Key changes declared in CGST Notification 12/2024 dated 10th July 2024-Part 3!

On June 22, 2024, the 53rd GST Council meeting was held in Delhi, with Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, presiding. The council proposed various adjustments to GST rates, introduced trade facilitation measures, and sought to streamline GST compliance. 

Many circulars and notifications are issued after this meeting to implement changes suggested in the meeting. One such important notification is Notification 12/2024 dated 10th July 2024- Central Tax!

Read “Key changes declared in CGST Notification 12/2024 dated 10th July 2024- Part I!” here

Read “Key changes declared in CGST Notification 12/2024 dated 10th July 2024- Part II!” here

Let's understand the key changes in this notification.

Notification 12/2024- Central Tax dated 10th July 2024- key changes- Part III

• Rule 96 of the CGST Rules, 2017 deals with Refund of integrated tax paid on goods or services exported out of India. In it’s sub-rule (1),–

(a) in the proviso to clause (b), 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;

(b) after clause (c), in the long line, the following proviso shall be inserted, namely: –

“Provided that the exporter of goods may apply electronically in FORM GST RFD-01 through the common portal for a refund of additional integrated tax paid on account of upward revision in price of goods after export of such goods, and on which the amount of integrated tax paid at the time of export of such goods has already been refunded under provisions of sub-rule (3) of this rule, and such application shall be dealt with under the provisions of rule 89.”

Also, in its in sub-rule (2), after the words, letters, and figures “contained in FORM GSTR-1”, the letters, words, and figures “, as amended in FORM GSTR-1A if any,” shall be inserted.

These changes are w.r.t. introduction of Form GST RFD-01 for a refund of additional integrated tax paid on account of upward revision in price of goods after export.

• Rule 96A deals with Refund under bond or LUT.  In the said rules, 

1. In sub-rule (1), for clause (b), the following shall be substituted, namely:-

“(b) fifteen days after the expiry of one year, or the period as allowed under the Foreign Exchange Management Act, 1999 (42 of 1999) including any extension of such period as permitted by the Reserve Bank of India, whichever is later, from the date of issue of the invoice for export, or such further period as may be allowed by the Commissioner, if the payment of such services is not received by the exporter in

convertible foreign exchange or in Indian rupees, wherever permitted by the Reserve Bank of India.”;

2. In sub-rule (2), after the words, letters, and figures “contained in FORM GSTR-1”, the letters, words, and figures “, as amended in FORM GSTR-1A if any,” shall be inserted.

This amendment is made to include the period as allowed under the Foreign Exchange Management Act, 1999 (FEMA) including any extension of such period as permitted by the Reserve Bank of India (RBI) for the determination of receipt of consideration in case of exports made under a bond or letter of undertaking (LUT).  

Notably, this timeline applies only to the export of services. This is a welcome step and will allow exporters more time to realize where the period as allowed under the FEMA including any extension of such period as permitted by the RBI is more than one year and 15 days from the date of issue of invoice for export.

• Other several changes are made in 110, 111, and 113 of the CGST Rules, 2017. These changes are w.r.t. assessment procedures and appeals in GST. Following is the summary-

The existing rule 110 of the CGST Rules governing the procedure for appeals to the Appellate Tribunal is substituted with the following provisions –  

• Appeals will be filed electronically in Form GST APL-05 along with relevant documents, with an acknowledgment issued immediately. 
• Appeals can also be filed manually if allowed by the registrar, who will issue an acknowledgment. 
• Memorandum of cross-objections will be filed electronically in Form GST APL-06, with similar provisions for manual filing if allowed.
• Appeals and memorandums must be signed as per rule 26 of the CGST Rules. 
• Acknowledgment of the appeal, with an appeal number, will be considered as the filing date.
• The fee for filing an appeal is INR1,000 for every INR100,000 of disputed tax, subject to a minimum of INR5,000 and a maximum of INR25,000.  
• Fee of INR5,000 for filing of appeals with no disputed tax. 
• No fee is required for applications for rectification of mistakes. 

The existing rule 111 of the CGST Rules governing the procedure for applications to Appellate Tribunal or departmental appeals is substituted with the following provisions–   

• Applications will be filed electronically in Form GST APL-07 with relevant documents, and an acknowledgment will be issued immediately. 
• Similar provisions for manual filing if allowed by the registrar. 
• Memorandum of cross-objections will be filed electronically in Form GST APL-06, with similar provisions for manual filing if allowed. 
• Appeals and memorandums must be signed as per rule 26 of the CGST Rules. 
• Acknowledgment of the appeal, with an appeal number, will be considered as the filing date.
• Specified fees apply to the filing of appeals as mentioned under rule 110 of the CGST Rules above.

Similar to amendments via rule 109C of the CGST Rules governing the withdrawal of appeals before the Appellate Authority2, rule 113A of the CGST Rules is inserted with the following provisions-

• Any appeal filed in Form GST APL-05 or application in Form GST APL-07 can be withdrawn electronically at any time before the issuance of the order. 
• Once acknowledgment in Form GST APL-02 is issued, withdrawal requires approval from the Appellate Tribunal, with a decision to be made within fifteen days. 
• Following withdrawal, any new appeal or application must be filed within the time limits prescribed in sections 112(1) or 112(3) of the CGST Act.

Conclusion

In conclusion, the key changes introduced in CGST Notification 12/2024, dated July 10, 2024, are poised to significantly impact GST compliance and trade facilitation. The amendments to Rule 96 and Rule 96A streamline the refund process for integrated tax on exported goods and extend the timeline for receipt of export service payments, providing much-needed flexibility to exporters. Additionally, the revisions to Rules 110, 111, and 113 enhance the procedural efficiency of appeals and applications, ensuring a more robust and transparent framework.

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