Amendment in Central Goods and Services Tax Rules, 2017 vide Notification No. 12/2024 - Central Tax

2. Rule 21 - Registration to be cancelled in certain cases – Additional criteria inserted w.e.f. 10.07.2024:

Amendment in Clause (f) – At present this clause pertained to specific conditions related to the filing of FORM GSTR-1, which is a return for outward supplies. The amendment implies that not only the original FORM GSTR-1 but also any subsequent amendments made in FORM GSTR-1A (which allows for rectifications) are relevant for the conditions specified in clause (f).

Insertion of new Clause (ga) – This addition means that if a taxpayer violates the specified provisions in the third or fourth proviso of sub-rule (1) of rule 23, it can lead to the cancellation of their registration.

3. Rule 21A - Suspension of Registration – w.e.f. 10.07.2024: This amendment ensures that both the original GSTR-1 and any amendments made in GSTR-1A are taken into account for the conditions specified in Rule 21A.

4. Rule 28 - Value of supply of goods or services or both between distinct or related persons, other than through an agent - w.e.f. 26.10.2023: Amendment in Clause (2) i.e. valuation of supply of services by a supplier to a recipient who is a related person, by way of providing corporate guarantee to any banking company or financial institution on behalf of the said recipient. Now, the changes specify that the related person must be located in India and clarify that the guarantee amount is on a per annum basis. Further, a new proviso has been inserted in sub-rule (2), which provides that if the recipient can claim full input tax credit, the invoice value will be accepted as the value of the supplied services. In other words, full ITC eligibility means invoice value is accepted as value of supply of said services.

6. Rule 37A - Reversal of input tax credit in the case of non-payment of tax by the supplier and re-availment thereof - w.e.f. 10.07.2024: Amended by inserting “as amended in FORM GSTR-1A if any” after the words “FORM GSTR-1”. This ensures that any amendments made in GSTR-1A are also considered along with the original GSTR-1.

7. Rule 39 - Procedure for distribution of input tax credit by Input Service Distributor - w.e.f. date to be notified: Substantial changes have been made and new conditions have been added for the distribution of input tax credit. Introduces a mechanism for transferring credit of common input services to the ISD through invoices or credit/debit notes, ensuring proper credit distribution. Adjustments to clause references in Sub-rules (2) and (3) to align with the new structure. Also provides clear definitions for the ‘relevant period’, ‘recipient of credit’, and ‘turnover’ to ensure proper implementation and understanding of the rule.

i. Condition for Distribution: The Input Service Distributor (ISD) must distribute the input tax credit (ITC) for a month in the same month and furnish the details in FORM GSTR-6 as per Chapter VIII of the rules.
ii. Credit Distribution Limits: The amount of credit distributed must not exceed the available credit for distribution.
iii. Recipient-specific Distribution: ITC for services attributable to a specific recipient must be distributed only to that recipient.
iv. Pro-rata Distribution: For services attributable to multiple recipients, ITC must be distributed pro-rata based on each recipient’s turnover in the relevant period relative to the aggregate turnover in a State or turnover in a Union territory of all recipients, to the aggregate of the turnover of all such recipients to whom such input service is attributable and which are operational in the current year, during the said relevant period.
v. Distribution attributable to all recipients: For services attributable to all recipients, ITC must be distributed pro-rata based on each recipient’s turnover in the relevant period relative to the aggregate turnover of all recipients which are operational in the current year, during the said relevant period.
vi. Eligible and Ineligible Credit: ISD must separately distribute eligible and ineligible ITC as per Section 17(5) or otherwise.
vii. Separate Tax Type Distribution: ITC on Central, State, Union Territory, and Integrated Tax must be distributed separately.
viii. Integrated Tax Distribution: ITC on integrated tax must be distributed as integrated tax to all recipients.
ix. Central and State/UT Tax Distribution: For recipients in the same State/UT as the ISD, distribute as Central and State/UT tax. For recipients in different States/UTs, distribute as Integrated Tax, with the amount equal to the sum of Central and State/UT tax ITC qualifying for distribution.
x. ISD Invoices: ISD must issue an invoice for ITC distribution as per Rule 54(1), clearly indicating it is for ITC distribution.
xi. ISD Credit Notes: ISD must issue a credit note for reducing ITC already distributed, as per Rule 54(1).
xii. Debit Note Adjustments: Additional ITC from a debit note to ISD must be distributed according to the conditions in clauses (a) to (j) and using the formula in clause (f), distributed in the month the debit note is included in FORM GSTR-6.
xiii. Credit Note Adjustments: ITC reduction from a credit note must be apportioned in the same ratio as the original ITC distribution. Reduce from the ITC distribution in the month the credit note is included in FORM GSTR-6. Add to the output tax liability of the recipient if the apportioned amount is negative due to the ITC under distribution being less than the amount to be adjusted.

