CENTRAL GOODS AND SERVICES TAX (THIRTEENTH AMENDMENT) RULES, 2020

[Mr. M. GOVINDARAJAN]

Thirteenth Amendment

The Central Government, on the recommendations of GST Council, made its thirteenth amendment to Goods and Services Tax Rules, 2017 (‘Rules’ for short) vide Notification No. 82/2020-Central Tax, dated 10.11.2020.  The major amendments are-

• Substitution of Rule 59 (with effect from 01.01.2021);
• Substitution of Rule 60 (with effect from 01.01.2021);
• Insertion of Rule 61 (6) (with effect from 10.11.2020);
• Substitution of Rule 61 (with effect from 01.01.2021);
• Insertion of new Rule 61(A) – (with effect from 10.11.2020);
• Amendments to Rule 62 (with effect from 10.11.2020);
• Insertion of Sl. No. 18 in GSTR – 1 form (with effect from 10.11.2020);
• Insertion of new Form GSTR – 2A (with effect from 01.01.2021);

Amendments with effect from 10.11.2020

Insertion of Rule 61 (6)

The amendment inserted a new sub rule (6) to Rule 61 which deals with form and manner of submission of monthly returns.  The newly substituted sub rule (6) provides that every registered person, other than a person-

• Supplier of online information and database access or retrieval services under section 14 of IGST Act;
• Input service distributor;
• Non resident taxable person;
• Tax paid under composition scheme;
• Tax deducted at source;
• Tax collected at source,

shall file Form GSTR – 3B on or before 20^th day of the succeeding month.

There are two provisos to Rule 61(6) which provides the date for furnishing of GSTR – 3B whose annual turnover exceeds ₹ 5 crores in the previous financial year as below-

• Last date for filing GSTR – 3B is twenty second day of the succeeding month  - for the taxpayers whose principal business place is in the States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep;
• Last date for filing GSTR – 3B is twenty fourth day of the succeeding month  - for the taxpayers whose principal business place is in the States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi.

Insertion of new Rule 61A

The newly inserted Rule 61A provides for the manner for opting of quarterly returns.  The quarterly returns are to be filed who is eligible for the same and opts for the same.  Such option is subject to conditions and restrictions notified in this regard.  The said person is to indicate his preference for furnishing of return on a quarterly basis, electronically, on the common portal, from the 1^st  day of the second month of the preceding quarter till the last day of the first month of the quarter for which the option is being exercised.  Once the option is exercised  the said registered person shall continue to furnish the return on a quarterly basis for future tax periods, unless the said registered person,–

• becomes ineligible for furnishing the return on a quarterly basis as per the conditions and restrictions notified in this regard; or
• opts for furnishing of return on a monthly basis.

A registered person shall not be eligible to opt for furnishing quarterly return in case the last return due on the date of exercising such option has not been furnished.

A registered person, whose aggregate turnover exceeds ₹ 5 crores during the current financial year, shall opt for furnishing of return on a monthly basis, from the first month of the quarter, succeeding the quarter during which his aggregate turnover exceeds ₹ 5 crores.

Amendment to Rule 62

The amendment brought four amendments to Rule 62.  Rule 62(1) in its heading line – ‘Every registered person paying tax under section 10   or paying tax by availing the benefit of notification of the Government of India, Ministry of Finance, Department of Revenue No. 02/2019– Central Tax (Rate), dated the 7th March, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.189 (E), dated the 7th March, 2019 shall furnish a statement in GST CMP – 08 every quarter and furnish a return for every year in Form GSTR – 4.

The amendment omitted the italized words in Rule 62 (1).

Rule 62 (4) reads as - A registered person who has opted to pay tax under section 10 or by availing the benefit of notification of the Government of India, Ministry of Finance, Department of Revenue No. 02/2019– Central Tax (Rate), dated the 7th March, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.189 (E), dated the 7th March, 2019 from the beginning of a financial year shall, where required, furnish the details of outward and inward supplies and return under rules 59, 60 and 61 relating to the period during which the person was liable to furnish such details and returns till the due date of furnishing the return for the month of September of the succeeding financial year or furnishing of annual return of the preceding financial year, whichever is earlier.

