Point wise discussion of Amendment in CGST Rules, 2017 vide Notif. no.12/2024-CT dt. 10.07.2024 and more

Notification No. 12/2024-Central Tax dated 10.07.2024

1. Rule 8 (Application for registration), in sub-rule (4A), after the first proviso, the following proviso shall be inserted, w.e.f a date to be notified: –

“Provided further that every application made under sub-rule (4) by a person, other than a person notified under sub-section (6D) of section 25, who has not opted for authentication of Aadhaar number, shall be followed by taking photograph of the applicant where the applicant is an individual or of such individuals in relation to the applicant as notified under sub-section (6C) of section 25 where the applicant is not an individual, along with the verification of the original copy of the documents uploaded with the application in FORM GST REG-01 at one of the Facilitation Centers notified by the Commissioner for the purpose of this sub-rule and the application shall be deemed to be complete only after successful verification as laid down under this proviso.”

2.  Rule 21 – Registration to be cancelled in certain cases:-

• Amended (i) in clause (f), after the words, letters and figures “FORM GSTR-1”, the letters, words and figures “, as amended in FORM GSTR-1A if any,” shall be inserted;
• Added (ii) after clause (g), the following clause shall be inserted, namely: –

“(ga) violates the provisions of third or fourth proviso to sub-rule (1) of rule 23; or”.

3. Rule 21(A) – Suspension of registration:-

This amendment ensures that both the initial GSTR-1 and any subsequent changes made in GSTR-1A are considered for the criteria outlined in Rule 21A.

4. Rule 28 – Value of supply of goods or services or both between distinct or related persons, other than through an agent (w.e.f.26.10.2023):-

• Amendment in sub-rule (2)

a. after the words “who is a related person”, the words “located in India” shall be inserted;

b. after the words “amount of such guarantee offered”, the words “per annum” shall be inserted.

• Further, a new proviso has been added stipulating that if the recipient is eligible for claiming full input tax credit (ITC), the invoice value will be considered as the value of the services supplied. In essence, full ITC eligibility ensures that the invoice value serves as the accepted supply value.

5. Rule 36- Documentary requirements and conditions for claiming input tax credit (w.e.f. 10.07.2024): 

Rule 36(4)(a) Amended as “FORM GSTR-1, as amended in FORM GSTR-1A if any” for words “FORM GSTR-1”.

6. Rule 37A- Reversal of input tax credit in the case of non-payment of tax by the supplier and re-availment thereof (w.e.f. 10.07.2024):-

after the words, letters and figures “FORM GSTR-1”, the letters, words and figures “, as amended in FORM GSTR-1A if any,” shall be inserted.

7. Rule 39- Procedure for distribution of input tax credit by Input Service Distributor w.e.f. Notified date:-

(i) for sub-rule (1), the following sub-rule shall be substituted, namely: –

“(1) An Input Service Distributor shall distribute input tax credit in the manner and subject to the following conditions, namely:–

• ITC must be distributed for a month in the same month and details furnished in FORM GSTR-6.
• The amount of credit distributed cannot exceed the available credit for distribution.
• ITC for services attributed to a specific recipient must only be distributed to that recipient.
• ITC for services attributed to multiple recipients must be distributed pro-rata based on each recipient’s turnover relative to the aggregate turnover of all relevant recipients.
• For services attributable to all recipients, ITC must be distributed pro-rata based on each recipient’s turnover relative to the aggregate turnover of all recipients operational during the relevant period.
• Eligible and ineligible ITC must be separately distributed as per Section 17(5) of the rules.
• ITC on central, state, union territory, and integrated taxes must be distributed separately.
• ITC on integrated tax must be distributed as integrated tax to all recipients.
• For recipients in the same state/UT as the ISD, distribute as central and state/UT tax; for different states/UTs, distribute as integrated tax.
• Issue invoices for ITC distribution as per Rule 54(1), clearly indicating it’s for ITC distribution.
• Issue credit notes for reducing already distributed ITC as per Rule 54(1).
• Additional ITC from a debit note must be distributed in the month the debit note is included in FORM GSTR-6, following specified conditions.
• ITC reduction from a credit note must be apportioned in the same ratio as the original ITC distribution and adjusted accordingly.

