Notification No. 68/2019 – Central Tax Explained

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Notification No. 68/2019 – Central Tax: Seeks to Carry Out Changes in the CGST Rules, 2017.

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

G.S.R……(E). - In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:-

1. (a). These rules may be called the Central Goods and Services Tax (Eighth Amendment) Rules, 2019.

(b) They shall come into force on the date of their publication in the Official Gazette.

2. In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), in rule 48, after sub-rule (3), the following sub-rules shall be inserted, namely:-

“(4) The invoice shall be prepared by such class of registered persons as may be notified by the Government, on the recommendations of the Council, by including such particulars contained in FORM GST INV-01 after obtaining an Invoice Reference Number by uploading information contained therein on the Common Goods and Services Tax Electronic Portal in such manner and subject to such conditions and restrictions as may be specified in the notification.

3. Every invoice issued by a person to whom sub-rule (4) applies in any manner other than the manner specified in the said sub-rule shall not be treated as an invoice.

4. The provisions of sub-rules (1) and (2) shall not apply to an invoice prepared in the manner specified in sub-rule (4).”.

(Ruchi Bisht)
Under Secretary to the
Government of India

Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 3/2017-Central Tax, dated the 19th June, 2017, published vide number G.S.R. 610 (E), dated the 19th June, 2017 and last amended vide notification No. 56/2019 - Central Tax, dated the 14th November, 2019, published vide number G.S.R. 845 (E), dated the 14^th November, 2019.

📚 Frequently Asked Questions (FAQs): Notification No. 68/2019 – Central Tax

Q1: What is Notification No. 68/2019 – Central Tax all about?

Answer: This notification modifies several provisions in CGST Rules, 2017, including ITC restrictions (Rule 36), e-way bill compliance (Rule 138E), and refund processing. These changes aim to improve GST transparency and reduce tax evasion.

Q2: From when is Notification No. 68/2019 – Central Tax effective?

Answer: It became effective from 13th December 2019 as per the Gazette publication.

Q3: What is the 20% ITC restriction rule introduced here?

Answer: Rule 36(4) limits ITC to 20% of invoices not uploaded by suppliers in GSTR-1.
This ensures buyers follow up with suppliers for timely GST filing.

Q4: Does it affect e-Way Bill generation?

Answer: Yes. Under Rule 138E, if a taxpayer doesn’t file returns for 2 months, their e-Way Bill generation will be blocked.
Need help in GST filing?
👉 https://finodha.in/gst-return-filing/

Q5: Is this helpful for the Government?

Answer: Yes 😊
It reduces revenue leakage, improves supplier compliance, and makes GST more robust.

Q6: What happens if supplier doesn’t upload invoices?

Answer: Buyer temporarily loses ITC.
Example already shared above 👆
To avoid this, maintain vendor compliance monitoring via Finodha:
https://finodha.in/gst-compliance/

Q7: Who is affected by these amendments?

Answer:
Regular taxable persons
Manufacturers & Traders
Service providers
Transporters (due to e-Way Bill changes)

Q8: Does this notification change GST refund rules?

Answer: Yes. Additional documentary proofs have been mandated to make refunds faster and fraud-free.

Q9: Is e-Invoice mandatory under this notification?

Answer: It helps establish e-invoice framework, but mandates came later via Notification 70/2019 onwards.

Q10: Can a blocked ITC be claimed later?

Answer: Definitely ✔
Once your supplier files GSTR-1 correctly, blocked ITC becomes eligible.

Q11: How can small businesses adapt to this change?

Answer:
Choose compliant suppliers
Reconcile books monthly
File returns on time
Use expert GST services → https://finodha.in/gst-compliance/

Q12: Does this apply to composition dealers?

Answer: No. ITC is not available under the Composition Scheme.
Need assistance?
https://finodha.in/setup-business/

Q13: What is the intention of this notification?

Answer:
Reduce fake invoice rackets
Improve system credit accuracy
Strengthen government revenue

Q14: Is there a penalty for non-compliance?

Answer:
Yes.
ITC loss
e-Way Bill blocking
Late fees & interest
Further administrative action

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