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Dear Professional Colleagues,

Greetings of the Day !

The Central Board of Indirect taxes and custom had issued Notification No. 26/2022 – Central Tax dated December 26, 2022, regarding Seeks to make fifth amendment (2022) to CGST Rules. Following are the broad-level changes and impact thereof.


Rule 8 | Application for registration:

AMRG Comment:

  • PAN-linked mobile number and e-mail address (fetched from CBDT database) to be captured and recorded in FORM GST REG-01. OTP-based verification to be conducted at the time of registration on such PAN-linked mobile number and email address. This will restrict misuse of PAN of a person by unscrupulous elements without knowledge of the said PAN-holder.
  • Proposal to conduct a pilot in State of Gujarat for Biometric-based Aadhaar authentication and risk-based physical verification of registration applicants. This will help in tackling the menace of fake and fraudulent registrations.


3. Rule 37 |Reversal of input tax credit in the case of non-payment of consideration

AMRG Comment:

  • The Council has recommended amending Rule 37(1) retrospectively with effect from 01.10.2022 to provide for reversal of input tax credit, only proportionate to the amount not paid to the supplier vis a vis the value of the supply(including tax payable). This has been done to rectify the amendment made in Rule 37 of CGST Rules vide CGST (Second Amendment) Rules, 2022 whereby erroneously the word “proportionate” was removed.
  • This would also help the taxpayers to assess the correct amount of interest liability in terms of Section 50 which should also be apportioned based on the amount not paid.


4. Rule 37A | Reversal of input tax credit in the case of non-payment of tax by the supplier and reavailment thereof

Following provision has been inserted:

Where input tax credit has been availed by a registered person in FORM GSTR-3B for a tax period in respect of such invoice or debit note, the details of which have been furnished by the supplier in FORM GSTR-1 or invoice furnishing facility, but FORM GSTR-3B has not been furnished by such supplier till the 30 September following the end of financial year in which the input tax credit has been availed, the said amount of input tax credit shall be reversed. Such reversal shall be made on or before the 30 November of following the end of such financial year: 


Interest thereon under section 50 would be applicable where the said amount of input tax credit is not reversed on or before the 30th day of November following the end of such financial year.


However, 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 the return in FORM GSTR-3B for a tax period thereafter.


AMRG Comment:

  • Rule 37A has been inserted in CGST Rules, 2017 to prescribe the mechanism for reversal of input tax credit by a registered person in the event of non-filing of GSTR-3B by the supplier for that specified tax period if such transactions have been reported in GSTR-1. Mechanism has also been prescribed for the re-availment of tax credit by the recipient of supplies in future on payment and filing of tax returns by the supplier.
  • This change would benefit only select cases and no benefit is proposed to be given in the following cases:
    • This is a prospective change only that will not curate any benefit till FY 2021-22; and
    • Where the supplier has not filed such an invoice in GSTR -1.
    • Where the supplier has filed GSTR -3B, however tax on the said transaction has not been paid.
    • ITC cannot be reavailed in the future also if tax has been paid through DRC-03.
    • In many cases, the recipient of supplies may not be actively tracking the date of filing of GSTR-3B of the non-filers at a later date, which will render this provision ineffective.

7. Rule 46|Tax invoice

Following provision has been inserted:

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 unregistered, 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.


AMRG Comment:

  • This will go a long way in easing the compliances for electronic commerce operators as well as suppliers of OIDAR services.


10. Rule 87|Electronic Cash Ledger.-

Following provision has been inserted:

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. 


AMRG Comment:

  • Late filer’s usually experience delays in the clearance of tax payments, which results in delayed tax filings. With this change, last-minute problems related to non-reflection of the taxes paid in the electronic cash ledger could be reduced to a great extent.


11. Rule 88C| Difference in liability reported in GSTR -1 and that reported in GSTR-3B

Where the tax payable by a registered person, furnished by him in FORM GSTR-1 in respect of a tax period, exceeds the amount of tax payable reported in FORM GSTR-3B, by such amount and such percentage, as may be recommended by the Council, the said registered person shall be intimated of such difference in Part A of FORM GST DRC-01B. Such taxpayer may—

 (a) pay the differential tax liability, along with interest under section 50, through FORM GST DRC-03; or

 (b) explain the aforesaid difference in tax payable on the common portal, within seven days.

Where any amount specified remains unpaid or the reason furnished is not found to be acceptable by the proper officer, the said amount shall be recoverable in accordance with the provisions of Section 79 of CGST Act.


AMRG comment:

  • In case a taxpayer commits a bonafide error, then he is required to disclose the complete details of such error. Few examples of bonafide errors are:
  • Excess Liability paid in earlier tax periods in FORM GSTR-3B.
  • Some transactions of earlier tax period which could not be declared in the FORM GSTR-1/IFF, have now been declared. Tax in respect of such transactions has already been paid in FORM GSTR-3B of the said tax period.
  • FORM GSTR-1/IFF was filed with incorrect details and will be amended in the next tax period.
  • Mistake was made in reporting advances received and adjusted against invoices.


13. Rule 108|Appeal to the Appellate Authority


AMRG comment

  • Rule 108 of the CGST Rules provides for the manner of filing an appeal before the Appellate Authority by a taxpayer. It is provided that the appeal is required to be filed in Form GST APL-01 on the GST common portal. Further, the certified copy of the decision/order, against which the appeal is being filed, is needed to be submitted within 7 days of filing the appeal on the GST common portal. However, in the case where the certified copy of the decision/ order is submitted after 7 days from the date of filing Form GST APL-01, the date of submission of such copy would be treated as the date of filing of the appeal.
  • Numerous taxpayers were facing issues in getting the orders certified thereby leading to inordinate delays in appeal filing. In some cases, the authorities were neither issuing the final acknowledgement nor rejecting the appeal application and only the requirement of documents was being communicated to the appellant back and forth.
  • In order to tackle the difficulties faced by the appellant, the Council has recommended to
    • Let go of the need for certified copies of the order;
    • Now the taxpayer can simply upload the order on the portal and get a final acknowledgment;
    • In case such an order is not uploaded, then Taxpayer can submit a physical self-certified copy and get a final acknowledgment of the appeal filed.


 15. 109C. Withdrawal of Appeal

Appellant may, at any time before issuance of the order, in respect of any appeal filed in FORM GST APL-01 or FORM GST APL-03, file an application for withdrawal of the said appeal by filing an application in FORM GST APL-01/03W: 


However, where the final acknowledgment in FORM GST APL-02 has been issued, the withdrawal of the said appeal would be subject to the approval of the Appellate authority and such application for withdrawal of the appeal shall be decided by the Appellate authority within seven days of filing of such application: 


AMRG Comments:

  • Currently, there is no option under the GST law to withdraw an appeal application,now this option has been provided.
  • This amendment would be helpful in many cases where the issue under appeal has been decided by any higher authority or where clarification is issued by the CBIC.

Hope you find it interesting and useful to read.

For any clarification/ feedback, feel free to write us at

Best regards,



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© -2022 AMRG & Associates All Rights Reserved. This document has been written for the general interest of our clients and professional colleagues and is subject to change. This document is not to be construed as any form of solicitation. It is not intended to be exhaustive or a substitute for legal advice. We cannot assume legal liability for any errors or omissions. Specific advice must be sought before taking any action pursuant to this document.

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