CBIC has issued various Notifications on 10th July, 2024 to give effect to the recommendations made in 53rd GST Council Meeting held on 22nd June, 2024. These Notifications are summarized as under:

A. Amendment in Central Goods and Services Tax (CGST) Rules, 2017:

1. Application for registration (Rule -8 New proviso Added) w.e.f. Notified date :  It particularly addresses the scenario where the applicant has not opted for the authentication of their Aadhaar number. Accordingly, for individuals who have not opted for Aadhaar authentication, additional steps are required to complete their application process. These are as under:

• • If the applicant is an individual, their photograph must be taken. If the applicant is not an individual,  photographs of the notified individuals related to the applicant must be taken.
  • The original documents uploaded with the GST registration application in FORM GST REG-01 must be verified in person.
  • Such verification must be done at a Facilitation Center notified by the Commissioner.
  • The application is considered complete only after these steps are successfully completed. Certain persons or entities, as notified, are exempt from this requirement.

2. Registration to be cancelled in certain cases (Rule 21) – Additional Criteria inserted w.e.f. 10.07.2024: 

1. 1. Amendment in Clause (f) – At present this clause pertained to specific conditions related to the filing of FORM GSTR-1, which is a return for outward supplies. Now, This amendment implies that not only the original FORM GSTR-1 but also any subsequent amendments made in FORM GSTR-1A (which allows for rectifications) are relevant for the conditions specified in clause (f).
   2. New Clause (ga) – This addition means that if a taxpayer violates the specified provisions in the third or fourth proviso of sub-rule (1) of rule 23, it can lead to the cancellation of their registration. 

         3.  Suspension of registration (Rule 21A) – w.e.f. 10.07.2024:

This amendment ensures that both the original GSTR-1 and any amendments made in GSTR-1A are taken into account for the conditions specified in Rule 21A. 

4. Value of supply of goods or services or both between distinct or related persons, other than through an agent (Rule 28) w.e.f. 26.10.2023:  Amendment in Clause (2) i.e. valuation of supply of services  by a supplier to a recipient who is a related person, by way of providing corporate guarantee to any banking company or financial institution on behalf of the said recipient. 

Now, the changes specify that the related person must be located in India and clarify that the guarantee amount is on a per annum basis. 

Further, a new proviso has been inserted, which provides that if the recipient can claim full input tax credit, the invoice value will be accepted as the value of the supplied services. In other words, Full ITC eligibility means invoice value is accepted as supply value.

5. Documentary requirements and conditions for claiming input tax credit (Rule 36) w.e.f. 10.07.2024:  Rule 36(4)(a) Amended as “FORM GSTR-1, as amended in FORM GSTR-1A if any” for words “FORM GSTR-1”.

This ensures that both the original return and any amendments in GSTR-1A are considered. 

6. Reversal of input tax credit in the case of non-payment of tax by the supplier and re-availment thereof (Rule 37A) w.e.f. 10.07.2024:  Amended as “FORM GSTR-1, as amended in FORM GSTR-1A if any” for words “FORM GSTR-1”.

This ensures that any amendments made in GSTR-1A are also considered along with the original GSTR-1.

7. Procedure for distribution of input tax credit by Input Service Distributor (Rule 39) w.e.f. Notified date: Introduces a mechanism for transferring credit of common input services to the ISD through invoices or credit/debit notes, ensuring proper credit distribution. Adjustments to clause references in Sub-rules (2) and (3) to align with the new structure. Provides clear definitions for the relevant period, recipient of credit, and turnover to ensure proper implementation and understanding of the rule.

   a. Substitution of Sub-rule (1)

i. Condition for Distribution:  The Input Service Distributor (ISD) must distribute the input tax credit (ITC) for a month in the same month and furnish the details in FORM GSTR-6 as per Chapter VIII of the rules.

ii. Credit Distribution Limits: The amount of credit distributed must not exceed the available credit for distribution.

iii. Recipient-specific Distribution: ITC for services attributable to a specific recipient must be distributed only to that recipient.

iv. Pro-rata Distribution:  For services attributable to multiple recipients, ITC must be distributed pro-rata based on each recipient’s turnover in the relevant period relative to the aggregate turnover in a State or turnover in a Union territory of all recipients , to the aggregate of the turnover of all such recipients to whom such input service is attributable and which are operational in the current year, during the said relevant period. 

