The CBIC vide Notification No. 15/2021-Central Tax, dated 18th May 2021 has issued ‘the Central Goods and Services Tax (Fourth Amendment) Rules, 2021’ to further amend the CGST Rules,2017 in the areas of registration, refund and e-way bill Rules. It is important to note here that all the amendments are effective from the date of publication in the Official Gazette viz 18th May 2021.
The various amendment made vide above Notification are briefed as under for ready reference of our readers:
1. Rule 23 of the CGST Rules and FORM GST REG-21 amended:
In the CGST Rules, 2017,in rule 23, in sub-rule (1), after the words “date of the service of the order of cancellation of registration”, the words and figures “or within such time period as extended by the Additional Commissioner or the Joint Commissioner or the Commissioner, as the case may be, in exercise of the powers provided under the proviso to sub-section (1) of section 30,” shall be inserted.
Further in FORM GST REG-21 i.e. application for revocation of cancellation of registration , under the sub-heading “Instructions for submission of application for revocation of cancellation of registration”, in the first bullet point “after the words “date of service of the order of cancellation of registration”, the words and figures “or within such time period as extended by the Additional Commissioner or the Joint Commissioner or Commissioner, as the case may be, in exercise of the powers provided under proviso to sub-section (1) of section 30,” shall be inserted;
The above deals with revocation of cancellation of registration, so as to allow the registered person to file application for revocation of cancellation of registration in FORM GST REG-21, within such extended period by the Additional Commissioner or Joint Commissioner or the Commissioner.
It may be noted here that as per Section 30(1) of the CGST Act, 2017, the Addl Commissioner / Joint Commissioner and Commissioner has powers to give extension in time for filing of revocation of cancellation of registration for a period not exceeding 30 days and 60 days respectively, on sufficient cause being shown and for reasons to be recorded in writing.
2. Proviso under Rule 90(3) of the CGST Rules,2017 inserted:
In rule 90 (3), the proviso shall be inserted namely, “Provided that the time period, from the date of filing of the refund claim in FORM GST RFD-01 till the date of communication of the deficiencies in FORM GST RFD-03 by the proper officer, shall be excluded from the period of two years as specified under sub-section (1) of Section 54, in respect of any such fresh refund claim filed by the applicant after rectification of the deficiencies.”
The above insertion means that time period from the date of filing of the refund claim in FORM GST RFD-01 till the date of communication of the deficiencies in FORM GST RFD-03 by the proper officer, is to be excluded from the period of 2 years in case, fresh refund claim is filed after rectification of the deficiencies.
3. Sub-rule (5) to Rule 90 of the CGST Rules,2017 inserted
New sub-rule (5) to Rule 90 of the CGST Rules has been inserted as under:
“(5) The applicant may, at any time before issuance of provisional refund sanction order in FORM GST RFD-04 or final refund sanction order in FORM GST RFD-06 or payment order in FORM GST RFD-05 or refund withhold order in FORM GST RFD-07 or notice in FORM GST RFD-08, in respect of any refund application filed in FORM GST RFD-01, withdraw the said application for refund by filing an application in FORM GST RFD-01W.
The above new sub rule has allowed registered person to withdraw the application of refund claim, by filing application in FORM GST RFD-01W before issuance of provisional refund sanction order in FORM GST RFD-04 or final refund sanction order in FORM GST RFD-06 or payment order in FORM GST RFD-05 or refund withhold order in FORM GST RFD-07 or notice in FORM GST RFD-08.
It may be noted that FORM GST RFD-01W i.e. application for withdrawal of refund application has also been inserted which we will see later in the article.
4. Sub-rule (6) to Rule 90 of the CGST Rules,2017 inserted
New sub-rule (6) to Rule 90 of the CGST Rules has been inserted as under:
(6) On submission of application for withdrawal of refund in FORM GST RFD-01W, any amount
debited by the applicant from electronic credit ledger or electronic cash ledger, as the case may be, while filing application for refund in FORM GST RFD-01, shall be credited back to the ledger from which such debit was made.”;
The above provides that on submission of application in FORM GST RFD-01W, any amount debited from electronic credit ledger or electronic cash ledger, shall be credited back to the ledger from which such debit was made.
5. Proviso to Rule 92(1) of the CGST Rules, 2017 omitted:
This proviso dealt with the order giving details of the adjustment in Part A of FORM GST RFD-07, where the amount of refund is completely adjusted against any outstanding demand.
6. Rule 92(1) of the CGST Rules amended
As per the amended provision the proper officer or the Commissioner shall pass an order in ‘Part A’ instead of ‘Part B’ of FORM GST RFD-07, informing the person, the reasons for withholding the refund.
Further proviso has been inserted in Rule 92(1) as under:
“Provided that where the proper officer or the Commissioner is satisfied that the refund is no longer liable to be withheld, he may pass an order for release of withheld refund in Part B of FORM GST RFD- 07.”;
This proviso has been inserted in respect to the passing of an order for the release of withheld refund in Part B of FORM GST RFD-07, where the proper officer or the Commissioner is satisfied that the refund is no longer liable to be withheld.
It may be noted that in light of above amendments the FORM GST RFD-07 has also been substituted vide the amendment Notification wherein Part A covers the Order for withholding the refund and Part B is towards Order for release of withheld refund.
7. Rule 96(6) of the CGST Rules,2017 amended:
The amendment is with respect to the passing of an order by the proper officer in ‘Part A’ instead of ‘Part B’ of FORM GST RFD-07, upon transmission of the intimation for withholding refund of integrated tax paid on goods or services exported out of India. This amendment is in consonance with the amended FORM GST RFD-07.
8. Rule 96(7) of the CGST Rules,2017 amended:
As per the amendment for the words, letters and figures, “after passing an order in FORM GST RFD-06”, the words, letters and figures, “by passing an order in FORM GST RFD-06 after passing an order for release of withheld refund in Part B of FORM GST RFD-07” shall be substituted;
The above means that now, the jurisdictional officer, shall proceed to refund the amount by passing an order in FORM GST RFD-06 after passing an order for release of withheld refund in Part B of FORM GST RFD-07, where the registered person becomes entitled to refund of the amount withheld.
9. Rule 138E of the CGST Rules,2017 amended:
In rule 138E, for the words “in respect of a registered person, whether as a supplier or a recipient,
who, —” the words „‟in respect of any outward movement of goods of a registered person, who, —” shall be substituted.
This Rule provides for restriction on furnishing of information in PART A of FORM GST EWB-01, and the amendment is carried so as to substitute the words “in respect of a registered person, whether as a supplier or a recipient” with “in respect of any outward movement of goods of a registered person”.
10. New FORM GST RFD-01W inserted:
This new form is the application for withdrawal of refund application. For ready reference the form is given below:
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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.
