Changes in the CGST Rules w.r.t. the recommendations of the 48th GST Council Meeting

By:

The CBIC vide Notification No. 26/2022 – (Central Tax) dated December 26, 2022 has issued ‘the Central Goods and Services Tax (Fifth Amendment) Rules, 2022’ to further amend the Central Goods and Services Tax, Rules, 2017 (“the CGST Rules”) to order to align with recommendations of the 48th GST Council Meeting held on December 17, 2022, in a following manner:

  • In Rule 8 of the CGST Rules i.e. Application for registration:
    • Omitted the requirement of declaring mobile number and e-mail address by the person applying for GST registration
    • Permanent Account Number (“PAN”) to be verified through separate one-time passwords sent to the mobile number and e-mail address linked to the PAN.
    • Omitted the requirement of verifying the mobile number and e-mail address
    • Amended Rule 8(4A) of the CGST Rules to state that the application for registration shall be deemed to be complete only after the biometric-based Aadhaar authentication and taking photograph of the applicant in case of an individual or of such individuals in relation to the applicant as notified where the applicant is not an individual, along with the verification of the original copy of the documents uploaded with the application in FORM GST REG-01 at one of the notified Facilitation Centres.
    • New Rule 8(4B) of the CGST Rules has been inserted to prescribe that the government may, specify the States or Union territories wherein the provisions of sub-rule (4A) shall not apply.
  • New proviso to Rule 9(1)(aa) and Rule 9(2)(aa) of the CGST Rules has been inserted w.r.t. granting of the registration, to state that, the registration shall be granted within thirty days of submission of application to a person, who has undergone authentication of Aadhaar number, and is identified on the common portal, based on data analysis and risk parameters, for carrying out physical verification of places of business.
  • Amended Rule 12(3) of the CGST Rules, to state that the proper officer may cancel the registration on a request made in writing by a person to whom a registration has been granted.
  • Amended Rule 37(1) of the CGST Rules, w.e.f. October 1, 2022, to state that a registered person, who fails to pay to the supplier, the amount towards the value of such supply whether wholly or partly along with the tax payable thereon, within the time limit, shall pay or reverse an amount equal to the Input Tax Credit (“ITC”) availed in respect of such supply proportionate to the amount not paid to the supplier along with interest.
  • New Rule 37A of the CGST rules has been introduced w.r.t. reversal of ITC in case of non-payment of tax by the supplier and re-availment thereof.
  • New proviso to Rule 46(f) has been inserted to provide that a tax invoice issued by the registered person shall contain the name and address of the recipient along with its PIN code and the name of the State and the said address shall be deemed to be the address on record of the recipient, in case where any taxable service is supplied by or through an Electronic Commerce Operator (“ECO”) or by a supplier of Online Information And Database Access Or Retrieval (“OIDAR”) services to a recipient who is un-registered, irrespective of the value of such supply.
  • New proviso to Rule 46A has been inserted to provide that, the invoice-cum-bill of supply shall contain the particulars as specified under Rule 46 or Rule 54, and Rule 49 of the CGST Rules.
  • New Rule 59(6)(d) has been inserted to prescribe that a registered person, to whom an intimation has been issued on the common portal in respect of a tax period, shall not be allowed to furnish the details of outward supplies of goods or services or both under Section 37 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) in FORM GSTR-1 or using the invoice furnishing facility for a subsequent tax period, unless he has either deposited the amount specified in the said intimation or has furnished a reply explaining the reasons for any amount remaining unpaid.
  • New proviso to Rule 87(8) of the CGST Rules has been inserted to provide that where the bank fails to communicate details of Challan Identification Number to the Common Portal, the Electronic Cash Ledger may be updated on the basis of e-Scroll of the Reserve Bank of India in cases where the details of the said e-Scroll are in conformity with the details in challan generated in FORM GST PMT-06 on the Common Portal.
  • New Rule 88C of the CGST Rules has been introduced to prescribe the manner of dealing with difference in liability reported in statement of outward supplies and that reported in return.
  • In Rule 89 of the CGST Rules i.e. Application for refund of tax, interest, penalty, fees or any other amount:
