The CBIC has issued Notification No. 20/2024-Central Tax dated 08.10.2024, to make amendments in the Central Goods and Services Tax Rules, 2017. 

These amendments focus on expanding the applicability of existing rules to include section 74A, streamline procedures, and introduce additional time limits for invoice issuance and submission of returns. Section 74A, referenced in multiple amendments, appears to address new or special cases related to tax determination, fraud, or suppression of facts, which is now aligned with sections 73 and 74 throughout various procedural rules.

Key Amendments are summarized as under:

A. Insertion of New Rule 47A- Time limit for issuing tax invoice in cases where recipient is required to issue invoice:

A new rule is introduced specifying the time limit for issuing tax invoices by registered persons required to issue invoices under section 31(3)(f) i.e. persons liable to pay tax under reverse charge. They must issue the invoice within 30 days of receipt of goods or services. (w.e.f. 01.11.2024)

B. Amendment in Rule 66 – Submission of return by a person required to deduct TDS:

An amendment clarifies that FORM GSTR-7 (TDS return) must be submitted on or before the 10th of the month following the calendar month. (w.e.f. 01.11.2024)

C. Amendment in Rule 86 – Electronic Credit Ledger:

The words “in contravention of sub-rule (10) of rule 96” are omitted, altering the conditions related to electronic credit ledger restrictions. (w.e.f. 08.10.2024)

D. Amendment in Rule 89 – Application for refund of tax, interest, penalty, fees or any other amount

• Changes in sub-rule (4) simplify the calculation of refunds by removing certain exceptions related to ITC and turnover.
• Sub-rules (4A) and (4B) are omitted, removing specific refund provisions for certain supplies.
• Changes in sub-rule (5) remove similar exceptions related to ITC for which refunds were claimed.

(w.e.f. 08.10.2024)

E. Amendment in Rule 96 – Refund of integrated tax paid on goods or services exported out of India 

Sub-rule (10) is omitted, which likely refers to restrictions on refund claims for exporters under certain conditions. (w.e.f. 08.10.2024)

F. Amendment in Rule 142 –  Notice and order for demand of amounts payable under the Act:  These amendments primarily incorporate provisions related to Section 74A. These changes are designed to align with the introduction of this new section in the CGST Act, which deals with recovery of tax, interest, and penalties. (w.e.f. 01.11.2024)

Key points of the amendments are as follows:

• Sub-rule (1)(a):  After the words “or section 74,” the phrase “or section 74A” is added. This means that notices issued under section 74A (similar to section 74) will now be treated equally under this provision.
• Sub-rule (1)(b):  Adds a reference to sub-section (3) of section 74A after the mention of section 74. This allows the provisions of sub-section (3) of section 74A, which likely deal with specific recovery processes, to be included.
• Sub-rule (1A):  References to sub-section (1) of section 74A are included alongside section 74. This change broadens the scope of the rule to include recovery proceedings under section 74A.
• Sub-rule (2):  The existing provision, which referred to recovery of “tax, interest, and penalty in accordance with subsection (5) of section 74,” is expanded to include sub-sections (8) and (9) of section 74A. This substitution ensures that the recovery processes under section 74A mirror those under section 74.
• Sub-rule (2B):  This amendment adds “or section 74A” after “section 74,” ensuring that section 74A is included in this rule, which deals with notices of demand.
• Sub-rule (3): The sub-rule is entirely substituted to address payments under both section 73 and section 74A. If a person makes a payment of tax and interest under sub-section (8) of section 73 or sub-section (8) of section 74A, or makes a payment of tax, interest, and penalty under sub-section (8) of section 74 or sub-section (9) of section 74A, they are required to inform the proper officer using FORM GST DRC-03. The proper officer will then conclude the proceedings by issuing FORM GST DRC-05.
• Sub-rule (4): After “section 74,” the amendment adds the words “or sub-section (6) of section 74A.” This incorporates section 74A into the sub-rule dealing with post-notice payment procedures.
• Sub-rule (5): After “section 74,” the phrase “or section 74A” is added, ensuring that section 74A is treated similarly to section 74 regarding the continuation of proceedings.

G. Insertion of Rule 164 – Procedure and conditions for closure of proceedings under section 128A in respect of demands issued under section 73.

Notification No. 21/2024–Central Tax dated October 08, 2024 has been issued to notified the dates upto which payment for the tax payable as per the notice, or statement, or the order can be made by the class of registered person. 

This newly introduced Rule 164 lays out the procedure and conditions for closing proceedings under Section 128A of the Central Goods and Services Tax (CGST) Act, 2017, with respect to demands issued under Section 73. Section 128A, which provides for waiver of interest, penalty, or both, can be invoked under specific conditions outlined in the rule. (w.e.f. 01.11.2024)

Key provisions are as under:

a. Filing of Application for Waiver: A person eligible for waiver of interest or penalty in relation to a notice or statement under Section 128A(1)(a) can file an application in FORM GST SPL-01 electronically. Details of the notice and payments made through FORM GST DRC-03 must be provided.

