Notification No. 39/2021 – Central Tax

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Notification No. 39/2021 – Central Tax: Seeks to notify 01.01.2022 as the date on which provisions of section 108, 109 and 113 to 122 of the Finance Act, 2021 shall come into force.

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (ii)]

S.O....(E).— In exercise of the powers conferred by clause (b) of sub-section (2) of section 1 of the Finance Act, 2021 (13 of 2021), the Central Government hereby appoints the 1^st day of January, 2022, as the date on which the provisions of sections 108, 109 and 113 to 122 of the said Act shall come into force.

(Rajeev Ranjan)
Under Secretary to the Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 39/2021 – Central Tax

Q1: What is Notification No. 39/2021 – Central Tax about?

Answer:
Notification No. 39/2021 declares 01.01.2022 as the date on which provisions of Sections 108, 109, and 113 to 122 of the Finance Act, 2021 come into force.

Q2: Why was 1st January 2022 chosen as the effective date?

Answer:
The date marks the beginning of the new year and was chosen to align GST compliance changes with the financial cycle for better transition by taxpayers.

Q3: Which sections of the Finance Act, 2021 are covered under this notification?

Answer:
This notification activates:
Section 108 & 109: Related to procedural reforms 📝
Sections 113 to 122: Covering various compliance, penalty, and transitional provisions

Q4: How does this notification impact taxpayers?

Answer:
Taxpayers must adhere to new compliance rules, penalties, and procedural changes from 1st January 2022. Businesses should update their systems and consult GST Experts to avoid penalties.

Q5: Does this notification bring changes in GST return filing?

Answer:
Yes ✅. Some sections impact return filing procedures, reconciliation, and reporting. Businesses must ensure timely GST Return Filing.

Q6: What compliance measures should businesses take post 01.01.2022?

Answer:
Understand the amended rules in the Finance Act, 2021
Train accounting staff for smooth implementation
Seek professional support for GST Compliance

Q7: How does it affect Input Tax Credit (ITC)?

Answer:
Certain sections deal with ITC utilization & restrictions. Taxpayers should match purchase invoices with GST Registration data and ensure no excess claims.

Q8: Are penalties included in these provisions?

Answer:
Yes. Sections 113–122 include provisions on penalties and recovery mechanisms to curb frauds and strengthen GST enforcement ⚖️.

Q9: What should startups and MSMEs keep in mind?

Answer:
Startups and MSMEs should:
Reconcile monthly returns 🔍
File accurate data on time
Use MSME Registration and professional GST support to reduce compliance risks