Highlights of Draft GST Rules and Formats which got approved by GST Council
The Government is not leaving any stone unturned to roll out the much awaited indirect tax reform from April 1, 2017. In less than a week after the first meeting of the GST Council (on September 22-23, 2016), the Central Board of Excise and Customs (“CBEC”) on September 26, 2016, has unveiled the Draft Rules and formats under GST relating to registration, invoice and payment. Further on September 27, 2016, more GST Draft Rules and formats on return and refunds were also put in public domain (collectively referred to as“the Draft GST Rules”). Earlier, in the month of October, 2015, the Draft GST Business Processes on registration, payment, returns and refunds were put in public domain for public comments.
Draft GST Rules approved by the GST Council
The CBEC invited comments on the Draft GST Rules by September 28, 2016. Now, the GST Council, in its second meeting held on September 30, 2016, has approved the 5 sets of Draft GST Rules – registration, payment, refund, returns and invoice. The Draft GST Rules will be notified after enactment of the GST Act.
Some of the other important discussions in the second meeting of the GST Council are stated hereunder:
Treatment of exemption from GST
In the Current regime, the Centre gives exemption to 11 states mostly in North East and hilly regions from Excise duty as also many States give the same as incentive for setting up industry. The GST Council has decided that under GST, which will subsume Excise duty and VAT among other levies, taxes will have to be collected and it can be reimbursed from the annual budgets to the exempted categories.
Disagreement on Centre’s power for assessment of11 lakh Service tax assesses in the new dispensation
The GST Council in its first meeting held on September 22-23, 2016 has given the power for assessment to Centre for assessing 11 lakh Service tax assessees who are currently assessed by them. However, there were divisions over ratifying/ approving the minutes of the first meeting of the GST Council after at least two States disagreed with the Centre’s power for assessing these taxpayers in the new dispensation. The discussion was in conclusive and therefore it will continue in the next meeting.
The next meeting of GST Council will be held on October 18-20, 2016 to discuss on issues like Service tax assessment and the formula for calculating compensation to be paid to States in case of revenue shortfall as a result of implementation of the GST regime, possibly from April 1, 2017.GST rates, Draft GST law to be decided by November 22, 2016.
Key Highlights of the Draft GST Rules
Key highlights of the Draft GST Rules for registration, invoice, payment, return and refunds are stated below for easy digest:
I: Draft Rules and Formats for Registration under GST
Section 19 of Model CGST/SGST Act (“the Model GST Act”) dealing with registration, prescribes that every person who is liable to be registered shall apply for registration in the manner prescribed, which is now provided by way of the Draft Rules for Registration under GST (“the Draft Registration Rules”) along with Registration formats.
The salient features of the Draft Rules and Formats for Registration are as follows-
Sr. No | Form Number | Content |
1 | GST REG-01 | Application for Registration under Section 19(1) of Goods and Services Tax Act, 20– |
2 | GST REG-02 | Acknowledgement |
3 | GST REG-03 | Notice for Seeking Additional Information/ Clarification/ Documents relating to Application for<<Registration/Amendment/Cancellation>> |
4 | GST REG-04 | Application for filing clarification/additional information/ document for <<Registration/Amendment/Cancellation/ Revocation of Cancellation>> |
5 | GST REG-05 | Order of Rejection of Application for <<Registration /Amendment / Cancellation/ Revocation of Cancellation>> |
6 | GST REG-06 | Registration Certificate issued under Section 19(8A) of the Goods and Services Tax Act, 20– |
7 | GST REG-07 | Application for Registration as Tax Deductor or Tax Collector at Source under Section 19(1) of the Goods and Service Tax Act, 20– |
8 | GST REG-08 | Order of Cancellation of Application for Registration as Tax Deductor or Tax Collector at Source under Section 21 of the Goods and Service Tax Act, 20–. |
9 | GST REG-09 | Application for Allotment of Unique ID to UN Bodies/Embassies /any other person under Section 19(6) of the Goods and Service Tax Act, 20–. |
10 | GST REG-10 | Application for Registration for Non Resident Taxable Person. |