    • Introduced Rule 89(2)(ka) in the CGST Rules, to prescribe that the refund application shall be accompanied by a statement containing the details of invoices, in respect of which refund is being claimed along with copy of such invoices, proof of making such payment to the supplier, the copy of agreement or registered agreement or contract, as applicable, entered with the supplier for supply of service, the letter issued by the supplier for cancellation or termination of agreement or contract for supply of service, details of payment received from the supplier against cancellation or termination of such agreement along with proof thereof, in a case where the refund is claimed by an unregistered person where the agreement or contract for supply of service has been cancelled or terminated.
    • Introduced Rule 89(2)(kb) in the CGST Rules, to prescribe that the refund application shall be accompanied by a certificate issued by the supplier to the effect that he has paid tax in respect of the invoices on which refund is being claimed by the applicant; that he has not adjusted the tax amount involved in these invoices against his tax liability by issuing credit note; and also, that he has not claimed and will not claim refund of the amount of tax involved in respect of these invoices, in a case where the refund is claimed by an unregistered person where the agreement or contract for supply of service has been cancelled or terminated.
    • Inserted new proviso to Rule 89(2)(m) to provide that, a certificate is not required to be furnished in cases where refund is claimed by an unregistered person who has borne the incidence of tax
  • Amended Rule 108(3) of the CGST Rules w.r.t. Appeal to the Appellate Authority:
    • Where the decision or order appealed against is uploaded on the common portal, a final acknowledgment, indicating appeal number, shall be issued in FORM GST APL-02 by the Appellate Authority or an officer authorised by him in this behalf and the date of issue of the provisional acknowledgment shall be considered as the date of filing of appeal:
    • Provided that where the decision or order appealed against is not uploaded on the common portal, the appellant shall submit a self-certified copy of the said decision or order within a period of seven days from the date of filing of FORM GST APL-01 and a final acknowledgment, indicating appeal number, shall be issued in FORM GST APL-02 by the Appellate Authority and the date of issue of the provisional acknowledgment shall be considered as the date of filing of appeal.
    • Provided further that where the self-certified copy of the decision or order is not submitted within a period of seven days from the date of filing of FORM GST APL-01, the date of submission of such copy shall be considered as the date of filing of appeal.
  • Rule 109 of the CGST Rules has been amended w.r.t. provisional and final acknowledgment issued to the appellant on application to the Appellate Authority.
  • New Rule 109C of the CGST Rules has been introduced w.r.t. withdrawal of appeal.
  • Amended Rule 138(14) of the CGST Rules, to prescribe that no e-way bill is required to be generated in case of jewellery, goldsmiths’ and silversmiths’ wares and other articles (Chapter 71) excepting imitation jewellery (7117).
  • Amended Rule 161 of the CGST Rules to prescribe that the intimation or notice for the reduction or enhancement of any demand under Section 84 of the CGST Act shall be issued in FORM GST DRC- 25.
  • Amended PART A of FORM GST REG-01 to state that E-mail id and mobile number shall be auto-populated from Income Tax database as linked with the Permanent Account Number of the applicant.
  • Omitted the instruction in FORM GST REG-01 w.r.t. Providing E-mail Id and Mobile Number of authorised signatory for verification and future communication.
  • Amended FORM GST REG-17 w.r.t. supportive document(s) attached for case specific details to be provided in case ex parte decision in case of no reply to the Show Cause Notice (“SCN”) for cancellation of registration.
  • Amended FORM GST REG-19 w.r.t. order for cancellation of registration.
  • Amended FORM GSTR-1 w.r.t. details of outward supplies of goods or services by the supplies made through e-commerce operators.
  • Amended FORM GST RFD-01 so as to allow the refund for unregistered persons.
  • Amended FORM GST APL-02, so as to insert the reference of Rule 109(2) w.r.t. issuance of the provisional/final acknowledgment, indicating appeal number in FORM GST APL-02 by the Appellate Authority.
  • New FORM GST APL-01/03W has been inserted w.r.t. the application for withdrawal of appeal application.
  • New FORM GST DRC-01B has been inserted w.r.t. intimation of difference in liability reported in the statement of outward supplies and that reported in return.
  • Substituted FORM GST DRC-03 w.r.t. Intimation of payment made voluntarily or made against the SCN or statement or intimation of tax ascertained through FORM GST DRC-01A.

The Notification can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1009584/ENG/Notifications

DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.

 

Your Thoughts