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RECENT CHANGES IN GST RULES – PART I |
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RECENT CHANGES IN GST RULES – PART I |
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Fifth Amendment to Rules In order to carry out the decisions taken by the GST Council in its 48th meeting held on 17.12.2022 the Central Government made some amendments to the Goods and Services Tax Rules, 2017 (‘Rules’ for short) vide Notification No. 26/2022-Central Tax, dated 26.12.2022. The said amendment is called as Goods and Services Tax (Fifth Amendment) Rules, 2022. This amendment brought amendments in respect of-
Registration The amendment brought amendments in Rule 8, 9 and 12. Amendment to Rule 8 The amendment omitted the provisions of Rule 8(2)(b) and (c).
Rule 8(1) provides that every registered person shall, before applying for registration, declare his Permanent Account Number, mobile number, email address, State or Union territory in Part A of Form GST REG-01 on the common portal, either directly or through a Facilitation Centre notified by the Commissioner. The amendment omitted the words ‘mobile number, email address’ in Rule 8(1). Rule 8(2) provides that the Permanent Account Number shall be validated online by the common portal from the database maintained by the Central Board of Direct Taxes. After amendment the said Rule 8(2) provides that the Permanent Account Number shall be validated online by the common portal from the database maintained by the Central Board of Direct Taxes and shall also be verified through separate one-time passwords sent to the mobile number and e-mail address linked to the Permanent Account Number. The amendment substituted Rule 8(4A) for the existing rule. The newly substituted Rule 8(4A) provides that every application made under sub-rule (4) by a person, other than a person notified under sub-section (6D) of section 25, who has opted for authentication of Aadhaar number and is identified on the common portal, based on data analysis and risk parameters, shall be followed by biometric-based Aadhaar authentication and taking photograph of the applicant where the applicant is an individual or of such individuals in relation to the applicant as notified under sub-section (6C) of section 25 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 Facilitation Centres notified by the Commissioner for the purpose of this sub-rule and the application shall be deemed to be complete only after completion of the process laid down under this sub-rule. The amendment inserted a new sub Rule 8(4B). The newly inserted Rule 8(4B) provides that the Central Government may, on the recommendations of the Council, by notification specify the States or Union territories wherein the provisions of sub-rule (4A) shall not apply. Vide Notification No. 27/2022-Central Tax, dated 26.12.2022 the Central Government specified that the provisions of sub-rule (4A) of rule 8 of the said rules shall not apply in all the States and Union territories except the State of Gujarat. Rule 8(5) provides that on receipt of an application under sub-rule (4) an acknowledgement shall be issued electronically to the applicant in Form GST REG-02. The amendment inserted the words ‘or sub-Rule 4(a)’ after the words under sub-rule (4). Amendment to Rule 9 Rule 9 provides the procedure for verification of the application for registration and approval of the same. Rule 9(1) provides that the application shall be forwarded to the proper officer who shall examine the application and the accompanying documents and if the same are found to be in order, approve the grant of registration to the applicant within a period of seven working days from the date of submission of the application. The proviso to Rule 9(1) provides that where-
the proper officer, with the approval of an officer authorized by the Commissioner not below the rank of Assistant Commissioner, deems it fit to carry out physical verification of places of business. The proviso to Rule 9(2) provides that where the application submitted under rule 8 is found to be deficient, either in terms of any information or any document required to be furnished under the said rule, or where the proper officer requires any clarification with regard to any information provided in the application or documents furnished therewith, he may issue a notice to the applicant electronically in Form GST REG-03 within a period of 8[seven] working days from the date of submission of the application and the applicant shall furnish such clarification, information or documents electronically, in Form GST REG-04, within a period of seven working days from the date of the receipt of such notice. The proviso to Rule 9(2) provides that where-