11 | GST REG-11 | Application for Amendment in Particulars subsequent to Registration |
12 | GST REG-12 | Order of Amendment of existing Registration |
13 | GST REG-13 | Order of Allotment of Temporary Registration/ Suo Moto Registration |
14 | GST REG-14 | Application for Cancellation of Registration under Goods and Services Tax Act, 20–. |
15 | GST REG-15 | Show Cause Notice for Cancellation of Registration |
16 | GST REG-16 | Order for Cancellation of Registration |
17 | GST REG-17 | Application for Revocation of Cancelled Registration under Goods and Services Act, 20–. |
18 | GST REG-18 | Order for Approval of Application for Revocation of Cancelled Registration |
19 | GST REG-19 | Notice for Seeking Clarification/Documents relating to Application for << Revocation of Cancellation>> |
20 | GST REG-20 | Application for Enrolment of Existing Taxpayer |
21 | GST REG-21 | Provisional Registration Certificate to existing taxpayer |
22 | GST REG-22 | Order of cancellation of provisional certificate |
23 | GST REG-23 | Intimation of discrepancies in Application for Enrolment of existing taxpayer |
24 | GST REG-24 | Application for Cancellation of Registration for the Migrated Taxpayers not liable for registration under Goods and Services Tax Act 20– |
25 | GST REG-25 | Application for extension of registration period by Casual / Non-Resident taxable person. |
26 | GST REG-26 | Form for Field Visit Report |
Thereafter, an application along with the information/documents specified therein shall be submitted electronically. Information asked for shall be furnished within a period of 6 months or such further period as may be extended by the Board or Commissioner. Failure to submit relevant information within prescribed time period can lead to cancellation of provisional registration.
Read more on the Draft Rules and Formats for Registration under GST at:
https://taxguru.in/goods-and-service-tax/draft-goods-services-tax-registration-rules.html
II: Draft Rules and Formats for Payment under GST
Section 35 of the Model GST Act deals with payment of tax, interest, penalty and other amounts. It provides that every deposit made by internet banking or by using credit/debit cards or NEFT/RTGS or by any other mode, shall be credited to the electronic cash ledger to be maintained in the manner prescribed. Further, the amount of input tax credit as self-assessed in the return shall be credited to electronic credit ledger etc.
In this regard, the Draft Rules for Payment under GST (“the Draft Payment Rules”) along with Payment formats have been prescribed, salient features of which are as follows-
Sr No. | Form No. | Title of the Form |
1. | Form GST PMT-1 | Electronic Tax Liability Register of Taxpayer
(Part–I: Return related liabilities) Electronic Tax Liability Register of Taxpayer (Part–II: Other than return related liabilities) |
2. | Form GST PMT-2 | Electronic Credit Ledger |
3. | Form GST PMT-2A | Order for re-credit of the amount to cash or credit ledger |
4. | Form GST PMT-3 | Electronic Cash Ledger |
5. | Form GST PMT-4 | Challan For Deposit of Goods and Services Tax |
6. | Form GST PMT-5 | Payment Register of Temporary IDs/Un-registered Taxpayers |
7. | Form GST PMT-6 | Application For Credit of Missing Payment (CIN not generated) |
Read more on the Draft Rules and Formats for Payment under GST at:
https://taxguru.in/goods-and-service-tax/draft-goods-services-tax-payment-rules.html
III: Draft Rules and Formats of Invoice under GST
Section 23 of the Model GST Act contains the provisions regarding tax invoice. Tax invoice is an important document stating transaction of supply or agreement of supply of goods and/or services.
The Draft Rules of Invoice under GST (“the Draft Invoice Rules”) along with Invoice formats have now been put on Public domain. The salient features of the Draft Invoice Rules and Formats are as follows-
Also, in case of exports information such as name and address of the recipient, address of delivery, name of the country of destination and number and date of application for removal of goods for export [ARE-1] are also required to be given.
Read more on the Draft Rules and Formats of Invoice under GST at:
IV: Draft Rules and Formats for Return under GST
A return is a statement of specified particulars relating to business activity undertaken by the taxable person during a prescribed period. GST is a self-assessed destination based consumption taxation system. Thus, the submission and processing of return is an important link between the taxpayer and tax administration. Chapter – VIII of the Model GST Act contains the provisions regarding returns.
