Central Goods and Services Tax (Tenth Amendment) Rules, 2021

The Central Board of Indirect Taxes and Customs (CBIC), vide a Notification No. 40/2021 – Central Tax -dated 29th December 2021, notified Central Goods and Services Tax (Tenth Amendment) Rules, 2021. With this notification, CBDT announced that the due date for filing the annual return in form GSTR-9 and the self-certified reconciliation statement in form GSTR-9C has been extended from the end of December to the end of February. The present article briefly explains the said amendment rules.

Eligibility for Taking ITC

Rule 36(4) has been substituted in Central Goods and Services Tax Rules, 2017 Vide The Central Goods and Services Tax (Tenth Amendment) Rules, 2021. This new rule made it clear that input tax credit (ITC) will not be available to businesses if the purchase details have not been furnished by their vendor in his/her sales returns in form GSTR-1 or using the invoice furnishing facility. CGST (Tenth Amendment) Rules also announced that input tax credit (ITC) shall not be available to the registered person unless the invoices/debit notes have been reflected in GSTR-2B of the said person. For more details on GST Input Tax Credit Reconciliation, Click here

Extension of Due date for GSTR-9 and GSTR-9C

With this notification, the Central Board of Indirect Taxes and Customs (CBIC) announced that the due date for filing the annual return in form GSTR-9 and the self-certified reconciliation statement in form GSTR-9C the F.Y 2020-21 has been extended from 31^st December 2021 to 28^th February 2022.

GST annual return is to be filed by businesses with 2 crores or more in annual sales in FY2021.
The separate reconciliation statement is to be filed by businesses with 5 crore or more sales. This self-certified statement is for reconciling the value of supplies declared in the return furnished for the financial year, with the audited annual financial statement.

Click here to get the official notification Central Goods and Services Tax (Tenth Amendment) Rules, 2021

Recovery of Penalty by Sale of Goods detained in Transit

A new rule 144A has been inserted in the Central Goods and Services Tax Rules, 2017 for providing ―Recovery of penalty by the sale of goods or conveyance detained or seized in transit. If the person transporting any goods or the owner of such goods fails to pay the amount of penalty within fifteen days from the date of receipt of the copy of the order passed, the proper officer shall proceed for sale or disposal of the goods or conveyance so detained or seized by preparing an inventory and estimating the market value of such goods or conveyance:

If the penalty under Section 129 is not paid within 15 days of the date of receipt of the order of detention, the Proper Officer shall proceed for sale or disposal of goods or conveyance so detained.
The said goods or conveyance shall be sold through a process of auction, including e-auction, for which a notice shall be issued in FORM GST DRC-10.
The auction process shall be canceled if the person transporting said goods or the owner of such goods pays the amount of penalty, including any expenses incurred in safe custody and handling of such goods or conveyance, after 15 days but before the issuance of notice for auction.
The last day for submission of a bid or the date of auction shall not be earlier than fifteen days from the date of issue of the notice.
The proper officer may specify the amount of pre-bid deposit to be furnished in the manner specified by such officer, to make the bidders eligible to participate in the auction, which may be returned to the unsuccessful bidders, forfeited in case the successful bidder fails to make the payment of the full amount.
The proper officer will issue a notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within fifteen days from the date of auction.
On payment of the full bid amount, the proper officer shall transfer the possession and ownership of the said goods or conveyance to the successful bidder and issue a certificate in FORM GST DRC-12
The proper officer shall cancel the process and proceed for re-auction where no bid is received or the auction is considered to be non-competitive due to lack of adequate participation or due to low bids.
If an appeal has been filed by the person under the provisions of sub-section (1) read with subsection (6) of section 107, the proceedings for recovery of penalty by the sale of goods or conveyance detained or seized in transit under this rule shall be deemed to stay.

Disposal of Proceeds of the sale of Goods and Property

Rule 154 of CGST Rules has been substituted to provide for ―Disposal of proceeds of the sale of goods or conveyance and movable or immovable property.

Amendment in Rule 95 Central Goods and Services Tax Rules, 2017

Rule 95 has been amended to provide that where the Unique Identity Number of the applicant is not mentioned in a tax invoice, the refund of tax paid by the applicant on such invoice shall be available only if the copy of the invoice, duly attested by the authorized representative of the applicant, is submitted along with the refund application in FORM GST RFD-10.

Other Amendments

Other Amendments announced vide the Central Goods and Services Tax (Tenth Amendment) Rules, 2021 is given here:

Rule 142 has been amended to align it with new provisions of Section 129 providing for 7 days for issuance of notice and further 7 days for issuance of the order.
Rule 159 has been amended to provide that a copy of the order of attachment in FORM DRC-22 shall also be sent to the person whose property is being attached under section 83.
Other changes in Rule 159 have been made to incorporate the changes made in Sec 83 providing for attachment of property of a person other than the taxable person i.e any person specified in sub-section (1A) of section 122.

Revised FORM DRC-22A

Any objection to the order of provisional attachment of property is to be filed in FORM DRC-22A whose format has also been notified now.

Revised Form DRC-10, DRC-11, DRC-12, DRC-22, DRC-23, and APL-01

Changes have been made in FORM DRC-10, DRC-11, DRC-12, DRC-22, DRC-23, and APL-01 to incorporate the above changes as well as the changes brought vide the Notification 39/2021-CT dated 21^st Dec 2021. Know more about Important Changes in GST Law Effective from 1st January 2022