15^th point of 48^th GST council meeting

PAN-linked mobile no. and e-mail id to be captured from CBDT database and recorded in GST REG-01 and OTP-based verification to be conducted at the time of registration on such PAN-linked mobile no. and email id to restrict misuse of PAN of a person by unscrupulous elements without knowledge of the said PAN-holder.

Before amendments

Person was required to declare his PAN, mobile no, email-id and State/UT in Part A of GST REG-01 on GST Common Portal.

After Amendments

Person is required to declare his only PAN and State/UT in Part A of GST REG-01 on GST Common Portal. After amendments, there is no need to declare mobile no and e-mail id in Part A.

Before amendments

Mobile no and email-id provided in Part A was to be verified through OTP sent on them.

After Amendments

OTP shall be sent to pan linked mobile no and email id.

14^th Point of 48^th GST council meeting

Proposal to conduct a pilot in State of Gujarat for Biometric-based Aadhaar authentication and risk-based physical verification of registration. This will help in tackling the menace of fake and fraudulent registrations.

Before amendments

Aadhaar Authentication was done through link sent on given mobile no. and e-mail id.

For complete details refer Rule 8(4A)

After Amendments

Biometric-based Aadhaar authentication and risk-based physical verification of registration is introduced

For complete details refer Rule 8(4A)

Vide Notification No. 27/2022 - Central Tax dated 26-12-2022, Rule 8(4A) shall apply only to Gujrat state.

For complete details, refer Rule 9(1)

For complete details, refer Rule 9(2)

11^th Point of 48^th GST council meeting

To provide facility to RPs, who are required to collect tax at source u/s 52 or deduct tax at source u/s 51, for cancellation of their registration on their request.

If person is no more liable to deduct/collect TDS, PO may cancel his Registration

Rule 12(3)

Where,

[1][on a request made in writing by a person to whom a registration has been granted u/sr (2) or]

upon an enquiry or pursuant to any other proceeding under the Act,

the PO is satisfied that a person to whom a RC has been issued

is no longer liable to deduct tax at source u/s 51 or collect tax at source u/s 52,

the said PO may cancel the registration issued u/sr (2) and

such cancellation shall be communicated to the said person electronically in GST REG-08:

Provided that the PO shall follow the procedure as provided in rule 22 for the cancellation of registration.

Before amendments, RP was not able to make request for cancellation of registration taken u/s 51 or 52 even if he was not liable to deduct or collect tax.

5^th Point of 48^th GST council meeting

The Council has recommended to amend rule 37(1) retrospectively with effect from 01.10.2022 to provide for reversal of ITC, in terms of 2^nd proviso to section 16(2), only proportionate to the amount not paid to the supplier vis a vis the value of the supply, including tax payable.

2^nd Proviso to Section 16(2) read with Rule 37(1)

RP, who has availed of ITC on any inward supplies other than supplies on which tax is payable on RCM basis

but fails to pay to the supplier, value of supply [2][whether wholly or partly,] & tax within 180 days from the date of issue of invoice,  

shall pay [3][or reverse] ITC availed in respect of such supplies [4][proportionate to the amount not paid to the supplier,]

along with interest payable thereon u/s 50,

while furnishing the return in GSTR-3B for the tax period immediately following the period of 180 days from the date of the issue of the invoice.

Before amendments, as per rule 37(1), whole ITC availed was to be paid even on non payment of partial amount to the supplier. Such error were rectified wef 01-10-2022.

6^th Point of 48^th GST council meeting

The Council recommended to insert Rule 37A in CGST Rules, 2017 to prescribe the mechanism for reversal of ITC by a RP in the event of nonpayment of tax by the supplier by a specified date and mechanism for re-availment of such credit, if the supplier pays tax subsequently. This would ease the process for complying with the condition for availment of ITC u/s 16(2)(c) of CGST Act, 2017.

Extracts of Section 16(2)(c)

Notwithstanding anything contained in this section, no RP shall avail ITC in respect of any inwad supplies unless,–

(a) ….

