Analysis of the Provisions of Goods and Services Tax (GST) vis-à-vis Central Goods and Services Tax (Fifth Amendment) Rules 2019
Goods and Services Tax department has recently issued two notifications regarding various amendments proposed in the existing GST laws. The revised rules stated in the Notification No. 33/2019–Central Tax dated 18th July 2019 & Notification No. 34/2019 – Central Tax are called as Central Goods and Services Tax (Fifth Amendment) Rules 2019 released through two notifications dated 18th July 2019. Vide these notifications and publishing of Central Goods Services Tax (Fifth Amendment) Rules 2019, the Central Government has further amended the Central Goods and Services Tax Rules 2017.
Amendments at a Glance
A. Notification No. 33/2019–Central Tax dated 18th July 2019– Various amendments proposed in the existing GST laws
1. Reference to TDS deduction provision
2. Introduction of E-Ticketing
3. Surrender of Enrolment of Goods and Services tax Practitioner
4. Application for unblocking of the facility for generation of E-Way Bill
5. Increase in the tenure of Anti Profiteering Authority
B. Notification No. 34/2019–Central Tax dated 18th July 2019– Extension in the filing of CMP 08 for the period
The due date to file CMP 08 by composition dealers is extended till 31st July 2019 for the quarter April 2019 to June 2019 from the earlier date
Date of Applicability of Central Goods Services Tax (Fifth Amendment) Rules 2019
As per the notification, the rules may come into force on the date of their publication in the Official Gazette i.e. 18th July 2019
Analysis of GST Rules Pre and Post release of Central Goods Services Tax (Fifth Amendment) Rules
|Amendment no 1||Reference to TDS deduction provision
Rule sub-rule (1A) of Rule 12 of the CGST Rules
Chapter III of the CGST Rules 2019 deals with the provisions related to Registration under CGST Act 2017. Under this rule, a new insertion has been done by expanding the scope of the provision by including the tax deduction in addition to the existing provisions of tax collected.
Therefore the provision now applies to every person applying for registration to deduct the tax in accordance with the provisions of Sec 51 of the CGST Act.
Prior amendment, Rule 12 of the act was related to the obligation of the person who is supposed to collect tax at source ,to get registration in the state wherein he does not have a physical presence.
After amendment i.e. with the introduction of the Central Goods Services Tax (Fifth Amendment) Rules 2019, now this provision has been expanded to cover the persons who are liable to deduct the tax at source, to get registration in the state wherein they don’t have any physical presence.
Mode of Application of Registration
– The application will be made in an electronic form
– The application to be made will be either signed electronically or the same will be verified through electronic verification code
– The application will be made wither through the common portal or through a facilitation centres notified by the Government
Form of Application
– The application for grant of registration will be made in Form GST REG 07
– Part A of the form will include the name of the State or Union Territory
– Part B of the form will include the name of the State or Union Territory in which the principal place of business will be located
– The name of the state or union territory as mentioned in the part B may be different from the name of the state or union territory mentioned in part A of the form
Grant of Registration
The certificate of registration will be granted by the proper officer in Form GST Reg 06 after due verification.
|Amendment no 2||Introduction of E-Ticketing
Rule 46 of the CGST Rules -in the fourth proviso
Rule 46 of the CGST Rules relates to the issue of Tax Invoice by a registered person. The rule further states the particulars to be included in the tax invoice to be issued by the registered person as per the provisions of this rule, subject to the requirements of Rule 54 of the CGST Rules.
The fourth proviso of the Rule 46 states that a registered person may issue a consolidated tax invoice if the value of goods or services or both supplied is less than Rs. 200/- subject to following two conditions-
– The recipient is not the registered person
– The recipient does not require the said invoice
Such consolidated invoice do such supplies will be made at the close of each day in respect of all such supplies.
This is as per requirements of Sec 31 subsection 3 , clause b of the CGST Act 2017.
After the amendment of the Rule 46 i.e. with the introduction of the Central Goods Services Tax (Fifth Amendment) Rules 2019, an insertion has been made in the fourth proviso of Rule 46 which states that the supplier engaged in making supply of services by way of admission to exhibition of cinematograph films in multiplex screens is not covered in the category of the registered persons to whom the fourth proviso of Rule 46 related to issue of a consolidated tax invoice is applicable.
Therefore, this amendment inserted vide introduction of the Central Goods Services Tax (Fifth Amendment) Rules 2019, makes such suppliers eligible for issue of E- tickets.
Insertion of Clause 4 A after sub Rule 4 of Rule 54 of the CGST Rules
After the introduction of the Central Goods Services Tax (Fifth Amendment) Rules 2019, a new sub rule 4A has been inserted wherein adequate clarity has been given regarding the newly inserted clause, explained as follows-
– The registered person must be a supplier engaged in making supply of services by way of admission to exhibition of cinematograph films in multiplex screens
– He is eligible to issue an electronic ticket as mentioned above
– The said electronic ticket will be deemed to be a tax invoice
– This deeming fiction as mentioned above will be applicable for all purposes under this act
– The E- ticket as mentioned above will be deemed to be a tax invoice even if it does not contains the details of the recipient of service
– However the E- ticket must contain all the particulars as mentioned in Rule 46 of the CGST Rules
Requirements of Rule 46 which are to be met in the E- Ticket if the exception as mentioned in the sub rule 4 of the Rule 54 has to be claimed by such supplier
a. Name, address and Goods and Services Tax Identification Number of the supplier
b. A consecutive alphanumeric serial number not exceeding sixteen characters
c. Date of issue
d. HSN Code for services
e. Description of service
f. Total value of supply of service
g. Taxable value of the supply of services taking into account discount or abatement, if any
h. Rate of tax
i. Amount of tax
j. Place of supply
k. Place of delivery is different from place of supply
l. signature or digital signature of the supplier or his authorised representative:
The proviso to Sub rule 4 of Rule 54 states that the above procedure is optional for the supplier of such service in a screen other than multiplex screens.
