Understanding the Central Goods and Services Tax (Amendment) Rules, 2024: Key Changes Simplified

Explanation and Simplification of Amendments in Central Goods and Services Tax (Amendment) Rules, 2024

1. Application Process and Aadhaar Verification

Amendment: Rule 8(4A) now requires individuals or entities not opting for Aadhaar authentication to get their photographs taken and documents verified at Facilitation Centers. The application will only be considered complete after this verification.

Example: If you’re an individual applying for GST registration without using Aadhaar, you’ll need to visit a Facilitation Center with your ID proofs and documents. The center will verify your documents and take your photograph to complete the application process.

2. Amendments to Form GSTR-1 and GSTR-1A

Amendment: Several rules including 21, 21A, 36, 37A, 40, 48, 59, 78, 88B, and 88C now include references to amendments made in Form GSTR-1A.

Example: If you initially filed your GSTR-1 and later made corrections in Form GSTR-1A, these amendments must be reflected in subsequent compliance and reporting as stipulated by the rules.

3. Input Service Distributor (ISD) Rules

Amendment: Rule 39 has been significantly revised to detail the distribution of input tax credit by ISD, including how credits should be distributed among different recipients and how to handle credit notes and debit notes.

Example: An ISD will distribute input tax credit based on the turnover of each recipient. If a company has multiple branches in different states, the ISD will allocate credit based on the turnover of each branch.

4. Amendments to Filing Deadlines and Requirements

Amendment: Various rules like 59, 62, and 88B address the timing and details required for filing returns and the impact of delayed payments on interest calculations.

Example: If you file your GSTR-1 late but have made a payment to your cash ledger before the due date, the interest calculation for late filing will exclude the amount in your ledger from the date it was credited until it was debited.

5. Form Updates and Additional Information

Amendment: New forms like GSTR-1A and updates to existing forms such as GSTR-9, RFD-01, and others are introduced to capture additional details or amendments.

Example: If you need to amend your GSTR-1 after the due date, you can use Form GSTR-1A to provide the updated details, which will then be reflected in your compliance records.

Summary

The Central Goods and Services Tax (Amendment) Rules, 2024 introduces several changes aimed at improving compliance and streamlining processes. Key changes include stricter verification for GST registration, detailed rules for distributing input tax credits, and new forms to accommodate amendments. Understanding these updates will help in ensuring accurate and timely compliance with GST regulations.

Explanation and Simplification of Amendments to GST Rules

The recent amendments to the GST rules include several significant changes regarding refunds, appeals, and enrolments. Here’s a simplified breakdown of the key updates, with examples where necessary:

1. Refund of Additional Integrated Tax on Upward Revision of Price (Rule 89)

Changes:

• Sub-rule (1B): Allows for a refund of additional integrated tax paid due to an upward revision in the price of exported goods, even if the original refund was already sanctioned.
• Additional Documentation: Requires detailed statements and proofs for the upward revision, including invoices, shipping bills, bank certificates, and a certificate from a chartered accountant.

Example: A company exports goods and pays integrated tax. Later, the price of the goods is revised upwards. The company can now claim a refund for the additional tax paid due to this price increase, by providing necessary documents like revised invoices and bank certificates.

2. Refund for Canteen Stores Department (Rule 95B)

Changes:

• The Canteen Stores Department (CSD) can claim a refund of 50% of the central tax paid on inward supplies by filing FORM GST RFD-10A quarterly.
• Refunds will be processed similarly to other refund applications.

Example: CSD purchases goods for distribution to Unit Run Canteens and authorised customers. They can claim a refund of 50% of the central tax paid on these purchases by submitting the required form quarterly.

3. Amendments to Rule 96 (Refund of Integrated Tax on Exports)

Changes:

• Clause (b) of the Proviso: Includes amendments in FORM GSTR-1A, if any.
• Proviso for Additional Tax Refund: Exporters can apply for a refund of additional integrated tax due to price revision, even if the original tax refund was already sanctioned.

Example: If an exporter had claimed a refund based on an earlier price but later revised the price upwards, they can apply for a refund of the additional integrated tax paid after the export.

4. Revised Rule 96A (Refund of Taxes on Export Services)

Changes:

• Clause (b): Extends the period for claiming refunds if the payment for services is delayed.

Example: An exporter of services receives payment in foreign exchange after one year. They can still claim a refund as long as it’s within the period allowed by the Foreign Exchange Management Act, 1999.