(c) subject to section 41, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilisation of ITC admissible in respect of the said supply; and

Purpose of Rule 37A

Because of section 16(2)(c), ITC was not available on inward supplies on which tax has not been paid by supplier. Rule 37A has been inserted for reversal of ITC availed on such supplies on which tax has not been deposited by supplier. It also provides for reavailment of ITC on said supply after payment of tax by the supplier.

Rule 37A

Reversal of availed ITC on inward supplies on which tax has not been paid by supplier

Where ITC has been availed by a RP in GSTR-3B for a tax period

in respect of such invoice/ DN, the details of which have been furnished by the supplier in GSTR-1, but GSTR-3B for the same tax period has not been furnished by such supplier till the 30th day of Sep following the end of FY in which the ITC in respect of such invoice/DN has been availed,

the said ITC shall be reversed by the RP, while furnishing GSTR-3B on or before the 30th day of Nov following the end of such FY:

1^st Proviso - Reversal of ITC with interest if reversal made after 30^th Nov following the end of such FY

where the said amount of ITC is not reversed by the RP in GSTR-3B on or before the 30th day of Nov following the end of such FY during which such ITC has been availed, such amount shall be payable by the said person along with interest thereon u/s 50.

2^nd Proviso – Re-availment of said ITC on payment of tax by the supplier on said supplies

where the said supplier subsequently furnishes GSTR-3B for the said tax period, the said RP may re-avail the amount of such credit in GSTR-3B for a tax period thereafter.

Rule 46 Tax invoice shall contain

(f) name and address of the recipient and the address of delivery, name of the State and its code, if such recipient is un-registered and where the value of the taxable supply is less than Rs.50,000 and the recipient requests that such details be recorded in the tax invoice;

[5][Provided that where any taxable service is supplied to an unregistered person

by or through an ECO or

by a supplier of OIDAR services

irrespective of the value of such supply, a tax invoice issued by RP 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

Notwithstanding anything contained in rule 46 or 49 or 54,

where a RP is supplying taxable as well as exempted goods or services or both

to an unregistered person,

a single “invoice-cum-bill of supply” may be issued for all such supplies.”

[6][Provided that the said single “invoice-cum-bill of supply” shall contain the particulars as specified u/r 46 or 54 and 49.]

14^th Point of 48^th GST council meeting

Rule 88C and GST DRC-01B to be inserted in CGST Rules for intimation to the taxpayer about the difference between liability reported in GSTR-1 and in GSTR-3B for a tax period, where such difference exceeds a specified amount and/ or percentage, for enabling the taxpayer to either pay the differential liability or explain the difference.

Further, clause (d) to be inserted in sub-rule (6) of rule 59 of CGST Rules, 2017 to restrict furnishing of FORM GSTR-1 for a subsequent tax period if the taxpayer has neither deposited the amount specified in the intimation nor has furnished a reply explaining the reasons for the amount remaining unpaid. This would facilitate taxpayers to pay/ explain the reason for the difference in such liabilities reported by them, without intervention of the tax officers.

Intimation of differential tax in DRC-01B, if tax payable as per GSTR-1 exceeds tax paid as per GSTR-3B

[7][Rule 88C(1)

Where the tax payable as per GSTR-1/ Invoice Furnishing Facility in respect of a tax period, exceeds the tax payable as per GSTR-3B for that period furnished by RP,

by such amount and such percentage as may be recommended by the Council,

the said RP shall be intimated of such difference in Part A of GST DRC-01B, electronically on the common portal, and a copy of such intimation shall also be sent to his e-mail address, highlighting the said difference and directing him to—

(a) pay the differential tax liability, along with interest u/s 50, through GST DRC-03; or

(b) explain the aforesaid difference in tax payable,

within a period of 7 days.

RP shall either pay differential tax or furnish reason of such differential tax

Rule 88C(2)

Upon receipt of the intimation in DRC-01B, RP shall, either,-

(a) pay differential tax liability, as specified in Part A of GST DRC01B, fully or partially, along with interest u/s 50, through GST DRC-03 and furnish the details thereof in Part B of GST DRC-01B; or

(b) furnish a reply, incorporating reasons of differential tax liability that has remained unpaid, if any, in Part B of GST DRC-01B,

within the period specified.

