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

[Mr. M. GOVINDARAJAN]

Twelfth Amendment

The Central Government, on the recommendations of the GST Council, made the Central Goods and Services Tax (Twelfth Amendment) Rules, 2020 vide Notification No. 79/2020-Central Tax, dated 15.10.2020 to amend the CGST Rules further. 

Amendment to Rule 46

Rule 46 prescribes the particulars that are required to be contained in the tax invoice.  The amendment substituted the first proviso to Rule 46.  The newly substituted proviso provides that the Board may, on the recommendations of the Council, by notification, specify-

• the number of digits of Harmonized System of Nomenclature code for goods or services that a class of registered persons shall be required to mention; or
•  a class of supply of goods or services for which specified number of digits of Harmonized System of Nomenclature code shall be required to be mentioned by all registered taxpayers; and
• the class of registered persons that would not be required to mention the Harmonized System of Nomenclature code for goods or services.

Amendment to Rule 67A

Rule 67A provides the procedure for filing of return or outward supplies by SMS.  The amendment substituted a new Rule for the existing Rule 67A. 

A ‘NIL return’ is to be filed when there is no entry in all the Tables of Form GSTR – 3B under section 39, GSTR  - 1 under section 37 or under Rule 62 or GST CMP 08.

Filing of return through SMS was introduced to GSTR – 3B with effect from 05.05.2020.  With effect from 01.07.2020 the said facility was extended to GSTR – 1 and the amendment extended this facility to GST CMP – 08 also.

The above said returns can be filed through SMS using the registered mobile number and the said return or the details of outward supplies or statement shall be verified by a registered mobile number based One Time Password facility.

Amendment to Rule 80

Rule 80 requires a registered person to file annual return.  Vide Notification No. 16/2020-Central Tax, dated 23.03.2020 a proviso to Rule 80 (3).  The said proviso provides that every registered person whose aggregate turnover during the financial year 2018-2019 exceeds five crore rupees shall get his accounts audited by a Chartered Accountant or a Cost Accountant and he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C for the financial year 2018-2019, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner.

The Twelfth amendment substituted a new provision to the above provision.  The new substituted rule provides that besides the financial year 2018 -19, the accounts shall be got audited for the financial year 2019-20 also and a reconciliation statement duly certified by the Auditors.

Amendment to Rule 138 E

Rule 138E provides the restrictions on furnishing of information in Part A of Form GST EWB – 01.  The amendment inserted fourth proviso to this Rule.  The newly inserted fourth proviso provides that the restrictions put forth in Rule 138E shall not apply during the period from the 20th day of March, 2020 till the 15th day of October, 2020 in case where the return in FORM GSTR-3B or the statement of outward supplies in FORM GSTR-1 or the statement in FORM GST CMP-08, as the case may be, has not been furnished for the period February, 2020 to August, 2020.

Amendment to Rule 142(1A)

Rule 142 provides the procedure for issue of notice and order demand of amount payable under the Act. 

Sub section (1A) was inserted vide Notification No. 49/2019-Central Tax, dated 09.10.2019.  The newly inserted sub section (1A) provides that the proper officer shall, before service of notice to the person chargeable with tax, interest and penalty, under sub-section (1) of Section 73 or sub-section (1) of Section 74, as the case may be,   shall communicate the details of any tax, interest and penalty as ascertained by the said officer, in Part A of FORM GST DRC-01A

The sub-clause (1A) made it obligatory on the part of proper officer to communicate the details of any tax, interest and penalty before service of notice to the person chargeable with tax, interest and penalty. 

The amendment does not impose such obligations on the proper officer.  He may communicate the details before the service of the notice. 

Amendment of forms

The amendment brought many amendments in various forms.

Form GSTR – 1

Table No. 12 of the Form GSTR – 1 requires to provide the HSN wise summary of outward supplies.  Column 6 provides ‘Total Value’.  The amendment substituted the words ‘Rate of Tax’ for the ‘Total value’.

