Analysis of Amendments in GST on 18th May 2021 vide Not. No. 15/2021 - Central Tax:

[Vivek Jalan]

 Amendment in Rule 138E: Restriction on furnishing of information in PART A of FORM GST EWB-01

(vi) in rule 138E, for the words "in respect of a registered person, whether as a supplier or a recipient, who, -" the words "in respect of any outward movement of goods of a registered person, who, -" shall be substituted.

Analysis of amendments in Rule 138E –

This is an important amendment wherein now the waybill can be generated for inward supply to a registered person who has not furnished returns (GSTR 3B/GSTR 1/etc) for 2 consecutive periods. Hence, now waybills cannot be generated ONLY for outward supplies relating to these taxpayers. Previously, no E-Waybill, either for inward supplies or outward supplies relating to these persons could be generated.

Amendment to RULE 90: Acknowledgement for Refund

in sub-rule (3), the following proviso shall be inserted, -

"Provided that the time period, from the date of filing of the refund claim in FORM GST RFD-01 till the date of communication of the deficiencies in FORM GST RFD-03 by the proper officer, shall be excluded from the period of two years as specified under sub-section (1) of Section 54, in respect of any such fresh refund claim filed by the applicant after rectification of the deficiencies.

after sub-rule (4), the following sub-rules shall be inserted, namely: -

"(5) The applicant may, at any time before issuance of provisional refund sanction order in FORM GST RFD-04 or final refund sanction order in FORM GST RFD-06 or payment order in FORM GST RFD-05 or refund withhold order in FORM GST RFD-07 or notice in FORM GST RFD-08, in respect of any refund application filed in FORM GST RFD-01, withdraw the said application for refund by filing an application in FORM GST RFD-01W.

(6) On submission of application for withdrawal of refund in FORM GST RFD-01W, any amount debited by the applicant from electronic credit ledger or electronic cash ledger, as the case may be, while filing application for refund in FORM GST RFD-01, shall be credited back to the ledger from which such debit was made.

Analysis of amendments in Rule 90 –

These are welcome amendments which provide the following for a claim for refund under GST –

1. The time period between and ‘Filing of a refund claim’ and issuance of a ‘deficiency memo’ which is around 3-4 weeks will not be included to calculate the time barring period of 2 years for filing of GST Refunds claim.

It is a common practice to issue a deficiency memo before sanctioning GST Refunds. When the taxpayers apply at the last time, then due to the time lapse due to issuance of these deficiency memos used to pose a legal hitch before the officers for sanctioning the refunds.

2. Now the taxpayers at anytime after filing of refund claim and till the time of issuance of acknowledgement/deficiency memo, but before the issuance of any order/SCN withdraw the refund claim. Any of the following reasons should be given in the Form RFD-01W for withdrawal-

1. Filed the refund application by mistake
2. Filed Refund Application under wrong category
3. Wrong details mentioned in the refund application
4. Others (Please Specify)

Amendment to RULE 92: Order Sanctioning Refund

in sub-rule (1), the proviso shall be omitted;

in sub-rule (2), -

(i) for the word and letter "Part B", the word and letter "Part A" shall be substituted;

(ii) the following proviso shall be inserted, namely: -

"Provided that where the proper officer or the Commissioner is satisfied that the refund is no longer liable to be withheld, he may pass an order for release of withheld refund in Part B of FORM GST RFD- 07.";

Analysis of amendments in Rule 92 –

These are procedural changes in the Form RFD-07 in Part A & Part B which will be used for withholding/ adjustments/ release of refunds. These would be mainly at the departmental level.

Amendment to RULE 96: Refund of integrated tax paid on goods exported out of India

(a) in sub-rule (6), for the word and letter "Part B", the word and letter "Part A" shall be substituted;

 (b) in sub-rule (7), for the words, letters and figures, "after passing an order in FORM GST RFD-06", the words, letters and figures, "by passing an order in FORM GST RFD-06 after passing an order for release of withheld refund in Part B of FORM GST RFD-07" shall be substituted;

Analysis of amendments in Rule 96 –

These are procedural changes in Rule 96 consequent to changes in Form RFD-07 in Part A & Part B which will be used for withholding/ adjustments/ release of refunds. These would be mainly at the departmental level.

Amendment to RULE 23: Revocation of cancellation of registration

in rule 23, in sub-rule (1), after the words "date of the service of the order of cancellation of registration", the words and figures "or within such time period as extended by the Additional Commissioner or the Joint Commissioner or the Commissioner, as the case may be, in exercise of the powers provided under the proviso to sub-section (1) of section 30," shall be inserted

Analysis of amendments in Rule 23 –

Amendment in Rule 23(1) is to align it to Section 30(1) wherein the AC / JC /  Commissioner may allow the Registered person 1-2 more months beyond 30 days to apply for revocation of cancellation. Corresponding changes have also been made in Form GST REG-21 in the Instructions.

These provisions provide some more time for taxpayers whose registration is cancelled to apply for revocation of cancellation. However, for large Companies, whose suppliers’ RC may be cancelled and consequently their ITC may be sought to be disallowed by the Department, it creates a waiting time of 90 days before such suppliers may take action for revocation.

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