The CBIC vide Notification No. 26/2022 – (Central Tax) dated 26th December, 2022 has issued ‘the CGST (Fifth Amendment) Rules, 2022’ to further amend the CGST, Rules, 2017 in line with the recommendations of the 48th GST Council Meeting held on 17th December, 2022.
CGST Rules Amendments
Rule 8 ( Application for Registration)
- Requirement of declaring mobile number and e-mail address by the person applying for GST registration has been ommitted.
- Apart from validation of Income Tax PAN same shall now also be verified through separate one-time passwords sent to the mobile number and e-mail address linked to the PAN.
- Requirement of verifying the mobile number and e-mail address has been ommitted.
- Rule 8(4A) has been amended to mandate that the application for registration (other than a person notified by Govt. under Section 25(6D)) 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 u/s 25(6C) 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 earlier option of taking biometric information , if applicant has not opted for Aadhaar authentication done has been removed.
- New Rule 8(4B) of the CGST Rules has been inserted to prescribe that the Government may, specify the States or Union territories wherein the provisions of sub-rule (4A) shall not apply.
Rule 9 ( Verification of the application and approval)
New proviso to Rule 9(1)(aa) and Rule 9(2)(aa) of the CGST Rules has been inserted mandating that the registration shall be granted / notice in FORM GST REG-03 shall be issued 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.
Rule 12 (Grant of registration to persons required to deduct / collect tax at source)
Sub-rule (3) amended to provide that the proper officer may also cancel the registration on a request made in writing by a person to whom a registration has been granted.
Rule 37 (Reversal of ITC in case of non-payment of consideration)
Rule 37(1) amended w.e.f. October 1, 2022, to state that a registered person, who fails to pay to the supplier, the amount towards the value of such supply whether wholly or partly along with the tax payable thereon, within the time limit, shall pay or reverse an amount equal to the Input Tax Credit availed in respect of such supply proportionate to the amount not paid to the supplier along with interest.
New Rule 37A of the CGST rules has been introduced w.r.t. reversal of ITC in case of non-payment of tax by the supplier and re-availment thereof mandating that in case GSTR-3B has not been furnished by supplier till 30th September following end of financial year in which ITC in r/o such invoice or debit note has been availed, said ITC will be reversed by recipient while furnishing GSTR-3B on or before 30th November following end of such FY. If no reversal is made interest u/s 50 will be levied. If supplier subsequently furnished GSTR-3B the recipient may re-avail the ITC.
Rule 46 (Tax Invoice)
New proviso to Rule 46(f) has been inserted to mandate that in case where any taxable service is supplied by or through an Electronic Commerce Operator or by a supplier of Online Information And Database Access Or Retrieval services to a recipient who is un-registered, irrespective of the value of such supply, 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,
New proviso to Rule 46A has been inserted to provide that, the single invoice-cum-bill of supply shall contain the particulars as specified under Rule 46 or Rule 54, and Rule 49 of the CGST Rules.
Rule 59 ( Form and manner of furnishing details of outward supplies)
New Rule 59(6)(d) has been inserted to prescribe that a registered person, to whom an intimation has been issued on the common portal under Rule 88C(1) 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 CGST Act 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.
Rule 87 ( Electronic Cash Ledger)
New proviso to Rule 87(8) of the CGST Rules has been inserted 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.
New Rule 88C ( Manner of dealing with difference in liability reported in statement of putward supplies and that reported in return)
New Rule 88C of the CGST Rules has been inserted to prescribe the manner of dealing with difference in liability reported in statement of outward supplies (GSTR-1 / IFF) and that reported in return (GSTR-3B) which covers issuance of notice, payment of GST / furnishing of replies and recovery of taxes.
Rule 89 ( Application for refund of tax, interest, fees or any other amount)
New clause (ka) inserted to Rule 89(2), to prescribe that the refund application shall be accompanied by a statement containing the details of invoices, in respect of which refund is being claimed along with copy of such invoices, proof of making such payment to the supplier, the copy of agreement or registered agreement or contract, as applicable, entered with the supplier for supply of service, the letter issued by the supplier for cancellation or termination of agreement or contract for supply of service, details of payment received from the supplier against cancellation or termination of such agreement along with proof thereof, 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.
Further new clause (kb) inserted to Rule 89(2), to prescribe that the refund application shall be accompanied by a certificate issued by the supplier to the effect that he has paid tax in respect of the invoices on which refund is being claimed by the applicant; that he has not adjusted the tax amount involved in these invoices against his tax liability by issuing credit note; and also, that he has not claimed and will not claim refund of the amount of tax involved in respect of these invoices, 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.
New proviso to Rule 89(2)(m) has been inserted to provide that, a certificate from CA is not required to be furnished in cases where refund is claimed by an unregistered person who has borne the incidence of tax.