Form GSTR – 2A

Form GSTR – 2A is statement which has been generated on the basis of the information furnished by the suppliers in their respective FORMS GSTR-1, 5, 6, 7 and 8. It is a dynamic statement and is updated on new addition/amendment made by your supplier in near real time. The details added by supplier would reflect in corresponding Form GSTR – 2A of the recipient irrespective of supplier’s date of filing.

Form GSTR – 2A has been substituted for a new form by the amendment.  The newly substituted Form GSTR – 2A contains four parts along with the general information to be furnished. 

Part A

• Inward supplies received from a registered person including supplies attracting reverse charge;
• Amendment to Inward supplies received from a registered person including supplies attracting reverse charge (Amendment to the above);
• Debit / Credit notes received during current tax period;
• Amendment to Debit / Credit notes as above;

Part B

• ISD credit received;
• Amendments to ISD credit details;

Part C

• TDS and TCS Credit (including amendments thereof) received    

Part D

• Import of goods from overseas on bill of entry (including amendments thereof);
• Inward supplies of goods received from SEZ units / developers on bill of entry (including amendments thereof).

Form GSTR – 5

  Form GSTR – 5 is the return to be submitted by the nonresident taxable person under Rule 63. 

1. In Sl. No. 2 of the said form the following details will be auto populated once GSTN is entered-

1. Legal name of the Registered person
2. Trade name, if any
3. Validity period of registration

The amendment add the following in the said Sl. No. 2 which will also be auto populated-

4. ARN
5. Date of ARN

2. The heading of Sl. No.10 of the Form GSTR – 5 is – ‘Total tax liability’.  The amendment inserted some words which would read as ‘Total tax liability (including reverse charge liability, if any).
3. After Sl. No. 10B, the amendment inserts Sl. No. 10C - On account of inward supplies liable to reverse charge.
4. Amendments to the Instructions to this form-

• Instruction 7 is substituted for a new one.  The newly substituted instruction No. 7 provides-

7.  Invoice-level information, rate-wise, pertaining to the tax period should be reported as under-

• for all B to B supplies (whether inter-State or intra-State), invoice level details should be uploaded in Table 5;
• for all inter-state B to C supplies, where invoice value is more than ₹ 2,50,000/- (B to C Large) invoice level detail to be provided in Table 6; and
• for all B to C supplies, other than those reported in table 6, shall be reported in Table 7 providing State-wise summary of such supplies.

•  In paragraph 8, in clause (ii), after the words, ‘invoice value is more than’, the word ‘rupees’, is inserted;
• For para 10 a new para is substituted.  The newly substituted para 10 provides that Table 10 consists of tax liability on account of outward supplies declared in the current tax period and negative ITC on account of amendment to import of goods in the current tax period. Inward supplies attracting reverse charge shall be reported in Part C of the table.

Form GSTR – 5A

Form GSTR – 5A is meant for furnishing the details of supplies of online information and database access or retrieval services by a person located outside India made to non-taxable persons in India under Rule 64.

The amendment inserted in Sl. No. 4 the following-

• 4(a) – ARN;
• 4(b) – date of ARN.

The amendment substitutes a new table for Sl. No. 6.  The new table substituted is as below-

6. Calculation of interest or any other amount

(Amount in Rupees)

Sr. No.		Description	Place of supply (State/UT)	Amount due (Interest/ Other)
				Integrated tax	Cess
1		2	3	4	5
1.	Interest
2.	Others
	Total

Form GSTR 9

Table

Form GSTR 9 is the Annual return that is to be filed by the registered person every year.  Table 8 of the Form GSTR 9 requires furnishing other ITC related information.  The amendment substitutes Column 2 of Sl. No. 8C for the new one.  The newly substituted provides that ITC on inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs) received during the financial year but availed in the next financial year up to specified period.

