CA Bimal Jain
In order to engage with the stakeholders and invite comments from the public at large, recently, the Central Government has issued 3 more Draft Goods and Services Tax (“GST”) Rules viz. Draft GST Rules on Accounts & Records, Appeals & Revision and Advance Ruling, on April 19, 2017, making a total of 14 Draft Rules as on date.
We are summarising herewith key pointers of the 3 new Draft Rules, for your easy digests:
- The Draft GST Rules on Accounts & Records provides clarity on various aspects including maintenance of accounts by registered persons, generation & maintenance of electronic records and records to be maintained by owner or operator of godown or warehouse and transporters, in the following manner:
- Every registered person shall keep and maintain, in addition to the particulars mentioned in Section 35(1) of the CGST Act, 2017 [i.e. true and correct account of production/manufacture of goods, inward and outward supply, stock of goods, input tax credit (ITC) availed etc.], a true and correct account of the goods or services imported or exported or of supplies attracting payment of tax on reverse charge along with relevant documents, including invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers and e-way bills.
- The account or records shall be maintained separately for eachactivity including manufacturing, trading and provision of services, etc.
- Every registered person shall keep the particulars of- (a) names and complete addresses of suppliers, (b) names and complete addresses of the persons to whom supply has been made, (c) the complete addresses of the premises where the goods are stored including goods stored during transit.
- If any taxable goods are found to be stored at any place(s) other than those declared above, without the cover of any valid documents, the proper officer shall determine the amount of tax payable on such goods as if such goods have been supplied by the registered person.
- Every registered person manufacturing goods shall maintain monthly production accounts, showing the quantitative details of raw materials or services used in the manufacture and quantitative details of the goods so manufactured including the waste and by products thereof.
- Every registered person supplying services shall maintain the accounts showing the quantitative details of goods used in the provision of each service, details of input services utilised and the services supplied.
- Books of account including any electronic form of data stored on any electronic device, shall be kept at the principal place of business and at every related place(s) of business mentioned in the certificate of registration.
- Each volume of books of account shall be serially numbered and the records maintained in electronic form shall be authenticated by means of a digital signature.
- Proper electronic back-up of records shall be maintained and preserved in such manner that, in the event of destruction of such records due to accidents or natural causes, the information can be restored within reasonable period of time.
- Owner or operator of godown or warehouse and transporters who is required to maintain records and accounts, if not already registered under the GST Act, shall submit the details regarding his business electronically on the Common Portal in FORM GST ENR-01, and, upon validation of the details furnished, a unique enrolment number shall be generated and communicated to the said person.
The Draft GST Rules on Appeals & Revision provides clarity on various aspects including filing of appeal or application to the Appellant Authority/Appellant Tribunal, production of additional evidence before the Appellate Authority or the Appellate Tribunal, Appeal to the High Court, disqualification for misconduct etc., in the following manner:
- An appeal to the Appellate Authority shall be filed in FORMGSTAPL-01 [either electronically or otherwise] and an appeal to the Appellate Tribunal shall be filed in FORM GST APL-05 [electronically] and a provisional acknowledgement shall be issued to the appellant immediately.
- A hard copy of the appeal shall be submitted in triplicate in case of appeal to the Appellate Authority and in quintuplicate in case of appeal to the Appellate Tribunal, along with a certified copy of the decision or order appealed against along with the supporting documents within 7 days of filing of the appeal. Thereafter, a final acknowledgement, indicating appeal number shall be issued in FORM GST APL-02.
- Where the hard copy of the appeal and documents are submitted within 7 days from the date of filing the Appeal, the date of filing of the appeal shall be the date of issue of provisional acknowledgement and where submitted after 7 days, the date of filing of the appeal shall be the date of submission of documents.
- The appeal shall be treated as filed only when the final acknowledgement, indicating theappeal number is issued.
- A memorandum of cross-objections to the Appellate Tribunal shall be filed in quintuplicate to the Registrar in FORM GST APL-06.
- The fees for filing and restoration of appeal shall be Rs. 1,000/- for every one lakh rupees of tax or ITC involved or the difference in tax or ITC involved or the amount of fine, fee or penalty determined in the order appealed against, subject to maximum of Rs. 25,000/- (in case of appeal to the Appellant Tribunal).
- There shall be no fee for application made before the Appellate Tribunal for rectification of errors.
- Additional evidence cannot be produced before the Appellate Authority or the Appellate Tribunal, whether oral or documentary, other than the evidence produced during the course of the proceedings before the adjudicating authority or, as the case may be, the Appellate Authority except in specified circumstances viz., lower authority refusing to admit evidence, prevention by sufficient cause, order passed without giving sufficient opportunity to adduce evidence.
The Draft GST Rules on Advance Ruling covers various aspects including qualification and appointment of members of the Authority for Advance Ruling, form and manner of application to the Authority for Advance Ruling, certification of copies of the advance rulings pronounced by the Authority, form and manner of appeal to the Appellate Authority for Advance Ruling etc., in the following manner:
- The Central Government and the State Government shall appoint an officer having the experience of not less than 3 years in the rank of Joint Commissioner as member of the Authority for Advance Ruling.
- An application for obtaining an advance ruling shall be made on the common portal in FORM GST ARA-1 along with a fee of Rs. 5,000/-.
- An appeal against the advance ruling issued can be made to the Appellate Authority for advance ruling on the common portal in FORM GST ARA-2 along with a fee of Rs. 10,000/-.
The Draft Rules on Accounts and Records appears tedious and requires separate accounts to be maintained for each activity including manufacturing, trading and provision of services, when the taxable event in GST would be supply. Further, the quantum of details and number of records to be maintained in GST are also onerous requiring the assessees to maintain detailed list of records/information in GST which is not going positive towards ease of doing business and shall entail increase in compliance costs.
It may be noted that the CBEC has invited comments on the Draft GST Rules by April 27, 2017. The Government aims to implement the much awaited indirect tax reform i.e. GST from July 1, 2017, and to that effect the final nod to the new sets of Draft Rules as well as fixation of GST rates for goods and services will be done in the next meeting of the GST Council scheduled on 18-19 May, 2017. It is indeed the best time for the Trade and Industry to gear up and present their likely issues so that necessary changes are incorporated by the Government.
Readers are requested to write back to us for any inputs/ suggestions on Draft Rules for our compilation and submission to Government.
Hope the information will assist you in your Professional endeavours. In case of any query/ information, please do not hesitate to write back to us.
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