Notification No 21/2018  Central Tax : CGST Fourth Amendment Rules 2018

By | April 18, 2018
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(Last Updated On: June 5, 2018)

Notification No 21/2018  Central Tax

Notification seeks to make amendments (Fourth Amendment) to the CGST Rules, 2017 vide Notification No 21/2018  Central Tax Dated 18th April  2018

[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. 21/2018 – Central Tax

Dated 18th April  2018

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) These rules may be called the Central Goods and Services Tax (Fourth Amendment)
Rules, 2018.
(2) Save as otherwise provided, 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, –

(i) in rule 89, for sub-rule (5), the following shall be substituted, namely:-

“(5). In the case of refund on account of inverted duty structure, refund of input tax credit
shall be granted as per the following formula:-
Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services)
x Net ITC ÷ Adjusted Total Turnover} – tax payable on such inverted rated supply of
goods and services.
Explanation:- For the purposes of this sub-rule, the expressions –
(a) “Net ITC” shall mean input tax credit availed on inputs during the relevant period
other than the input tax credit availed for which refund is claimed under sub-rules (4A) or
(4B) or both; and
(b) “Adjusted Total turnover” shall have the same meaning as assigned to it in sub-rule
(4).”;

(ii) for rule 97, the following rule shall be substituted, namely:-

“97. Consumer Welfare Fund.-(1) All amounts of duty/central tax/ integrated tax
/Union territory tax/cess and income from investment along with other monies
specified in sub-section (2) of section 12C of the Central Excise Act, 1944 (1 of
1944), section 57 of the Central Goods and Services Tax Act, 2017 (12 of 2017) read
with section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017),
section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) and section 12 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017) shall be credited to the Fund:

Provided that an amount equivalent to fifty per cent. of the amount of integrated tax determined under sub-section (5) of section 54 of the Central Goods and Services Tax Act, 2017, read with section 20 of the Integrated Goods and Services Tax Act, 2017, shall be deposited in the Fund.

(2) Where any amount, having been credited to the Fund, is ordered or directed to be
paid to any claimant by the proper officer, appellate authority or court, the same shall
be paid from the Fund.
(3) Accounts of the Fund maintained by the Central Government shall be subject to
audit by the Comptroller and Auditor General of India.
(4) The Government shall, by an order, constitute a Standing Committee (hereinafter
referred to as the „Committee‟) with a Chairman, a Vice-Chairman, a Member
Secretary and such other members as it may deem fit and the Committee shall make
recommendations for proper utilisation of the money credited to the Fund for welfare
of the consumers.

(5) (a) The Committee shall meet as and when necessary, generally four times in a
year;
(b) the Committee shall meet at such time and place as the Chairman, or in his
absence, the Vice-Chairman of the Committee may deem fit;
(c) the meeting of the Committee shall be presided over by the Chairman, or in his
absence, by the Vice-Chairman;
(d) the meeting of the Committee shall be called, after giving at least ten days‟ notice
in writing to every member;
(e) the notice of the meeting of the Committee shall specify the place, date and hour
of the meeting and shall contain statement of business to be transacted thereat;
(f) no proceeding of the Committee shall be valid, unless it is presided over by the
Chairman or Vice-Chairman and attended by a minimum of three other members.

(6) The Committee shall have powers –
(a) to require any applicant to get registered with any authority as the Central
Government may specify;
(b) to require any applicant to produce before it, or before a duly authorised
officer of the Central Government or the State Government, as the case may
be, such books, accounts, documents, instruments, or commodities in custody
and control of the applicant, as may be necessary for proper evaluation of the
application;
(c) to require any applicant to allow entry and inspection of any premises, from
which activities claimed to be for the welfare of consumers are stated to be carried on, to a duly authorised officer of the Central Government or the State Government, as the case may be;

(d) to get the accounts of the applicants audited, for ensuring proper utilisation of
the grant;
(e) to require any applicant, in case of any default, or suppression of material
information on his part, to refund in lump-sum along with accrued interest, the
sanctioned grant to the Committee, and to be subject to prosecution under the
Act;
(f) to recover any sum due from any applicant in accordance with the provisions
of the Act;
(g) to require any applicant, or class of applicants to submit a periodical report,
indicating proper utilisation of the grant;
(h) to reject an application placed before it on account of factual inconsistency, or
inaccuracy in material particulars;
(i) to recommend minimum financial assistance, by way of grant to an applicant,
having regard to his financial status, and importance and utility of the nature
of activity under pursuit, after ensuring that the financial assistance provided
shall not be misutilised;
(j) to identify beneficial and safe sectors, where investments out of Fund may be
made, and make recommendations, accordingly;
(k) to relax the conditions required for the period of engagement in consumer
welfare activities of an applicant;
(l) to make guidelines for the management, and administration of the Fund.

