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.
