Article Analysis Recent amendments in CGST Rule 3A, Rule 7, Rule 24 (4), Rule 20, Rule 31A, Rule 43 (2), Rule 54 (1A), Rule 55 A, Rule 89 (4A), Rule 89 (4B), Rule 96 and Recent CGST Notifications issued on 23rd and 25th January 2018.
| CGST Rule | Existing Provision | Amended Provision |
| Rule 3A | shall furnish the statement in FORM GST ITC-03 in accordance with the provisions of sub-rule (4) of rule 44 within a period of ninety days from the day on which such person commences to pay tax under section 10: | Time limit for furnishing Form GST ITC 03 by composition dealers extended to 180 days from the day on which such person commences to pay tax under section 10. |
| Rule 7 | Manufacturers, other than manufacturers of such goods as may be notified by the Government 1%
Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II 2.5%
Any other supplier eligible for composition levy under section 10 and the provisions of this Chapter 0.5% |
Composition rate for manufacturers changed to 1% of the turnover in the State or Union territory.
For restaurants, rate changed to 5% of the turnover in the State or Union territory. For other category of composition dealers rate changed to 1% of the turnover of taxable supplies of goods in the State or Union territory. |
| Rule 20 | Provided that no application for the cancellation of registration shall be considered in case of a taxable person, who has registered voluntarily, before the expiry of a period of one year from the effective date of registration. | Provision omitted |
| Rule 24 (4) | Every person registered under any of the existing laws, who is not liable to be
registered under the Act may, on or before [31stDecember]13, 2017, at his option, submit an application electronically in FORM GST REG-29 at the common portal for the cancellation of registration granted to him and the proper officer shall, after conducting such enquiry as deemed fit, cancel the said registration. |
Rule 24(4) amended. Last date within which Form GST REG 29 (to be submitted by persons who were provisionally registered and seeking to cancel their registration) to be filed extended to 31.03.2018. |
| Rule 31A | Rule 31A inserted. | Provides for valuation of supply of lottery. This was already there in the Notification No. 01/2017- Central Tax(rate) dated 28th June, 2017; Now incorporated in the Valuation Rules
Lottery run by State Governments Value of supply of lottery run by State Governments shall be deemed to be 100/112 of the face value of ticket or of the price as notified in the Official Gazette by the organising State, whichever is higher. Lottery authorised by State Governments Value of supply of lottery authorised by State Governments shall be deemed to be 100/128 of the face value of ticket or of the price as notified in the Official Gazette by the organising State, whichever is higher Rule 31A inserted. 31A(3) provides for valuation of supply of actionable claim. The value of supply of actionable claim in the form of chance to win in betting, gambling or horse racing in a race club shall be 100% of the face value of the bet or the amount paid into the totalisator |
| Rule 43 (2) | [Explanation – For the purposes of rule 42 and this rule, it is hereby clarified that the aggregate value of exempt supplies shall exclude the value of supply of services specified in the notification of the Government of India in the Ministry of Finance, Department of Revenue No. 42/2017-Integrated Tax (Rate), dated the 27th October, 2017 published in the
Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number GSR 1338(E) dated the 27th October, 2017.]17 |
New Explanation substituted in Rule 43(2). Explanation specifically EXCLUDES following from the aggregate value of Exempt Supplies. Value of supplies specified in Notfn 42/2017-Integrated Tax (Rate) dated 27.10.2017. (Supply of Services having place of supply Nepal or Bhutan) the value of services by way of accepting deposits, extending loans or advances in so far as the consideration is represented by way of interest or discount, except in case of a banking company or a financial institution including a non-banking financial company, engaged in supplying services by way of accepting deposits, extending loans or advances; and the value of supply of services by way of transportation of goods by a vessel from the customs station of clearance in India to a place outside India. |
| Rule 54 (1A) | New sub rule 1A inserted in Rule 54 | Issuance of invoice/debit note/credit note by registered taxable person( having same PAN and State code as ISD) to input service distributor possible, to transfer the credit of common input services
