July 2017 GST rules amended
The CBEC has issued notification no. 17/2017-Central Tax dated 27 July, 2017, amending the Central GST Rules, 2017 (CGST Rules). Summary of the amendments is as follows:
Amendment in rule 24 (cancellation of registration): As per existing rule 24(4) of the CGST Rules, a person who is registered under the existing law who was not liable to be registered under GST was required to submit an application for the cancellation of registration within 30 days from the introduction of GST.
The period is now extended till 30 September, 2017. This amendment is effective from 22 July, 2017.
Amendment in rule 34 (rate of exchange for valuation of supply): As per existing rule 34 of the CGST Rules, the rate of exchange for determination of value of supply of goods as well as services was the applicable reference rate as determined by the Reserve Bank of India.
The rate of exchange for valuation of supply of goods will now be the applicable rate of exchange as notified under section 14 of the Customs Act for the date of time of supply of such goods as per GST law. For supply of services, the applicable rate of exchange would be the rate determined as per the generally accepted
accounting principles for the date of time of supply of such services as per GST law. This amendment is effective from 27 July, 2017.
Amendment in rule 46 (contents of tax invoice): As per existing rule 46, a specific endorsement was prescribed on the invoices issued for exports of goods/ services.
The amendment prescribes an endorsement also for supplies made to SEZ unit or SEZ developers for authorised operations. This amendment is effective from 27 July, 2017.
Amendment in rule 61 (submission of monthly return): As per existing rule 61, when the time limit for filing form GSTR 1 and GSTR 2 is extended and circumstances so warrant, return in form GSTR 3B in lieu of form GSTR 3 may be furnished, in the manner and subject to conditions notified by the Commissioner.
The provisions have been amended to prescribe that the Commissioner may specify filing return in form GSTR 3B in such cases if the circumstances so warrant, Further, once the return in form GSTR 3B has been filed, the return in form GSTR 3 is to be filed after the due date for filing form GSTR 2. While the details in form GSTR 3 would be auto populated based on the details furnished in form GSTR 1, GSTR 2 and form GSTR 3B, the details auto populated from form GSTR 3B can be amended. Further, if the amount of input tax credit as per form GSTR 3 exceeds the amount of input tax credit as per form GSTR 3B, the additional credit would be credited to the electronic credit ledger of the taxpayer.
Amendment in form GST TRAN-1 and GST TRAN-2: In both the returns, HSN Code was required to be mentioned at the 6-digit level.
The format is now amended to provide mentioning HSN as applicable (since the HSN is required to be mentioned on different levels for different taxpayers).
PwC comments
These amendments largely give effect to announcements made by the Government for extension of dates for filing the returns for the first two tax periods and for making certain procedural amendments in the rules.
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PwC TRS Team
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