 The amendment substituted the heading in Pt. No. V for a new one.  The new heading is ‘Particulars of the transactions for the financial year declared in returns of the next financial year till the specified period’.

Instruction

In the instruction, the amendment inserts a new entry 2A which provides – ‘In the Table, against serial numbers 4, 5, 6 and 7, the taxpayers shall report the values pertaining to the financial year only. The value pertaining to the preceding financial year shall not be reported here’.

In paragraph 4, -

• after the words, letters and figures, ‘that additional liability for the FY 2017-18 or FY 2018-19”, the word, letters and figures ‘or FY 2019-20’ are inserted
• in the Table, in second column, for the letters, figures and word ‘FY 2017-18 and 2018-19’ wherever they occur, the letters, figures and word ‘FY 2017-18, 2018-19 and 2019-20’ are substituted;
• in paragraph 5, in the Table, in second column, -

• against serial number 6B, after the entries, the following entry is  inserted, namely-

‘For FY 2019-20, the registered person shall report the breakup of input tax credit as capital goods and have an option to either report the breakup of the remaining amount as inputs and input services or report the entire remaining amount under the ‘inputs’ row only.’

• against serial number 6C and serial number 6D-

• after the entry ending with the words ‘entire input tax credit under the “inputs” row only.’, the following entry is inserted, namely: -

‘For FY 2019-20, the registered person shall report the breakup of input tax credit as capital goods and have an option to either report the breakup of the remaining amount as inputs and input services or report the entire remaining amount under the ‘inputs’ row only.’

• in the entry ending with the words, figures and letters ‘Table 6C and 6D in Table 6D only.’, for the letters, figures and word ‘FY 2017-18 and 2018-19’, the letters, figures and word ‘FY 2017-18, 2018-19 and 2019-20’ are substituted;

• against serial number 6E, after the entry, the following entry is inserted, namely-

‘For FY 2019-20, the registered person shall report the breakup of input tax credit as capital goods and have an option to either report the breakup of the remaining amount as inputs and input services or report the entire remaining amount under the “inputs” row only’.

• against serial number 7A, 7B, 7C, 7D, 7E, 7F, 7G and 7H, in the entry, for the letters, figures and word “FY 2017-18 and 2018-19”, the letters, figures and word “FY 2017-18, 2018-19 and 2019-20” are  substituted.
• against serial number 8A, after the entry, the following entry is inserted, namely:

‘For FY 2019-20, it may be noted that the details from FORM GSTR-2A generated as on the 1st November, 2020 shall be auto-populated in this table’.

• against serial number 8C, for the entries, the following entry is substituted, namely

‘Aggregate value of input tax credit availed on all inward supplies (except those on which tax is payable on reverse charge basis but includes supply of services received from SEZs) received during the financial year for which the annual return is being filed for but credit on which was availed in the next financial year within the period specified under Section 16(4) of the CGST Act, 2017’.

•  In paragraph 7, –

• after the words and figures ‘April 2019 to September 2019.’, the following is inserted, namely: -

‘For FY 2019-20, Part V consists of particulars of transactions for the previous financial year but paid in the FORM GSTR-3B between April 2020 to September 2020’

• in the Table, in second column, -

• against serial number 10 & 11, after the entries, the following entry is inserted, namely: -

‘For FY 2019-20, Details of additions or amendments to any of the supplies already declared in the returns of the previous financial year but such amendments were furnished in Table 9A, Table 9B and Table 9C of FORM GSTR-1 of April 2020 to September 2020 shall be declared here’

• against serial number 12, -

• in the entry beginning with the word, letters and figures “For FY 2018-19” after the words, letters and figures “in the annual return for FY 2019-20.”, the following entry is inserted, namely-

‘For FY 2019-20, Details of ITC for goods or services received in the previous financial year but ITC for the same was availed in returns filed for the months of April 2020 to September 2020 shall be declared here. Table 4(A) of FORM GSTR-3B may be used for filling up these details. However, any ITC which was reversed in the FY 2019-20 as per second proviso to sub-section (2) of section 16 but was reclaimed in FY 2020-21, the details of such ITC reclaimed shall be furnished in the annual return for FY 2020-21’.

