RECENT CHANGES IN GST RULES – PART II

[Mr. M. GOVINDARAJAN]

Payment of tax

Rule 87 provides the procedure for payment of tax through electronic cash ledger.  Rule 87 (8) provides that where the bank account of the person concerned, or the person making the deposit on his behalf, is debited but no Challan Identification Number is generated or generated but not communicated to the common portal, the said person may represent electronically in Form GST PMT-07 through the common portal to the bank or electronic gateway through which the deposit was initiated.

The amendment inserted a proviso to Rule 87(8) which provides 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.

The amendment inserted a new rule 88C dealing with the manner of dealing with the difference in liability reported in Statement of Outward Supplies and that reported in return. 

The new Rule 88C(1) provides that where the tax payable by a registered person, in accordance with the statement of outward supplies furnished by him in Form GSTR-1 or using the Invoice Furnishing Facility in respect of a tax period, exceeds the amount of tax payable by such person in accordance with the return for that period furnished by him in Form GSTR-3B, by such amount and such percentage, as may be recommended by the Council, the said registered person shall be intimated of such difference in Part A of Form GST DRC-01B, electronically on the common portal, and a copy of such intimation shall also be sent to his e-mail address provided at the time of registration or as amended from time to time, highlighting the said difference and directing him to-

• pay the differential tax liability, along with interest under section 50, through Form GST DRC-03; or
•  explain the aforesaid difference in tax payable on the common portal,

within a period of seven days.

Rule 88C (2) provides that the registered person referred to sub-rule (1) shall, upon receipt of the intimation referred to in that sub-rule, either,

• pay the amount of the differential tax liability, as specified in Part A of Form GST DRC-01B, fully or partially, along with interest under section 50, through Form GST DRC-03 and furnish the details thereof in Part B of Form GST DRC-01B electronically on the common portal; or
• furnish a reply electronically on the common portal, incorporating reasons in respect of that part of the differential tax liability that has remained unpaid, if any, in Part B of Form GST DRC-01B,

within the period specified in the said sub-rule.

Rule 88C(3) provides that where any amount specified in the intimation referred to in sub-rule (1) remains unpaid within the period specified in that sub-rule and where no explanation or reason is furnished by the registered person in default or where the explanation or reason furnished by such person is not found to be acceptable by the proper officer, the said amount shall be recoverable in accordance with the provisions of section 79

Refund

Rule 89 provides that procedure for getting refund of tax, interest, penalty, fees or any other amount from Department by filing an application by the eligible person.  Rule 89(2) provides that the application for refund shall be accompanied by any of the 14 documentary evidences in Annexure 1 in Form GST RFD-01, as applicable, to establish that a refund is due to the applicant. 

The amendment requires to insert two more documents to be attached with the refund by inserting two sub rules viz. 89(2)(ka) and 89(2)(kb). 

• Rule 89(2)(ka) - a statement containing the details of invoices viz. number, date, value, tax paid and details of payment, 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;
• Rule 89(2)(kb) - 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.

Rule 89(2)(m) provides that a Certificate in Annexure 2 of Form GST RFD-01 issued by a chartered accountant or a cost accountant to the effect that the incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person, in a case where the amount of refund claimed exceeds Rs.2 lakhs.  The amendment inserted a second proviso to this rule which provides 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.

Appeals and Revisions

Rule 108 provides the procedure for filing appeal against the order of the Authority for Advance Ruling before the Appellate Authority.  The amendment substituted a new sub clause 108(3) for the existing one.

Filing appeal

The newly substituted Rule 108(3) provides that 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 authorized by him in this behalf and the date of issue of the provisional acknowledgment shall be considered as the date of filing of appeal.    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 or an officer authorized by him in this behalf, and the date of issue of the provisional acknowledgment shall be considered as the date of filing of appeal.  Where the said 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.

Procedure for filing appeal

Rule 109 provides the procedure for filing appeal before the Appellate Authority.  The amendment substituted a new rule for the existing one.  According to the newly substituted rule the procedure for filing appeal before Appellate Authority is as detailed below-

• An application to the Appellate Authority shall be filed in Form GST APL-03, along with the relevant documents, either electronically or otherwise as may be notified by the Commissioner and a provisional acknowledgment shall be issued to the appellant immediately.
• 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 authorized by him in this behalf and the date of issue of the provisional acknowledgment shall be considered as the date of filing of appeal.
• 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-03 and a final acknowledgment, indicating appeal number, shall be issued in Form GST APL-02 by the Appellate Authority or an officer authorized by him in this behalf, and the date of issue of the provisional acknowledgment shall be considered as the date of filing of appeal.
• Where the said 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-03, the date of submission of such copy shall be considered as the date of filing of appeal.

Withdrawal of appeal

The amendment inserted a new Rule 109C dealing with the withdrawal of appeal filed before the Appellate Authority.  The procedure for withdrawal is as below-

• The appellant may, at any time before issuance of show cause notice under sub-section (11) of section 107 or before issuance of the order under the said sub-section, whichever is earlier, in respect of any appeal filed in Form GST APL-01 or Form GST APL-03, file an application for withdrawal of the said appeal by filing an application in Form GST APL-01/03W.
• Where the final acknowledgment in Form GST APL-02 has been issued, the withdrawal of the said appeal would be subject to the approval of the appellate authority and such application for withdrawal of the appeal shall be decided by the appellate authority within seven days of filing of such application.

Any fresh appeal filed by the appellant pursuant to such withdrawal shall be filed within the time limit specified in sub-section (1) or sub-section (2) of section 107, as the case may be.

E-way Bills

Rule 138 provides the Information to be furnished prior to commencement of movement of goods and generation of e-way bill.  Rule 138 (14) provides the list of activities for which no E-way bill is required to be generated.  The Annexure to this Rule provides the list of goods for this purpose.  The Sl. No. 5 of this table indicates the jewellery, goldsmiths’ and silversmiths’  wares  and  other articles (Chapter 71).  The amendment gives an exception to this list - excepting Imitation Jewellery (7117).

Continuation of certain recovery proceedings

Rule 161 provides that the the order for the reduction or enhancement of any demand under section 84 shall be issued in Form GST DRC- 25. 

After amendment Rule 161 provides that The intimation or notice for the reduction or enhancement of any demand under section 84 shall be issued in Form GST DRC- 25.

Forms

The amendment amends-

• Form GST REG – 01;
• Form GST REG – 17;
• Form GSTR – 1;
• Form GST RFD – 01;
• Form GST APL -01/03 W has been inserted.
• Form GST DRC -01B has been inserted.
• Form GST DRC – 03 has been substituted a new form for the existing form;
• Form GST REG – 19 has been substituted a new form for the existing form.