Value of invoice shall be same as the value of common services |
| Rule 55 A | New rule 55A inserted | Tax Invoice or Bill of Supply to accompany transport of goods
The person-in-charge of the conveyance shall carry a copy of the tax invoice or the bill of supply issued in accordance with the provisions of rules 46, 46A or 49 in a case where such person is not required to carry an e-way bill under these rules |
| Rule 89 (4A) | New sub rule 4A inserted in Rule 89 | In the case of supplies received on which the supplier has availed the benefit of the Notification No. 48/2017-Central Tax ( Deemed Exports), Refund of input tax credit, availed in respect of other inputs or input services used in making zero-rated supply of goods or services or both, shall be granted |
| Rule 89 (4B) | New sub rule 4B inserted in Rule 89 | Refund of ITC on other inputs/input services made available to supplies of goods to merchant exporters. (supplies under Notfn Nos.40/17-Central Tax (Rate) dt.23.10.17, 41/17-Integrated Tax (Rate) dated 23.10.17, 78/17-Customs dated 13.10.17, 79/17- Customs dated 13.10.17 viz Benefit of 0.1% or Imports of goods by EOU/ AA/EPCG Schemes)
Refund of input tax credit, availed in respect of inputs received under the said notifications for export of goods and the input tax credit availed in respect of other inputs or input services to the extent used in making such export of goods, shall be granted. |
| Rule 96 | 1) The shipping bill ………. an exporter ….
2) The details of the relevant export invoices……………………………
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in sub-rule (1), for the words “an exporter”, the words “an exporter of goods” shall be substituted;
in sub-rule (2), the words “relevant export invoices in respect of export of goods” shall be substitute in sub-rule (3), the words “the system designated by the Customs or the proper officer of Customs, as the case may be, shall process the claim of refund in respect of export of goods ” shall be substituted; |
| Rule 96 | Sub Rule 9 substituted | The application for refund of integrated tax paid on the services exported out of India shall be filed in FORM GST RFD-01 and shall be dealt with in accordance with the provisions of rule 89”.
The persons claiming refund of integrated tax paid on exports of goods or services should not have received supplies on which the supplier has availed the benefit of Notfn Nos.40/17-Central Tax (Rate) dt.23.10.17, 41/17-Integrated Tax (Rate) dt 23.10.17, 78/17-Customs dt 13.10.17, 79/17-Customs dt 13.10.17 viz Benefit of 0.1% or Imports of goods by EOU/ AA/EPCG Schemes) |
| Late Fees for filing of GSTR-1 reduced | Notfn 4, 5, 6 /2018-Central Tax all dated 23.01.2018 issued | Reduced Late fees for filing of return of outward supplies (GSTR1); non resident taxable persons (GSTR-5); OIDAR service providers providing OIDAR services to non taxable online recipients (GSTR-5A)
Late fees for filing of GSTR-1 by due date reduced to Rs.25 per day. Late fees for filing GSTR-1 (where no outward supplies have taken place) reduced to Rs.10 per day. |
| Notfn 7/2018-Central Tax dated 23.01.2018 issued. | Reduced Late fees for filing of monthly return by Input Service Distributors (ISD)(GSTR-6)
Late fees for filing of GSTR-6 by due date reduced to Rs.25 per day. |
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| Notfn 8/2018-Central Tax dated 23.01.2018 issued. | Time limit for furnishing the return by an Input Service Distributor in FORM GSTR-6 under section 39(4) of the CGST Act read with rule 65 of the CGST Rules, 2017, for the months of July, 2017 to February, 2018, extended till the 31st day of March, 2018 | |
| Exemptions in Services | Notification 2/2018-Central Tax (Rate) dated 25.1.18 issued. | 1.To expand pure services exemption under S. No. 3 of 12/2017-C.T. (Rate) so as to include composite supply involving predominantly supply of services i.e. up to 25% of supply of goods, provided to government