5. Changes to Appeal Processes (Rules 110 and 111)

Changes:

• Rule 110: Appeals to the Appellate Tribunal must be filed electronically, with a possibility for manual filing under certain conditions.
• Rule 111: Applications to the Appellate Tribunal must also be filed electronically, with similar provisions for manual filing.

Example: If a business wants to appeal a GST decision, they must file their appeal electronically through FORM GST APL-05. If necessary, manual filing is possible but only under special circumstances.

6. Withdrawal of Appeals or Applications (Rule 113A)

Changes:

• Appeals or applications can be withdrawn before the issuance of the order, but if a final acknowledgement has been issued, approval from the Appellate Tribunal is required.

Example: If a company decides to withdraw its appeal after receiving a provisional acknowledgment but before the final order, it must get approval from the Appellate Tribunal.

7. Enrolment for E-Way Bills (Rule 138)

Changes:

• Unregistered persons must now electronically submit details on the common portal to obtain an enrolment number before generating e-way bills.

Example: A small business that is not registered under GST but needs to generate an e-way bill will first enroll electronically using FORM GST ENR-03.

8. Amendments to Rule 142 (Payment of Tax and Acknowledgement)

Changes:

• Sub-rule (2): Acknowledgement for payments will be available electronically through FORM GST DRC-04.
• Sub-rule (2B): Allows filing of an application to credit payments made through FORM GST DRC-03 to the Electronic Liability Register.

Example: If a taxpayer makes a tax payment and informs the proper officer through FORM GST DRC-03, the payment will be acknowledged electronically and credited to their liability register.

9. Form Updates and Threshold Changes

Changes:

• FORM GSTR-1: Thresholds for reporting in the form are reduced from Rs. 2.5 lakh to Rs. 1 lakh.
• New Form GST ENR-03: For enrolment of unregistered persons.

Example: A business that previously had to report transactions above Rs. 2.5 lakh in FORM GSTR-1 will now report transactions above Rs. 1 lakh.

The rules and amendments you’ve provided pertain to changes and updates in various GST forms and their instructions under the GST regime in India. Here is a summarized breakdown of the significant changes:

FORM GSTR-1A

1. Substitution of References:
   • Replace references of GSTR-1, GSTR-5, GSTR-6, GSTR-7, GSTR-8 with GSTR-1, GSTR-1A, GSTR-5, GSTR-6, GSTR-7, GSTR-8 in FORM GSTR-2A.
2. Part A Adjustments:
   • Substitute GSTR-1/5 period with GSTR-1/1A/5 period.
   • Substitute GSTR-1/5 filing date with GSTR-1/1A/5 filing date.
3. Instructions Adjustments:
   • Update references to include GSTR-1A alongside other forms in the instructions and tables.

FORM GSTR-2B

1. Substitution of Form:
   • Replace the existing FORM GSTR-2B with a new version reflecting auto-drafted ITC from additional forms, including GSTR-1A.

FORM GSTR-3B

1. Table 6.1 Updates:
   • Modify Table 6.1 to include specific breakdowns for Integrated tax, Central tax, State/UT tax, and Cess for both regular and reverse charge transactions.
2. Omission:
   • Remove Table 6.2.

FORM GSTR-4

1. Instructions Update:
   • Amend filing timelines for FORM GSTR-4 up to FY 2023-24 and specify filing dates for FY 2024-25 onwards.

FORM GSTR-4A

1. Reference Updates:
   • Include GSTR-1A alongside GSTR-1, GSTR-5, and GSTR-7.

FORM GSTR-5

1. Threshold Changes:
   • Adjust monetary thresholds from Rs. 2.5 lakh to Rs. 1 lakh for specific conditions and instructions.

FORM GSTR-6A

1. Reference Updates:
   • Include GSTR-1A alongside GSTR-1, GSTR-5, and GSTR-7.

FORM GSTR-7

1. Table Updates:
   • Revise Table 3 and Table 4 to reflect updated details on TDS and related adjustments.
2. Instructions Updates:
   • Update to clarify TDS capturing and exclusions.

FORM GSTR-8

1. Instructions and Form Updates:
   • Amend instructions to include GSTR-1A and revise serial numbers to reflect detailed breakdowns for e-commerce supplies.

