for the Centre has been on loggerheads. However, consumption-based tax viz. GST enhances the tax base and with proper
implementation of the regime, it is anticipated that the dual rate system will generate anchored revenue to the coffers of the
Government. Recently, the Centre has been focusing on investigations and audits, in order to ensure that the revenue leakage is
plugged. Such measures along with stringent regulations focused on matching of credit and supply, would ensure that the intended
results are achieved.
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Patents registration in India

Studies 58,502
39,400 45,444
28,391
7,509 9,847

2010-11 2016-17 2020-21

Patents filed Patents granted

• The number of patents filed in India has gone up from 39,400 in 2010-11 to 45,444 in
2016-17 to 58,502 in 2020-21 and the patents granted in India has gone up from 7,509 to
9,847 to 28,391 during the same time period.
Inference • The share of Indian residents in total applications has increased from 20% in 2010- 11 to
around 30% in 2016-17 and 40% in 2020-21. Consequently, India’s ranking in Global
Innovation Index has climbed 35 ranks, from 81st in 2015-16 to 46th in 2021.
• Reasons for relatively low patents in India as compared to China, USA, Japan and Korea
are, low expenditure on research and development, procedural delays and complexity of
the process, low number of patent examiners and no prescribed time limits in certain
cases.

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