12/2024-Central Tax : Seeks to make amendments (Amendment, 2024) to the CGST Rules, 2017.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS NOTIFICATION No. 12/2024 – Central Tax New Delhi, the 10th July, 2024 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, on the recommendations of the Council, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely: — 1. Short title and commencement. –(1) These rules may be called the Central Goods and Services Tax (Amendment) Rules, 2024. (2) Save as otherwise provided in these rules, 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), with effect from a date to be notified, in rule 8, in sub-rule (4A), after the first proviso, the following proviso shall be inserted, namely: - ―Provided further that every application made under sub-rule (4) by a person, other than a person notified under sub-section (6D) of section 25, who has not opted for authentication of Aadhaar number, shall be followed by taking photograph of the applicant where the applicant is an individual or of such individuals in relation to the applicant as notified under sub-section (6C) of section 25 where the applicant is not an individual, along with the verification of the original copy of the documents uploaded with the application in FORM GST REG-01 at one of the Facilitation Centers notified by the Commissioner for the purpose of this sub-rule and the application shall be deemed to be complete only after successful verification as laid down under this proviso.‖. 3. In the said rules, in rule 21, – (i) in clause (f), after the words, letters and figures ―FORM GSTR-1‖, the letters, words and figures ―, as amended in FORM GSTR-1A if any,‖ shall be inserted; (ii) after clause (g), the following clause shall be inserted, namely: - ―(ga) violates the provisions of third or fourth proviso to sub-rule (1) of rule 23; or‖. 4. In the said rules, in rule 21A, in sub-rule (2A), in clause (a), – (i) after the words, letters and figures ―furnished in FORM GSTR-1‖, the letters, words and figures ―, as amended in FORM GSTR-1A if any,‖ shall be inserted; (ii) after the words, letters and figures ―in their FORM GSTR-1‖, the words, letters and figures ―or in FORM GSTR-1A of the previous tax period, if any‖ shall be inserted. 5. In the said rules, in rule 28, with effect from the 26th day of October, 2023, – (i) in sub-rule (2), – (a) after the words ―who is a related person‖, the words ―located in India‖ shall be inserted; (b) after the words ―amount of such guarantee offered‖, the words ―per annum‖ shall be inserted. (ii) after sub-rule (2), the following proviso shall be inserted, namely,– ―Provided that where the recipient is eligible for full input tax credit, the value declared in the invoice shall be deemed to be the value of said supply of services.‖. 6. In the said rules, in rule 36, in sub-rule (4), in clause (a), after the words, letters and figures ―FORM GSTR- 1‖, the letters, words and figures ―, as amended in FORM GSTR-1A if any,‖ shall be inserted. 7. In the said rules, in rule 37A, after the words, letters and figures ―FORM GSTR-1‖, the letters, words and figures ―, as amended in FORM GSTR-1A if any,‖ shall be inserted. 8. In the said rules, with effect from a date to be notified, in rule 39, – (i) for sub-rule (1), the following sub-rule shall be substituted, namely: –– ―(1) An Input Service Distributor shall distribute input tax credit in the manner and subject to the following conditions, namely: –– (a) the input tax credit available for distribution in a month shall be distributed in the same month and the details thereof shall be furnished in FORM GSTR-6 in accordance with the provisions of Chapter VIII of these rules; (b) the amount of the credit distributed shall not exceed the amount of credit available for distribution; (c) the credit of tax paid on input services attributable to a recipient of credit shall be distributed only to that recipient; (d) the credit of tax paid on input services attributable to more than one recipient of credit shall be distributed amongst such recipients to whom the input service is attributable and such distribution shall be pro rata on the basis of the turnover in a State or turnover in a Union territory of such recipient, during the relevant period, to the aggregate of the turnover of all such recipients to whom such input service is attributable and which are operational in the current year, during the said relevant period; (e) the credit of tax paid on input services attributable to all recipients of credit shall be distributed amongst such recipients and such distribution shall be pro rata on the basis of the turnover in a State or turnover in a Union territory of such recipient, during the relevant period, to the aggregate of the turnover of all recipients and which are operational in the current year, during the said relevant period; (f) the input tax credit that is required to be distributed in accordance with the provisions of clause (d) and (e) to one of the recipients "R1", whether registered or not, from amongst the total of all the recipients to whom input tax credit is attributable, including the recipients who are engaged in making exempt supply, or are otherwise not registered for any reason, shall be the amount, "C1", to be calculated by applying the following formula - C 1 = (t 1 / T) x C where, "C" is the amount of credit to be distributed, "t1 " is the turnover, as referred to in clause (d) and (e), of person R1 during the relevant period, and "T" is the aggregate of the turnover, during the relevant period, of all recipients to whom the input service is attributable in accordance with the provisions of clause (d) and (e); (g) the Input Service Distributor shall, in accordance with the provisions of clause (d) and (e), separately distribute the amount of ineligible input tax credit (ineligible under the provisions of sub-section (5) of section 17 or otherwise) and the amount of eligible input tax credit; (h) the input tax credit on account of central tax, State tax, Union territory tax and integrated tax shall be distributed separately in accordance with the provisions of clause (d) and (e); (i) the input tax credit on account of integrated tax shall be distributed as input tax credit of integrated tax to every recipient; (j) the input tax credit on account of central tax and State tax or Union territory tax shall– (i) in respect of a recipient located in the same State or Union territory in which the Input Service Distributor is located, be distributed as input tax credit of central tax and State tax or Union territory tax respectively; (ii) in respect of a recipient located in a State or Union territory other than that of the Input Service Distributor, be distributed as integrated tax and the amount to be so distributed shall be equal to the aggregate of the amount of input tax credit of central tax and State tax or Union territory tax that qualifies for distribution to such recipient as referred to in clause (d) and (e);