GST Rule Amendments 2022: Streamlining Compliance

Rule Modification Overview: The Central Government, under Section 164 of the CGST Act, introduces amendments to the Central Goods and Services Tax Rules, 2017.

Rule Title and Commencement: The amended rules are titled the "Central Goods and Services Tax (Second Amendment) Rules, 2022," effective from October 1, 2022.

Introduction of New Clauses: Rule 21 sees the addition of clauses (h) and (i), targeting non-filing scenarios: (h) Non-filing for six consecutive months for monthly return filers. (i) Non-filing for two consecutive tax periods for quarterly return filers.

Changes in Rule 36: Sub-rule (2) of Rule 36 undergoes a revision, omitting the requirement to furnish information in FORM GSTR-2 along with availing input tax credit.

Amendments in Rule 37: Sub-rules (1) and (2) of Rule 37 are substituted, introducing provisions for payment in case of delayed payment to suppliers: Registered persons failing to pay suppliers within 180 days shall pay input tax credit availed, along with interest, in the subsequent GSTR-3B return. Provisions for re-availing input tax credit if the payment is made subsequently.

Deemed Payment Clarifications: Clarifications regarding deemed payment for supplies without consideration and adjustments per section 15(2)(b).

Compliance Implications: Businesses are advised to adhere to the revised rules, ensuring timely filing and payment to avoid penalties.

Note: The amendments aim to enhance the efficiency and compliance of GST procedures, impacting filing frequencies, input tax credit availment, and payment timelines.