PARTICULARS

PROVISION

AMENDMENTS

Revocation of cancellation of registration

Rule 23

The amendment in section 30 made vide the Finance Act, 2021 has been made effective from 01.01.2021.

The amended provision provides for extension of time limit for applying for revocation of cancellation of registration on sufficient cause being shown and for reasons to be recorded in writing. Consequential amendment has been made in rule 23(1) to provide that the time period of 30 days available for submission of an application for revocation of cancellation of registration in Form GST REG-21 can be extended by the Additional Commissioner or the Joint Commissioner or the Commissioner, as the case may be, in exercise of the powers provided under the proviso to section 30(1) of the CGST Act, 2017.

Till the time an independent functionality for extension of time limit for applying in Form GST REG-21 is developed on the GSTN portal, Circular No. 148/04/2021 GST dated 18th May, 2021 has been issued to prescribe the SOP for implementation of the provisions of above rule across the field formations.

Acknowledgement of refund application

Rule 90

Insertion of proviso in sub-rule (3)

Insertion of new sub-rule (5) and (6)

The time period of 2 years for filing a fresh refund application after rectification of deficiencies as communicated by proper officer shall now be computed after excluding the time period between the date of filing of the refund claim in Form GST RFD-01 and the date of communication of the deficiencies in Form GST RFD-03 by the proper officer.

The applicants are now allowed to withdraw refund application in Form GST RFD-01W at any time before issuance of provisional refund order or final refund order or payment order or refund withhold order or notice, in respect of any refund application filed in Form GST RFD-01. The new Form RFD-01W has been inserted in Part B of the CGST Rules, 2017.

On such withdrawal, amount debited by the applicant from electronic credit ledger or electronic cash ledger, as the case may be, while filing application for refund in Form GST RFD-01, shall be credited back to the ledger from which such debit was made.

Order sanctioning refund

Rule 92

Omission of proviso in sub-rule (1)

Substitution of words “Part B” in subrule (2) with “Part A”

Insertion of proviso in sub-rule (2)

The proviso requiring the issue of order giving details of the adjustment in Part A of Form GST RFD-07 when the amount of refund is completely adjusted against any outstanding demand, has been omitted.

The proper officer or the commissioner will now pass the order in Part A of Form GST RFD 07 instead of Part B for withholding the refund in case he is of the opinion that the amount of refund is liable to be withheld under the provisions of section 54(10) or as the case may be, section 54(11).

The proper officer or the commissioner, on being satisfied that the refund is no longer liable to be withheld, may pass an order for release of withheld refund in Part B of Form GST RFD- 07.

Refund of IGST paid on goods (or services) exported out of India

Rule 96

Substitution of words “Part B” with “Part A” in sub-rule (6)

Amendment in sub-rule (7)

The proper officer shall now pass the order in Part A of Form GST RFD07 instead of earlier Part B upon transmission of the intimation for withholding refund.

The jurisdictional officer shall now proceed to release the withheld refund amount in Form GST RFD 06 after passing an order for release of withheld refund in Part B of Form GST RFD-07. Form GST RFD-07 has been amended accordingly.

Restriction on furnishing of information in Part A of Form GST EWB-01

Rule 138E

(The amendments from (a) to (e) have been made vide Notification No. 15/2021 Central Tax, dated 18th May, 2021)

Rule 138E restricts a person (including a consignor, consignee, transporter, an e-commerce operator or a courier agency) from furnishing information in Part A of Form GST EWB-01 “in respect of a registered person, whether as a supplier or a recipient” in certain specified cases. The rule has been amended to specify that the information in Part A of Form GST EWB-01 cannot be furnished by a person “in respect of any outward movement of goods of a registered person” in the specified cases.

Verification of e-filed documents

Rule 26

Companies have been permitted to furnish the return under section 39 in Form GSTR-3B and the details of outward supplies under section 37 in Form GSTR1 or using invoice furnishing facility (IFF), verified through electronic verification code (EVC) instead of DSC during the period 27th April, 2021 to 31st August, 2021.

Additional condition to avail Input Tax Credit (ITC)

Rule 36(4)

The restriction of availing 105% of eligible ITC (i.e., ITC reflecting in GSTR-2A) shall apply cumulatively for the period April, May and June, 2021 while taking credit in Form GSTR-3B for the tax period of June, 2021.

Furnishing details of outward supply

Rule 59(2)

(The amendments from (f) to (h) have been made vide Notification No. 27/2021- Central Tax dated, 1st June 2021)

A registered person under QRMP scheme may furnish details of outward supplies for the month of May, 2021 using IFF from 1st June, 2021 till 28th June, 2021.

Interest on net tax dues

Retrospective amendment in section 50 of the CGST Act, 2017 notified from 1st of June 2021

A proviso was inserted in Section 50(1) of the CGST Act, 2017 vide the Finance Act, 2021 to lay down that interest shall be payable on net tax dues (i.e., after adjusting the available ITC) where such tax dues are declared in the returns filed after the due date (except where the returns are filed after the commencement of proceedings under sections 73 or 74 of the CGST Act, 2017). Such proviso has been added with retrospective effect from 1st July, 2017. Now Notification No. 16/2021 – Central Tax, dated 1st June, 2021 has been issued to appoint 1st June, 2021 as the date from which such amendment shall come into force.