Differential tax shall be recoverable as per section 79 if RP has neither paid differential tax or nor provided reason of such difference

Rule 88C(3)

Where

any amount specified in the intimation in DRC-01B remains unpaid within 7 days and

no explanation or reason is furnished by RP in default or the explanation or reason furnished is not found to be acceptable by the proper officer,

the said amount shall be recoverable as per section 79.

14^th Point of 48^th GST council meeting

clause (d) to be inserted in rule 59(6) to restrict furnishing of GSTR-1 for a subsequent tax period if the taxpayer has neither deposited the amount specified in the intimation nor has furnished a reply explaining the reasons for the amount remaining unpaid.

This would facilitate taxpayers to pay/ explain the reason for the difference in such liabilities reported by them, without intervention of the tax officers.

GSTR-1 shall not be allowed to be furnished in following cases

[8][Rule 59(6)

Notwithstanding anything contained in this rule, -

(a) a RP shall not be allowed to furnish GSTR-1, if he has not furnished the return in GSTR-3B [9][for the preceding month];

(b) a RP, required to furnish return for every quarter under the proviso to section 39(1) shall not be allowed to furnish GSTR-1, if he has not furnished the return in GSTR-3B for preceding tax period;

[10][(c) ***]

[11][(d) a RP, to whom an intimation has been issued u/r 88C(1) in respect of a tax period,

shall not be allowed to furnish 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 u/sr 88C(2)]

Rule 87(8)

(8) Where the bank account of the person concerned, or the person making the deposit on his behalf, is debited but no Challan Identification Number is generated or generated but not communicated to the common portal, the said person may represent electronically in FORM GST PMT-07 through the common portal to the bank or electronic gateway through which the deposit was initiated.

[12][Provided that where the bank fails to communicate details of Challan Identification Number to the Common Portal, the Electronic Cash Ledger may be updated on the basis of e-Scroll of the Reserve Bank of India in cases where the details of the said e-Scroll are in conformity with the details in challan generated in FORM GST PMT-06 on the Common Portal.]

7^th Point of 48^th GST council meeting

Sub-rule 108(3) amended to provide clarity on the requirement of submission of certified copy of the order appealed against and the issuance of final acknowledgment by the appellate authority. This would facilitate timely processing of appeals and ease the compliance burden for the appellants.

[13][108(3)

Where the decision or order appealed against is uploaded on the common portal,

a final acknowledgment, indicating appeal number, shall be issued in GST APL-02 by the Appellate Authority or an officer authorised by him in this behalf and the date of issue of the provisional acknowledgment shall be considered as the date of filing of appeal:

1^st Proviso - where the decision or order appealed against is not uploaded on the common portal

the appellant shall submit a self-certified copy of the said decision or order within 7 days from the date of filing of GST APL-01 and

a final acknowledgment, indicating appeal number, shall be issued in GST APL-02 by the Appellate Authority or an officer authorised by him in this behalf, and the date of issue of the provisional acknowledgment shall be considered as the date of filing of appeal:

2^nd Proviso - where the said self-certified copy of the decision or order is not submitted within 7 days from the date of filing of GST APL-01,

the date of submission of such copy shall be considered as the date of filing of appeal.]

7^th Point of 48^th GST council meeting

Rule 109 to be amended to provide clarity on the requirement of submission of certified copy of the order appealed against and the issuance of final acknowledgment by the appellate authority. This would facilitate timely processing of appeals and ease the compliance burden for the appellants.

For complete details, refer rule 109

8^th Point of 48^th GST council meeting

Rule 109 to be amended to provide clarity on the requirement of submission of certified copy of the order appealed against and the issuance of final acknowledgment by the appellate authority. This would facilitate timely processing of appeals and ease the compliance burden for the appellants.

For complete details, refer rule 109

9^th Point of 48^th GST council meeting

Rule 109C and FORM GST APL-01/03 to be inserted in the CGST Rules, 2017 to provide the facility for withdrawal of an application of appeal up to certain specified stage. This would help in reducing litigations at the level of appellate authorities.

For complete details, refer rule 109C