2.International Transportation ( S.No. 19 A&B inserted) Services by way of transportation of goods from India to a place outside India by air; services by way of transportation of goods from India to a place outside India by sea and provide that value of such service may be excluded from the value of exempted services for the purpose of reversal of ITC. The above exemptions granted only till 30th September, 2018 3.Service provided by way of renting of transport vehicles provided to a person providing services of transportation of students, faculty and staff to an educational institution providing education up to higher secondary or equivalent 4.Services of life insurance provided or agreed to be provided by the Naval Group Insurance Fund to the personnel of Coast Guard under the Group Insurance Schemes of the Central Government. 5. Notfn 12/2017, sr.no.36 sub item (c) amended. Life micro-insurance product as approved by the Insurance Regulatory and Development Authority, having maximum amount of cover of Two Lakhs Rupees (Earlier it was fifty thousand rupees). 6.Entry 36A inserted after entry no.36 in notfn 12/2017. Services by way of reinsurance of the insurance schemes specified in serial number 35 or 36. 7.Following exemptions given; In Notfn 12/2017 Services by an intermediary of financial services located in a multi services SEZ with International Financial Services Centre (IFSC) status to a customer located outside India for international financial services in currencies other than Indian rupees (INR). 8.Services provided by arbitral tribunal to the Central Government, State Government, Union territory, local authority, Governmental Authority or Government Entity, EXEMPT; 9.Legal services provided to Government, Local Authority, Governmental Authority and Government Entity exempted Services provided by a partnership firm of advocates or an individual as an advocate other than a senior advocate, by way of legal services to the Central Government, State Government, Union territory, local authority, Governmental Authority or Government Entity, EXEMPT; Services provided by a senior advocate, by way of legal services to the Central Government, State Government, Union territory, local authority, Governmental Authority or Government Entity, EXEMPT; 10. Notfn 12/2017 amended by insertion of entry 53A/54 Services by way of fumigation in a warehouse of agricultural produce., EXEMPT; 11. Notfn 12/2017 amended against serial number 60 Ministry of External Affair Deleted 12. Services by way of providing information under the Right to Information Act, 2005 – EXEMPT (Serial number 65A inserted) 13. Notfn 12/2017 amended Share of Contribution of member of a housing society exempt up to Rs.7,500/-. Earlier it was Rs.5000 (serial number 77 amended) 14. Supply of online educational journals or periodicals exempted (serial number 66 of Notfn 12/2017 amended ) 15. Notfn 12/2017 amended Share of Contribution of member of a housing society exempt§ up to Rs.7,500/-. Earlier it was Rs.5000 (serial number 77 amended) Supply of online educational journals or periodicals exempted§ (serial number 66 of Notfn 12/2017 amended )
16. Notfn 12/2017 amended – heading serial number 81 amended. “Services by way of right to admission to (a) circus, dance, or theatrical performance including drama or ballet; (b) award function, concert, pageant, musical performance or any sporting event other than a recognised sporting event;(c) recognised sporting event;(d) planetarium, where the consideration for right to admission to the events or places as referred to in items (a), (b), (c) or (d) above is not more than Rs 500 per person. Earlier exemption was available if consideration was < Rs.250/- |
| Renting of Immovable Property by Government under Reverse Charge | Notification No.03/2018-Central Tax (Rate) dated 25.01.2018 issued | Amends Notfn no.13/2017-Central Tax (Rate) dated 28.06.2017. Entry at Sr.No.5A inserted
Services supplied by the Central Government, State Government, Union territory or local authority by way of renting of immovable property to a person registered under the Central Goods and Services Tax Act, 2017 (12 of 2017). Tax will be payable by the person registered under CGST Act, 2017 under reverse charge |
| Supply of Development Rights against Construction Service & Vice Versa | Notfn 04/2018-Central Tax (Rate) dated 25.01.2018 issued. | To defer the liability to pay GST in case of TDR against consideration in the form of construction service and on construction service against consideration in the form of TDR to the time when the possession or right in the property is transferred to the land owner by entering into a conveyance deed or similar instrument (eg. allotment letter). |
| Exemption to government’s share of profit petroleum from GST | Notfn 05/2018-Central Tax (Rate) dated 25.01.2018 issued | Exempts government’s share of profit petroleum from GST. Exempts the intra-State supply of services by way of grant of license or lease to explore or mine petroleum crude or natural gas or both, from so much of the central tax as is leviable on the consideration paid to the Central Government in the form of Central Government’s share of profit petroleum as defined in the contract entered into by the Central Government in this behalf. |
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