Recently Introduced Reforms Under CGST Laws

Reforms Under CGST Laws

Consistant towards achieving a solid GST structure and preventing cases of GST leakages and frauds government keeps on improvising the tax laws for good. Many new provisions are allowed by the government and some old ones are amended in order to make GST a much more convenient and realistic form of tax governance.

With effect from 09-10-2019, one of the major GST amendments introduced in CGST laws with respect to input tax credits allows only 20% of the eligible credit returns for companies with irrelevant or incomplete invoice detailings.

It’s also mentioned in the laws that if the registered supplier is going through the period of suspension (suspension of GST registration) he is not eligible to release the GST invoice that means he will not charge tax on supplies made by him.

Let’s have a look on other equally relevant reforms brought in provisions currently under CGST Laws:

1. In Rule-21A(3), explanation inserted, states:-

“Explanation.-For the purposes of this sub-rule, the expression “shall not make any taxable supply” shall mean that the registered person shall not issue a tax invoice and, accordingly, not charge tax on supplies made by him during the period of suspension.”;2. In Rule-21A, explanation inserted, states:-

“Rule-21A(5) -Where any order having the effect of revocation of suspension of registration has been passed, the provisions of clause (a) of sub-section (3) of section 31 and section 40 in respect of the supplies made during the period of suspension and the procedure specified therein shall apply.”

3. In Rule-36, explanation inserted, states:-

“Rule-36(4)- Input tax credit to be availed by a registered person in respect of invoices or debit notes, the details of which have not been uploaded by the suppliers under sub-section (1) of section 37,shall not exceed 20 per cent. of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers under sub-section (1) of section 37.”.

4. In Rule 61(5), explanation inserted, states, with effect from 1st July,2017:-

“Rule-61(5)- Where the time limit for furnishing of details in form GSTR-1 under section 37 or in form GSTR-2 under section 38 has been extended, the return specified in sub-section (1) of section 39 shall, in such manner and subject to such conditions as the Commissioner may, by notification, specify, be furnished in form GSTR-3B electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner. Provided that where a return in form GSTR-3B is required to be furnished by a person referred to in sub-rule (1) then such person shall not be required to furnish the return in form GSTR-3.”;

5. Rule 61(6) shall be omitted , with effect from 1st July, 2017, explanation inserted, states.

6. In Rule-83A(6), for clause (i), explanation inserted, states:-

“Rule-83A(6)(i) – Every person referred to in clause (b) of sub-rule (1) of rule 83 and who is enrolled as a goods and services tax practitioner under sub-rule (2) of the said rule is required to pass the examination within the period as specified in the second proviso of sub-rule (3) of the said rule.”.

7. In Rule-91(3), with effect from 24th September,2019, with “application for refund”, and “on the basis of a consolidated payment advice:” explanation inserted, states;

8. In Rule-91, following Sub-Rule with effect from 24th September, 2019, explanation inserted, states:-

“Rule-91(4) -The Central Government shall disburse the refund based on the consolidated payment advice issued under sub-rule (3).”.

9. In Rule-97 following Sub-Rule, with effect from 1st July, 2017, explanation inserted, states-

“Rule-97(7A) – The Committee shall make available to the Board 50 percent. of the amount credited to the Fund each year, for publicity or consumer awareness on Goods and Services Tax, provided the availability of funds for consumer welfare activities of the Department of Consumer Affairs is not less than twenty-five crore rupees per annum.”;

10. In Rule-97(8), clause (e) shall be omitted, with effect from 1st July, 2017, explanation inserted, states.

11. In Rule-117(1A) – for the figures, letters and word “31st March,2019”, the figures, letters and word “31st December,2019” explanation inserted, states.

12. In Rule-117(4), in clause (b),in sub-clause (iii), In the proviso for the figures, including “30thApril,2019”, the figures, letters and word “31st  January,2020”, explanation inserted, states.

13. In Rule- 142 following  Sub-Rule, – explanation inserted, states:-

“Rule-142(1A)- The proper officer shall, before service of notice to the person chargeable with tax, interest and penalty, under sub-section (1) of Section 73 or sub-section (1) of Section 74, as the case may be, shall communicate the details of any tax, interest and penalty as ascertained by the said officer, in Part A of form GST DRC-01A.”

14. In Rule-142(2), after the words “in accordance with the provisions of the Act”, the words, figures and brackets “, whether on his own ascertainment or, as communicated by the proper officer under sub-rule (1A),” explanation inserted, states;

15. In Rule -142 following Sub-rule explanation inserted, states:-

“Rule-142(2A) – Where the person referred to in sub-rule (1A) has made partial payment of the amount communicated to him or desires to file any submissions against the proposed liability, he may make such submission in Part B of form GST DRC-01A.”

Original Notification for New CGST Rules by CBIC