the proper officer, with the approval of an officer authorized by the Commissioner not below the rank of Assistant Commissioner, deems it fit to carry out physical verification of places of business. The amendment inserted a new sub-clause (aa) after clause (a) to the proviso to Rule 9(1) and also a new sub-clause (aa) after clause (a) to the proviso to Rule 9(2). The new clauses inserted for both the sub-rules provides- ‘a person, who has undergone authentication of Aadhaar number as specified in sub-rule (4A) of rule 8, is identified on the common portal, based on data analysis and risk parameters, for carrying out physical verification of places of business; or’ Amendment to Rule 12 The amendment inserted some words in Rule 12(3). After insertion of the new words the Rule 12(3) provides- ‘Where, on a request made in writing by a person to whom a registration has been granted under sub-rule (2) or upon an enquiry or pursuant to any other proceeding under the Act, the proper officer is satisfied that a person to whom a certificate of registration in Form GST REG-06 has been issued is no longer liable to deduct tax at source under section 51 or collect tax at source under section 52, the said officer may cancel the registration issued under sub-rule (2) and such cancellation shall be communicated to the said person electronically in Form GST REG-08: Provided that the proper officer shall follow the procedure as provided in rule 22 for the cancellation of registration.’ Input tax credit Rule 37 provides for reversion of input tax credit in the case of nonpayment of consideration. The amendment inserted some words in Rule 37(1) in three places. After this amendment Rule 37(1) provides – ‘A registered person, who has availed of input tax credit on any inward supply of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, but fails to pay to the supplier thereof, the amount towards the value of such supply , whether wholly or partly, along with the tax payable thereon, within the time limit specified in the second proviso to sub-section(2) of section 16, shall pay or reverse an amount equal to the input tax credit availed in respect of such supply, proportionate to the amount not paid to the supplier, along with interest payable thereon under section 50, while furnishing the return in Form GSTR-3B for the tax period immediately following the period of one hundred and eighty days from the date of the issue of the invoice:’ Amendment in Rule 37(1) came into effect from 01.10.2022. The amendment inserted a new Rule 37A which reads as below- ‘37A. Reversal of input tax credit in the case of non-payment of tax by the supplier and re-availment thereof. Where input tax credit has been availed by a registered person in the return in Form GSTR-3B for a tax period in respect of such invoice or debit note, the details of which have been furnished by the supplier in the statement of outward supplies in Form GSTR-1 or using the invoice furnishing facility, but the return in Form GSTR-3B for the tax period corresponding to the said statement of outward supplies has not been furnished by such supplier till the 30th day of September following the end of financial year in which the input tax credit in respect of such invoice or debit note has been availed, the said amount of input tax credit shall be reversed by the said registered person, while furnishing a return in Form GSTR-3B on or before the 30th day of November following the end of such financial year: Provided that where the said amount of input tax credit is not reversed by the registered person in a return in FORM GSTR-3B on or before the 30th day of November following the end of such financial year during which such input tax credit has been availed, such amount shall be payable by the said person along with interest thereon under section 50. Provided further that where the said supplier subsequently furnishes the return in Form GSTR-3B for the said tax period, the said registered person may re-avail the amount of such credit in the return in Form GSTR-3B for a tax period thereafter. Tax invoice Rule 46(f) provides that subject to rule 54, a tax invoice referred to in section 31 shall be issued by the registered person containing the particulars, name and address of the recipient and the address of delivery, along with the name of the State and its code, if such recipient is un-registered and where the value of the taxable supply is less than fifty thousand rupees and the recipient requests that such details be recorded in the tax invoice. The amendment inserted a proviso to Rule 46(f) which provides that where any taxable service is supplied by or through an electronic commerce operator or by a supplier of online information and database access or retrieval services to a recipient who is un-registered, irrespective of the value of such supply, 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. Rule 46A provides that notwithstanding anything contained in rule 46 or rule 49 or rule 54, where a registered person is supplying taxable as well as exempted goods or services or both to an unregistered person, a single ‘invoice-cum-bill of supply’ may be issued for all such supplies. The amendment inserted a proviso to Rule 46A which provides that the said single ‘invoice-cum-bill of supply’ shall contain the particulars as specified under rule 46 or rule 54, as the case may be, and rule 49. Furnishing details of outward supply Rule 59 provides the form and the procedure for furnishing the details of outward supply. The amendment inserted a sub clause 59(6)(d) which provides that a registered person, to whom an intimation has been issued on the common portal under the provisions of sub-rule (1) of rule 88C 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 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, as required under the provisions of sub-rule (2) of rule 88C. (continued in Part II)
By: Mr. M. GOVINDARAJAN - December 30, 2022
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