Summary of GST Notification No 20/2024 – Changes in CGST Rules,2017

GST Notification No 20/2024 – Changes in CGST Rules,2017 contains the  following Keypoints:

1. The option to issue a consolidated invoice is no longer available

2. Timelimit provided to issue an invoice in case of RCM and purchase from URD

3. Mandatory Electronic Filing of Monthly Returns for Tax Deducted at Source under Section 51

4. From 01-11-2024,No interest if return filed after the proceeding initiated u/s74A

5. Reference of section 74A added

6. Removal of restriction on claiming IGST Refund for exporters under Rule96(10)

7. Revised Refund formula for ITC calculation on Zero rated supply without payment

8. Procedure for closing proceeding after payment u/s 73,74A and 129 of CGST Act,2017

9. Procedure and Conditions for Closure of Proceedings under Section 128A in Respect of Demands Issued under Section 73

10. Certain FORMS inserted/substituted in CGST Act,2017

1. The option to issue a consolidated invoice is no longer available

• As per the second Proviso of Rule 46 of CGST Act,2017, the option to issue the consolidated invoice for supplies received from an Un-registered person (section 9(4) of CGST Act,2017) with an aggregate value of supplies exceeding of Rs.5000 in a day will no longer available from 01-11-2024.
• Second Proviso of Rule 46 has been omitted.

2. Timelimit provided to issue an invoice in case of RCM and purchase from URD

• New rule 47A has been inserted to specify the time limit for issuing invoice in case of RCM and purchase from Unregistered supplier.
• Effective from 01-11-2024,in case of Reverse charge mechanism or purchases from an unregistered supplier, the recipient must issue an invoice within 30 days from the date of receipt of the said supply of goods or services or both as the case may be.

3. Mandatory Electronic Filing of Monthly Returns for Tax Deducted at Source under Section 51

Effective from 01-11-2024, every registered person who is required to deduct tax at source under section 51 must electronically file a return by the 10^th day of the month following the month in which the tax was deducted

4. From 01-11-2024,No interest if return filed after the proceeding initiated u/s74A

• As per Rule 88B if any registered person files the return after due date then he is required to make the payment of interest on such delayed tax payment. Interest will not be applicable if return filed late after any proceedings u/s 73 or 74 have started for that period.
• Reference of section 74A has been added. Which means if return is filed after the proceedings have been initiated u/s 73, 74 or 74A then rule of paying interest on late returns will no longer be applicable from 01-11-2024.

5. Reference of section 74A added

In the following rules, reference to section 74A has been added, effective from 01-11-2024

6. Removal of restriction on claiming IGST Refund for exporters under Rule96(10)

• There is no longer restriction on claiming refund of IGST paid on export of goods or services, as Rule 96(10) has been omitted, Previously, Rule 96(10) restricted a person from claiming IGST refund on export of goods if the exporter or supplier of exporter had availed benefit of Notification No 48/2017-CT and Notification No 40/2017-CTR and Notification No 41/2017-ITR. Additionally, they were not allowed to claim the benefit under certain customs Notification No 78/2017 & 79/2017 except when it involved capital goods under the EPCG scheme.
• With the omission of Rule 96(10), the reference to it in Rule 86 (4B) in clause (b) regarding the deposit of erroneous refund amount has also been removed.

7. Revised Refund formula for ITC calculation on Zero rated supply without payment

• The Refund formula under Rule 89(4) & (5) for calculating input tax credit for zero-rated supply without payment has been changed.

8. Procedure for closing proceeding after payment u/s 73,74A and 129 of CGST Act,2017

• Sub-rule (3) of Rule 142 of CGST Rules,2017 has been substituted. It has the following meaning:
• With effect from 01-11-2024, If a person makes the payment of tax and interest u/s 73(8) or 74A(8)(ii) or tax, interest and penalty under section 74A(9)(ii) or 74(8) within a specified time or pays the amount within 7 days of receiving a notice u/s 129(3) but before order issued. They must inform the proper officer by submitting FORM GST DRC-03. The proper officer will then issue an acknowledgement in FORM GST DRC-05, confirming that the proceedings related to the notice are concluded.

9. Procedure and Conditions for Closure of Proceedings under Section 128A in Respect of Demands Issued under Section 73

Procedure and Conditions for Closure of Proceedings under Section 128A in Respect of Demands issued u/s73 applicable from 01-11-2024.The summary of new rule 164 of CGST Rules,2017 are as under:

1. Eligibility for Waiver:
   Any person eligible for the waiver of interest, penalty, or both under section 128A, based on a notice, statement, or order, can apply electronically in FORM GST SPL-01 or FORM GST SPL-02, along with payment details made through FORM GST DRC-03.
2. Payment and Filing Conditions:

• For demands issued under section 73 or section 74A, the person must pay the tax, interest, and penalty within the specified time.
• For demands under section 129 related to the detention of goods, payment must be made within seven days of the notice, before the order is issued.

4. Electronic Payment: Payment towards the tax demanded must be made by crediting the amount in the Electronic Liability Register. If payment is made through FORM GST DRC-03, the taxpayer must file FORM GST DRC-03A for credit against the electronic liability register.
5. Full Payment for Mixed Demands:
   If the demand includes both an erroneous refund and other reasons or relates to a mixed period, the full amount of tax must be paid before the application can be filed.
6. Time Limit for Applications:

• The application must be filed within three months from the notified date under section 128A.
• For cases requiring FORM GST SPL-02, the time limit is extended to six months if it relates to an order redetermining tax under section 73.

6. Documents to Accompany Application:

• The application must include proof of withdrawal of any appeal or writ petition filed before any Appellate Authority, Tribunal, or Court.
• If withdrawal is still pending, a copy of the withdrawal application must be submitted, and the order for withdrawal must be uploaded within one month.

7. Rejection and Reply:

• If the officer believes the person is not eligible for the waiver, they will issue a notice in FORM GST SPL-03 within three months. The applicant has one month to reply via FORM GST SPL-04.

8. Order and Conclusion:

• If the officer approves the application, they will issue an order in FORM GST SPL-05, concluding the proceedings.
• If rejected, the order will be issued in FORM GST SPL-07. The original appeal may be restored if no further appeal is filed, or an appeal is rejected.

9. Time Limits for Issuance of Orders:

• The officer must issue an order within three months if no notice is issued or within four months if a notice is issued.

10. Deemed Approval:

• If the proper officer fails to issue an order within the specified time, the application will be deemed approved, and the proceedings concluded.

11. Restoration of Appeal:

• If no appeal is filed within the time limit or the officer’s rejection is upheld by an appellate authority, the original appeal can be restored upon filing an undertaking.

12. Void Waiver if Additional Payment Not Made:

• If additional tax is required under section 128A, failure to make payment within the specified time will void the waiver of interest or penalty.

13. Responsibilities of Proper Officers:

• The proper officer responsible for closing the proceedings will vary based on the type of application and order issued under sections 73 or 79 of the Act.

10. Certain FORMS inserted/substituted in CGST Act,2017

Following Forms has been substituted or inserted

Download – Notification No 20/2024-CTR