Amendments in CGST Rules, 2017

Bimal Jain  on 03 July 2019


The Central Board of Excise and Customs vide Notification No. 31/2019-Central Tax dated June 28, 2019, has made various amendments in Central Goods and Services Tax Rules,2017 ("CGST Rules") which are prospectively effective from the date of notification. Following are the gist of the amendments made there under:

Rule 10: Issue of Registration Certificate

Rule 10A [newly inserted]: Furnishing Bank Account details post registration: After a certificate of registration in FORM GST REG-06 has been made available, the registered person shall furnish information with respect to details of bank account at the earliest, but not later than forty-five days from the date of grant of registration or the date on which the return required under section 39 of Central Goods and Services Tax Act, 2017 ('CGST Act')is due to be furnished, whichever is earlier. However, such details are not required to be furnished by persons who have been granted registration by the department on it's own in terms of rule 16 or persons who have taken registration as Tax Deductor at source (u/s 51) or Tax Collector at source (u/s 52). Corresponding amendments are also made in Forms GST REG-01, GST REG-07 and GST REG-12.

Rule 21: Registration to be cancelled in certain cases

Inserted rule 21(d) [newly inserted]: If bank account details are not furnished within the prescribed time in terms of rule 10A, then the registration so granted shall be liable to be cancelled.

Rule 32: Determination of value in respect of certain supplies

Rule 32A w.e.f. July 01, 2019 [newly inserted]- Value of supply in cases where Kerala Flood Cess is applicable- Kerala Flood Cess, where applicable, shall not form part of the value determined under section 15, rather it shall be leviable on value determined in terms of section 15 of the CGST Act/ Kerala Goods and Services Tax Act, 2017.

Rule 46: Tax invoice

Inserted sixth proviso - Generation of QR code for tax invoice: With effect from a date to be notified later, the Government may specify that the tax invoice shall have Quick Response (QR) code.

Rule 49: Bill of supply

Inserted fourth proviso - Generation of QR code for tax invoice: With effect from a date to be notified later, the Government may specify that the tax invoice shall have Quick Response (QR) code.

Rule 66: Form and manner of submission of return by a person required to deduct TDS

Amendment in Rule 66(2): Since 'TDS and TCS credit received' column is specifically provided on GST portal under, Services>>Returns>>TDS and TCS credit received, this sub-rule has been amended accordingly. Earlier references of part C of Form GSTR-2A and GSTR-4 was mentioned under this sub-rule.

Rule 67: Form and manner of submission of statement of supplies through an e-commerce operator

Amendment in Rule 67 (2): Since 'TDS and TCS credit received' column is specifically provided on GST portal under, Services>>Returns>>TDS and TCS credit received, this sub-rule has been amended accordingly. Earlier references of part C of Form GSTR-2A and GSTR-4 was mentioned under this sub-rule.

Rule 87: Electronics Cash ledger

Deletion of 2nd proviso to rule 87(2): Generation of challan in Form GST PMT-06 by a person providing OIDAR service from a place outside India to a non-taxable online recipient through the Board’s payment system EASIEST was to be notified vide this proviso, now deleted.

Amendment made in Rule 87(9) to comply with current provision: Since GSTR-2 was never implemented, amount of TDS and TCS credit is not claimed through Form GSTR-2, rather a tab has been provided on the common portal to claim correct TDS and TCS credit. Accordingly, suitable amendment is made in this sub-rule.

Inserted rule 87(13) - Inter-transfer of balances lying in E-cash ledger: With a date to be notified later, a registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under the Act to the electronic cash ledger for integrated tax, central tax, State tax or Union territory tax or cess in FORM GST PMT-09.

Rule 91,92 and 94: Procedure of granting refund

Under Rule 91, 92 and 94, wherever the word ‘payment advice’ has been mentioned, the word ‘payment order’ has been substituted.

Rule 95: Refund of tax to certain persons

Rule 95A [newly inserted] w.e.f. July 01, 2019: Refund to retail outlets making tax free supply to an outgoing international tourist: Retail outlets established in departure area of an international airport, beyond the immigration counters, supplying indigenous goods to an outgoing international tourist who is leaving India shall be eligible to claim refund of tax paid by it on inward supply of such goods.

Such persons are required to make application for refund in Form GST RFD-10B and submit invoices issued for inward and outward supplies.

Rule 128: Examination of application by the Standing Committee and Screening Committee w.r.t. profiteering

Extension of time period of examination: Standing Committee, which had to examine the receipt of profiteering application within a period of two months, time has been extended by maximum one month for reasons to be recorded in writing as may be allowed by the Authority.

Similarly, two months plus further one month time period shall be given to State level Screening Committee and the Screening Committee as well for examination of  profiteering application.

Rule 129: Initiation and conduct of proceeding w.r.t. profiteering

Extension of time period of investigation by Director General of Anti-profiteering: The time period for investigation by Director General of Anti-profiteering has been increased from three months to six months.

Rule 133: Order of National Anti-profiteering Authority ('NAA')

Extension of time period of investigation by NAA: The time period for investigation by NAA has been increased from three months to six months.

Payment of Amount along with interest: Where NAA has determined that, profiteering has been made, he may inter-alia order the deposit of an amount equivalent to fifty per cent. of the amount determined. This amount shall be collected along with interest @18% from the date of collection of higher amount till the date of actual deposit.

Rule 129(5) has been inserted:

'(5) (a) Notwithstanding anything contained in sub-rule (4), where upon receipt of the report of the Director General of Anti-profiteering referred to in sub-rule (6) of rule 129, the Authority has reasons to believe that there has been contravention of the provisions of section 171 in respect of goods or services or both other than those covered in the said report, it may, for reasons to be recorded in writing, within the time limit specified in sub-rule (1), direct the Director General of Anti-profiteering to cause investigation or inquiry with regard to such other goods or services or both, in accordance with the provisions of the Act and these rules.

(b) The investigation or enquiry under clause (a) shall be deemed to be a new investigation or enquiry and all the provisions of rule 129 shall mutatis mutandis apply to such investigation or enquiry.'

Rule 138: Information to be furnished prior to commencement of movement of goods and generation of e-way bill

Time limit for generation of E-way bill in case of multimodal shipment in which at least one leg involves transport by ship: The time limit as applicable for generation of E-way bill in case of over dimensional cargo shall as such apply for multimodal shipment in which at least one leg involves transport by ship.

Extension of E-way bill validity period [Inserted third proviso in rule 138(10):]- Validity of the e-way bill may be extended within eight hours from the time of its expiry.

Restriction on furnishing information in Part-A of E-way bill: In clause (a), earlier only composition taxpayer registered under section 10 of CGST Act were barred from filling in details in Part-A of Form GST EWB-01, if they have not submitted Form CMP-08 for two consecutive quarters. Now this provision has been made applicable for such service providers as well, who are availing benefit of Notification No. 2/2019-Central Tax dated March 07, 2019.

Amendments made in Forms and their instructions

GSTR-4: Form GSTR-4 has been amended to include ‘registered persons availing benefit of notification No. 02/2019- Central Tax (Rate)’

GSTR-9:

a. Wherever the word September 2018 was mentioned, the word March 2019 has been substituted.
b. Table 8A of GSTR-9 shall auto-populate the data of GSTR-2A as on the May 01, 2019.

PMT-09: New Form has been inserted with effect from a date to be notified for ‘Transfer of amount from one account head to another in electronic cash ledger’

RFD-10B: New Form has been inserted for ‘Application for refund by Duty Free Shops/Duty Paid Shops (Retail outlets)

DRC-03: This Form has been substituted.

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DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.


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