GST – CBIC issued notification to amend the CGST Rules – Non-payment to supplier would require proportionate payment or reversal of ITC; Wherein tax is not paid by supplier in GSTR-3B of an invoice/ debit note appearing in GSTR-2A, recipient to reverse the ITC; GSTR-1 would not be allowed to file if tax liability is not paid as per GSTR-1 while comparison from GSTR-3B or explanation is provided; and many more [Notification attached]
Order date - 26 December 2022
Key factors –
CGST Rule 8 - Application for registration :
- Requirement of declaring mobile number, e-mail address is not required during filing application for GST registration.
- The Permanent Account Number shall also be validated online by the common portal through separate one-time passwords sent to the mobile number and e-mail address linked to the Permanent Account Number
- Under subrule (4A), every application made under sub-rule (4) by a person, other than a person notified under sub-section (6D) of section 25, who has opted for authentication of Aadhaar number shall be followed by biometric-based Aadhaar authentication and taking photograph of the applicant where the applicant is an individual. The Central Government may, on the recommendations of the Council, by notification specify the States or Union territories wherein the provisions of sub-rule (4A) shall not apply
CGST Rules 9 - Verification of the application and approval :
- in sub-rule (1), in the proviso, after clause (a), the following clause shall be inserted, namely: - “(aa) a person, who has undergone authentication of Aadhaar number as specified in sub-rule (4A) of rule 8, is identified on the common portal, based on data analysis and risk parameters, for carrying out physical verification of places of business; or”
- in sub-rule (2), in the proviso, after clause (a), the following clause shall be inserted, namely: - “(aa) a person, who has undergone authentication of Aadhaar number as specified in sub-rule (4A) of rule 8, is identified on the common portal, based on data analysis and risk parameters, for carrying out physical verification of places of business; or”.
Rule 12(3) - Grant of registration to persons required to deduct tax at source or to collect tax at source
- after the word, “Where,”, the words, brackets and figure, “on a request made in writing by a person to whom a registration has been granted under sub-rule (2) or”, shall be inserted – for the purpose of cancelling the registration.
Rule 37 - Reversal of input tax credit in the case of non-payment of consideration.-
- Wherein payment is not made to supplier within the prescribed time limit, rule is amended to allow payment or reversal of an amount equal to the ITC availed in respect of such supply, proportionate to the amount not paid to the supplier.
Rule 37A inserted - Reversal of input tax credit in the case of non-payment of tax by the supplier and re-availment thereof
- Where ITC has been availed in FORM GSTR-3B in respect of such invoice or debit note, appearing in FORM GSTR-1, but tax is not paid in FORM GSTR-3B for the tax period by such supplier till the 30th day of September following the end of financial year, the said amount of ITC shall be reversed, while furnishing a return in FORM GSTR-3B on or before the 30th day of November following the end of such financial year. Further, where the said supplier subsequently furnishes the return in FORM GSTR-3B for the said tax period, the said registered person may re-avail the amount of such credit in subsequent FORM GSTR-3B.
Rule 46 - Tax invoice - Central Goods and Services Tax Rules, 2017
- Proviso is inserted that where any taxable service is supplied by or through an electronic commerce operator or by a supplier of online information and database access or retrieval services to a recipient who is un-registered, irrespective of the value of such supply, a tax invoice issued by the registered person shall contain the name and address of the recipient along with its PIN code and the name of the State and the said address shall be deemed to be the address on record of the recipient.
Rule 46A - Invoice-cum-bill of supply - Central Goods and Services Tax Rules, 2017
- Proviso is inserted that the said single “invoice-cum-bill of supply” shall contain the particulars as specified under rule 46 or rule 54, as the case may be, and rule 49.
Rule 59 - Form and manner of furnishing details of outward supplies - Central Goods and Services Tax Rules, 2017
- Proviso is inserted that a registered person, to whom an intimation has been issued under sub-rule (1) of rule 88C in respect of a tax period, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 for a subsequent tax period, unless he has either deposited the amount specified in the said intimation or has furnished a reply explaining the reasons for any amount remaining unpaid, as required under the provisions of sub-rule (2) of rule 88C.
88C. Manner of dealing with difference in liability reported in statement of outward supplies and that reported in return.
- New Rule is inserted providing that wherein tax payable in GSTR-1 exceeds GSTR-3B, the said registered person shall be intimated of such difference in Part A of FORM GST DRC-01B, electronically to pay the differential tax liability, along with interest under section 50, through FORM GST DRC-03; or explain the aforesaid difference in tax payable on the common portal, within a period of seven days.
- Where any amount specified in the intimation referred to in sub-rule (1) remains unpaid within the period specified in that sub-rule and where no explanation or reason is furnished by the registered person in default or where the explanation or reason furnished by such person is not found to be acceptable by the proper officer, the said amount shall be recoverable in accordance with the provisions of section 79.
Rule 108(3) substitution - Appeal to the Appellate Authority - Central Goods and Services Tax Rules, 2017
- Where the order appealed against is uploaded on the common portal, a final acknowledgment, indicating appeal number, shall be issued in FORM GST APL-02 and the date of issue of the provisional acknowledgment shall be considered as the date of filing of appeal.
- where the said order is not uploaded on the common portal, the appellant shall submit a self-certified copy of the said order within a period of seven days from the date of filing of FORM GST APL-01 and a final acknowledgment, indicating appeal number, shall be issued in FORM GST APL-02, and the date of issue of the provisional acknowledgment shall be considered as the date of filing of appeal:
- where the said self-certified copy of the decision or order is not submitted within a period of seven days from the date of filing of FORM GST APL-01, the date of submission of such copy shall be considered as the date of filing of appeal.