(7) The Committee shall not consider an application, unless it has been inquired
into, in material details and recommended for consideration accordingly, by the
Member Secretary

(8) The Committee shall make recommendations:-
(a) for making available grants to any applicant;
(b) for investment of the money available in the Fund;
(c) for making available grants (on selective basis) for reimbursing legal expenses
incurred by a complainant, or class of complainants in a consumer dispute,
after its final adjudication;
(d) for making available grants for any other purpose recommended by the Central
Consumer Protection Council (as may be considered appropriate by the
Committee);
(e) for making available up to 50% of the funds credited to the Fund each year,
for publicity/ consumer awareness on GST, provided the availability of funds
for consumer welfare activities of the Department of Consumer Affairs is not less than twenty five crore rupees per annum.

Explanation.- For the purposes of this rule

(a) ‘Act’ means the Central Goods and Services Tax Act, 2017 (12 of 2017), or the Central
Excise Act, 1944 (1 of 1944) as the case may be;
(b) ‘applicant’ means,
(i) the Central Government or State Government;
(ii) regulatory authorities or autonomous bodies constituted under an Act of Parliament
or the Legislature of a State or Union Territory;
(iii) any agency or organization engaged in consumer welfare activities for a minimum
period of three years, registered under the Companies Act, 2013 (18 of 2013) or under
any other law for the time being in force;
(iv) village or mandal or samiti or samiti level co-operatives of consumers especially
Women, Scheduled Castes and Scheduled Tribes;
(v) an educational or research institution incorporated by an Act of Parliament or the
Legislature of a State or Union Territory in India or other educational institutions
established by an Act of Parliament or declared to be deemed as a University under
section 3 of the University Grants Commission Act, 1956 (3 of 1956) and which has
consumers studies as part of its curriculum for a minimum period of three years; and
(vi) a complainant as defined under clause (b) of sub-section (1) of section 2 of the
Consumer Protection Act, 1986 (68 of 1986), who applies for reimbursement of legal
expenses incurred by him in a case instituted by him in a consumer dispute redressal
agency.

(c) ‘application’ means an application in the form as specified by the Standing Committee
from time to time;
(d) ‘Central Consumer Protection Council’ means the Central Consumer Protection
Council, established under sub-section (1) of section 4 of the Consumer Protection Act,
1986 (68 of 1986), for promotion and protection of rights of consumers;
(e) ‘Committee’ means the Committee constituted under sub-rule (4);
(f) ‘consumer’ has the same meaning as assigned to it in clause (d) of sub-section (1) of
section 2 of the Consumer Protection Act, 1986 (68 of 1986), and includes consumer of
goods on which central tax has been paid;
(g) „duty‟ means the duty paid under the Central Excise Act, 1944 (1 of 1944) or the
Customs Act, 1962 (52 of 1962);
(h) „Fund‟ means the Consumer Welfare Fund established by the Central Government
under sub-section (1) of section 12C of the Central Excise Act, 1944 (1 of 1944) and
section 57 of the Central Goods and Services Tax Act, 2017 (12 of 2017);
(i) ‘proper officer’ means the officer having the power under the Act to make an order that
the whole or any part of the central tax is refundable;

(iii) in FORM GST ITC-03, after entry 5 (e), for the instruction against “**”, the following
shall be substituted, namely:-

“** The value of capital goods shall be the invoice value reduced by 1/60th per month or part
thereof from the date of invoice”;

(iv) after FORM GSTR-8, the following FORM shall be inserted, namely:-

“FORM GSTR-10
(See rule 81)
Final Return

(v) for FORM GST DRC-07, the following shall be substituted, namely:—

“FORM GST DRC-07

[See rule 142(5)]

Summary of the order

Download complete Notification No 21/2018  Central Tax Click here

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4 thoughts on “Notification No 21/2018  Central Tax : CGST Fourth Amendment Rules 2018

  1. Ankit

    Sir instead of publishing whole notification as it is,please also provide a summary analysis of the same also.

    Reply
  2. Pingback: GST Final Return : Format and Provisions - Tax Heal

  3. Pingback: Rule 89 CGST Rules 2017 : Application for refund of tax, interest, penalty, fees or any other amount - Tax Heal

  4. Pingback:  Rule 97 CGST Rules 2017 : Consumer Welfare Fund - Tax Heal

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