The Draft Rules of Return under GST (“the Draft Return Rules”) along with Return Formats have now been put on Public domain. The salient features of the Draft Return Rules and Formats are as follows-
Sl No | Form Number | Content |
1 | Form GSTR-1 | Details of outward supplies of taxable goods and/or services effected |
2 | Form GSTR-1A | Details of outward supplies as added, corrected or deleted by the recipient |
3 | Form GSTR-2 | Details of inward supplies of taxable goods and/or services claiming input tax credit |
4 | Form GSTR-2A | Details of inward supplies made available to the recipient on the basis of FORM GSTR-1 furnished by the supplier |
5 | Form GSTR-3 | Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax |
6 | Form GSTR-3A | Notice to a registered taxable person who fails to furnish return under section 27 and section 31 |
7 | Form GSTR-4 | Quarterly Return for compounding Taxable persons |
8 | Form GSTR-4A | Details of inward supplies made available to the recipient registered under composition scheme on the basis of FORM GSTR-1 furnished by the supplier |
9 | Form GSTR-5 | Return for Non-Resident foreign taxable person |
10 | Form GSTR-6 | ISD return |
11 | Form GSTR-6A | Details of inward supplies made available to the ISD recipient on the basis of FORM GSTR-1 furnished by the supplier |
12 | Form GSTR-7 | Return for authorities deducting tax at source |
13 | Form GSTR-7A | TDS Certificate |
14 | Form GSTITC-1 | Communication of acceptance, discrepancy or duplication of input tax credit claim |
15 | Form GSTR-8 | Details of supplies effected through e-commerce operator and the amount of tax collected as required under sub-section (1) of section 43C |
16 | Form GSTR-9 | Annual return |
17 | Form GSTR-9A | Simplified Annual return by Compounding taxable persons registered under Section 8 |
18 | Form GSTR-9B | Reconciliation Statement |
19 | Form GSTR-10 | Final return |
20 | Form GSTR-11 | Details of inward supplies to be furnished by a person having UIN |
21 | Form GST-TRP-1 | Application for enrolment as Tax return preparer |
22 | Form GST-TRP-2 | Enrolment certificate as Tax return preparer |
23 | Form GST-TRP-3 | Show cause to as Tax return preparer |
24 | Form GST-TRP-4 | Order of cancelling enrolment as Tax return preparer |
25 | Form GST-TRP-5 | List of Tax return preparers |
26 | Form GST-TRP-6 | Consent of taxable person to Tax return preparer |
27 | Form GST-TRP-7 | Withdrawal of authorization to tax return preparer |
Read more on the Draft Rules and Formats for Return under GST at:
V: Draft Rules and Formats for Refunds under GST
Section 38 of the Model GST Act contains the provisions regarding refund of tax. Any person claiming refund of any tax and interest shall make an application before the expiry of 2years from the relevant date in prescribed form.
The Draft Rules of Refunds under GST (“the Draft Refund Rules”) along with Refund Formats have now been put on Public domain. The salient features of the Draft Refund Rules and Formats are as follows-
Sl. No | Form Number | Content |
1. | GST RFD-01 | Refund Application form
–Annexure 1 Details of Goods –Annexure 2 Certificate by CA |
2. | GST RFD-02 | Acknowledgement |
3. | GST RFD-03 | Notice of Deficiency on Application for Refund |
4. | GST RFD-04 | Provisional Refund Sanction Order |
5. | GST RFD-05 | Refund Sanction/Rejection Order |
6. | GST RFD-06 | Order for Complete adjustment of claimed Refund |
7. | GST RFD-07 | Show cause notice for reject of refund application |
8. | GST RFD-08 | Payment Advice |
9. | GST RFD-09 | Order for Interest on delayed refunds |
10. | GST RFD-10 | Refund application form for Embassy/International Organizations |
Read more on the Draft Rules and Formats for Refunds under GST at:
https://taxguru.in/goods-and-service-tax/draft-goods-services-tax-refund-rules.html
(Author can be reached at Email: [email protected])
Good Info sir