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TMI BlogDoes amendment/s to Rule 37 is prospective or retrospective? And its implications?X X X X Extracts X X X X X X X X Extracts X X X X ..... As you are aware, vide Notification No. 19/2022 Central Tax dated the 28th September, 2022 , sub-rule (1) (2) of rule 37 of the CGST Act, 2017 were substituted while sub-rule (3) thereof was omitted . As per Clause 1 (2) of above said notification reads as follows: Save as otherwise provided in these rules, they shall come into force with effect from the 1st day of October, 2022 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Does these amendment/s to Rule 37 is prospective or retrospective? Please share your views with supporting legal reasoning. And to make this discussion more meaningful and lively, I request you to also explain what will be implications if you feel that these amendments are prospective in nature (i.e. what happens to contraventions under second proviso to sub-section (2) of section 16 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or past period its recovery procedure as per law etc.?). Similarly, I request you to also explain what will be implications if you feel that these amendments are retrospective in nature (i.e. how any tax-paper is supposed to follow these substituted rule for past period, effect of changes made in sub-rule (1) about quantum of ITC reversal etc?). Thank you! - Reply By Rajagopalan Ranganat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han - The Reply = Sir, The amendments made by notification can be given retrospective effect only through Finance Bill/Finance Act. Until such retrospective effect is enacted by Parliament the amendments will have only prospective effect. - Reply By Shilpi Jain - The Reply = As per the recommendations of the 48th Council meeting The Council has recommended to amend sub-rule (1) of rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 37 of CGST Rules, 2017 retrospectively with effect from 01.10.2022 to provide for reversal of input tax credit, in terms of second proviso to section 16 of CGST Act , only proportionate to the amount not paid to the supplier vis a vis the value of the supply, including tax payable. This should rest certain ambiguities - Reply By Amit Agrawal - The Reply = Another recommendations d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 17.12.2022 of the 48th Council meeting reads as follows: The Council recommended to insert Rule 37A in CGST Rules, 2017 to prescribe the mechanism for reversal of input tax credit by a registered person in the event of non-payment of tax by the supplier by a specified date and mechanism for re-availment of such credit, if the supplier pays tax subsequently. This would ease the process ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for complying with the condition for availment of input tax credit under section 16(2)(c) of CGST Act, 2017 . Lets wait for notification/s giving exact wordings - to implement all these recommendations - before we take up subject query (which was raised on 13.12.2022, before these recommendations come into picture) a fresh. - Does amendment/s to Rule 37 is prospective or retrospective? A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd its implications? - Query Started By: - Amit Agrawal Dated:- 13-12-2022 Goods and Services Tax - GST - Got 3 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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