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Central Goods and Services Tax Rules, 2021

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CGST is a tax levied on Intra State Supplies of both goods and services by the Central Government and will be governed by the CGST Act. SGST will also be levied on the same Intra State supply but controlled by the State Government.

It implies that both the Central and the State governments will agree on combining their levies with an appropriate proportion for revenue sharing. However, as per Section 8 of the GST Act, the taxes should be levied on all Intra-State supplies of goods and services, but the tax rate shall not exceed 14% each.

The Central Government made the following amendments in Central Goods and Service Tax Rules, 2021:

Rule 23: Revocation of Cancellation of Registration
As per this Rule, a registered person whose registration has been cancelled by the proper officer on his motion may apply for revocation of cancellation of registration, in Form GST Reg-21, to the officer, within 30 days from the date of the service of the order of cancellation of registration at the common portal.

Suppose the application for revocation cannot be filed within 30 days. In that case, the Commissioner or Additional Commissioner or the Joint Commissioner can extend such a time limit on a request being submitted by the taxpayer. However, no application for revocation can be submitted if the registration has been cancelled for the failure to furnish returns until such returns are furnished, and any amount due as tax in terms of such returns has been paid along with furnishing of returns.

Rule 90: Acknowledgement to the Refund Application
In this rule, a proviso has been added that the time period starting from the date of filing of the refund claim in FORM GST RFD-01 till the date of communication of the insufficiencies in FORM GST RFD-03 by the concerned officer shall be excluded from the period of two years as specified under sub-sec (1) of Sec 54, in respect of any new refunds claim filed by the applicant after correction of the insufficiencies. The said insertion is a good relief. In many cases, the insufficiency memos were being issued very late when the statutory time of 2 years was about to expire.

Sub-rule (5) has been introduced to this rule which says that an individual may at any time before issuance of provisional refund/final refund/ payment order/refund withhold order/notice withdraw the refund application filed by him by furnishing a fresh FORM RFD-01W.

Sub-rule (6) has been introduced to this rule, providing that on submission of FORM RFD-01W, any amount debited by the applicant from electronic cash or credit ledger, while filing an application for refund in FORM GST RFD-01, shall be credited back to the ledger from which such debit was made.

Rule 138E: Restriction on Furnishing of information in Part A of Form GST EWB – 1
This rule states that 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 has not filed the tax returns for a particular period. Still, as a result of an amendment, no Eway bill can be prepared regarding any outward movement of goods to be made by such a registered person.

Substitution Form GST RFD – 07
This Form before substitution contains Part A and Part B. The order for complete adjustment of sanction refund would be passed in Part A of the order. The order for withholding the refund would be passed in Part B of the Form.

The following information is included in Part A of the Form of the order:

  • ARN
  • Amount claimed in RFD – 01
  • Amount Withheld
  • Amount Inadmissible in RFD-06
  • Amount Adjusted in RFD-06
  • Amount Withheld
  • Reasons for withholding
  • Description of Reasons
  • Record of Personal Hearing

The following information will be included In Part B of the Form in which the order for the release of withheld refund will be passed.

  • ARN
  • Amount claimed in RFD – 01
  • Amount Inadmissible in RFD – 06
  • Amount Adjusted in RFD – 06
  • Amount Withheld in RFD – 07A
  • Amount released
  • Amount to be paid

At AJSH, we assist our clients with various GST matters (GST registration, GST advisory,  GST assessments, filing of GST returns, claiming  GST audits) by providing them with adequate support and guidance from our end. If you have any questions or would like to know more about CGST rules, 2021, kindly contact us.

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