v. Distribution attributable to all recipients:  For services attributable to all recipients, ITC must be distributed pro-rata based on each recipient’s turnover in the relevant period relative to the aggregate turnover of all recipients which are operational in the current year, during the said relevant period.

vi. Eligible and Ineligible Credit:  ISD must separately distribute eligible and ineligible ITC as per Section 17(5) or otherwise. 

vii. Separate Tax Type Distribution: ITC on central, state, union territory, and integrated tax must be distributed separately.

viii. Integrated Tax Distribution:  ITC on integrated tax must be distributed as integrated tax to all recipients.

ix. Central and State/UT Tax Distribution: For recipients in the same state/UT as the ISD, distribute as central and state/UT tax. For recipients in different states/UTs, distribute as integrated tax, with the amount equal to the sum of central and state/UT tax ITC qualifying for distribution.

x. ISD Invoices:  ISD must issue an invoice for ITC distribution as per Rule 54(1), clearly indicating it’s for ITC distribution.

xi. ISD Credit Notes:  ISD must issue a credit note for reducing ITC already distributed, as per Rule 54(1).

xii. Debit Note Adjustments: Additional ITC from a debit note to ISD must be distributed according to the conditions in clauses (a) to (j) and using the formula in clause (f), distributed in the month the debit note is included in FORM GSTR-6.

xiii. Credit Note Adjustments: ITC reduction from a credit note must be apportioned in the same ratio as the original ITC distribution. Reduce from the ITC distribution in the month the credit note is included in FORM GSTR-6. Add to the output tax liability of the recipient if the apportioned amount is negative due to the ITC under distribution being less than the amount to be adjusted.

b. Insertion of New Sub-rule (1A) For the distribution of credit in respect of input services attributable to one or more distinct persons subject to tax under Section 9(3) or 9(4): A registered person with the same PAN and State code as the Input Service Distributor (ISD) may issue an invoice or a credit/debit note per Rule 54(1A). This is to transfer the credit of common input services to the ISD. The ISD will then distribute this credit as per the provisions in Sub-rule (1).

These amendments aim to improve the clarity and efficiency of credit distribution by the ISD, ensuring proper attribution of input services and facilitating accurate credit transfer within entities under the same PAN.

8. Manner of claiming credit in special circumstances (Rule 40) w.e.f. 10.07.2024:After the words “FORM GSTR-1”, insert “and in FORM GSTR-1A, if any.

9. Manner of issuing invoice (Rule 48) w.e.f. 10.07.2024: After the words “FORM GSTR-1”, insert “and in FORM GSTR-1A, if any

10. Form and manner of furnishing details of outward supplies (Rule 59) w.e.f. 10.07.2024:  

• • Integration of FORM GSTR-1A:  Amendments in outward supply details via FORM GSTR-1A are now explicitly provided for, with options for detailed invoicing and consolidated supply details. New Proviso has been inserted for Amendments and Additional Details, allowing registered persons to amend or furnish additional details of outward supplies in FORM GSTR-1A after submitting FORM GSTR-1 but before filing FORM GSTR-3B for the same tax period.
    Several rules are amended to include references to FORM GSTR-1A for amending or furnishing additional details of outward supplies.
  • Threshold for Supplies Reporting w.e.f. 01.08.2024 :  the threshold for reporting details of inter-State supplies made to unregistered persons is reduced from “two and a half lakh rupees” to “one lakh rupees”.
  • Details Included in FORM GSTR-1A:  Specifies the types of additional details or amendments that can be furnished in FORM GSTR-1A, including invoice-wise details of inter-State and intra-State supplies, consolidated details of intra-State and inter-State supplies, and debit and credit notes. These amendments aim to provide greater flexibility and accuracy in reporting outward supplies and ensure compliance with updated reporting thresholds.

11. Form and manner of furnishing details of inward supplies (Rule 60) w.e.f. 10.07.2024: After references to FORM GSTR-1, the words “or FORM GSTR-1A” are added, integrating FORM GSTR-1A into the rule. Additional details or amendments made by the supplier in FORM GSTR-1A within the specified period are now explicitly covered, ensuring that any updates between the due dates of successive FORM GSTR-1 filings are included. These changes provide clarity on the inclusion of amendments and additional details furnished in FORM GSTR-1A, enhancing the accuracy and completeness of GST return filings.

