CBIC amends Central Goods and Services Tax Rules, 2017; laid down rules for dealing with difference in liability reported in GSTR-1 and GSTR-3B
Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 26/2022 dated 26th December, 2022 to further amend Central Goods and Services Tax (CGST) Rules, 2017.
Key points of the Notification are:
1. Rule 37 relating to “Reversal of input tax credit in the case of non-payment of consideration”, has been amended retrospectively from 1st October, 2022, to provide that registered person shall now reverse input tax credit proportionate to the amount not paid to the supplier.
2. New Rule 37A relating to “Reversal of input tax credit in the case of non-payment of tax by the supplier and re-availment thereof” has been inserted to provide that-
a. In case input tax credit has been availed by a registered person in the return 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 the statement of outward supplies in FORM GSTR-1 or using the invoice furnishing facility, but the return in FORM GSTR-3B for the tax period corresponding to the said statement of outward supplies has not been furnished by such supplier till the 30th day of September following the end of financial year in which the input tax credit in respect of such invoice or debit note has been availed, the said amount of input tax credit shall be reversed by the said registered person, while furnishing a return in FORM GSTR-3B on or before the 30th day of November following the end of such financial year.
b. Further, in case the said amount of input tax credit is not reversed by the registered person in a return in FORM GSTR-3B on or before the 30th day of November following the end of such financial year during which such input tax credit has been availed, such amount shall be payable by the said person along with interest. In case 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.
3. Rule 46 relating to “Tax Invoice”, shall be amended to insert that 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 un-registered, 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.
4. Rule 46A relating to “Invoice cum Bill of Supply”, has been amended to insert that invoice-cum-bill of supply shall contain the same particulars as specified for Tax Invoice under Rule 46.
5. Rule 59 relating to “Form and manner of furnishing details of outward supplies”, has been amended to insert that a registered person, to whom an intimation has been issued on the common portal in respect mismatch in liability reported in GSTR-1 and GSTR-3B of a tax period, shall not be allowed to furnish FORM GSTR-1 for a subsequent tax period, unless he has either deposited the amount specified in the said intimation or has furnished a reply explaining the reasons for any amount remaining unpaid.
6. New Rule 88C relating to “Manner of dealing with difference in liability reported in statement of outward supplies and that reported in return”, has been inserted to provide that:
a. In case the tax payable by a registered person, in FORM GSTR-1 in respect of a tax period, exceeds the amount of tax payable by such person in accordance with the return for that period furnished by him 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, electronically on the common portal, and a copy of such intimation shall also be sent to his e-mail address provided at the time of registration, highlighting the said difference and directing him to- (i) pay the differential tax liability, along with interest, through FORM GST DRC-03; or (ii) explain the aforesaid difference in tax payable on the common portal, within a period of seven days.
b. The registered person shall, upon receipt of the intimation referred above, either,(i) pay the amount of the differential tax liability, as specified in Part A of FORM GST DRC-01B, fully or partially, along with interest, through FORM GST DRC-03 and furnish the details thereof in Part B of FORM GST DRC-01B electronically on the common portal; or (ii) furnish a reply electronically on the common portal, incorporating reasons in respect of that part of the differential tax liability that has remained unpaid, if any, in Part B of FORM GST DRC-01B, within the specified period.
c. Where any amount specified in the intimation referred above remains unpaid within the specified period and where no explanation or reason is furnished by the registered person in default or where the explanation or reason furnished by such person is not found to be acceptable by the proper officer, the said amount shall be recoverable in accordance with the provisions of section 79.
7. Rule 8 relating to “Application for Registration”, has been amended to provide that PAN-linked mobile number and e-mail address fetched from Income Tax database shall be captured and recorded in FORM GST REG-01.
8. Rule 9 relating to “Verification of the application and approval”, has been amended to insert a new clause that in case a person, who has undergone authentication of Aadhaar number, is identified on the common portal, based on data analysis and risk parameters, for carrying out physical verification of places of business then the registration shall be granted by the proper officer within thirty days of submission of application, after physical verification of the place of business in the presence of the said person.
9. Rule 12 relating to “Grant of registration to persons required to deduct tax at source or to collect tax at source”, has been amended to provide for facility to the registered persons, who are required to collect tax at source under section 52 or deduct tax at source under section 51 of CGST Act, 2017, for cancellation of registration on their own request.
10. Rule 89 relating to “Application of Refund of tax, interest, penalty and fees”, a new clause (k) has been inserted to provide the documentary evidence to be accompanied in Form GST RFD-01, in case of refund claim by an unregistered person where the agreement or contract for supply of service has been cancelled or terminated.
11. New rule 109C relating to “Withdrawal of Appeal” has been inserted to provide that an appellant may, at any time before issuance of show cause notice under sub-section (11) of section 107 or before issuance of the order under the said sub-section, whichever is earlier, in respect of any appeal filed, file an application for withdrawal of the said appeal by filing an application in FORM GST APL-01/03W.
12. FORM GST REG-01, GSTR-1, RFD-01 and GST DRC-03 has been amended to give effect to the above mentioned changes. Further, the form GST DRC-01B and GST APL-01/03W has been inserted.