The amendment omitted the italized words in Rule 62 (4).

Explanation to Rule 62 (4) reads as below-

Explanation.– For the purposes of this sub-rule, it is hereby declared that the person shall not be eligible to avail input tax credit on receipt of invoices or debit notes from the supplier for the period prior to his opting for the composition scheme or opting for paying tax by availing the benefit of notification of the Government of India, Ministry of Finance, Department of Revenue No. 02/2019– Central Tax (Rate), dated the 7th March, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.189 (E), dated the 7th March, 2019.

The amendment omitted the italized words in Explanation to Rule 62 (4).

Rule 62(6) provides - A registered person who ceases to avail the benefit of notification of the Government of India, Ministry of Finance, Department of Revenue No. 02/2019– Central Tax (Rate), dated the 7th March, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.189 (E) , dated the 7th March, 2019, shall, where required, furnish a statement in Form GST CMP-08 for the period for which he has paid tax by availing the benefit under the said notification till the 18th day of the month succeeding the quarter in which the date of cessation takes place and furnish a return in Form GSTR - 4 for the said period till the thirtieth day of April following the end of the financial year during which such cessation happens.

The amendment omitted Rule 62 (6).

Insertion in GSTR – 1

The amendment inserted a new Sl. No. 18 in Form GSTR – 1 which provides that it will be mandatory to specify the number of digits of HSN code for goods or services that a class of registered persons shall be required to mention as may be specified in the notification issued from time to time under proviso to rule 46 of the said rules.

Amendments with effect from 01.01.2021

Substitution of Rule 59         

Rule 59 provides the form and the procedure for furnishing of detailed outward supplies.  The said rule is substituted for a new rule by the amendment.  The newly substituted Rule 59 (1) requires a registered person (other than  supplier of online information and database access or retrieval services) shall furnish the details of outward supplies in Form GSTR – 1 every month/quarter.

The register person may furnish the details of such outward supplies of goods or services or both to a registered person, as he may consider necessary, for the first and second months of a quarter, up to a cumulative value of fifty lakh rupees in each of the months,- using invoice furnishing facility (IIF) from the 1st day of the month succeeding such month till the 13th day of the said month.   The details of outward supplies furnished using the IFF, for the first and second months of a quarter, shall not be furnished in Form GSTR-1 for the said quarter.

The details of outward supplies of goods or services or both furnished in Form GSTR-1 shall include the–

•  invoice wise details of all –

• inter-State and intra-State supplies made to the registered persons; and
• inter-State supplies with invoice value more than 2.5 lakh rupees made to the unregistered persons;

• consolidated details of all –

• intra-State supplies made to unregistered persons for each rate of tax; and
• State wise inter-State supplies with invoice value up to 2.5  lakh rupees made to unregistered persons for each rate of tax;

• debit and credit notes, if any, issued during the month for invoices issued previously.

The details of outward supplies of goods or services or both furnished using the IFF shall include the –

• invoice wise details of inter-State and intra-State supplies made to the registered persons;
• debit and credit notes, if any, issued during the month for such invoices issued previously.

Substitution of Rule 60

Rule 60 provides the form and manner of ascertaining details of inward supplies.  The amendment substituted a new rule for  Rule 60.  The newly substituted Rule 60 provides that the details of outward supplies or invoices or tax deducted etc., are made available to the recipients.

