Clearmytax.in Editorial Team
The readers may refer to our article titled “Option to file GST PMT-09 for transfer of amounts in electronic cash ledger lacks legal backing?” wherein it was deliberated that the facility of filing of FORM GST PMT-09 for transferring the cash balance form one major head to another like CGST to IGST and amongst minor heads interest, penalty , fee etc has been started on common portal today on 21st April,2020.
However it was also stated that if we see legally FORM GST PMT-09 is not yet effective as same was inserted through sub-rule(13) of Rule 87 of the CGST Rules,2017 vide Notification no. 31/2019 – CT dated 28.06.2019 (w.e.f. date to be notified), which has not yet been notified till date. It was further deliberated that such a situation wherein Rule has not yet been made effective and FORM emanating from the non effective Rule has been made operational on the Common portal is really bizarre and shows communication gap between the GSTN and the CBIC. Further what is stopping CBIC from making the sub-rule (13) operational considering that Section 49(10) and (11) of the CGST Act, 2017 have already been made operational long back from 01-01-2020.
In the end it was stated that it is expected that the sub-rule (13) of Rule 87 of CGST Rules, 2017 would be made effective soon by the Government, in order to iron out the current situation of absence of legal backing of GST FORM PMT-09.
In accordance to the expectation, Notification No. 37/2020 – Central Tax dated 28th April, 2020 has been issued wherein In exercise of the powers conferred by section 164 of the CGST Act, 2017 read with clause (c) of rule 9 and rule 25 of the CGST (Fourth Amendment) Rules, 2019 (i.e. insertion of sub-rule (13) to Rule 87) , made vide notification No. 31/2019 – Central Tax, dated the 28th June, 2019, the Government, hereby appoints the 21st day of April, 2020, as the date from which the said provisions of the rules, shall come into force.
Thus in light of operation of Rule 87(13) of the CGST Rules, 2017, the FORM GST PMT-09 for transfer of amounts in electronic cash ledger which was made operational on the ommon portal from 21st April, 2020 has got its much deserved legal backing.
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.
