Presentation on Notification 19/2022 issued by CBIC dated 28th September 2022
Short title and commencement. (1) These rules may be called the Central Goods and Service Tax (Second Amendment) Rule 2022.
(2) Save as otherwise provided in these rules, they shall come into force with effect from the 1st day of October 2022.
Rule 21. Registration to be cancelled in certain cases
The registration granted to be a person liable to be cancelled, if the said person,-
(a) does not conduct any business from the declared place of business: or
(b) issue invoice or bill without supply of goods or services in violation of the provisions of the Act, or the rules made thereunder; or
(c) violates the provisions of Section 171 of the Act or the rules made thereunder; or
(d) violates the provision of rule 10A.
(e) avails input tax credit in violation of the provision of section 16 of the Act or the rules made thereunder; or
(f)furnishes the details of outward supplies in FORM GSTR-1 under Section 37 for one or more tax period which is in excess of the outward supplies in FORM GSTR-1 under Section 37 for one or more tax period which is in excess of the outward supplies declared by him in his valid return under section 39 for the said tax period; or
(g) Violates the provision of rule 86B.
2. In the Central Goods and Service Tax Rules 2017 (hereinafter referred to as the said rules), in rule 21, after clause (g), the following clauses shall be inserted namely
Added classes after an Amendment:-
(h)Being a registered person required to file return under subsection (1) of section 39 for each month or part thereof, has not furnished return for a continuous period of six month;
(I) being a registered person required to file return under proviso to subsection (1) of section 39 each quarter or part thereof, has not furnished returns for a continuous period of two tax period
Comment – Added clause states that if the person is registered and for the reason is not able to file the return for a continuous period of 6 months. The GST registration shall be liable to be cancelled. Additionally also as per the conditions laid down under Section 39 if the registered person is not able to furnish the returns for two quarters his registration will be liable to get cancelled.
Rule 36 Documentary requirement and conditions for claiming input tax credit
(1)The input tax credit shall be available by a registered person, including the Input Service Distributor, on the basis of the following documents, namely:-
(a) an invoice missed by the supplier of goods or services or both in accordance with the provisions of section 31;
(b) an invoice issued in accordance with the provisions of clause (f) of sub-section (3) of section 31, subject to the tax;
(c) a debit note issued by a supplier in accordance with the provisions of section 34;
(d) a bill of entry or any similar document prescribed under the Customs Act, 1962 or rules made thereunder for the assessment of integrated tax on import;
(e) an Input Service Distributor invoice or Input Service Distributor credit note or any document issued by an Input Service Distributor in accordance with the provisions of sub-rule (1) of rule 54.
(2) Input tax credit shall be available by a registered person only if all the applicable particular as specified in the provisions of Chapter VI are contained in the said document, and the relevant information, as contained in the said document is furnished in FORM GSTR 2 by such person:
(PROVIDED that if the said document does not contain all the specified particular but contains the details of the amount of tax charged, description of goods and services total value of supply of goods or services or both, GSTIN of the supplier and recipient and place of supply in case of inter-STate supply, input tax credit may be available by such registered person.}
(3) No input tax credit shall be available by a registered person in respect of any tax that has been paid in pursuance of any order where any demand has been confirmed on account of any fraud, will misstatement or suppression of facts.
4) Input tax credit to be available by a registered person in respect of invoice or debit notes, the details of (input tax credit in respect of) which have not been uploaded by the suppliers under sub-section (1) of section 37, shall not exceed (10 per cent) of the eligible credit available in respect of invoice or debit notes the details of which have been uploaded by the suppliers under sub-section (1) of section 37.
