Recently, The GST Council had made the several recommendations in its 47th meeting held in Chandigarh on 28-29th June 2022 under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman.
The above recommendations have been notified by CBIC vide Notification No. 14/2022- Central Tax dated July 05, 2022 amending CGST Rules to give effect to these recommendations. The key amendments to come into effect are as follows:
1. Rule 21A has been amended to provide that where the registration has been suspended under sub-rule (2A) for contravention of the provisions contained in clause (b) or clause (c) of sub-section (2) of section 29 and the registration has not already been cancelled by the proper officer under rule 22, the suspension of registration shall be deemed to be revoked upon furnishing of all the pending returns.2. Explanation 1 to Rule 43 has been amended to provide that the aggregate value of exempt supplies shall exclude value of supply of Duty Credit Scrips for the purpose of reversal of common credits.
3. Rule 46 has been amended to include a declaration in the tax invoice by those taxpayers who are excluded from the purview of e-invoicing as below, that invoice is not required to be issued in the manner specified under sub-rule (4) of rule 48, in all cases where an invoice is issued, other than in the manner so specified under the said sub-rule (4) of rule 48, by the taxpayer having aggregate turnover in any preceding financial year from 2017-18 onwards more than the aggregate turnover as notified under the said sub-rule (4) of rule 48-
"I/We hereby declare that though our aggregate turnover in any preceding financial year from 2017-18 onwards is more than the aggregate turnover notified under sub-rule (4) of rule 48, we are not required to prepare an invoice in terms of the provisions of the said sub-rule."4. Sub-rule (4B) has been inserted in Rule 86 to provide for FORM PMT-03A for re-crediting the amount Where a registered person deposits the amount of erroneous refund sanctioned to him,- (a) under sub-section (3) of section 54 of the Act, or (b) under sub-rule (3) of rule 96, in contravention of sub-rule (10) of rule 96,
along with interest and penalty, wherever applicable, through FORM GST DRC-03, by debiting the electronic cash ledger, on his own or on being pointed out, an amount equivalent to the amount of erroneous refund deposited by the registered person shall be re-credited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-03A.5. Rule 87 (3) has been amended to include the options of Unified Payment Interface (UPI) from any bank and Immediate Payment Services (IMPS) from any bank as an accepted mode of payment of GST.
6. Sub-rule (14) has been inserted in Rule 87 to provide A registered person to transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under the Act to the electronic cash ledger for central tax or integrated tax of a distinct person as specified in sub-section (4) or, as the case may be, sub-section (5) of section 25, in FORM GST PMT-09 provided that no such transfer shall be allowed if the said registered person has any unpaid liability in his electronic liability register.
7. Rule 88B has been inserted retrospectively w.e.f 1st July, 2017 to provide for the manner of calculation of interest as per Sec 50.
8. Rule 89(1) has been amended to provide that for the purposes of this sub-rule, "specified officer" means a "specified officer" or an "authorised officer" as defined under rule 2 of the Special Economic Zone Rules, 2006.
Rule 89(2) has been amended to provide for a statement containing the number and date of the export invoices, details of energy exported, tariff per unit for export of electricity as per agreement, along with the copy of statement of scheduled energy for exported electricity by Generation Plants issued by the Regional Power Committee Secretariat as a part of the Regional Energy Account (REA) under clause (nnn) of subregulation 1 of Regulation 2 of the Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2010 and the copy of agreement detailing the tariff per unit, in case where refund is on account of export of electricity. Explanation has been added in Rule 89(4) to provide that value of goods exported out of India shall be taken as the Free on Board (FOB) value declared in the Shipping Bill or Bill of Export form, as the case may be, as per the Shipping Bill and Bill of Export (Forms) Regulations, 2017; or (ii) the value declared in tax invoice or bill of supply,, whichever is less. Rule 89(5) has been amended to provide for a revised formula in cases of refund in inverted duty structure.9. Rule 95A relating to Refund of taxes to the retail outlets established in departure area of an international Airport beyond immigration counters making tax free supply to an outgoing international tourist has been omitted W.e.f 1st July, 2019.
10. Rule 96 has been amended retrospectively W.e.f 1st July, 2017 to provide for refund withheld in cases of risky exporters. Such refund claims shall be transmitted online to the proper officer in FORM GST RFD-01 and shall be processed by the relevant P.O.
Amendments in relation to various Forms
FORM GSTR-3B has been amended to provide for the following changes: 1. Details of supplies on which tax is paid by E-Commerce Operator u/s 9(5) of the CGST Act are to be shown separately.
2. Reversal as per rules 38, 42 and 43 of CGST Rules and sub-section (5) of section 17 to be shown separately.
3. "Other details" table now to include "ITC reclaimed which was reversed under Table 4(B)(2) in earlier tax period" and "Ineligible ITC under section 16(4) and ITC restricted due to PoS provisions"
FORM GSTR-9 and GSTR-9C have been notified for the F.Y 2021-22 with following changes:
1. For FY 2021-22, the registered person shall report Non-GST supply (5F) separately and shall have an option to either separately report his supplies as exempted and nil rated supply or report consolidated information for these two heads in the "exempted" row only.
2. For FY 2021-22, Part V consists of particulars of transactions for the previous financial year but paid in the FORM GSTR-3B between April, 2022 to September, 2022.
3. For FY 2021-22, 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, 2022 to September, 2022 shall be declared here.
4. For FY 2021-22, aggregate value of reversal of ITC which was availed in the previous financial year but reversed in returns filed for the months of April 2022 to September 2022 shall be declared here. Table 4(B) of FORM GSTR-3B may be used for filling up these details.
5. For FY 2021-22, 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 2022 to September 2022 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 2021-22 as per second proviso to sub-section (2) of section 16 but was reclaimed in FY 2022-23, the details of such ITC reclaimed shall be furnished in the annual return for FY 2022-23.
6. From FY 2021-22 onwards, it shall be mandatory to report HSN code at six digits level for taxpayers having annual turnover in the preceding year above 5.00 Cr and at four digits level for all B2B supplies for taxpayers having annual turnover in the preceding year upto 5.00 Cr.
7. For FY 2021-22, the registered person shall have an option to not fill Table 18
The format of FORM GST PMT-03A has been notified.
FORM GST PMT-06, PMT-07, PMT-09, & RFD-01 have been amended to incorporate the above-mentioned changes. Form GST RFD-10 B shall be deemed to have been omitted with effect from the 1st day of July, 2019.
