{"id":22795,"date":"2020-12-25T13:00:01","date_gmt":"2020-12-25T07:30:01","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=22795"},"modified":"2020-12-24T16:50:23","modified_gmt":"2020-12-24T11:20:23","slug":"cgst-fourteenth-amendment-rules-2020","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/cgst-fourteenth-amendment-rules-2020\/","title":{"rendered":"Significant Modifications Introduced under CGST (Fourteenth Amendment) Rules, 2020 as per Notification No. 94\/2020"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The Goods and services tax in India comprise of Central Goods and Services Tax (CGST) as one of its components. CGST is an indirect form of tax that is levied and collected by the central government on supplies between states. Though, the supplies exclude alcoholic liquor for human consumption. The taxes are implied as per the rules of Central Goods and Services Tax Act, 2017. The act was formed to provide the guidelines to regulate the collection of the tax levied on the intra-state supply of goods and services by the CG and for the other matters concerning the same. However, certain changes has been introduced in the <em><strong>CGST (Fourteenth amendment) Rules<\/strong><\/em><strong><em>, 2020 to amendment in CGST Rules, 2017.<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Provisions\nof the Central Goods and Services Tax Act, 2017 <\/h2>\n\n\n\n<p><em><strong>The Key Provisions of CGST Act, 2017 are given as below-<\/strong><\/em><\/p>\n\n\n\n<ul><li>What is the scope of Supply\nunder Goods and Services Tax<\/li><li>The Tax liability for\nComposition dealers<\/li><li>Time of Supply of Goods and\nServices<\/li><li>Value of Taxable Supply<\/li><li>Input Tax Credit<\/li><li>Registration Under Goods and\nServices Tax<\/li><li>Tax Invoice<\/li><li>Tax Returns<\/li><li>Payment of Taxes and provisions\nfor reverse mechanism<\/li><\/ul>\n\n\n\n<p>The introduction of <strong><em>Central Goods and services Tax<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/CGST\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> has replaced Central excise duty, Service Tax, Additional Customs Duty, Additional Excise Duty, duty imposed under medicinal and toiletries preparation and Special additional duty of customs.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/migration-to-the-new-tax-structure-under-gst-transition-process\/\">The Migration to the New Tax Structure under GST Transition Process<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Certain Important Changes Introduced under CGST (Fourteenth amendment) Rules, 2020<\/h2>\n\n\n\n<p>On\nthe recommendation of the council of ministers, the central government has\nnotified to insert important changes introduced under CGST (Fourteenth\namendment) Rules, 2020. <\/p>\n\n\n\n<p><em><strong>The highlights of the amended provisions in the existing <\/strong><\/em><strong><em>CGST (Fourteenth amendment) Rules<\/em><\/strong><em><strong>, 2020 are as follows:<\/strong><\/em><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/The-highlights-of-the-amended-provisions-in-the-existing-CGST-Fourteenth-amendment-Rules-2020-are-as-follows.png\" alt=\"The highlights of the amended provisions in the existing CGST Fourteenth amendment Rules 2020 are as follows\" class=\"wp-image-22821\" width=\"404\" height=\"585\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/The-highlights-of-the-amended-provisions-in-the-existing-CGST-Fourteenth-amendment-Rules-2020-are-as-follows.png 692w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/The-highlights-of-the-amended-provisions-in-the-existing-CGST-Fourteenth-amendment-Rules-2020-are-as-follows-207x300.png 207w\" sizes=\"(max-width: 404px) 100vw, 404px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Time Limit for\nGrant of System-Based GST Registration has been Increased (Rule-9)<\/h3>\n\n\n\n<p>The\ntime limit for system-based Goods and Services registration tax has been\nincreased from 3 days to 7 days, now. Meaning which, that now the authorised\ndepartment will have review and grant Goods and services Tax registration\nwithin 7 days rather than in 3 days; which was the earlier time limit specified\nin the previous rules. The day counts from the date on which the registration\napplication has been filed.<\/p>\n\n\n\n<p>As\nper the <strong><em>Rule 9<\/em><\/strong>, the verification of the application is to be done\nthrough biometric-based Aadhaar authentication and taking photograph\/KYC of the\napplicant.<\/p>\n\n\n\n<p>In\nthe situations, where the applicant fails to undergo the Aadhaar Card\nauthentication or when the authorised department is suspicious and feels that\nthe verification should be carried out physically, then the time limit for\ngrant of system-based Goods and Services registration shall be 30 days instead\nof 7 days.