12. Form and manner of submission of quarterly return by the composition supplier (Rule 62) w.e.f. 10.07.2024 – Time Extension for FORM GSTR-4:

Registered persons must furnish FORM GSTR-4 for a financial year by 30th June of the following year starting from FY 2024-25.

13. Matching of details furnished by the e-Commerce operator with the details furnished by the supplier (Rule 78) w.e.f. 10.07.2024: After the words “supplier in FORM GSTR-1”, insert “, as amended in FORM GSTR-1A if any”.

14. Manner of calculating interest on delayed payment of tax (Rule 88B) w.e.f. 10.07.2024: The amendment provides relief in interest calculation by excluding the amount credited in the Electronic Cash Ledger on or before the due date of filing the return, even if the amount is debited after the due date for payment of tax. This exclusion applies if the amount remains in the ledger from the due date until it is debited at the time of filing the return.

15. Manner of dealing with difference in liability reported in statement of outward supplies and that reported in return (Rule 88C) w.e.f. 10.07.2024:  Inclusion of Amendments in FORM GSTR-1A – The amendment clarifies that any additional details or amendments made in FORM GSTR-1A should be considered, similar to those in FORM GSTR-1, when addressing sub-rule (1) of Rule 88C.

16. Application for refund of tax, interest, penalty, fees or any other amount (Rule 89) w.e.f. 10.07.2024:  

• • New Provisions for Refund Claims (Sub-rule 1B):  Allows exporters to claim a refund of additional integrated tax paid due to upward price revisions post-export. Provides a two-year window for filing such refund claims electronically through FORM GST RFD-01. Includes a proviso for cases where the relevant date is before the introduction of this sub-rule, allowing a two-year filing period from the introduction date.
  • Additional Documentation Requirements (Sub-rule 2):  a. Requires a detailed statement containing specific invoice, shipping bill, Bank Realisation Certificate details, and supplementary invoices or debit notes. b. Mandates proof of payment of additional integrated tax and related interest. c. Requires a certificate from a practicing chartered accountant or cost accountant confirming additional foreign exchange remittance due to price revisions. d. Requires a reconciliation statement to reconcile values declared in supplementary invoices and related remittance certificates.

17. Refund of tax paid on inward supplies of goods received by Canteen Stores Department (Newly inserted Rule 95B) w.e.f. 10.07.2024: According to this rule, the Canteen Stores Department (CSD) is eligible for a refund of 50% of the central tax paid on inward supplies of goods used for subsequent supply to Unit Run Canteens or authorised customers. The CSD must apply for the refund quarterly using FORM GST RFD-10A, submitted electronically through the common portal. Refund applications in FORM GST RFD-10A will be processed similarly to those filed in FORM GST RFD-01, following the provisions of rule 89.

Conditions for Refund Eligibility:

Refunds are contingent on:

• • Proper documentation and tax invoice from registered suppliers.
  • Inclusion of the CSD's name and GSTIN on the tax invoices.
  • Receipt of goods by the CSD for the specified purpose of subsequent supply.

Also, a new FORM GST RFD-10A has been introduced in relation to this rule. 

18. Refund of integrated tax paid on goods exported out of India (Rule 96) w.e.f. 10.07.2024: Amendment provides the exporter of goods may file an application electronically in FORM GST RFD-01 through the common portal for refund of additional integrated tax paid on account of upward revision in price of goods subsequent to export of such goods, and on which the amount of integrated tax paid at the time of export of such goods has already been refunded in accordance with provisions of sub-rule (3) of this rule, and such application shall be dealt with in accordance with the provisions of rule 89

19. Refund of integrated tax paid on export of goods or services under bond or Letter of Undertaking (Rule 96A) w.e.f. 10.07.2024: Amendment provides that additional 15 days to be allowed after expiry of one year including all extensions permitted by the Reserve Bank of India, whichever is later, from the date of issue of the invoice for export, if the payment of such services not received by the exporter in convertible foreign exchange or in Indian rupees

20. Substitution of Rule 110, 111,113 relation to Appeal, Application to the Appellate Tribunal w.e.f. 10.07.2024

21. Information to be furnished prior to commencement of movement of goods and generation of e-way bill (Rule 138) w.e.f. Notified date:- To provide that where unregistered person required to generate e-way bill in FORM GST EWB-01 or opting to generate on the common portal shall submit the details electronically on the common portal in FORM GST ENR- 03 upon validation of the details so furnished, a unique enrolment number shall be generated and communicated to the said person. 

