Analysis of Central Goods and Services Tax (Second Amendment) Rules, 2023 as notified by Notification No. 38/2023- Central Tax, Dated: 04th August, 2023
The Central Government, on the recommendations of the Council, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, These rules may be called the Central Goods and Services Tax (Second Amendment) Rules, 2023 and shall come into force on the date of their publication in the Official Gazette (4/08/2023) or otherwise provided in these rules. They are as follows:
Rule 9. Verification of the application and approval:
Physical verification of business premises can be conducted without the presence of the applicant and also to provide for physical verification in high risk cases even where Aadhaar has been authenticated.
Rule 10A. Details of bank account on the common portal:
The details of bank account to be furnished within 30 days of grant of registration or before filing of statement of outwards supply in FORM GSTR-1/ IFF, whichever is earlier.
Rule 21A. Suspension of registration:
a) System based Suspension of the registration in respect of such registered persons who do not furnish the details of valid bank account under rule 10A with the time period prescribed under the said rule.
b) The registration will be cancelled if there are material variations between GSTR-3B, GSTR-1, and GSTR-2B.
23. Revocation of cancellation of registration
Within 90 days of the order cancelling the registration, and up to a maximum of 180 days after that, an application for revocation must be submitted in the form GST REG-21.
25. Physical verification of business premises in certain cases. –
a) If the officer determines that a physical verification of a person’s place of business is necessary following the issuance of registration, the verification report along with the other documents, including photographs, shall be uploaded in FORM GST REG-30 on the common portal within a period of 15 working days following the date of such verification.
b) If a person’s place of business must be physically verified before a registration is granted, the officer must arrange for this to happen at least five working days before the deadline.
Rule 43. Reversal of ITC for exempt goods: (Applicable from 1/10/2023)
The value of supply of goods from Duty Free Shops at arrival terminal in international airports to the incoming passengers to be included in the value of exempt supplies for the purpose of reversal of input tax credit.
Rule 46. Tax invoice:
To ease compliance burden, taxpayers must provide only name of the State of the recipient, and not the name and full address of the recipient, on the tax invoice in cases of supply of taxable services by or through an ECO or by a supplier of OIDAR services to an unregistered recipient.
Rule 59. Form and manner of furnishing details of outward supplies:
The rule establishes a mechanism for notifying taxpayers about excess Input Tax Credit (ITC) in FORM GSTR-3B compared to FORM GSTR-2B. Once an intimation is issued, taxpayers must adhere to an auto-compliance procedure, which involves either paying the specified amount of excess ITC or providing a reply in FORM DRC-01C explaining the reasons for the difference and taking necessary remedial action. In case of non-compliance, taxpayer will not be allowed to file GSTR-1 for the subsequent tax period.
Rule 64. Form and manner of submission of return by persons providing OIDAR services:
This rule requires OIDAR service providers to provide the details of supplies made to registered persons in India in his return in FORM GSTR-5A. This will help in tracking due payment of tax on reverse charge basis by such registered persons in India in respect of supplies received from OIDAR service providers.
Rule 138F. Information to be furnished in case of intra-State movement of gold, precious stones, etc. and generation of e-way bills thereof:
When directed by the Commissioner of State tax or Union territory tax, registered individuals orchestrating the intra-state movement of designated goods (e.g., gold, precious stones) are obligated to furnish information if the consignment value surpasses two lakhs. If such goods are supplied through an e-commerce operator or a courier agency, they have the option to furnish the information in Part A of FORM GST EWB-01. Notably, Part B of FORM GST EWB-01 is dispensable for the movement of these specified goods.
Notice to return defaulter u/s 46 for not filing annual return
FORM GSTR-3A to be amended to provide for issuance of notice to the registered taxpayers for their failure to furnish Annual Return in FORM GSTR-9 or FORM GSTR-9A by due date i.e. 31st December,2023.
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Author: Jash Shah | Associate Consultant | Email: jash.shah@masd.co.in
Author Bio
This is just the amendments and no analysis made. Please incorporate what you understand from such changes and its impact