|Amendment no 3||Surrender of Enrolment of Goods and Services tax Practitioner-
After rule 83A of the CGST Rules
Rule 83 of the CGST Rules explains the provisions relating to the Goods and Services Tax Practitioner, broadly dealing with the following-
– Application form
– Enrolment Eligibility
– Qualification requirements
– Grant of Certificate of enrolment
– Validity of registration
– Other applicable provisions
Vide notification no 60/ 2018, the Government inserted the Rule 83 A regarding the Examination of Goods and Services Tax was introduced and now with the introduction of Central Goods Services Tax (Fifth Amendment) Rules 2019, a new Rule 83 B regarding Surrender of Enrolment of Goods and Services Tax Practitioner has been inserted.
Details of Rule 83 B inserted vide Central Goods Services Tax (Fifth Amendment) Rules 2019
– Applicable to the Goods and Services Tax Practitioner who was registered in terms of Rule 83
– The GST Practitioner must seek surrender for the enrolment giver to him earlier
Application form seeking the surrender
The Goods and Services Tax practitioner seeking the surrender of his enrolment will make an application in the Form GST PCT 06
Mode of submission of application
The Form GST PCT 06 to be submitted on common portal either through directly or through a facilitation centre
Form of Cancellation of the enrolment
The cancellation of the enrolment will be done in Form GST PCT 07
Who is eligible to cancel the enrolment?
The commissioner or the officer authorised by him is eligible for the cancelling the enrolment of the Goods and Services Tax Practitioner
Procedure for cancellation of the enrolment
– Receipt of application in Form GST PCT 06 at the common portal
– May cause enquiry if required
– Generation of order vide Form GST PCT 06
|Amendment no 4||Application for unblocking of the facility for generation of E-Way Bill- Changes in the declaration statement 5 B Rule 138E of the CGST Rules, in the first proviso|
Rule 138 of the CGST Rules related to the provisions applicable for E Way Bill which is applicable to every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees—
(i) in relation to a supply; or
(ii) for reasons other than supply; or
(iii) (due to inward supply from an unregistered person
Rule 138 E relates to the restrictions mentioned regarding furnishing of information in GST EWB 01.
What is GST EWB 01?
The registered person causing movement of goods and eligible in terms of Rule 138
before commencement of such movement, furnish information relating to the said goods as specified in Part A of FORM GST EWB-01, electronically, on the common portal along with such other information as may be required at the common portal and a unique number will be generated on the said portal.
However Rule 138 E clearly states that the information as required in the Part A of the Form GST EWB 01 shall not be allowed to be furnished in respect of a registered person, whether as a supplier or a recipient who falls under any of the following cases-
Case 1-Person paying tax under Sec 10 of the CGST Act and has not furnished the statement in Form GST CMP 08 for two consecutive quarters
Case 2- Person availing the benefit of notification no 02/2019 and has not furnished the statement in Form GST CMP 08 for two consecutive quarters
Case 3- any other person not falling in above categories who has not furnished the returns for a period of consecutive two years
After amendments and with the introduction of the Central Goods Services Tax (Fifth Amendment) Rules 2019, the Government has described the forms for aviling an option/ facility regarding submission of the information as required in Part A of Form GST EWB 01 even if any of the cases above is applicable.
Procedure for availing this exceptional facility as stated in the amendment
– The application has to be submitted by the registered person in Form GST EWB 05
– The application will be submitted to the Commissioner
– The Commissioner may scrutinise the application made
– The registered person has to show sufficient cause and reasons on record to satisfy the Commissioner vide its application.
– The Commissioner may give an order in writing in Form GST EWB 06 to allow furnishing of information in Part A of GST EWB 01
– Conditions and restrictions which can be imposed by the Commissioner as applicable earlier are still valid
Information required in Part A of Form GST EWB 01
– GSTIN of Supplier and/ or Recipient
– Place of dispatch/ PIN code of Dispatch
– Place of Delivery/ PIN code of place
– Invoice, Challan no, Date & Value of Goods
– HSN code
– Reasons for Transport
|Amendment no 5||Increase in the tenure of Anti Profiteering Authority- Rule 137 of the CGST Rules|
Chapter XV of the CGST Rules and corresponding sections in this chapter deals with the provisions of Anti Profiteering Mechanism. Rule 137 of the CGST Rules prescribes the tenure of the authority.
Prior Amendment i.e. before introduction of the Central Goods Services Tax (Fifth Amendment) Rules 2019, the tenure of the authority was 2 years which has now been amended and increased to 4 years.
4 years from the date on which the Chairman enters upon his office unless the Council recommends otherwise.
Meaning of Authority
The authority here means the National Anti Profiteering Authority constituted under Rule 122 which includes-
– a Chairman who holds or has held a post equivalent in rank to a Secretary to the Government of India; and
– four Technical Members who are or have been Commissioners of State tax or central tax [for at least one year] 183 or have held an equivalent post under the existing law, to be nominated by the Council.