• The details of outward supplies furnished by the supplier in Form GSTR-1 or using the IFF shall be made available electronically to the concerned registered persons (recipients) in Part A of Form GSTR-2A, in Form GSTR-4A and in Form GSTR-6A.
• The details of invoices furnished by an non-resident taxable person in his return in Form GSTR-5  shall be made available to the recipient of credit in Part A of Form GSTR 2A.
• The details of invoices furnished by an Input Service Distributor in his return in Form GSTR-6  shall be made available to the recipient of credit in Part B of Form GSTR 2A.
• The details of tax deducted at source furnished by the deductor in Form GSTR-7 shall be made available to the deductee in Part C of Form GSTR-2A .
• The details of tax collected at source furnished by an e-commerce Form GSTR-8 shall be made available to the concerned person in Part C of Form GSTR 2A.
• The details of the integrated tax paid on the import of goods or goods brought in domestic Tariff Area from Special Economic Zone unit or a Special Economic Zone developer on a bill of entry shall be made available in Part D of Form GSTR-2A.
• An auto-drafted statement containing the details of input tax credit shall be made available to the registered person in Form GSTR-2B, for every month.
•  The Statement in Form GSTR-2B for every month shall be made available to the registered person,-

• for the first and second month of a quarter, a day after the due date of furnishing of details of outward supplies for the said month, in the IFF by a registered person required to furnish return for every quarter or in Form GSTR-1 by a registered person, other than those required to furnish return for every quarter whichever is later;
• in the third month of the quarter, a day after the due date of furnishing of details of outward supplies for the said month, in Form GSTR-1 by a registered person required to furnish return for every quarter.

Substitution of section 61

Vide clause 4 of the amendment Rules, Rule 61 met amendments but these amendments are in force up to 31.12.2020.  After 01.01.2021 the entire  rule is substituted by a new one.

The newly substituted Rule 61 provides the form and manner of furnishing the return.  Every registered person, other than a person-

• Supplier of online information and database access or retrieval services under section 14 of IGST Act;
• Input service distributor;
• Non resident taxable person;
• Tax paid under composition scheme;
• Tax deducted at source;
• Tax collected at source,

shall file Form GSTR – 3B on or before 20^th day of the succeeding month.

The date for furnishing of GSTR – 3B whose annual turnover exceeds ₹ 5 crores in the previous financial year as below-

• Last date for filing GSTR – 3B is twenty second day of the succeeding month  - for the taxpayers whose principal business place is in the States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep;
• Last date for filing GSTR – 3B is twenty fourth day of the succeeding month  - for the taxpayers whose principal business place is in the States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi.

Every registered person required to furnish return shall discharge his liability towards tax, interest, penalty, fees or any other amount payable under the Act or the provisions of this Chapter by debiting the electronic cash ledger or electronic credit ledger and include the details in the return in Form GSTR-3B.

Every registered person required to furnish return, every quarter shall pay the tax due for each of the first two months of the quarter, by depositing the said amount in Form GST PMT-06, by the 20^th day of the month succeeding such month.  The Commissioner may, on the recommendations of the Council, by notification, extend the due date for depositing the said amount in Form GST PMT-06, for such class of taxable persons as may be specified therein.  Any extension of time limit notified by the Commissioner of State tax or Union territory tax shall be deemed to be notified by the Commissioner.  While making a deposit in Form GST PMT-06, such a registered person may–

• for the first month of the quarter, take into account the balance in the electronic cash ledger.
• for the second month of the quarter, take into account the balance in the electronic cash ledger excluding the tax due for the first month.

The amount deposited by the registered persons, shall be debited while filing the return for the said quarter in Form GSTR-3B, and any claim of refund of such amount lying in balance in the electronic cash ledger, if any, out of the amount so deposited shall be permitted only after the return in Form GSTR-3B for the said quarter has been filed.

Insertion of Form GSTR -2B

Form GSTR-2B is a statement which has been generated on the basis of the information furnished by your suppliers in their respective Forms GSTR-1, 5 and 6. It is a static statement and will be made available once a month. The documents filed by the supplier in any Forms GSTR-1, 5 and 6 would reflect in the next open Form GSTR-2B of the recipient irrespective of supplier’s date of filing. Taxpayers are advised to refer Form GSTR-2B for availing credit in Form GSTR-3B. However, in case for additional details, they may refer to their respective Form GSTR-2A (which is updated on near real time basis) for more details.