CGST Rules amended: Inter-alia amends computation of refund on Inverted duty structure; Final return form introduced

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The Central Board of Indirect Taxes and Customs vide Notification No. 21/2018-Central Tax dated April 18, 2018 has amended the Central Goods & Service Tax Rules, 2017 (“the CGST Rules”) as under:

  • In sub-rule (5) of rule 89 of the CGST Rules, which specify the method of computation of refund on account of inverted duty structure in respect of goods, vide this notification refund on account inverted tax structure in respect of services has also been introduced.

Correspondingly, the term ‘Net ITC’ has also been amended and states that, “ITC availed on inputs during the relevant period other than input tax credit availed for which refund is claimed under Rule 89(4A) or Rule 89(4B)” only be considered for computation of Net ITC.

  • Rule 97 (Consumer Welfare Fund) of the CGST Rules has been substituted to provide that, all amounts of duty / GST / Cess and income from investment along with other monies specified in Section 12C(2) of Central Excise Act, Section 57 of CGST Act r/w Section 20 of IGST Act, Section 21 of UTGST Act and Section 12 of GST (Compensation to States) Act shall be credited to the Fund;

However, 50% of amount of integrated tax determined u/s 54(5) of CGST Act r/w Section 20 of IGST Act shall be deposited in the Fund;

The Government shall, by an order, constitute a Standing Committee (“committee”) with a Chairman, a Vice-Chairman, a Member Secretary and such other members as it may deem fit and the Committee shall make recommendations for proper utilisation of the money credited to the Fund for welfare of the consumers.

  • In Form GST ITC-03, declaration for intimation of ITC reversal/payment of tax on inputs, inputs contained in semi-finished and finished goods held in stock and capital goods under sub-section (4) of section 18, after entry 5(e), the value of capital goods is substituted and states that value shall be the invoice value reduced by 1/60th per month or part thereof from the date of invoice, instead of 5% per quarter of a year or part thereof.
  • Form GSTR-10 i.e. Format of Final Return has been introduced.
  • Form GST DRC-07 i.e. Summary of the order has been substituted.

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