RECENT AMENDMENTS IN GOODS AND SERVICES TAX RULES, 2017

[Mr. M. GOVINDARAJAN]

Vide Notification No. 74/2018-Central Tax, dated 31.12.2018 the Central Government made the Central Goods and Services Tax (Fourteenth Amendment) Rules, 2018 further to amend the Central Goods and Services Tax Rules, 2017.  These rules, unless otherwise stipulated, came into effect from 31.12.2018.

Grant of registration to persons required to deduct tax at source or to collect tax at source

Rule 12 provides the procedure for grant of registration to the persons required to deduct tax at source or to collect tax at source.  The amendment inserted Rule 12(1A) after Rule 12(1).  The newly inserted rule provides that a person applying for registration to collect tax in accordance with the provisions of section 52, in a State or Union territory where he does not have a physical presence, shall mention the name of the State or Union territory in PART A of the application in FORM GST REG-07 and mention the name of the State or Union territory in PART B thereof in which the principal place of business is located which may be different from the State or Union territory mentioned in PART A.

Conditions and restrictions in respect of inputs and capital goods sent to the job worker

Rule 45(3) provides that the details of challans in respect of goods dispatched to a job worker or received from a job worker or sent from one job worker to another during a quarter shall be included in FORM GST ITC-04 furnished for that period on or before the twenty-fifth day of the month succeeding the said quarter or within such further period as may be extended by the Commissioner by a notification in this behalf.

The amendment omitted the words in Rule 45(3) ‘or sent from one job worker to another’.

Tax invoice

The amendment inserted fifth proviso to Rule 46.  The newly inserted proviso provides that the signature or digital signature of-

• the supplier; or
• his authorized representative

shall not be required in the case of issuance of an electronic invoice in accordance with the provisions of the Information Technology Act, 2000.

Bill of supply

The amendment inserted third proviso to Rule 46.  The newly inserted proviso provides that the signature or digital signature of-

• the supplier; or
• his authorized representative

shall not be required in the case of issuance of an electronic invoice in accordance with the provisions of the Information Technology Act, 2000.

Consolidated tax invoice

Rule 54(2) provides that where the supplier of taxable service is an insurer or a banking company or a financial institution, including a non-banking financial company, the said supplier may issue a consolidated tax invoice or any other document in lieu thereof, by whatever name called for the supply of services made during a month at the end of the month, whether issued or made available, physically or electronically whether or not serially numbered, and whether or not containing the address of the recipient of taxable service but containing other information as mentioned under rule 46.

The amendment inserted a proviso to Rule 54(2).  The newly inserted proviso provides that the signature or digital signature of the supplier or his authorized representative shall not be required in the case of issuance of a consolidated tax invoice or any other document in lieu thereof in accordance with the provisions of the Information Technology Act, 2000.

Invoice by passenger transport

Rule 54(4) provides that where the supplier of taxable service is supplying passenger transportation service, a tax invoice shall include ticket in any form, by whatever name called, whether or not serially numbered, and whether or not containing the address of the recipient of service but containing other information as mentioned under rule 46.

The amendment inserted a proviso to Rule 54(2).  The newly inserted proviso provides that the signature or digital signature of the supplier or his authorized representative shall not be required in the case of issuance of ticket in accordance with the provisions of the Information Technology Act, 2000.

Adjusted total turnover

Rule 89(5) provides that in the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula-

Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services) x Net ITC ÷ Adjusted Total Turnover} - tax payable on such inverted rated supply of goods and services.

Explanation:- For the purposes of this sub-rule, the expressions –

(a) Net ITC shall mean input tax credit availed on inputs during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both; and

(b) Adjusted Total turnover shall have the same meaning as assigned to it in sub-rule (4).

The amendment substituted clause (b) of Explanation as –

 "Adjusted Total turnover” and “relevant period" shall have the same meaning as assigned to them in sub-rule (4)”

Refund of integrated tax

Rule 96(1) provides that the shipping bill filed by an exporter of goods shall be deemed to be an application for refund of integrated tax paid on the goods exported out of India and such application shall be deemed to have been filed only when-

• the person in charge of the conveyance carrying the export goods duly files  an export manifest or an export report covering the number and the date of shipping bills or bills of export; and
•  the applicant has furnished a valid return in FORM GSTR-3 or FORM GSTR-3B, as the case may be.

The amendment inserted the words “a departure manifest or” Rule 96(1)(a) after the words “export goods duly files”.

Audit

Rule 101(1) provides that the period of audit to be conducted under sub-section (1) of section 65 shall be a financial year or multiples thereof.

The amendment inserted the words ‘or part thereof’ after the worlds ‘financial year’.

Notice to person and order of revisional authority in case of revision

The amendment inserted Rule 109B.  The newly inserted Rule 109B(1) provides that where the Revisional Authority decides to pass an order in revision under section 108 which is likely to affect the person adversely, the Revisional Authority shall serve on him a notice in FORM GST RVN-01 and shall give him a reasonable opportunity of being heard.

Rule 109B(2) provides that the Revisional Authority shall, along with its order under sub-section (1) of section 108, issue a summary of the order in FORM GST APL-04 clearly indicating the final amount of demand confirmed.

Changes in E-way Bill

The amendment substituted Explanation 1 to rule 138(1).  The newly substituted Explanation 1 provides defines the term ‘handicrafts’.  The term ‘handicrafts’ is defined as having the meaning as assigned to it in the Government of India, Ministry of Finance, notification No. 56/2018-Central Tax, dated the 23rd October, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1056 (E), dated the 23rd October, 2018 as amended from time to time.

Restriction on furnishing of information in PART A of FORM GST EWB-01

The amendment inserted Rule 138E which provides restriction on furnishing of information in Part A of Form GST EWB – 01.  Rule 138E provides that Notwithstanding anything contained in sub-rule (1) of rule 138, no person (including a consignor, consignee, transporter, an e-commerce operator or a courier agency) shall be allowed to furnish the information in PART A of FORM GST EWB-01 in respect of a registered person, whether as a supplier or a recipient, who,-

• being a person paying tax under section 10, has not furnished the returns for two consecutive tax periods; or
•  being a person other than a person specified in clause (a), has not furnished the returns for a consecutive period of two months.

The first proviso to this rule provides that the Commissioner may, on sufficient cause being shown and for reasons to be recorded in writing, by order, allow furnishing of the said information in PART A of FORM GST EWB 01, subject to such conditions and restrictions as may be specified by him.

The second proviso to this Rule provides that no order rejecting the request of such person to furnish the information in PART A of FORM GST EWB 01 under the first proviso shall be passed without affording the said person a reasonable opportunity of being heard.

The third proviso to this rule provides that the permission granted or rejected by the Commissioner of State tax or Commissioner of Union territory tax shall be deemed to be granted or, as the case may be, rejected by the Commissioner.

The explanation to this Rule defines the term ‘Commissioner’ as the jurisdictional Commissioner in respect of the persons specified in clauses (a) and (b).

Forms

The amendment inserted the following new form-

• Form GST RVN – 01 – Notice to a person in case of revision.

The amendment substituted the following existing forms for new forms-

• Form GST RFD – 1- Application for refund;
• Form GST RFD -1A – Application for refund (manual);
• Form GSTR 9 – Annual Return;
• Form GSTR 9A – Annual Return for composite tax payers;
• Form GSTR 9C – Reconciliation Statement.