CBIC clarifies on twitter on Explanation added in Section 75(12) of CGST Act vide Finance Act, 2021 with effect from 01.01.2022 which was notified vide Notification No. 39/2021–Central Tax | Dated: 21st December, 2021.Explanation added was as follows:-

CBIC clarifies on twitter on Explanation added in Section 75(12) of CGST Act vide  Finance Act, 2021 with effect from 01.01.2022 which was notified vide Notification No. 39/2021–Central Tax | Dated: 21st December, 2021.Explanation added was as follows:-

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.

CBIC clarifies as follows:-

The registered person declares his outward supplies in GSTR-1, & is required to discharge his tax liability through GSTR-3B. The recipient is able to avail input tax credit on supplies declared by supplier in his GSTR-1 & in respect of which tax has been paid.

Explanation added in Section 75(12) of CGST Act vide Finance Act, 2021 is to clarify that tax on self-declared supplies by registered person in GSTR-1, which has not been paid through GSTR-3B, will be considered as his self-assessed (& admitted) liability & can be recovered.

This amendment is meant to impart payment discipline in the system & to facilitate recipient of a supply to avail ITC in a timely manner. This addresses the concerns of recipients that they are not able to avail ITC if the supplier does not pay the due tax on the said supply.

The said amendment is clarificatory in nature and suitable guidelines will be issued to field formations for its implementation in reasonable manner.