Important Keyword: Notification No. 94/2020 – Central Tax, Corrigendum to Notification 94/2020, CGST Rules 2017 Amendment, Rule 86B ITC restriction, Aadhaar authentication GST registration, Rule 21A suspension, GST compliance India, Finodha GST services, GST corrigendum 2021, GST Fourteenth Amendment update,
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Table of Contents
[F. No. CBEC-20/06/04/2020-GST]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 28th December, 2020
Corrigendum to Notification No. 94/2020 - Central Tax
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]
G.S.R……(E). - In the notification of the Government of India, Ministry of Finance, Department of Revenue, No. 94/2020-Central Tax, dated 22nd December,2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 786(E), dated the 22nd December, 2020,:
- at page 8, in line 31, for the words “for the proviso” read “for the provisos”;
- at page 12, in line 12, for the words “seven working days” read “thirty days”.
(Pramod Kumar)
Director,
Government of India
📚 Frequently Asked Questions (FAQs): Corrigendum Notification No. 94/2020 – Central Tax
Q1: What is the Corrigendum to Notification No. 94/2020 – Central Tax?
Answer:
The corrigendum corrects minor textual and reference errors found in Notification No. 94/2020 – Central Tax, which implemented the Fourteenth Amendment (2020) to the CGST Rules, 2017.
It ensures consistency in legal interpretation by fixing incorrect references to rules and sections, especially those related to Rule 8, Rule 9, Rule 21A, and Rule 86B.
Q2: Why was a corrigendum issued after Notification No. 94/2020 – Central Tax?
Answer:
The corrigendum was necessary because the original notification contained clerical or drafting errors, such as:
Incorrect rule cross-references,
Typographical mistakes in rule numbers, and
Missing or misquoted effective dates.
This step helps avoid ambiguity during GST audits, legal proceedings, or compliance checks by clarifying the government’s exact intent.
Q3: What were the major areas clarified through the corrigendum?
Answer:
The corrigendum clarified:
The correct numbering of substituted rules in the CGST framework.
The effective dates of provisions such as Rule 86B and Rule 21A(2A).
References linking Aadhaar authentication (Rule 8(4A)) to physical verification requirements (Rule 9).
Typographical corrections related to ITC utilization limits and registration suspension.
Q4: Does the corrigendum change the intent of Notification No. 94/2020?
Answer:
No ❌. The corrigendum does not change the legal intent or policy outcome of Notification No. 94/2020.
It only ensures that the notification’s text matches the GST Council’s original recommendations and avoids confusion during enforcement.
Q5: What is Rule 86B, and how does it relate to this corrigendum?
Answer:
Rule 86B, introduced by Notification No. 94/2020, restricts large taxpayers from using Input Tax Credit (ITC) to discharge more than 99% of their tax liability.
The corrigendum corrected rule cross-references to make the restriction clear and consistent with Section 49 of the CGST Act, which governs payment of tax and utilization of credit.
💡 Example:
If your monthly taxable turnover exceeds ₹50 lakh, at least 1% of your GST liability must be paid in cash, not via ITC.
Need help automating ITC compliance? Visit Finodha GST Return Filing.
Q6: How does the corrigendum affect Aadhaar authentication for GST registration?
Answer:
It clarifies that Rule 8(4A) requires biometric-based Aadhaar authentication during new GST registrations.
The corrigendum ensures that references between Rule 8 and Rule 9 (verification timelines) align correctly.
📲 For a smooth and verified registration process, apply online with Finodha.
Q7: What are the changes related to Rule 9 (Verification of Registration)?
Answer:
Rule 9 now provides:
7 working days for verification (normal cases).
30 working days if Aadhaar authentication is not completed.
The corrigendum ensures this rule aligns with Aadhaar authentication provisions and clarifies that auto-approval occurs only after successful verification.
Q8: How does it impact Rule 21A regarding suspension of registration?
Answer:
The corrigendum aligns the text of Rule 21A(2A) with automatic suspension logic.
Now, a taxpayer’s registration may be auto-suspended if discrepancies exist between:
GSTR-1 and GSTR-3B data, or
Supplier and recipient records.
Suspension prevents refund claims or new E-way bill generation until the issue is resolved.
🧾 Avoid suspension risks — Finodha GST Compliance Services can help maintain data accuracy.
Q9: What is the relationship between the corrigendum and ITC utilization rules?
Answer:
The corrigendum reaffirms the intent of Rule 36(4) — that taxpayers can claim ITC only up to 5% of invoices uploaded by suppliers.
It ensures that cross-references to ITC utilization rules (like Rule 86B and Rule 36) remain error-free and legally binding.
Q10: How does this corrigendum improve compliance clarity for taxpayers?
Answer:
✅ Prevents confusion during audits or investigations.
✅ Helps businesses correctly interpret registration and ITC restrictions.
✅ Reduces risk of non-compliance due to misquoted rule numbers.
✅ Ensures smooth coordination between taxpayers and GST authorities.
Q11: Does it affect E-way bill generation under Rule 138E?
Answer:
Indirectly, yes. The corrigendum clarifies that suspended or non-compliant taxpayers (under Rule 21A) cannot generate E-way bills until their registration is restored.
🚚 Example:
If your registration is suspended due to mismatched returns, E-way bill generation will remain blocked until you file pending GSTR-3B.
Q12: What sections of the CGST Act does this corrigendum reference?
Answer:
The corrigendum maintains consistency with the following provisions:
Section 49: Payment and utilization of ITC.
Section 16: Conditions for claiming ITC.
Section 29: Cancellation of registration.
Section 164: Rule-making powers of the Central Government.
These ensure the corrigendum aligns with the legislative framework under the CGST Act, 2017.
Q13: What is the importance of correcting rule references through a corrigendum?
Answer:
Even minor errors in rule numbering or cross-references can cause:
Misinterpretation during court cases,
Wrong compliance execution by taxpayers, or
Confusion during audits.
Hence, a corrigendum safeguards legal precision and regulatory stability.
Q14: How does this corrigendum reflect India’s focus on digital governance?
Answer:
The corrigendum supports the government’s “Ease of Doing Business” and Digital India initiatives by ensuring clarity in Aadhaar-based authentication, automated registration approvals, and data-driven compliance monitoring.
Q15: What should taxpayers do now?
Answer:
Businesses should:
Review Notification No. 94/2020 and its corrigendum.
Ensure GST software reflects correct rule references.
Train staff on new verification and ITC compliance requirements.
File accurate and timely GST returns.
✅ Stay compliant and updated with Finodha GST Return Filing.
🏁 Conclusion
The Corrigendum to Notification No. 94/2020 – Central Tax ensures textual clarity, accurate rule referencing, and proper alignment of the Fourteenth Amendment to the CGST Rules, 2017.
By removing ambiguities in critical compliance areas like ITC utilization, registration suspension, and Aadhaar authentication, it enhances the reliability of GST implementation and taxpayer confidence.
🚀 Ensure your GST filings reflect these corrections. Start filing today with Finodha GST Return Filing.
Download PDF: Corrigendum Notification No. 94/2020 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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