This a recent notification regarding, “Changes in the CGST Rules w.r.t. the recommendations of the 48th GST Council Meeting” dated 27/12/2022 Official source CBIC.
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 the following manner:
In Rule 8 of the CGST Rules:
- Omitted the requirement of declaring mobile number and e-mail address by the person applying for GST registration
- Permanent Account Number (“PAN”) is 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 photographs 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.
In Rule 9 of the CGST Rules:
A 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 the 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.
In Rule 12 of the CGST Rules:
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.
In Rule 37 of the CGST Rules:
- 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.
In Rule 46 of the CGST Rules:
- A 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 unregistered, irrespective of the value of such supply.
- A new provision 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.
In Rule 59 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.
In Rule 87 of the CGST Rules:
A 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.
In Rule 88 of the CGST Rules:
New Rule 88C of the CGST Rules has been introduced to prescribe the manner of dealing with differences in liability reported in statements of outward supplies and that reported in return.
In Rule 89 of the CGST Rules:
- 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 a copy of such invoices, proof of making such payment to the supplier, the copy of the agreement or registered agreement or contract, as applicable, entered with the supplier for the supply of service, the letter issued by the supplier for cancellation or termination of agreement or contract for the 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 the supply of service has been canceled 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 the 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 a 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 the supply of service has been canceled or terminated.
- Inserted new provision to Rule 89(2)(m) to provide that a certificate is not required to be furnished in cases where a refund is claimed by an unregistered person who has borne the incidence of tax.
In Rule 108(3) of the CGST Rules:
- Where the decision or order appealed against is uploaded on the common portal, a final acknowledgment, indicating the appeal number, shall be issued in FORM GST APL-02 by the Appellate Authority or an officer authorized by him on this behalf and the date of issue of the provisional acknowledgment shall be considered as the date of filing of the 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 the 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 the appeal.
In Rule 109 of the CGST Rules:
- 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 the appeal.
In Rule 138 of the CGST Rules:
Amended Rule 138(14) of the CGST Rules, to prescribe that no e-way bill is required to be generated in the case of jewelry, goldsmiths’ and silversmiths’ wares, and other articles (Chapter 71) except imitation jewelry (7117).
In Rule 161 of the CGST Rules:
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.
Amendments in Forms
- Amended PART A of FORM GST REG-01 to state that E-mail id and mobile number shall be auto-populated from the 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 authorized signatories 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 the 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.
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