B. Insertion of new Sub-rule (1A) For the distribution of credit in respect of input services attributable to one or more distinct persons subject to tax under Section 9(3) or 9(4): A registered person with the same PAN and State code as the Input Service Distributor (ISD) may issue an invoice or a credit/debit note per Rule 54(1A). This is to transfer the credit of common input services to the ISD. The ISD will then distribute this credit as per the provisions in sub-rule (1).

These amendments aim to improve the clarity and efficiency of credit distribution by the ISD, ensuring proper attribution of input services and facilitating accurate credit transfer within entities under the same PAN.

9. Rule 48 - Manner of issuing invoice - w.e.f. 10.07.2024: After the words “FORM GSTR-1”, insert “and in FORM GSTR-1A, if any”.

10. Rule 59 - Form and manner of furnishing details of outward supplies - w.e.f. 10.07.2024:

11. Rule 60 - Form and manner of furnishing details of inward supplies - w.e.f. 10.07.2024: After references to FORM GSTR-1, the words “or FORM GSTR-1A” are added, integrating FORM GSTR-1A into the Rule. Additional details or amendments made by the supplier in FORM GSTR-1A within the specified period are now explicitly covered, ensuring that any updates between the due dates of successive FORM GSTR-1 filings are included. These changes provide clarity on the inclusion of amendments and additional details furnished in FORM GSTR-1A, enhancing the accuracy and completeness of GST return filings.

12. Rule 62 - Form and manner of submission of quarterly return by the composition supplier - w.e.f. 10.07.2024: Time Extension for FORM GSTR-4: Registered persons must furnish FORM GSTR-4 for a financial year by 30th June of the following year starting from FY 2024-25.

13. Rule 78 - Matching of details furnished by the e-Commerce operator with the details furnished by the supplier - w.e.f. 10.07.2024: After the words “supplier in FORM GSTR-1”, insert “, as amended in FORM GSTR-1A if any”.

14. Rule 88B - Manner of calculating interest on delayed payment of tax - w.e.f. 10.07.2024: The amendment provides relief in interest calculation by excluding the amount credited in the Electronic Cash Ledger on or before the due date of filing the return, even if the amount is debited after the due date for payment of tax. This exclusion applies if the amount remains in the ledger from the due date until it is debited at the time of filing the return.

15. Rule 88C - Manner of dealing with difference in liability reported in statement of outward supplies and that reported in return - w.e.f. 10.07.2024: Inclusion of Amendments in FORM GSTR-1A – The amendment clarifies that any additional details or amendments made in FORM GSTR-1A should be considered, similar to those in FORM GSTR-1, when addressing sub-rule (1) of Rule 88C.

16. Rule 89 - Application for refund of tax, interest, penalty, fees or any other amount - w.e.f. 10.07.2024:

New Provisions for Refund claims (Sub-rule 1B): Allows exporters to claim a refund of additional integrated tax paid due to upward price revisions post-export. Provides a two-year window for filing such refund claims electronically through FORM GST RFD-01. Includes a proviso for cases where the relevant date is before the introduction of this sub-rule, allowing a two-year filing period from the introduction date.