In rule 36 of the said rules,-
(a) in sub rule (2), the word, letter figure, “, and the relevant information, as contained in the said document is furnished in FORM GSTR-2 by such person” shall be omitted;
(b) in sub rule (4), in clause (b), after the word , “the details of”, the words, “input tax credit in respect of” shall be inserted;
Rule 37- Reversal of input tax credit in the case of non-payment of consideration
Before Amendment :-
(1) A registrar person, who has availed of input tax credit on any inward supply of goods or services or both, but fails to pay to the supplier thereof, the value of such supply along with the tax payable thereon, within the time limit specified in the second proviso to sub-section (2) of section 16, shall furnished the details of such supply, the amount of value not paid and the amount of input tax credit availed of proportionate to such amount not paid to the supplier in FORM GSTR-2 for the month immediately following the period of one hundred and eighty days from the date of the issue of the invoice:
PROVIDED that the value of supplies made without consideration as specified in Schedule 1 of the said Act shall be deemed to have been paid for the purposes of the second proviso to sub-section (2) of section 16:
PROVIDED FURTHER that the value of supplies on account of any amount added in accordance with the provisions of clause (b) of sub-section (2) of section 15 shall be deemed to have been paid for the purposes of the second proviso to sub-section (2) of section 16
After Amendment:-
(1) A registered person, who is availed of input tax credit on any inward supply of goods and services or both, other than the supplies on which tax is payable on reverse charge basis, but fails to pay to the supplier thereof, the amount towards the value of such supply along with tax payable thereon, within the time limit specified in the second proviso to sub-section (2) of section 16 shall pay an amount equal to the input tax credit availed in respect of such supply along with interest payable thereon under section 50, while furnishing the return in FORM GSTR-3B for the tax period immediately following the period of one hundred and eight days from the date of the issue of the invoice:
Provided that the value of supplies made without consideration as specified in Schedule 1 of the said Act shall be deemed to have been paid for the purposes of the second proviso to sub-section (2) of section 16
Provided further that the value of supplies on account of any amount added in accordance with the provisions of clause (b) of sub section (2) of section 15 shall be deemed to have been paid for the purposes of the second proviso to sub-section (2) of section 16:
Before Amendment:-
(2) The amount of in put tax credit referred to in sub rule (1) shall be added to the output tax liability of the registered person for the month in which the details are furnished.
After Amendment:-
(2) where the said registered person subsequently makes the payment of the amount towards the value of such supply along with tax payable thereon to the supplier thereof, he shall be entitled to re-avail the input tax credit referred to in sub-rule (1).
Before Amendment:-
(3) The registered person shall be liable to pay interest at the rate notified under sub-section
(1) of section 50 for the period starting from the date of availing credit on such supplies till the date of availing credit on such supplies till the date when the amount added to the output tax liability,as mentioned in sub-rule (2), is paid.
After Amendment:-
(3) The registered person shall be liable to pay interest at the rate notified under sub section (1) of section 50 for the period starting from the date of availing credit on such supplies till the date of availing credit on such supplies till the date when the amount added till the date of- availing credit on such supplies till the date when the amount added to the output tax liability, as mentioned in sub rule (2), is paid.
(4) The time limit specified in sub-section (4) of section 16 shall not apply to a claim for re-availing of any credit, in accordance with the provisions of the Act or the provisions of this Chapter, that had been reversed earlier.
Rule 38 – Claim of credit by a banking company or a financial institution
A banking company or a financial institution, including a non banking financial company, engaged in the supply of services by way of accepting deposits or extending loans or advances that chooses not to comply with the provisions of sub-section (2) of section 17, in accordance with the option permitted under sub-section (4) of that section, shall follow the following procedure, namely:-
(a) the said company or institution shall not avail the credit of,-
(i) the tax paid on inputs and input services that are used for non-business purposes: and
(ii) the credit attributable to the supplies specified in sub-section (5) of section 17, in FORM GSTR 2; ( FORM GSTR-2 stands omitted)
(b) the said company or institution shall avail the credit of tax paid on input and input services referred to in the second proviso to sub-section (4) of section 17 and not covered under clause (a);
(c) fifty per cent of the remaining amount of input tax shall be the input tax credit admissible to the company or the institution and shall be furnished in FORM GSTR-2 instead this ( and the balance amount of input tax credit shall be reversed in FORM GSTR-3B).
(Omitted clause (d))
(d) the amount referred to in clause (b) and (c) shall, subject to the provisions of section 41, 42 and 43, be credited to the electronic credit ledger of the said company or the institution.