FORM GSTR-9

1. Table and Instruction Updates:
   • Include new entries for supplies where e-commerce operators are required to pay tax under section 9(5).
   • Adjust instructions to reflect new FYs and amendments.

FORM GSTR-9C

1. Instructions Updates:
   • Expand references to include FY 2023-24 alongside previous years.

FORM RFD-01

1. Instructions and Statements:
   • Update instructions to include GSTR-1A in refund calculations.
   • Insert new Statements for additional refunds and details of debit/credit notes related to exports.

FORM GST RFD-10A

1. New Form Addition:
   • Introduce FORM GST RFD-10A as per Rule 95B.

FORM GST APL-02 and GST APL-05/07 W

1. Header Updates:
   • Update headers for FORM GST APL-02 and add FORM GST APL-05/07 W for appeals.

FORM GST DRC-01A and DRC-01B

1. Form Updates:
   • Include GSTR-1A references in FORM GST DRC-01A and adjust FORM GST DRC-01B to reflect these changes.

FORM GST DRC-03

1. Table Adjustments:
   • Update details in Table for erroneous IGST refunds and other related entries.

These changes reflect a broader move towards integrating and accommodating adjustments related to GSTR-1A, improving accuracy, and aligning GST compliance processes.

The Goods and Services Tax Appellate Tribunal (Recruitment, Salary and Other Terms and Conditions of Service of Group “C” Employees) Rules, 2024 establishes the recruitment, salary, and service conditions for Group “C” employees in the Goods and Services Tax Appellate Tribunal (GSTAT). Here’s a summary of key provisions from the notification:

1. Title and Commencement

• Name: Goods and Services Tax Appellate Tribunal (Recruitment, Salary and Other Terms and Conditions of Service of Group “C” Employees) Rules, 2024.
• Effective Date: From the date of publication in the Official Gazette.

2. Definitions

• Key terms include “Appointing Authority,” “Appellate Tribunal,” “President,” and “Schedule.”

3. Application

• Rules apply to posts listed in Schedule-I.

4. Number of Posts and Classification

• Details on the number, classification, and pay matrix for each post are outlined in Schedule-I.

5. Recruitment Method

• Specifies recruitment methods, age limits, qualifications, etc., as detailed in Schedule-I.

6. Appointment

• Appointments are made by the Appointing Authority.

7. Direct Recruitment Procedure

• Applications are invited on an all-India basis and processed through a professional agency.

8. Deputation Procedure

• Applications are invited through wide advertisement, including Employment News.

9. Absorption of Deputationists

• Deputationists may be absorbed into the Tribunal if they meet qualifications and opt for absorption.

10. Committees

• Various committees (Promotion, Selection, Confirmation) are constituted as per Schedule-I. Their composition and procedures are detailed.

11. Conditions of Service

• Governed by rules applicable to Central Government employees. Includes Provident Fund, insurance, and medical facilities.

12. Accommodation

• House Rent Allowance claims are subject to certain conditions.

13. Disciplinary Proceedings

• Disciplinary rules align with those for corresponding Central Government levels.

14. Disqualification

• Prohibits appointment for persons with certain marital status unless exempted by Central Government.

15. Other Conditions

• Unspecified conditions follow rules applicable to Central Government employees.

16. Power to Relax

• Central Government can relax rules for certain categories of persons.

17. Saving Clause

• Rules do not affect reservations and concessions for SCs, STs, OBCs, etc.

Schedules

Schedule-I: Posts and Recruitment Details

• Stenographer Grade-II: 128 posts, Level-4, recruitment by direct recruitment or deputation.
• Upper Division Clerk: 40 posts, Level-4, promotion or deputation.
• Lower Division Clerk: 70 posts, Level-2, recruitment by direct recruitment or departmental promotion.
• Staff Car Driver: 128 posts, Level-2, by deputation or direct recruitment.
• Multi Tasking Staff: 128 posts, Level-1, direct recruitment.

Schedule-II: Medical Facilities

• Outdoor Treatment: Reimbursement for self and family up to one month’s pay or actual expenses, whichever is less.
• Indoor Treatment: Entitled to treatment at authorized hospitals, with costs aligned with Central Services (Medical Attendance) Rules, 1944.

These rules outline the structure for recruitment, service conditions, and other administrative procedures for Group “C” employees at GSTAT. For specific applications or clarifications, consulting the full notification or legal advice might be necessary.