GST rate amendments update: state notification revises tariff entries across four schedules, effective start of year.
Amendment to the State GST rate notification substitutes, inserts and omits tariff headings and product descriptions across Schedule I (2.5%), Schedule II (6%), Schedule III (9%) and Schedule IV (14%), including reclassifications for dairy, fats and oils, ores and concentrates, machinery, electronic components, nicotine and tobacco-related inhalation products, and certain aircraft and parts; the amendments take effect on 1 January 2022.

Input tax credit limited to supplier-filed invoices communicated via GSTR-2B; auction-based penalty recovery for detained goods introduced.
Input tax credit is restricted to invoices or debit notes furnished by the supplier in the outward supplies statement or invoice furnishing facility and communicated to the recipient via FORM GSTR-2B. Annual return and reconciliation for 2020-2021 are extended to 28 February 2022. Refunds where UID is missing require an attested invoice copy with FORM GST RFD-10. Timeframes for detention/seizure proceedings are tied to notices under section 129. A new rule permits recovery of unpaid penalty by auctioning seized or detained goods or conveyance with specified notice, auction procedures, payment, transfer of ownership and exceptions for perishable or hazardous goods. Sale proceeds are to be appropriated first to administrative costs, then dues and penalties, then other GST dues, with balances credited to the owner's ledger or bank account.

Amendment to GST notification narrows recipient category and removes conditions for certain services, effective start of year
Supersession of an earlier notification effects targeted amendments to the TABLE against serial number 3 by substituting the phrase "Union territory or a local authority" for the broader phrase that included Governmental Authority and Government Entity in specified items of the Description of Service column, and by omitting the Condition column entries for those specified items, with effect from the first day of January, 2022.

GST rate change: footwear of limited sale value reclassified under a different schedule, effective January first, 2022.
The Government of Karnataka, under the Karnataka Goods and Services Tax Act, 2017, supersedes a 2021 notification and amends the 2017 notification by omitting a serial entry in Schedule I (lower rate) and inserting a new serial entry in Schedule II (higher rate) to cover footwear of limited sale value per pair; the amendment takes effect from 1 January 2022.