The CBIC vide Notification No. 26/2022-Central Tax dated 26.12.2022, has amended the Central Goods and Services Tax Rules, 2017. These rules may be called as Central Goods and Service Tax (Fifth Amendment) Rules, 2022. These changes are made to give effect to the recommendation in respect to measures for streamlining the compliances under GST as discussed by the GST Council in its 48th GST Council meeting held on 17th December, 2022.
However, the notifications and clarifications to give effect the decisions taken in the meeting in respect to the changes in GST rates, reverse charge mechanism, decriminalization of certain offences under the GST law and certain miscellaneous issues are yet to be issued.
The changes made are as under:
A. Application for registration (Rule 8)
- The requirement of declaring mobile number and e-mail address by the person applying for GST registration not required.
- Permanent Account Number (PAN) shall also be verified through separate one-time passwords sent to the mobile number and e-mail address linked to the PAN.
- 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-01at one of the notified Facilitation Centres.
- However, the above provisions of sub-rule 4A would not apply to the all the states except State of Gujarat – vide Notification No. 27/2022-Central Tax dated 26.12.2022.
B. Verification of the application and approval (Rule 9)
To provide that the registration shall be granted within thirty days of submission of application to a person, who has undergone authentication of Aadhaar number, and is identified on the common portal, based on data analysis and risk parameters, for carrying out physical verification of places of business.
C. Grant of registration to person liable to deduct TDS or TCS (Rule 12)
That the proper officer may cancel the registration on a request made in writing by a person to whom a registration has been granted.
D. Reversal of ITC in the case of non-payment of consideration (Rule 37) –retrospective amendment w.e.f. 01.10.2022.
To state that the registered person has to pay or reverse an amount equal to the ITC availed in respect of such supply proportionate to the amount not paid to the supplier along with interest, if payment is not made to supplier within 180 days as per Rule 37 of CGST Rules, 2017.
E. Insertion of new rule 37A- reversal of ITC in case of non-payment of tax by the supplier and re-availment thereof
For prescribing a mechanism that will enable the recipients to check whether the tax has been paid on the said transaction by the supplier and in case if answer to the said question is negative then the ITC will be reversed by the recipient and will be later on re-claimed when tax will be paid by the supplier.
F. Tax Invoice (Rule 46)
To provide that a tax invoice issued by the registered person shall contain the name and address of the recipient along with its PIN code and the name of the State and the said address shall be deemed to be the address on record of the recipient, in case where any taxable service is supplied by or through an Electronic Commerce Operator or by a supplier of OIDAR services to a recipient who is un-registered, irrespective of the value of such supply.
G. Invoice-cum-Bill of Supply (Rule 46A)
To provide that, the invoice-cum-bill of supply shall contain the particulars as specified under Rule 46 or Rule 54, and Rule 49 of the CGST Rules.
H. Electronic Cash Ledger (Rule 87)
To provide that where the bank fails to communicate details of Challan Identification Number to the Common Portal, the Electronic Cash Ledger may be updated on the basis of e-Scroll of the Reserve Bank of India in cases where the details of the said e-Scroll are in conformity with the details in challan generated in FORM GST PMT-06 on the Common Portal.
I. Insertion of new Rule 88C
This will enable the tax payers to know the difference of liability reported by them in GSTR 1 vis-à-vis Liability reported in GSTR 3B when the difference is more than a certain amount and accordingly the registered person will be liable to pay the differential amount of tax or explain the reasons for the same. Further, the registered person will not be able to file the GSTR 1 for the subsequent period if differential tax has not been paid or reasons for mismatch has not been explained.
Correspondingly, changes are made in Rule 59. These changes provides that a registered person, to whom an intimation has been issued on the common portal in respect of a tax period, shall not be allowed to furnish the details of outward supplies of goods or services or both under Section 37 of the Central Goods and Services Tax Act, 2017 in FORM GSTR-1 or using the invoice furnishing facility for a subsequent tax period, unless he has either deposited the amount specified in the said intimation or has furnished a reply explaining the reasons for any amount remaining unpaid.
J. Application for refund of tax, interest, penalty, fees or any other amount (Rule 89)
To prescribe the documentary evidences and certificates to be accompanied with the refund application, in a case where the refund is claimed by an unregistered person where the agreement or contract for supply of service has been cancelled or terminated.
K. Information to be furnished prior to commencement of movement of goods and generation of e-way bill (Rule 138)
To prescribe that the E-way bill is required to be generated in case of Imitation jewellery (7117)
L. Appeal and application to the Appellate Authority (Rule 108 and Rule 109)
- Relating to the requirement of submission of certified copy of order appealed against and issuance of final acknowledgment of appeal filed by amendment of Rule 109 and sub rule 3 of Rule 108.
- To enable facility for withdrawal of an application for appeal through the Form APL – 01/03, for the tax payers to withdraw their application at a specified stage to reduce litigation.
M. Continuation of certain recovery proceedings (Rule 161)
The intimation or notice for the reduction or enhancement of any demand under Section 84 of the CGST Act shall be issued in FORM GST DRC- 25.
N. Amendment in PART A of FORM GST REG-01, to provide that E-mail Id and Mobile Number shall be auto-populated from Income Tax database as linked with the Permanent Account Number of the applicant.
O. Amendment in FORM GST REG-17.
P. Amendment in FORM GST REG-19 relating to order for cancellation of registration.
Q. Amendment in FORM GSTR-1 to enable the supplier supplying Goods through ECO covered under Section 52 and Section 9(5) of the CGST Act, 2017 to separately report such transactions and to enable the ECO to report such transactions made under Section 9(5) of the CGST Act.
R. Amendment in FORM GST RFD-01for allowing refund to un-registered persons.
S. Insertion of new FORM GST APL-01/03W relating to Application for Withdrawal of Appeal Application.
T. Insertion of new FORM GST DRC-01B relating to Intimation of difference in liability reported in statement of outward supplies and that reported in return.
U. Amendment in FORM GST DRC-03 relating to Intimation of payment made voluntarily or made against the show cause notice (SCN) or statement [or intimation of tax ascertained through FORM GST DRC-01A.
V. Amendment in FORM GST DRC-25 to prescribe that the intimation or notice for the reduction or enhancement of any demand under Section 84 of the CGST Act shall be issued in FORM GST DRC- 25.
The Notification No. 26/2022-Central tax dated 26.12.2022 can be accessed at https://taxo.online/wp-content/uploads/2022/12/ct26-2022.pdf
The Notification No. 27/2022-Central tax dated 26.12.2022 can be accessed at https://taxo.online/wp-content/uploads/2022/12/ct27-2022.pdf
