14th Amendment in CGST Rule 2018 vide Notification No. 74/2018 - Central Tax dt 31st Dec'18

As per Notification No. 74/2018 - Central Tax dated 31st Dec 2018 the CGST Rules 2018 has been amended. We are discussing the entire provision in details as under -

Point 1. These rules may be called the Central Goods and Services Tax (Fourteenth Amendment) Rules, 2018

Point 2. New Sub Rule (1A) has been inserted after Rule 12(1) of CGST 2017

(1A) A person applying for registration to collect tax in accordance with the provisions of section 52, in a State or Union territory where he does not have a physical presence, shall mention the name of the State or Union territory in PART A of the application in FORM GST REG-07 and mention the name of the State or Union territory in PART B thereof in which the principal place of business is located which may be different from the State or Union territory mentioned in PART A.

Author Comment - Rule 12 of CGST Rules 2017 is pertaining to Registration of Persons required to deduct TDS/ TCS. Now the relaxation has been given for Part B to give the name of other state where he has principal place of business. Therefore we can say that Name of the state in Part A and Part B can be different for such E Commerce Operator on which provision of Sec 52 (Tax Collection at Source) is applicable.

Point 3. Removal of words from rule 45(3) After the words ‘received from a job worker, the words, or sent from one job worker to another shall be omitted.

Author Comment -Earlier, a Principal are filling ITC-04 with the below details of goods -

1. dispatched to a job worker or
2. received from a job worker or
3. sent from one job worker to another

Now After this changes, a principal is not requiring to give the details of goods sent from one job worker to another in the GST ITC-04.

Point 4 to 6. In case of Electronic Invoice - No requirement of any Signature or Digital Signature

Provided also that the signature or digital signature of the supplier or his authorized representative shall not be required in the case of issuance of an electronic invoice in accordance with the provisions of the Information Technology Act, 2000 (21 of 2000). This proviso has ben inserted at three Rules -

1. in rule 46, after the fourth proviso,
2. in rule 49, after the second proviso,
3. in rule 54,-
   1. in sub-rule (2),
   2. in sub-rule (4),

Author Comment - The Signature or Digital Signature is not required in case of Electronic Invoice. This relaxation has been inserted for

1. Tax Invoice (Rule 46),
2. Bill of Supply(Rule 49) and
3. Tax Invoice in Special Case (Rule 54)
   1. By Banking/NBFC Company etc. (Sub Rule 2 of Rule 54)
   2. By passenger transportation service (Sub Rule 4 of Rule 54)

Point 7. in explanation (b) to sub-rule (5) of rule 89, the following clause shall be substituted, namely:- Adjusted Total turnover and relevant period shall have the same meaning as assigned to them in sub-rule (4)

Author Comment - Rule 89(5) prescribed the formula for refund in case of inverted duty structure. Earlier explanation (b) to Rule 89(5) is as 'Adjusted Total turnover' shall have the same meaning as assigned to it in sub-rule (4). Further in the explanation (a) to Rule 89(5) - Definition of Net ITC use the word 'relevant period'. However the term 'Relevant Period’ has not been defined in this Sub Rule.

Therefore explanation (b) has been substituted and the meaning of term ‘Relevant Period’ is also linked to Rule 89(4). Relevant Period as per explanation (F) to Rule 89(4) 'Relevant period' means the period for which the claim has been filed.

Point 8. in rule 96, in sub-rule (1), in clause (a), after the words export goods duly files the words ‘a departure manifest’ or shall be inserted.

Author Comment - Rule 96(1) talks about the refund in case of Export of Goods made on Payment of IGST (Not exported through LUT route). Now As per explanation (a) to Rule 96(1) date of Application shall be deemed when the person in charge of the conveyance carrying the export goods duly files

1. a departure manifest or (inserted now)
2. an export manifest or
3. an export report

covering the number and the date of shipping bills or bills of export;

Point 9 - In rule 101, in sub-rule (1), after the words financial year, the words or part thereof shall be inserted.

Author Comment - Rule 101(1) was pertaining to Department Audit u/s 65 of CGST Act. Earlier Rule101(1) - The period of audit to be conducted under section 65(1) shall be a financial year or multiples thereof. Now Part of the Financial Year is also added. Therefore Department can now conduct the Audit for part of FY as well.

Point 10 - New rule 109B shall be inserted i.e 109B. Notice to person and order of revisional authority in case of revision. - (1) Where the Revisional Authority decides to pass an order in revision under section 108 which is likely to affect the person adversely, the Revisional Authority shall serve on him a notice in FORM GST RVN-01 and shall give him a reasonable opportunity of being heard.

(2) The Revisional Authority shall, along with its order under sub-section (1) of section 108, issue a summary of the order in FORM GST APL-04 clearly indicating the final amount of demand confirmed.

Author Comment - Rule 109 talks about the Application to the Appellate Authority and Rule 109A talks about the Appointment of Appellate Authority. Further Section 108 talks about the Powers of Revisional Authority As per Section 2(99) of CGST Act 'Revisional Authority' means an authority appointed or authorized for revision of decision or orders as referred to in section 108.