(ii) A registered person with the same PAN and State code as an Input Service Distributor (ISD) can issue an invoice, credit note, or debit note under sub-rule (1A) of rule 54 to transfer the credit of common input services subject to tax under sections 9(3) or 9(4). The ISD then distributes this credit among distinct persons as per the provisions of sub-rule (1).

(iii) in sub-rule (2), for the words and brackets “clause (j)”, the words and brackets “clause (n)” shall be substituted;

(iv) in sub-rule (3), for the words and brackets “clause (h)”, the words and brackets “clause (l)” shall be substituted;

These amendments seek to enhance the transparency and effectiveness of credit allocation by the ISD, ensuring correct attribution of input services and enabling accurate credit transfer within entities sharing the same PAN.

8. Rule 40- Manner of claiming credit in special circumstances,w.e.f. 10.07.2024:

After the words “FORM GSTR-1”, insert “and in FORM GSTR-1A, if any.

9. Rule 48 – Manner of issuing invoice,w.e.f. 10.07.2024:

After the words “FORM GSTR-1”, insert “and in FORM GSTR-1A, if any

10. Rule 59- Form and manner of furnishing details of outward supplies, w.e.f. 10.07.2024:

1. the following proviso shall be inserted,

“under the Goods and Services Tax (GST) system where a registered person can amend or provide additional details of their outward supplies of goods or services (or both) after submitting details in FORM GSTR-1, but before filing the return in FORM GSTR-3B for a particular tax period. The amendment or additional details can be furnished electronically through the GST common portal, either directly or via a designated Facilitation Centre notified by the Commissioner.”

ii. in sub-rule (4), with effect from 1st day of August, 2024, for the words “two and a half lakh rupees” wherever they occur, the words “one lakh rupees” shall be substituted;

iii. sub-rule (4A) shall be inserted, Namely:-

“(4A) The additional details or the amendments of the details of outward supplies of goods or services or both furnished in FORM GSTR-1A may, as per the requirement of the registered person, include the –

(a) invoice wise details of –

• inter-State and intra-State supplies made to the registered persons; and
• inter-State supplies with invoice value more than one lakh rupees made to the unregistered persons;

(b) consolidated details of –

• intra-State supplies made to unregistered persons for each rate of tax; and
• State wise inter-State supplies with invoice value upto one lakh rupees made to unregistered persons for each rate of tax;

(c) debit and credit notes, if any, issued during the month for invoices issued previously.”.

11. Rule 60- Form and manner of furnishing details of inward supplies, w.e.f. 10.07.2024:-

Amendment to Sub-rule (1): The amendment introduces “FORM GSTR-1A” alongside “FORM GSTR-1” as documents that need to be considered.

Amendment to Sub-rule (7): This introduces a new clause (iia) which specifies that taxpayers need to include additional details or amendments related to outward supplies. These details should be from FORM GSTR-1A, which is filed between the day after the due date of FORM GSTR-1 for the previous tax period and the due date of FORM GSTR-1 for the current tax period.

These changes expand the requirements for including details from FORM GSTR-1A in the GST filings, ensuring that updated information is accounted for in the current tax period.

12. Rule 62- Form and manner of submission of quarterly return by the composition supplier, w.e.f. 10.07.2024:- “Provided that the return in FORM GSTR-4 for a financial year from FY 2024-25 onwards shall be required to be furnished by the registered person till the thirtieth day of June following the end of such financial year”.

13. Rule 78- Matching of details furnished by the e-Commerce operator with the details furnished by the supplier, w.e.f. 10.07.2024: After the words “supplier in FORM GSTR-1”, insert “, as amended in FORM GSTR-1A if any”.

14. Rule 88B- Manner of calculating interest on delayed payment of tax, w.e.f. 10.07.2024:  “Provided that where any amount has been credited in the Electronic Cash Ledger as per provisions of sub-section (1) of section 49 on or before the due date of filing the said return, but is debited from the said ledger for payment of tax while filing the said return after the due date, the said amount shall not be taken into consideration while calculating such interest if the said amount is lying in the said ledger from the due date till the date of its debit at the time of filing return.”.

