The Central Government amends the Central Goods and Services Tax Rules, 2017 to be called as Central Goods and Services Tax (Sixth Amendment) Rules, 2019 vide Notification No. 49/2019 – Central Tax dated 09-10-2019. Below are the important updates to CGST Rules –
Suspension of Registration
CGST Rule 21A(3) before amendment
A registered person, whose registration has been suspended under sub-rule (1) or sub-rule (2), shall not make any taxable supply during the period of suspension and shall not be required to furnish any return under section 39.
Updated CGST Rule 21A(3)
a) In sub-rule (3), the following explanation shall be inserted, namely:-
- Explanation- For the purposes of this sub-rule, the expression ―shall not make any taxable supply‖ shall mean that the registered person shall not issue a tax invoice and, accordingly, not charge tax on supplies made by him during the period of suspension.”
b) After sub-rule (4), the following sub-rule shall be inserted, namely:-
- (5) Where any order having the effect of revocation of suspension of registration has been passed, the provisions of clause (a) of sub-section (3) of section 31 and section 40 in respect of the supplies made during the period of suspension and the procedure specified therein shall apply.
Form and Manner of Submission of Monthly Return
CGST Rule 61 Before Amendment ( Sub Rule 5)
- (5) Where the time limit for furnishing of details in FORM GSTR-1 under section 37 and in FORM GSTR-2 under section 38 has been extended and the circumstances so warrant, the Commissioner may, by notification, [specify the manner and conditions subject to which the 91 return shall be furnished in FORM GSTR-3B electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner.
Updated CGST Rule 61
For sub-rule (5), the following sub-rule shall be substituted, with effect from the 1st July, 2017 namely
(5) Where the time limit for furnishing of details in FORM GSTR-1 under section 37 or in FORM GSTR-2 under section 38 has been extended, the return specified in sub-section (1) of section 39 shall, in such manner and subject to such conditions as the Commissioner may, by notification, specify, be furnished in FORM GSTR-3B electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner: Provided that where a return in FORM GSTR-3B is required to be furnished by a person referred to in sub-rule (1) then such person shall not be required to furnish the return in FORM GSTR-3.‖;
CGST Rule 61 Before Amendment ( Sub Rule 6)
- (6) Where a return in FORM GSTR-3B has been furnished, after the due date for furnishing of details in FORM GSTR-2—
- (a) Part A of the return in FORM GSTR-3 shall be electronically generated on the basis of information furnished through FORM GSTR-1, FORM GSTR-2 and based on other liabilities of preceding tax periods and PART B of the said return shall be electronically generated on the basis of the return in FORM GSTR-3B furnished in respect of the tax period;
- (b) the registered person shall modify Part B of the return in FORM GSTR-3 based on the discrepancies, if any, between the return in FORM GSTR-3B and the return in FORM GSTR-3 and discharge his tax and other liabilities, if any;
- (c) where the amount of input tax credit in FORM GSTR-3 exceeds the amount of input tax credit in terms of FORM GSTR-3B, the additional amount shall be credited to the electronic credit ledger of the registered person
Updated CGST Rule 61 ( Sub Rule 6)
Sub-rule (6) shall be omitted with effect from the 1st July, 2017.
Analysis: As the sub-rule 6 has been ommitted with effect from 1st July 2017, it can be conferred that GSTR-3B has been made a legally valid return replacing GSTR-3 and GSTR-2 from a retrospective date of 1 July 2017.
Grant of Provisional Refund
CGST Rule 91 before Amendment
- (3) The proper officer shall issue a payment [order] in FORM GST RFD-05 for the amount sanctioned under sub-rule (2) and the same shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars and as specified in the application for refund:
Updated CGST Rule 91
(a) In sub-rule (3), with effect from the 24th September, 2019 After the words ―application for refund, the words ―on the basis of a consolidated payment advice: shall be inserted;
(b) After the sub-rule (3), with effect from the 24th September, 2019, the following sub-rule shall be inserted, namely:- ―
- (4) The Central Government shall disburse the refund based on the consolidated payment advice issued under sub-rule (3).
Consumer Welfare Fund
CGST Rule 97 Before Amendment
- Committee’ means the Committee constituted under sub-rule (4); (b) in sub-rule (8), with effect from the 1st July, 2017, clause (e) shall be omitted.
Updated CGST Rule 97
After sub-rule (7), with effect from the 1st July, 2017, the following sub-rule shall be inserted, namely,-
- (7A) The Committee shall make available to the Board 50 per cent. of the amount credited to the Fund each year, for publicity or consumer awareness on Goods and Services Tax, provided the availability of funds for consumer welfare activities of the Department of Consumer Affairs is not less than twenty-five crore rupees per annum.
Tax or duty credit carried forward under any existing law or on goods held in stock on the appointed day
CGST Rule 117
- [(1A) Notwithstanding anything contained in sub-rule (1), the Commissioner may, on the recommendations of the Council, extend the date for submitting the declaration electronically in FORM GST TRAN-1 by a further period not beyond 31st March, 2019, in respect of registered persons who could not submit the said declaration by the due date on account of technical difficulties on the common portal and in respect of whom the Council has made a recommendation for such extension.]
- a) in sub-rule (1A) for the figures, letters and word ―31st March, 2019‖, the figures, letters and word “31st December, 2019” shall be substituted
- (iii) The registered person availing of this scheme and having furnished the details of stock held by him in accordance with the provisions of clause (b) of sub-rule (2), submits a statement in FORM GST TRAN 2 by 31st March 2018, or within such period as extended by the Commissioner, on the recommendations of the Council, for each of the six tax periods during which the scheme is in operation indicating therein, the details of supplies of such goods effected during the tax period:
- (b) in sub-rule (4), in clause (b),in sub-clause (iii), in the proviso for the figures, letters and word ―30th April, 2019‖, the figures, letters and word “31st January, 2020” , shall be substituted.
Notice and Order for Demand of Amounts Payable under the Act
CGST Rule 142 Amendments
(a) After sub-rule (1) the following sub-rule shall be inserted, namely:-
- (1A) The proper officer shall, before service of notice to the person chargeable with tax, interest and penalty, under sub-section (1) of Section 73 or sub-section (1) of Section 74, as the case may be, shall communicate the details of any tax, interest and penalty as ascertained by the said officer, in Part A of FORM GST DRC-01A
(b) Before amendment:
- (2) Where, before the service of notice or statement, the person chargeable with tax makes payment of the tax and interest in accordance with the provisions of sub-section (5) of section 73 or, as the case may be, tax, interest and penalty in accordance with the provisions of sub-section (5) of section 74, or where any person makes payment of tax, interest, penalty or any other amount due in accordance with the provisions of the Act he shall inform the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an acknowledgement, accepting the payment made by the said person in FORM GST DRC–04.
- In sub-rule (2), after the words in accordance with the provisions of the Act‖, the words, figures and brackets , whether on his own ascertainment or, as communicated by the proper officer under sub-rule (1A),‖ shall be inserted;
- After sub-rule (2) the following sub-rule shall be inserted, namely:-
- (2A) Where the person referred to in sub-rule (1A) has made partial payment of the amount communicated to him or desires to file any submissions against the proposed liability, he may make such submission in Part B of FORM GST DRC-01A.
- In the said rules, after FORM GST DRC-01, the following form shall be inserted
FORM GST DRC-01A Intimation of tax ascertained as being payable under section 73(5)/74(5) [See Rule 142 (1A)]
The updates in the CGST Rules are going to affect the way companies are doing their GST Return filing. GST Reconciliation is going to be a key exercise in light of the notifications issued.
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