Recent Notification

Reference Particulars
1. Notification No. Seeks to amend the following rules under the CGST Rules 2017
26/2022- by exercising their powers conferred by section 164 of the Central
Central Tax Goods and Services Tax Act: -
1. Under Rule 37, after the words value of such supply, the
words “whether wholly or partly” needs to be inserted;
after the words “shall pay”, the words “or reverse” needs
to be inserted; and after the words “in respect of such
supply”, the words “proportionate to the amount not paid
to the supplier” needs to be inserted.
Additionally, the notification states that a Rule 37A must
be inserted, wherein the procedure for reversal of input
tax credit (ITC) in cases where the registered person has
availed ITC under FORM GSTR-3B, and its details are
furnished in the statement of outward supplies under
FORM GSTR-1, but the return for the tax period
corresponding to the said statement of outward supplies
has not been furnished by the supplier till the 30th of
December following the end of the financial year in which
the ITC was availed. Two [provisions will be inserted to
the Rule via the notification, i.e., (i) where the registered
person fails to reverse the ITC on or before 30 th November
of the financial year in which the ITC was availed, the
amount needs to paid with interest under section 50; (ii)
when the supplier subsequently furnishes the return in
FORM GSTR-3B, the credit can be re-availed under
FORM GSTR-3B for a tax period thereafter.
2. Rule 59 discussed the form and manner of furnishing
details of outward supplies. Under sub-rule 6, a fourth
clause is inserted in the amendment stating that if an
intimation is issued to a registered person on the common
portal, the said person would not be allowed to furnish the
details of his outward supply of goods or services under
FORM GSTR-1 unless such person deposits the amount
specified in the intimation or gives a valid reason for not
depositing the same as required by Rule 88C (2).
3. The said notification inserted Rule 88C, which deals with
the manner of dealing with the difference in liability
reported in statement of outward supplies and that reported
in returns. It states that whenever the tax liability of a
person based on his returns under FORM GSTR-3B is less
than the tax liability of the person based on his statement
of outward supplies furnished under FORM GSTR-1, such
person will be notified of the same AS PER THE
 recommendation of the GST Council in Part A of FORM
GST DRC-01B to pay the difference amount along with
interest or explain such difference within seven days,
failing which it shall be recovered as per section 79 of
CGST Act.
4. In rule 89, which deals with application for refund of tax,
interest, penalty, fees, or any other amount, it inserted two
new clauses after clause (k) and a new proviso under
clause (m). Clause 2 of Rule 89 states along with filing the
application electronically under FORM GST RFD-01, it
must be accompanied by some documentary evidences.
Sub-clause (k) includes documentary evidences in the
form of statement showing the details of the amount of
claim on account of excess payment of tax, and the
notification inserts clause (ka) and (kb). Clause (ka) states
the requirement of statement containing the details of
invoices in respect of which the refund is being claimed
along with copy of such invoices, proof of making such
payment to the supplier, the copy of agreement or
registered agreement or contract, the letter issued by the
supplier for cancellation or termination of agreement or
contract for supply of service, and details of payment
received from the supplier against cancellation or
termination of such agreement along with proof thereof.
Clause (kb) states the requirement of inserting a certificate
issued by the supplier showing that he has paid the tax in
respect of the invoices on which refund is being claimed;
he has adjusted the tax amount involved in the tax
invoices; and he has not claimed and will not claim refund
of the amount of tax involved in respect of these invoices.
Lastly, the notification has inserted a proviso in clause (m)
stating that a certificate is not required to be furnished in
cases where refund is claimed by an unregistered person
who has borne the incidence of tax.
5. In rule 108, the notification seeks to remove the sub-clause
(3) and substitute it with a fresh sub-clause (3). Rule 108
states the procedure of filing an appeal to the Appellate
Authority. The substituted sub-clause (3) states that a final
acknowledgment stating the appeal number shall be issued
by the Appellate Authority where the decision is uploaded
on the common portal and the date of issue of the
provisional acknowledgment shall be considered as the
date of filing the final appeal. It further has two provisos
which state that where the decision is not uploaded on the
common portal, the appellant needs to submit a self-
certified copy of the judgment within seven days from
filing the appeal and in case the same is not done by the
appellant, the date of submission of such copy shall be
considered as the date of filing of appeal.