Rule 42 Manner of determination of input tax credit in respect of input or input services and reversal thereof
Before Amendment
(1) The input tax credit in respect of inputs or input services, which attract the provisions of sub-section (1) or sub-section (2) of section 17, being partly used for the purposes of business and partly for other purposes or partly used for effecting taxable supplies including zero rated supplies and partly for effecting exempt supplies, shall be attributed to the purposes of business or for effecting taxable supplies in the following manner, namely:-
(g) ‘T1’ “T2” T3 and T4 shall be determined and declared by the registered person at the invoice level in FORM GSTR02 (and at a summary level in FORM GSTR-3B)
After Amendment
at the invoice level in FORM GSTR-2 and is omitted
Rule 60 Form and manner of furnishing details of inward supplies
Before Amendment:-
sub-clause (7) An auto drafted statement containing the details of input tax credit shall be made available to the registered person in FORM GSTR-2B, for every month, electronically through the common portal and shall, consist of
After Amendment:-
An auto generated statement containing the details of input tax credit shall be made available to the registered person In FORM GSTR-2B, for every month, electronically through the common portal and shall, consist of
Omitted Rules CGST,Rules 2017
Rule 69 Matching of claim of input tax credit
Rule 70 Final acceptance of input tax credit and communication thereof
Rule 71- Communication and rectification of discrepancy in claim of input tax credit and reversal of claim of input tax credit
Rule 72 Claim of input tax credit on the same invoice more than once
Rule 73 Matching of claim of reduction in the output tax liability
Rule 74 Final acceptance of reduction in output tax liability and communication thereof
Rule 75 Communication and certification of discrepancy in reduction in output tax liability and reversal of claim reduction
Rule 76 Claim of reduction in output tax liability more than once
Rule 77 Refund of interest paid on reclaim of reversals
Rule 79 Communication and rectification of discrepancy in details furnished by the e- commerce operator and the supplier
Rule 83. Provisions relating to a good and services tax practitioner
Sub rule 8 – A good and service tax practitioner can undertake any or all of the following activities on behalf of a registered person, if so authorised by him to –
(a) furnish the details of outward and inward supplies;
( Omitted and inward)
Rule 85- Electronic Liability Register
(2) The electronic liability register of the person shall be debited by‑
(a) the amount payable towards tax, interest, late fees or any other amount payable as per the return furnished by the said person; or
(c) the amount of tax and interest payable as a result of mismatch under section 42 or section 43 or section 50;or
Rule 89- Application for refund of tax, interest, penalty, fees or any other amount
Before Amendment:-
(1) Any person, except the person covered under the notification issued under section 55, claiming refund of() any tax, interest, penalty, fees or any other amount paid by him, other than refund of integrated tax paid on goods exported out of India, may file an application electronically in FORM GST RFD-01 through the common portal, either directly or through a Facilitation Centre notified by the Commissioner:
After Amendment:-
(1) Any person except the person covered under the notification issued under section 55, claiming refund of ( any balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49 or) any tax, interest, penalty, fees or any other amount paid by him, other than refund of integrated tax paid on goods exported out of India, may file an application electronically in FORM GST RFD-01 through the common portal, either directly or through a Facilitation Centre notified by the Commissioner.
Rule 89
First Proviso Omitted
Provided that any claim for refund relating to balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49 may be made through the return furnished for the relevant tax period in FORM GSTR 3 or FORM GSTR 4 or FORM GSTR 7, as the case may be
Rule 89
Second Proviso- Provided Further that shall be substituted to “Provided
That”
Third Proviso- Provided Also that shall be substituted to “Provided further
that”
Rule 96- Refund of integrated tax paid on goods [or services] exported out of India
Before Amendment:-
(b) the applicant has furnished a valid return in FORM GSTR 3 (or FORMGSTR 3B).
After Amendment:-
(b) the applicant has furnished a valid return in FORM GSTR-3B.
FORM GSTR-1A, FORM GSTR-2 and FORM GSTR-3 of the said rules shall be omitted.
IN FORM GST PCT-05 of the said rules, in Part A, in the table, against Sr. No.1 under the heading “List of Activities”, the word “and inward”, shall be omitted.
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