24. Insertion of New FORM GST ENR-03 i.e. Application for Enrolment [only for un-registered persons] w.e.f. Notified date

25. Amendment in FORM GSTR-1 w.e.f. 01.08.2024

25. Insertion of new FORM GSTR-1A i.e. Amendment of outward supplies of goods or services for current tax period w.e.f. 10.07.2024

26. Amendment in FORM GSTR-2A, GSTR-2B w.e.f 10.07.2024

27. Amendment in FORM GSTR-3B w.e.f. Notified date

28. Amendment in FORM GSTR-4, GSTR-4A w.e.f. 10.07.2024

29. Amendment in Form GSTR-5 w.e.f. 01.08.2024

30. Amendment in Form GSTR-6A w.e.f. 10.07.2024

31. Amendment in Form GSTR-7 w.e.f. Notified date

32. Amendment in FORM GSTR-8, GSTR-9, GSTR-9C, FORM RFD-01, FORM GST DRC-01A, FORM GST DRC-01B, FORM GST DRC-03, FORM GST DRC-04

33. Insertion of new FORM GST RFD-10A i.e. Application for refund by Canteen Stores Department (CSD), FORM GST APL-05/07 W for Application for Withdrawal of Appeal /Application filed before the Appellate Tribunal, FORM GST DRC- 03A i.e. Application for adjustment of the amount paid through FORM GST DRC-03 against the order of demand

The Notification can be accessed at https://taxo.online/wp-content/uploads/2024/07/central-tax-12-2024-11072024.pdf

 

B. NOTIFICATION No. 13/2024 – Central Tax – Rescinded Notification No. 27/2022-Central Tax dated 26.12.2022, w.e.f. 10.07.2024: Notification No. 27/2022 – Central Tax provides that the provisions of sub-rule 4A of the CGST Rules, 2017, would only be enforced in the State of Gujarat. The sub-rule 4A of the CGST Rules, 2017, provides that the application for registration shall be deemed to be complete only after the biometric-based Aadhaar authentication and taking photograph of the applicant in case of an individual or of such individuals in relation to the applicant as notified where the applicant is not an individual, along with the verification of the original copy of the documents uploaded with the application in FORM GST REG-01 at one of the notified Facilitation Centres.

The Notification can be accessed at https://taxo.online/wp-content/uploads/2024/07/central-tax-13-2024-11072024.pdf

 

C. Exemption from Filing Annual Return for Financial Year 2023-24 – NOTIFICATION No. 14/2024 – Central Tax

Registered persons are exempted from filing annual returns if their aggregate turnover in the financial year 2023-24 does not exceed two crore rupees. This notification underscores the government's efforts to tailor GST compliance requirements to the business size and turnover of registered taxpayers, thereby supporting smaller businesses in their GST compliance journey.

The Notification can be accessed at https://taxo.online/wp-content/uploads/2024/07/central-tax-14-2024-11072024.pdf

 

D. Amendment in Notification No. 52/2018-Central Tax w.e.f. 10.07.2024: Reduction in rate of TCS – NOTIFICATION No. 15/2024 – Central Tax

The amendment is made under sub-section (1) of section 52 of the Central Goods and Services Tax Act, 2017 (CGST Act), which empowers the Central Government to notify the rate of tax for supplies made through electronic commerce operators. Lowering the rate from half a percent to 0.25 percent. 

Similar, Notification have been issued under Integrated Tax to lower the tax rate from 1% to 0.5%. Also, under Union territory Tax to lower the rate from 0.5% to 0.25%.  

The CGST Notification can be accessed at https://taxo.online/wp-content/uploads/2024/07/central-tax-15-2024-11072024.pdf

The IGST Notification can be accessed at https://taxo.online/wp-content/uploads/2024/07/Inegrated-tax-01-2024-11072024.pdf

The UTGST Notification can be accessed at https://taxo.online/wp-content/uploads/2024/07/Union-territory-tax-01-2024-11072024.pdf