Additional Documentation Requirements (Sub-rule 2): a. Requires a detailed statement containing specific invoice, shipping bill, Bank Realisation Certificate details, and supplementary invoices or debit notes. b. Mandates proof of payment of additional integrated tax and related interest. c. Requires a certificate from a practicing Chartered Accountant or Cost Accountant confirming additional Foreign Exchange remittance due to price revisions. d. Requires a reconciliation statement to reconcile values declared in supplementary invoices and related remittance certificates.

17. Rule 95B - Refund of tax paid on inward supplies of goods received by Canteen Stores Department (Newly inserted Rule 95B) - w.e.f. 10.07.2024: In terms of this new Rule, the Canteen Stores Department (CSD) is eligible for a refund of 50% of the Central Tax paid on inward supplies of goods used for subsequent supply to Unit Run Canteens or authorised customers. The CSD must apply for the refund quarterly using FORM GST RFD-10A, submitted electronically through the common portal. Refund applications in FORM GST RFD-10A will be processed similarly to those filed in FORM GST RFD-01, following the provisions of rule 89.

18. Rule 96 - Refund of Integrated Tax paid on goods exported out of India - w.e.f. 10.07.2024: Amendment provides the exporter of goods may file an application electronically in FORM GST RFD-01 through the common portal for refund of additional integrated tax paid on account of upward revision in price of goods subsequent to export of such goods, and on which the amount of integrated tax paid at the time of export of such goods has already been refunded in accordance with provisions of sub-rule (3) of this Rule, and such application shall be dealt with in accordance with the provisions of Rule 89.

19. Rule 96A - Refund of integrated tax paid on export of goods or services under bond or Letter of Undertaking - w.e.f. 10.07.2024: Amendment provides that additional 15 days to be allowed after expiry of one year including all extensions permitted by the Reserve Bank of India, whichever is later, from the date of issue of the invoice for export, if the payment of such services not received by the exporter in convertible foreign exchange or in Indian rupees

20. Substitution of Rule 110, 111, 113 in relation to Appeal, Application to the Appellate Tribunal w.e.f. 10.07.2024.

21. Rule 138 - Information to be furnished prior to commencement of movement of goods and generation of e-way bill - w.e.f. date to be notified: To provide that where unregistered person required to generate e-way bill in FORM GST EWB-01 or opting to generate on the common portal shall submit the details electronically on the common portal in FORM GST ENR-03 upon validation of the details so furnished, a unique enrolment number shall be generated and communicated to the said person.

22. Rule 142 - Notice and order for demand of amounts payable under the Act – w.e.f. 10.07.2024: Payment and Acknowledgment: Previously, if a person chargeable with tax made a voluntary payment of tax, interest, and penalty (as applicable) before receiving a notice or statement, they had to inform the proper officer using FORM GST DRC-03. The proper officer would then issue an acknowledgment in FORM GST DRC-04. If a person made a partial payment or desired to file submissions against the proposed liability, they could do so using Part B of FORM GST DRC-01A.

After the Amendment - Electronic Acknowledgment: Now, when a taxpayer makes a voluntary payment before receiving a notice or statement, they must inform the proper officer using FORM GST DRC-03. The acknowledgment, in FORM GST DRC-04, will be made available electronically through the common portal.

Partial Payment and Submissions: If a taxpayer has made a partial payment or wants to file submissions against the proposed liability, they can do so using Part B of FORM GST DRC-01A. The proper officer may then issue an intimation in Part-C of FORM GST DRC-01A, accepting the payment, submissions, or both.

New Provisions for Electronic Liability Register: A new sub-rule (2B) has been introduced. If a person makes a voluntary payment of tax, interest, penalty, or any other amount due, they may file an application in FORM GST DRC-03A electronically. The amount paid and intimated through FORM GST DRC-03 will be credited to the Electronic Liability Register in FORM GST PMT-01 against the debit entry created for the said demand.

However, if an order in FORM GST DRC-05 has been issued concluding the proceedings in respect of the payment, an application in FORM GST DRC-03A cannot be filed for the same payment.