15. Rule 88C- Manner of dealing with difference in liability reported in statement of outward supplies and that reported in return, w.e.f. 10.07.2024:in sub-rule (1), after the words, letters and figures “FORM GSTR-1”, the letters, words and figures “, as amended in FORM GSTR-1A if any,” shall be inserted.

16. Rule 89- Application for refund of tax, interest, penalty, fees or any other amount, w.e.f. 10.07.2024: 

(i) Added Sub-rule 1B after 1A for New Provisions of Refund Claims: Any person, claiming refund of additional integrated tax paid on account of upward revision in price of the goods subsequent to exports, and on which the refund of integrated tax paid at the time of export of such goods has already been sanctioned as per rule 96, may file an application for such refund of additional integrated tax paid, electronically in FORM GST RFD-01 through the common portal, subject to the provisions of rule 10B, before the expiry of two years from the relevant date as per clause (a) of Explanation (2) of section 54;

Provided that the said application for refund can, in cases where the relevant date as per clause (a) of Explanation (2) of section 54 of the Act was before the date on which this sub-rule comes into force, be filed before the expiry of two years from the date on which this sub-rule comes into force.”;

(ii) after clause (ba), inserted clause (bb) and (bc):

“(bb) The detailed list of documentation requirements for claiming a refund based on an upward revision in the price of exported goods. Here’s a summary:

Export Invoices: Number, date, and copies of invoices issued for the export.

Shipping Bills or Bills of Export: Number, date, and copies of shipping bills or bills of export related to the exported goods.

Bank Realisation Certificate (BRC) or Foreign Inward Remittance Certificate: Number, date, and copies issued by Authorised Dealer-I Bank, confirming receipt of foreign exchange related to the export.

Refund Details: Information about any refunds already sanctioned under specific rules.

Supplementary Invoices or Debit Notes: Number, date, and copies of invoices or debit notes issued after upward price revision of exported goods.

Additional Integrated Tax Payment: Details and proof of payment of additional integrated tax, if applicable, and interest paid on it.

Foreign Inward Remittance Certificate for Additional Remittance: Number, date, and copies of certificates from Authorised Dealer-I Bank confirming additional foreign exchange remittance due to price revision post-export.

Certificate from Chartered Accountant/Cost Accountant: Confirmation that the additional foreign exchange remittance is due to post-export price revision, along with copies of contracts or relevant documents indicating the need for price revision and the revised prices.

(bc) a reconciliation statement, reconciling the value of supplies declared in supplementary invoices, debit notes or credit notes issued along with relevant details of Bank RealisationCertificate or foreign inward remittance certificate issued by Authorised Dealer-I Bank, in a case where the refund is on account of upward revision in price of such goods subsequent to exports;”.

17. Inserted Rule 95B- Refund of tax paid on inward supplies of goods received by Canteen Stores Department, w.e.f. 10.07.2024

The new provisions for refund of central tax paid by the Canteen Stores Department under the Ministry of Defence on inward supplies of goods. Here’s a summary:

Refund Eligibility: The Canteen Stores Department can claim a refund of fifty percent of the central tax paid on goods received for subsequent supply to Unit Run Canteens or authorized customers.

Application Process: Refund applications must be submitted quarterly in FORM GST RFD-10A through the common portal.

Processing: Applications will be processed similar to those in FORM GST RFD-01 under rule 89, subject to conditions including:

• Goods received against tax invoices from registered suppliers.
• Supplier details submitted in FORM GSTR-1 and GSTR-3B.
• Applicant’s details (name and GSTIN) mentioned in the tax invoice.
• Goods received for subsequent supply to specified entities of the Canteen Stores Department.

Overall, the provisions specify the conditions and process for claiming central tax refunds on inward supplies by the Canteen Stores Department for subsequent distribution within its authorized network.