• in the entry beginning with the word, letters and figures ‘For FY 2017-18’ and ending with the words ‘an option to not fill this table.’, for the letters, figures and word ‘FY 2017-18 and 2018-19’, the letters, figures and word ‘FY 2017-18, 2018-19 and 2019-20’ are substituted;

• In paragraph 8, in the Table, in second column, for the letters, figures and word ‘FY 2017-18 and 2018-19’ wherever they occur, the letters, figures and word ‘FY 2017-18, 2018-19 and 2019-20’ are substituted.

Form GSTR – 9C

The amendment brought changes in the instructions to Form GSTR – 9C. 

• In paragraph 4, in the Table, in second column, for the letters, figures and word ‘FY 2017-18 and 2018-19’ wherever they occur, the letters, figures and word ‘FY 2017-18, 2018-19 and 2019-20’ shall be substituted;
• In paragraph 6, in the Table, in second column, for the letters, figures and word ‘FY 2017-18 and 2018-19’ wherever they occur, the letters, figures and word ‘FY 2017-18, 2018-19 and 2019-20’ shall be substituted.

Form GST RFD – 01

The amendment omitted in Annexure-1, in Statement-2, in the heading the brackets, word and letters ‘(accumulated ITC)’.

Form GST ASMT – 16

The amendment substituted a new table for the existing table.  The newly substituted table is as below-

 (Amount in Rs.)

Sr. No.	Tax Rate	Turnover	Tax Period		Act	POS  (Place of Supply)	Tax	Interest	Penalty	Fee	Others	Total
			From	To
1	2	3	4	5	6	7	8	9	10	11	12	13
Total

 Form GST DRC – 01

The amendment substituted the table after entry © for a new one which is as below-

Sr. No.	Tax rate	Turnover	Tax Period		Act	POS (Place of Supply)	Tax	Interest	Penalty	Fee	Others	Total
			From	To
1	2	3	4	5	6	7	8	9	10	11	12	13
Total

Form GST DRC – 02

The amendment substituted the table after entry © for a new one which is as below-

Sr. No.	Tax rate	Turnover	Tax Period		Act	POS (Place of Supply)	Tax	Interest	Penalty	Fee	Others	Total
			From	To
1	2	3	4	5	6	7	8	9	10	11	12	13
Total

Form GST DRC – 07

The amendment substituted the table after Sl.No. 5 for a new one which is as below-

Sr. No.	Tax rate	Turnover	Tax Period		Act	POS (Place of Supply)	Tax	Interest	Penalty	Fee	Others	Total
			From	To
1	2	3	4	5	6	7	8	9	10	11	12	13
Total

Form GST DRC – 08

The amendment substituted the table after Sl. No. 7, for a new one which is as below-

Sr. No.	Tax rate	Turnover	Tax Period		Act	POS (Place of Supply)	Tax	Interest	Penalty	Fee	Others	Total
			From	To
1	2	3	4	5	6	7	8	9	10	11	12	13
Total

Form GST DRC – 09

The amendment substituted a new table for the existing table as below-

Act	Tax/Cess	Interest	Penalty	Fee	Others	Total
1	2	3	4	5	6	7
Integrated tax
Central tax
State/UT tax
Cess
Total						“

Form GST DRC – 24

The amendment substituted a new table for the existing table as below-

Act	Tax	Interest	Penalty	Fee	Other Dues	Total  Arrears
1	2	3	4	5	6	7
Central tax
State / UT tax
Integrated tax
Cess						“

Form GST DRC – 25

The amendment substituted a new table for the existing table as below-

Act	Tax	Interest	Penalty	Fee	Other Dues	Total Arrears
1	2	3	4	5	6	7
Central tax
State / UT tax
Integrated tax
Cess