Now by virtue of new Rule 109B which deals with Notice and Order in case of Revision. It is stated that any adverse revision by the revisional authority require the

• Notice in RVN-01
• Opportunity of being heard
• Summary Order in APL-04

Point 11 - in rule 138, in sub-rule (1), for Explanation 1, the following Explanation shall be substituted, namely- Explanation 1 - For the purposes of this rule, the expression handicraft good has the meaning as assigned to it in notification No. 56/2018-Central Tax, dated the 23rd October, 2018.

Author Comment - Rule 138 talks about Generation of e-way Bill for Movement of Goods. Handicraft Goods has been defined by giving the reference to notification No. 32/2017-Central Tax dated the 15th September, 2017 However Notification No 32/2017 has been superseded by Notification No 56/2018. Therefore the above explanation has been changed accordingly.

Point 12 - after rule 138D, from a date to be notified later, the following rule shall be inserted, namely:-

'138E. Restriction on furnishing of information in PART A of FORM GST EWB-01.- Notwithstanding anything contained in sub-rule (1) of rule 138, no person (including a consignor, consignee, transporter, an e-commerce operator or a courier agency) shall be allowed to furnish the information in PART A of FORM GST EWB-01 in respect of a registered person, whether as a supplier or a recipient, who, -

• (a) being a person paying tax under section 10, has not furnished the returns for two consecutive tax periods; or
• (b) being a person other than a person specified in clause (a), has not furnished the returns for a consecutive period of two months:

Provided that the Commissioner may, on sufficient cause being shown and for reasons to be recorded in writing, by order, allow furnishing of the said information in PART A of FORM GST EWB 01, subject to such conditions and restrictions as may be specified by him.

Provided further that no order rejecting the request of such person to furnish the information in PART A of FORM GST EWB 01 under the first proviso shall be passed without affording the said person a reasonable opportunity of being heard.

Provided also that the permission granted or rejected by the Commissioner of State tax or Commissioner of Union territory tax shall be deemed to be granted or, as the case may be, rejected by the Commissioner.

Explanation:  For the purposes of this rule, the expression "Commissione" shall mean the jurisdictional Commissioner in respect of the persons specified in clauses (a) and (b).

Author Comment - This Rule is not yet made effective. It will be effective from the date to be notified later. Restriction has been imposed for generation of E Way Bill to defaulter of return -

1. Composite Dealer (Sec 10) - Not filled return for 2 quarter
2. Registered Person Other than Composition - Not filled return for 2 Months

In case of genuine reason the commissioner may allow to furnish part A of E-Way Bill. However if commissioner is rejecting the request, then opportunity of being heard shall be given to the registered person. If commissioner of state/UT is passing the order shall be deemed to be the order passed by Commissioner of Central.

Point 13 - in rule 142, in sub-rule (5), after the words section 74, the words 'or sub-section (12) of section 75' shall be inserted.

Author Comment - Rule 142 prescribing the provision for Notice and Order for Demand of Amounts Payable under the Act. As per Sub Rule 5 - A summary of the order issued under certain sections (like 74/76/129/130 etc) shall be uploaded electronically in FORM GST DRC-07, specifying therein the amount of tax, interest and penalty etc. Now after this amendment, DRC-07 will be uploaded in case of notice issued under section 75(12).

As per Sec 75(12) where any amount of self-assessed tax in accordance with a return furnished under section 39 remains unpaid shall be recovered under the provisions of section 79 along with interest,

Point 14-15 For FORM GST RFD-01, the following form shall be substituted

1. FORM-GST-RFD-01 /01A[See rule 89(1)] Application for Refund /Refund(Manual)
2. Declaration
3. Undertaking
4. Statements as per Annexure 1

Author Comment - Forms, declaration etc. has been Revised

Point No 16 - for FORM GSTR 9, the following form shall be substituted

FORM GSTR - 9 [See rule 80] Annual Return

Author Comment - Form GSTR 9 Annual Return for Regular Registered Person has been Revised

Point 17 - for FORM GSTR 9A, the following form shall be substituted

FORM GSTR - 9A [See rule 80]

Author Comment - Form Annual return for Composition Levy has been Revised

Point 18 - for FORM GSTR 9C, the following form shall be substituted

FORM GSTR - 9C [See rule 80(3)]

Author Comment - Form 9C GST Reconciliation Statements & Certification has been Revised

Point No 19 &20 - after FORM GST APL-03, the following form shall be inserted

FORM GST RVN-01 [See rule 109B].

Similarly for FORM GST APL-04, the following form shall be substituted

Form GST APL-04 [See rules 109B, 113 (1) and115 ]

SUMMARY OF THE DEMAND AFTER ISSUE OF ORDER BY THE APPELLATE AUTHORITY, REVISIONAL AUTHORITY, TRIBUNAL OR COURT.

Author Comment - As per new rule 109B inserted vide this notification (Refer point 10 above) - format of APL-03 and APL-04 has also been specified.

Disclaimer: The above discussion is only for education purpose and author will not be held responsible in case of any damages, loss due to reliance on above.