18. Rule 96- Refund of integrated tax paid on goods exported out of India, w.e.f. 10.07.2024:

(i) The excerpt describes amendments to sub-rule (1) of a rule, likely under GST regulations:

Clause (a): A proviso is added after clause (b), stipulating that after mentioning “FORM GSTR-1”, any amended version in “FORM GSTR-1A” should also be considered.

Clause (b): A proviso is added after clause (c), allowing exporters to electronically file FORM GST RFD-01 for a refund of additional integrated tax paid due to price revisions post-export. This applies when the integrated tax initially paid during export has already been refunded as per sub-rule (3) of the same rule. The refund application process is governed by the provisions outlined in rule 89.

(ii) in sub-rule (2), after the words, letters and figures “contained in FORM GSTR-1”, the letters, words and figures “, as amended in FORM GSTR-1A if any,” shall be inserted.

19. Rule 96A- Refund of integrated tax paid on export of goods or services under bond or Letter of Undertaking, w.e.f. 10.07.2024: An amendment stipulates that an additional 15-day grace period shall be granted after the lapse of one year, inclusive of all extensions authorized by the Reserve Bank of India, or whichever is later, from the invoice issuance date for exports. This extension applies if the exporter has not received payment in convertible foreign exchange or Indian rupees for such services.

20. Rule 110,111,113 Substituted relation to Appeal, Application to the Appellate Tribunal w.e.f. 10.07.2024:-

“Rule 110 –

• Appeals must be filed electronically using FORM GST APL-05 along with relevant documents. Manual filing is allowed only with special permission from the Registrar.
• Cross-objections should be filed electronically using FORM GST APL-06, or manually with Registrar permission.
• Appeals and cross-objections must be signed as per rule 26.
• If the appealed order is on the common portal, a final acknowledgement (FORM GST APL-02) is issued after removal of defects, with the provisional acknowledgement date considered as the filing date.
• If the order isn’t on the portal, a self-certified copy must be submitted within seven days of filing FORM GST APL-05.
• Fees for appeals depend on the amount involved, with a minimum of Rs. 5,000 and maximum of Rs. 25,000. No fee is required for rectification applications under sub-section (10) of section 112.

Rule 111-

• An appeal must be filed electronically using Form GST APL-07 along with relevant documents. A provisional acknowledgement is issued immediately upon filing.
• Manual filing in Form GST APL-07 is allowed only if permitted by the Registrar through a special or general order, with specified conditions and restrictions.
• Filed electronically in Form GST APL-06. Manual filing is allowed under special or general orders from the Registrar, with specified conditions.
• Both appeals and cross-objections must be signed as per Rule 26 specifications.
• If the appealed order is on the common portal, a final acknowledgement (Form GST APL-02) is issued upon removal of defects, considering the date of provisional acknowledgement as the filing date.
• If the order is not on the portal, a self-certified copy must be submitted within seven days of filing Form GST APL-07. The final acknowledgement is issued upon removal of defects, with the submission date of the order copy considered as the filing date if delayed beyond seven days.
• The term “Registrar” refers to a government-appointed official, which includes Joint Registrar, Deputy Registrar, and Assistant Registrar.

Rule 113-

The provision allows an appellant to withdraw their appeal or application before the issuance of an order under section 113(1) of the GST Act. If the appeal or application is withdrawn after the final acknowledgment in FORM GST APL-02 has been issued, approval from the Appellate Tribunal is required. The Tribunal must decide on the withdrawal within fifteen days of application filing. Any new appeal or application filed after withdrawal must adhere to the time limits specified in section 112(1) or (3) of the Act.

21. Rule 138- Information to be furnished prior to commencement of movement of goods and generation of e-way bill, w.e.f. Notified date:-“Provided also that an unregistered person required to generate e-way bill in FORM GST EWB-01 in terms of the fourth proviso to sub-rule (1) or an unregistered person opting to generate e-way bill in Form GST EWB-01, on the common portal, shall submit the details electronically on the common portal in FORM GST ENR- 03 either directly or through a Facilitation Centre notified by the Commissioner and, upon validation of the details so furnished, a unique enrolment number shall be generated and communicated to the said person.”.