For orders under Section 128A(1)(b) or (c), the application must be filed in FORM GST SPL-02 electronically, providing details of the order and payments made. Payments must be made by crediting the Electronic Liability Register. If payment was made through FORM GST DRC-03, a separate application in FORM GST DRC-03A is required to transfer the amount to the Electronic Liability Register before filing FORM GST SPL-02.

b. Filing After Full Payment of Tax: If the demand includes tax due to erroneous refund or relates to multiple periods, an application can only be filed after full payment of the demanded tax. The amount payable under this rule is the balance tax payable after deducting amounts as per Section 16(5) or (6) from the total demanded tax.

c. Time Limit for Application :  The application must be filed within three months from the date notified under Section 128A(1). In certain cases involving appeals (proviso to Section 128A(1)), the time limit is six months.

It specifies forms like GST SPL-01 and GST SPL-02 for taxpayers to apply electronically for the waiver.

d. Withdrawal of Appeals or Petitions:  The application must be accompanied by evidence showing withdrawal of any appeal or writ petition. If the withdrawal order has not been issued, the application for withdrawal must be submitted, and the order must be uploaded within one month of issuance.

e. Rejection of Application:  If the proper officer believes that the applicant is not eligible for a waiver, they must issue a notice in FORM GST SPL-03 within three months. The applicant can respond via FORM GST SPL-04 within one month.

f. Issuance of Order and Automatic Approval if No Order Issued:  If the officer accepts the application, an order is issued in FORM GST SPL-05 concluding the proceedings. If rejected, an order is issued in FORM GST SPL-07. If the officer fails to issue an order within the prescribed time, the application is deemed approved, and the proceedings are considered concluded.

g. Consequences of Rejection:  If no appeal is filed against an order of rejection, the original appeal (withdrawn for the waiver application) is restored. If an appeal is filed and upheld, the waiver application is accepted through FORM GST SPL-06. If the rejection is confirmed, the original appeal is restored. If the taxpayer does not make any additional tax payments required under Section 128A within the specified time, the waiver granted under FORM GST SPL-05 or SPL-06 becomes void.

H. Amendment in FORM GST REG -20 – Order for Dropping the Proceedings for Cancellation of Registration

I. Amendment in FORM GST REG -31 – SUSPENSION DUE TO VIOLATION OF RULE 10A, SUSPENSION DUE TO VIOLATION OF RULE 21 

J. Amendment in GSTR-9 

K. Amendment in FORM GST APL-01:  To introduces changes to the pre-deposit amounts required when filing an appeal under the CGST, SGST, and IGST laws. These changes reduce the maximum pre-deposit amount required for filing appeals in GST matters, which is aimed at providing relief to taxpayers by lowering the financial burden for pursuing disputes at the appellate stage. (w.e.f. 01.11.2024)

The pre-deposit limit is revised to 10% of disputed tax/cess, but not exceeding

• ₹20 crore each in respect of CGST, SGST, or cess
• ₹40 crore in respect of IGST

This changes the earlier limits, which were ₹25 crore each for CGST, SGST, or cess, and ₹50 crore for IGST.

L. Amendment in FORM GST APL-05: This amendment brings the pre-deposit requirement in FORM GST APL-05 in line with the revisions made in FORM GST APL-01. The new pre-deposit amounts aim to reduce the financial burden for taxpayers appealing against GST orders by halving the previous requirements from 20% to 10% of the disputed tax/cess, with capped amounts. (w.e.f. 01.11.2024)

M. Amendment in FORM GST INS-01:  The references to sections of the Indian Penal Code (IPC) have been replaced by corresponding sections of the Bharatiya Nyaya Sanhita, 2023 (w.e.f. 08.10.2024)

N. Amendment in FORM DRC-01A: To introduce provisions for recovery under section 74A in FORM GST DRC-01A, offering taxpayers a chance to settle tax, interest, and penalty amounts before a Show Cause Notice is issued. (w.e.f. 01.11.2024)

O. Insertion of New FORM GST SPL – 01: Application for waiver of interest or penalty or both under section 128A in respect of a notice or a statement mentioned in clause (a) of sub-section (1) of the said section. (w.e.f. 01.11.2024)

P. Insertion of New FORM GST SPL -02 –  Application for waiver of interest or penalty or both under section 128A, in respect of an order mentioned in clause (b) or clause (c) of sub-section (1) of the said section. (w.e.f. 01.11.2024)

Q. Insertion of New FORM GST SPL -03 – Notice in respect to an application filed u/s 128A. (w.e.f. 01.11.2024)

R. Insertion of New FORM GST SPL -04 –  Reply to notice issued under rule 164(8). (w.e.f. 01.11.2024)

S. Insertion of New FORM GST SPL -05 – Order for conclusion of proceedings as per section 128A. (w.e.f. 01.11.2024)

T. Insertion of New FORM GST SPL -06 – Order for conclusion of proceedings as per section 128A. (w.e.f. 01.11.2024)

U. Insertion of New FORM GST SPL -07 – Order for Rejection of Application submitted under section 128A. (w.e.f. 01.11.2024)

V. Insertion of New FORM GST SPL -08 –  Undertaking submitted under rule 164(15)(b)(ii). (w.e.f. 01.11.2024)

To read the complete Notification https://taxo.online/wp-content/uploads/2024/10/NN-20-CT.pdf