The 8th Amendment of CGST Rules 2017 was recently updated by the Central Board of Indirect Taxation and Customs (CBIC) via GST Notification 35/2021 – Central Tax, dated 24-09-2021. The changes were to be called 8th Amendment of CGST Rules 2021 that updates and amends the existing CGST Rules 2017.
Let us understand and go through all the changes here:
1. Bank Account to be in the name of the registered person- Update in Rule 10A:
In the rule, the new addition was – after the words “details of bank account”, the words “which is in name of the registered person and obtained on Permanent Account Number of the registered person” has been inserted.
Via this change, it has now been clarified that the bank account details furnished by the registered person after receiving the ‘receipt of the certificate of registration’ need to be obtained on the PAN of the registered person only. This is only in the case of a proprietorship concern, the PAN of the proprietor will also be linked with the Aadhaar number of the proprietor.
2. Aadhaar Authentication- Insertion of Rule 10B:
This rule is related to the Aadhaar authentication for a registered person. Every registered taxpayer, other than a person notified under sub-section (6D) of section 25, who has been issued a certificate of registration under Rule 10, needs to undergo authentication of the Aadhaar number for the purposes as specified below:
- For filing of application for revocation of cancellation of registration in FORM GST REG-21 under Rule 23
- For filing of refund application in FORM RFD-01 under rule 89
- For refund under rule 96 of the integrated tax paid on goods exported out of India.
3. Changes in the provision of revocation of cancellation-Rule 23 (1):
In the rule, the new addition was – After the words -“on his own motion, may”, the words, figures and letter”, subject to the provisions of rule 10B,” will be inserted. This change was made to bring the provisions of revocation of cancellation of registration in line with the newly inserted Rule 10B.
4. ITC-04 Rules -Update in Rule 45 (3):
As per the eighth amendment, Rule 45(3) has been changed to relax the filing of form ITC 04 – regarding job work. Taxpayers with an annual aggregate turnover in the preceding financial year above Rs. 5 crores now need to furnish ITC-04 six consecutive months commencing on the 1st day of April and the 1st day of October while taxpayers with an annual aggregate turnover in the preceding financial year up to Rs. 5 crores will furnish ITC-04 annually.
5. Blocking of GSTR 1 Rule 56- Sub-Rule 6:
This rule is related to blocking of GSTR 1 if GSTR 3B is not filed for a preceding filing month. From 1st January, 2022 onwards, a registered person will not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1, if the registered person has not furnished the return in FORM GSTR-3B for the preceding month. Clause (a) has been updated and clause (c) which was based on 86B applicability of GSTR 1 blocking has been omitted.
6. Rule 89: Sub-Rule 1:
In the rule, the new addition was – After the words “may file”, the words, “subject to the provisions of rule 10B,” will be inserted. This new change has been made to bring the provisions in line with the newly added rule 10B.
7. Rule 89: Sub-Rule 1A:
The new sub-rule 1A was added to rule 89 related to GST refund form RFD-01. The new sub-rule 1A was added to rule 89 related to GST refund in case of transaction earlier considered as intra-state supply which is subsequently held to be an intra stateGST RFD 01 may file before the expiry of a period of two years from the date of payment of the tax on the interstate supply.
Note: If the refund application was made by a taxpayer before this new rule came into force then the 2 years period will get counted from the date on which this new rule got introduced.
8. Rule 96: Sub-Rule 1:
In this rule, ‘Clause C’ has been inserted. The clause says, “The applicant has to undergo Aadhaar authentication in the manner provided in rule 10B.” This new change has been made to bring the provisions in line with the newly added rule 10B.
9. Rule 96C:
The new rule 96C has been inserted which is related to the “Bank Account for credit of refund.” Here, the “bank account” means the bank account of the applicant which is in the name of the applicant and is obtained on their own PAN. In the case of a proprietorship, the PAN of the proprietor needs to be linked with the Aadhaar number of the proprietor.
These were all the updates – 8th Amendment of CGST Rules 2021.
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