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Additional Provisions for the Cancellation of the GST Registration\n(Rule 21)<\/h3>\n\n\n\n<p>More conditions have been inserted in order to cancel the registration of the <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>Goods and services Tax<\/strong><\/a>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Goods and\nService Tax department is now eligible to cancel GSTIN (Goods and Services tax\nidentification Number) (Rule 21A)<\/h4>\n\n\n\n<p>Power has been allotted to the GST department to cancel the GSTIN. An officer of the same department can move forward with the proceedings to cancel the Goods and Services Tax identification Number of a tax payer, when the tax payer has availed <strong><em>Input Tax Credit<\/em><\/strong> (ITC) exceeding the amount than that permissible in Section 16. <strong><em>Clause (e)<\/em><\/strong> has been inserted in <strong><em>Rule 21 <\/em><\/strong>of CGST (Fourteenth amendment) Rules, 2017. <\/p>\n\n\n\n<p>No\nopportunity would be provided to the tax payer to restrict the officer from\ncancelling his GSTIN, if the authorised officer has sufficient and reasonable\ngrounds (if an analysis of GSTR-1 of the taxpayer and suppliers \/ other\nanalysis shows significant amount of differences) to believe that the GSTIN of\na tax payer is liable to be cancelled. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\">The limit of\nfor Claiming ITC &#8211; Rule 36(4)<\/h4>\n\n\n\n<p>Restriction\nhas been imposed in respect of invoices or debit notes, 10 % cap of claiming\nITC has now been reduced to 5%. The reduction in the of 5% in ITC claims means\nthat a taxpayer\u2019s ITC claim shall now be restricted to 105% of the Credit\nreflected in his <strong><em>GSTR 2B<\/em><\/strong>. The provision shall come in force from <strong><em>1st\nJanuary, 2021<\/em><\/strong>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Restrictions on\nElectronic Credit Ledger (Rule 86A)<\/h4>\n\n\n\n<p>Another\nrestriction has been imposed on taking advantage of the Electronic credit\nledger by insertion of new provision that is <strong><em>Rule 86B<\/em><\/strong>. The tax payers\nare not allowed to utilize the amount stored in electronic credit ledger to get\nrid of his liability towards output tax in excess of 99% of such tax liability.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">GSTR 1 to be\nBlocked in Case of Non-Filing of GSTR 3B<\/h4>\n\n\n\n<p>If\na taxpayer fails to file <strong><em>Form GSTR 3B<\/em><\/strong> for two succeeding\nmonths then <strong><em>Form GSTR 1<\/em><\/strong> will be blocked. Previously non filing of <strong><em>Form\nGSTR 3B<\/em><\/strong> used to result in stalling the E-way Bill facility but from now\nit will also block Form GSTR 1 of the taxpayer. Correspondingly, for quarterly\nreturn filing, the taxpayer who fails to file GSTR 3B for the previous quarter\nwill not be allowed to file GSTR 1 of succeeding quarter.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>Central Government on the commendations of the Council has informed the CGST (Fourteenth amendment) Rules, 2020 to amend the CGST Rules 2017. In every way, the newly introduced rules are harsher which will eventually regulate the imposition of free and fair Goods and Services Tax.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/after-gst-implementation-there-can-be-a-change-in-contract-price\/\">Understanding Cases on Change in Contract Price after GST Implementation <\/a><\/mark><\/p>\n\n\n<a href=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/notfctn-94-central-tax-english-2020.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">notfctn-94-central-tax-english-2020<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Goods and services tax in India comprise of Central Goods and Services Tax (CGST) as one of its components. CGST is an indirect form of tax that is levied and collected by the central government on supplies between states. Though, the supplies exclude alcoholic liquor for human consumption. The taxes are implied as per [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":22828,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16,153],"tags":[1051,1358],"acf":{"service_id":"96"},"authorName":"Sakshi Srivastava","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/IMG-20180130-WA0007.jpg","authorDescription":"Sakshi has pursued B.B.A.LL.B.(IPR Hons.). She is an avid reader and is keen to gather and share her knowledge on the subjects relating to IPR, Company Law and GST. Priorly she has worked as a legal researcher and vide her articles she aims at improving the core knowledge of the subjects to the masses.","postViews":4108,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/22795"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=22795"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/22795\/revisions"}],"predecessor-version":[{"id":22823,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/22795\/revisions\/22823"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/22828"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=22795"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=22795"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=22795"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}