Simplified Explanation of Notification No. 18/2022 – Central Tax

Enforcement of Certain Provisions from the Finance Act, 2022

Overview:

Notification No. 18/2022 announces the commencement date for specific provisions of the Finance Act, 2022. This notification marks when certain sections of the Act become effective.

Key Details:

1. Effective Date:
   • The provisions of sections 100 to 114, excluding clause (c) of section 110 and section 111, will come into force on October 1, 2022.
2. Excluded Provisions:
   • Clause (c) of Section 110 and Section 111 are not included in this notification. This means these specific parts of the Act will not be enforced starting from October 1, 2022.

Example:

• Section 101 to Section 114: These sections will start affecting legal and regulatory practices from October 1, 2022. For example, if Section 103 introduces new compliance requirements for businesses, those requirements must be met starting from this date.
• Clause (c) of Section 110 and Section 111: If Section 110 involves a new tax rule but Clause (c) is about a specific condition or exception within that rule, and Section 111 deals with a different aspect altogether, these will not be applicable from October 1, 2022. Their enforcement might be scheduled for a later date or might not be enforced under this notification.

Purpose:

This notification ensures that businesses, government bodies, and other stakeholders are aware of which sections of the Finance Act, 2022, will be effective immediately and which sections will be deferred or not yet applicable. It helps in the smooth transition and implementation of new regulations.