22. Rule 142-Notice and order for demand of amounts payable under the Act, w.e.f 10.07.2024:-

Sub-rule (2) Amendment: The amendment replaces the requirement for the proper officer to issue an acknowledgment in FORM GST DRC-04 for payments reported in FORM GST DRC-03. Instead, it mandates that an acknowledgment in FORM GST DRC-04 shall be made available to the person electronically through the common portal.

Sub-rule (2A) Insertion: After reporting in FORM GST DRC-01A, the proper officer may issue an intimation in Part-C of FORM GST DRC-01A to accept payments or submissions made by the person.

New Sub-rule (2B): This sub-rule introduces a procedure where if a person pays tax, interest, penalty, or any other amount under specified sections through an intimation in FORM GST DRC-03, they can file an application electronically in FORM GST DRC-03A on the common portal. This allows the amount paid through FORM GST DRC-03 to be credited in the Electronic Liability Register in FORM GST PMT-01 against the relevant debit entry, as if the payment was made on the date of the intimation in FORM GST DRC-03. However, once anorder in FORM GST DRC-05 concludes proceedings related to such payment, no further application in FORM GST DRC-03A can be filed.

23. Rule 163- Consent based sharing of information:-said rule 163, in sub-rule (1), in clause (c), after the words, letters and figures “FORM GSTR-1”, the letters, words and figures”, as amended in FORM GSTR-1A if any,” shall be inserted.

Notification No. 13/2024 – Central Tax dated 10.07.2024 (Rescinded Notification No. 27/2022-Central Tax dated 26.12.2022, w.e.f. 10.07.2024)

Notification No. 27/2022 – Central Tax states that the provisions of sub-rule 4A of the CGST Rules, 2017,

The rule states that an application made under a specific sub-rule must undergo additional verification steps if the applicant has opted for Aadhaar authentication and is identified based on data analysis and risk parameters. These steps include:

• Biometric-based Aadhaar authentication.
• Photograph of the applicant or relevant individuals.
• Verification of the original documents uploaded with the application.

This verification must take place at a designated Facilitation Centre, and the application will be considered complete only after this process is finished.

Notification No. 14/2024 – Central Tax dated 10.07.2024

Exemption from Filing Annual Return for Financial Year 2023-24

Section 44 annual return:-That every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return for every financial year electronically in such form and manner as may be prescribed on or before the thirty-first day of December following the end of such financial year;

Hereby exempts the registered person whose aggregate turnover in the financial year 2023-24 is up to two crore rupees, from filing annual return for the said financial year.

Notification No. 15/2024-Central Tax w.e.f. 10.07.2024

Reduction in rate of TCS

Amendment in Notification No. 52/2018-Central Tax with reduction in rate of TCS with NN- 15/2024-Central Tax w.e.f. 10.07.2024:-The amendment is made under sub-section (1) of section 52 of the Central Goods and Services Tax Act, 2017 (CGST Act), which empowers the Central Government to notify the tax rate for supplies made through electronic commerce operators. The rate has been lowered from 0.5 percent to 0.25 percent.

Notification No. 01/2024-Integrated Tax dated 10.07.2024

Seeks to amend Notification No. 02/2018-Integrated Tax, dated 20.09.2018has been issued under Integrated Tax to lower the tax rate from 1 percent to 0.5 percent.

Notification No. 01/2024-Union Territory Tax:

Seeks to amend Notification No. 12/2018-Union Territory Tax, dated 28.09.2018- under Union Territory Tax, the rate has been reduced from 0.5 percent to 0.25 percent.

Link given for full PDF below:

NN 15/2024: https://taxinformation.cbic.gov.in/view-pdf/1010100/ENG/Notifications

NN 14/2024: https://taxinformation.cbic.gov.in/view-pdf/1010099/ENG/Notifications 

NN 13/2024:https://taxinformation.cbic.gov.in/view-pdf/1010098/ENG/Notifications

NN 12/2024:https://taxinformation.cbic.gov.in/view-pdf/1010097/ENG/Notifications