Rule 108 ( Appeal to Appellate Authority)
Sub-rule (3) has been substituted as under:
Where the decision or order appealed against is uploaded on the common portal, a final acknowledgment, indicating appeal number, shall be issued in FORM GST APL-02 by the Appellate Authority or an officer authorised by him in this behalf and the date of issue of the provisional acknowledgment shall be considered as the date of filing of appeal:
Provided that where the decision or order appealed against is not uploaded on the common portal, the appellant shall submit a self-certified copy of the said decision or order within a period of seven days from the date of filing of FORM GST APL-01 and a final acknowledgment, indicating appeal number, shall be issued in FORM GST APL-02 by the Appellate Authority and the date of issue of the provisional acknowledgment shall be considered as the date of filing of appeal.
Provided further that where the self-certified copy of the decision or order is not submitted within a period of seven days from the date of filing of FORM GST APL-01, the date of submission of such copy shall be considered as the date of filing of appeal.
Rule 109 ( Application to the Appellate Authority)
Rule 109 of the CGST Rules has been substituted as under:
(1) An application to the Appellate Authority under subsection (2) of section 107 shall be filed in FORM GST APL-03, along with the relevant documents, either electronically or otherwise as may be notified by the Commissioner and a provisional acknowledgment shall be issued to the appellant immediately.
(2) Where the decision or order appealed against is uploaded on the common portal, a final
acknowledgment, indicating appeal number, shall be issued in FORM GST APL-02 by the Appellate
Authority or an officer authorised by him in this behalf and the date of issue of the provisional
acknowledgment shall be considered as the date of filing of appeal under sub-rule (1):
Provided that where the decision or order appealed against is not uploaded on the common portal, the
appellant shall submit a self-certified copy of the said decision or order within a period of seven days
from the date of filing of FORM GST APL-03 and a final acknowledgment, indicating appeal number,
shall be issued in FORM GST APL-02 by the Appellate Authority or an officer authorised by him in this
behalf, and the date of issue of the provisional acknowledgment shall be considered as the date of filing
of appeal:
Provided further that where the said self-certified copy of the decision or order is not submitted within a
period of seven days from the date of filing of FORM GST APL-03, the date of submission of such copy
shall be considered as the date of filing of appeal.”.
Rule 109C (Withdrawal of appeal.).
New Rule 109C of the CGST Rules has been inserted as under:
The appellant may, at any time before issuance of show cause notice under sub-section (11) of section 107 or before issuance of the order under the said sub-section, whichever is earlier, in respect of any appeal filed in FORM GST APL-01 or FORM GST APL-03, file an application for withdrawal of the said appeal by filing an application in FORM GST APL-01/03W:
Provided that where the final acknowledgment in FORM GST APL-02 has been issued, the withdrawal
of the said appeal would be subject to the approval of the appellate authority and such application for
withdrawal of the appeal shall be decided by the appellate authority within seven days of filing of such
application:
Provided further that any fresh appeal filed by the appellant pursuant to such withdrawal shall be filed
within the time limit specified in sub-section (1) or sub-section (2) of section 107, as the case may be.”;
Rule 138 ( E-way Bill)
Rule 138(14) amended to prescribe that no e-way bill is required to be generated in case of jewellery, goldsmiths’ and silversmiths’ wares and other articles (Chapter 71) excepting imitation jewellery (7117).
Rule 161 (Continuation of certain recovery proceedings)
Rule 161 of the CGST Rules amended to prescribe that the intimation or notice (instead of order) for the reduction or enhancement of any demand under Section 84 of the CGST Act shall be issued in FORM GST DRC- 25.
Amendment in GST Forms
PART A of FORM GST REG-01 amended to state 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.
Instruction in FORM GST REG-01 ommitted w.r.t. Providing E-mail Id and Mobile Number of authorised signatory for verification and future communication.
FORM GST REG-17 amended w.r.t. supportive document(s) attached for case specific details to be provided in case ex parte decision in case of no reply to the Show Cause Notice (“SCN”) for cancellation of registration.
FORM GST REG-19 amended w.r.t. order for cancellation of registration.
FORM GSTR-1 amended w.r.t. details of outward supplies of goods or services by the supplies made through e-commerce operators.
FORM GST RFD-01 amended so as to allow the refund for unregistered persons.
FORM GST APL-02 amended, so as to insert the reference of Rule 109(2) w.r.t. issuance of the provisional/final acknowledgment, indicating appeal number in FORM GST APL-02 by the Appellate Authority.
New FORM GST APL-01/03W has been inserted w.r.t. the application for withdrawal of appeal application (Rule 109C).
New FORM GST DRC-01B has been inserted w.r.t. intimation of difference in liability reported in the statement of outward supplies and that reported in return.
Substituted FORM GST DRC-03 w.r.t. Intimation of payment made voluntarily or made against the SCN or statement or intimation of tax ascertained through FORM GST DRC-01A.
Read / Download Notification at: https://taxinformation.cbic.gov.in/view-pdf/1009584/ENG/Notifications
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