23. Insertion of New FORM GST ENR-03 i.e. Application for Enrolment [only for un-registered persons] w.e.f. date to be notified.

24. Amendment in FORM GSTR-1 w.e.f. 01.08.2024 - Serial Number 6: In the heading, the figures, letters, and words “Rs. 2.5 lakh” are substituted with “Rs. 1 lakh”. Serial Number 7: In the table, in clause (7B), in the heading, the figures, letters, and words “Rs. 2.5 Lakh” are substituted with “Rs. 1 lakh”.

25. Insertion of new FORM GSTR-1A - Amendment of outward supplies of goods or services for current tax period w.e.f. 10.07.2024: GSTR-1A is a new return vide which rectification or addition can be made in the GSTR-1 filed, so that correct GSTR-3B can be filed. Important features of FORM GSTR-1A are:

i. It is an optional form for amending or adding figures to GSTR-1 filed for the month
ii. It will be made available from the GSTR-1 last date or date of filing till the filing of GSTR-3B of the same tax period.
iii. No GSTIN Amendment can be made through GSTR-1A. It can be done only through Table 9 of GSTR-1
iv. Table 9 of GSTR-1 shall remain for all amendments in addition to GSTR-1A for a limited period.
v. It seems that even though the suppliers current GSTR-3B can be amended by GSTR-1A, yet even if the GSTR-1A has been filed within 12th to 13th, the GSTR-2B of recipient shall be auto-populated only in the next month
vi. Interest will be applicable incase excess ITC is taken by the recipient on the basis of GSTR-2B, but thereafter rectified vide GSTR-1A. Hence the ITC shall be taken on the basis of ITC Register.
In such case adjustment of the differential amount which is reversed in GSTR-3B Table 4B(1) or 4B(2) needs to be made in the next month and thereafter a reconciliation needs to be kept ready accordingly.

27. Amendment in FORM GSTR-3B w.e.f. date to be notified: The Table 6.1 of the GSTR 3B has been revised to include the ‘Adjustment of negative liability of previous tax period’ for Reverse Charge and supplies under Section 9(5) of GST Act and other than Reverse Charge and supplies made under Section 9(5) of GST pertaining to the services proposed by the E-commerce operators. Part ‘A’ in the new Table 6.1 is assigned for normal taxpayers providing supplies and availing RCM and requires to enter information. Part ‘B’ is for Taxpayers furnishing supplies under section 9(5) of GST law i.e. e-commerce operators.

Previously, Table 6.1 of the GSTR 3B form had merely the Description, tax payable, tax paid via ITC, Tax Paid in Cash, Interest Paid in Cash, and Late fee paid in cash. As a new class of ‘Adjustment of Negative Liability of previous tax period’, the taxpayers can recognize the negative and adjust manually against GST liabilities in the next returns.

The amendment omitted Table 6.2 in which the taxpayer has to reveal the TDS/TCS credit.

28. Amendment in FORM GSTR-4 - w.e.f. 10.07.2024: Previously, the due date for filing GSTR-4 was April 30th of the subsequent financial year. The new due date, starting from FY 2024-25, is June 30th of the subsequent financial year. This same would give more time to the taxpayers who opt to pay tax under Composition levy to furnish the said return.

31. Amendment in Form GSTR-7 w.e.f. date to be notified: Table 3: The table is substituted with a new format for capturing GSTIN, invoice details, amount paid to deductee, and the amount of tax deducted at source. Table 4: A new table format is introduced to capture similar details as Table 3.

32. Amendment in FORM GSTR-8, GSTR-9, GSTR-9C, FORM RFD-01, FORM GST DRC-01A, FORM GST DRC-01B, FORM GST DRC-03, FORM GST DRC-04

33. Insertion of new FORM GST RFD-10A - Application for refund by Canteen Stores Department (CSD).

34. Insertion of FORM GST APL-05/07W: Application for Withdrawal of Appeal /Application filed before the Appellate Tribunal,

35. Insertion of FORM GST DRC-03A: Application for adjustment of the amount paid through FORM GST DRC-03 against the order of demand.