Central Goods and Services Tax (CGST) Rules, 2017 Part – A (Rules)

Notified vide Notification No. 3/2017-Central Tax (Dated 19th June 2017) and further as amended by  Notification No. 7/2017-Central Tax (Dated 27th June 2017), Notification No. 10/2017-Central Tax (Dated 28th June 2017), Notification No. 15/2017-Central Tax (Dated 1st July 2017), Notification No. 17/2017-Central Tax  (Dated 27th July 2017), Notification No. 22/2017-Central Tax (Dated 17th August 2017), Notification No.  27/2017-Central Tax (Dated 30th August 2017), Notification No. 34/2017-Central Tax (Dated 15th September  2017), Notification No. 36/2017-Central Tax (Dated 29th September 2017), Notification No. 45/2017-Central  Tax (Dated 13th October 2017), Notification No. 47/2017-Central Tax (Dated 18th October, 2017), Notification  No. 51/2017-Central Tax (Dated 28th October, 2017), Notification No. 55/2017-Central Tax (Dated 15th November, 2017), Notification No. 70/2017-Central Tax (Dated 21st December, 2017) , Notification No.  75/2017-Central Tax (Dated 29th December, 2017), Notification No.03/2018 – Central Tax (Dated 23rd January, 2018), Notification No. 12/2018 – Central Tax (Dated 07th March, 2018), Notification No. 14/2018- Central Tax (Dated 23rd March, 2018), Notification No. 21/2018-Central Tax (Dated 18th April, 2018), Notification No. 26/2018-Central Tax (Dated 13th June, 2018), Notification No. 28/2018-Central Tax (Dated  19th June, 2018), Notification No. 29/2018-Central Tax (Dated 06th July, 2018), Notification No. 39/2018- Central Tax (Dated 04th September, 2018), Notification No. 48/2018-Central Tax (Dated 10th September,  2018), Notification No. 49/2018-Central Tax (Dated 13th September, 2018), Notification No. 53/2018-Central  Tax (Dated 9th October, 2018), Notification No. 54/2018-Central Tax (Dated 9th October, 2018), Notification  No. 60/2018-Central Tax (Dated 30th October, 2018), Notification No. 74/2018-Central Tax (Dated 31st December, 2018), Notification No. 03/2019-Central Tax (Dated 29th January, 2019), Notification No. 16/2019- Central Tax (Dated 29th March, 2019), Notification No. 20/2019-Central Tax (Dated 23rd April, 2019),  Notification No. 31/2019-Central Tax (Dated 28th June, 2019), Notification No. 33/2019-Central Tax (Dated  18th July, 2019) ,Notification No. 49/2019-Central Tax (Dated 9thOctober, 2019), Notification No. 56/2019- Central Tax (Dated 14th November, 2019), Notification No. 68/2019-Central Tax (Dated 13th December, 2019),  Notification No. 75/2019-Central Tax (Dated 26th December, 2019), Notification No. 02/2020-Central Tax  (Dated 01st January, 2020), Notification No. 08/2020-Central Tax (Dated 02nd March, 2020), Notification No.  16/2020-Central Tax (Dated 23rd March, 2020), Notification No. 30/2020-Central Tax (Dated 03rd April,  2020), Notification No. 38/2020-Central Tax (Dated 05th May, 2020), Notification No. 48/2020-Central Tax  (Dated 19thJune, 2020), Notification No. 50/2020-Central Tax (Dated 24th June, 2020) , Notification No.  58/2020-Central Tax (Dated 01st July, 2020)Notification No. 60/2020-Central Tax (Dated 30th July, 2020), Notification No. 62/2020-Central Tax (Dated 20th August, 2020), Notification No. 72/2020-Central Tax (Dated  30th September, 2020), Notification No. 79/2020-Central Tax (Dated 15th October, 2020) and Notification No.  82/2020-Central Tax (Dated 10th November, 2020) , Notification No.94/2020 – Central Tax (dated.  22.12.2020) , Notification No.01/2021 – Central Tax (dated. 01.01.2021) , Notification No.07/2021 – Central  Tax (dated. 27.04.2021), Notification No.13/2021 – Central Tax (dated. 01.05.2021), Notification No.15/2021  – Central Tax (dated. 18.05.2021) and Notification No.27/2021 – Central Tax (dated 01.06.2021).

Note: This updated version of the Rules as amended upto 01st June, 2021 has been prepared for  convenience and easy reference of the trade and industry and has no legal binding or force. Notifications as  published in the official Gazette of the Government of India only have the force of law. Any errors in this  document may kindly be brought to notice by sending an email on gst-cbec@gov.in.

(As on 01.06.2021)

Government of India

Ministry of Finance  

Department of Revenue

Central Board of Indirect Taxes and Customs

CONTENTS

CHAPTER I...........................................................................................................................1 PRELIMINARY...................................................................................................................1 CHAPTER II .........................................................................................................................2 COMPOSITION [LEVY].....................................................................................................2 CHAPTER III........................................................................................................................7 REGISTRATION .................................................................................................................7 CHAPTER IV......................................................................................................................25 DETERMINATION OF VALUE OF SUPPLY ................................................................25 CHAPTER V .......................................................................................................................31 INPUT TAX CREDIT........................................................................................................31 CHAPTER VI......................................................................................................................52 TAX INVOICE, CREDIT AND DEBIT NOTES..............................................................52 CHAPTER VII.....................................................................................................................63 ACCOUNTS AND RECORDS..........................................................................................63 CHAPTER VIII ...................................................................................................................67 RETURNS..........................................................................................................................67 CHAPTER IX......................................................................................................................88 PAYMENT OF TAX..........................................................................................................88 CHAPTER X .......................................................................................................................95 REFUND ............................................................................................................................95 CHAPTER XI....................................................................................................................115 ASSESSMENT AND AUDIT..........................................................................................115 CHAPTER XII...................................................................................................................118 ADVANCE RULING.......................................................................................................118 CHAPTER XIII .................................................................................................................120 APPEALS AND REVISION............................................................................................120 CHAPTER XIV.................................................................................................................124 TRANSITIONAL PROVISIONS ....................................................................................124 CHAPTER XV ..................................................................................................................128 ANTI-PROFITEERING...................................................................................................128 CHAPTER XVI.................................................................................................................135 E-WAY RULES ...............................................................................................................135 CHAPTER XVII................................................................................................................154 INSPECTION, SEARCH AND SEIZURE......................................................................154 CHAPTER XVIII ..............................................................................................................156 DEMANDS AND RECOVERY ......................................................................................156

CHAPTER XIX.................................................................................................................164 OFFENCES AND PENALTIES ......................................................................................164

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CHAPTER I

PRELIMINARY

1. Short title and Commencement.-(1) These rules may be called the Central Goods and  Services Tax Rules, 2017.

(2) They shall come into force with effect from 22nd June, 2017.

2. Definitions.- In these rules, unless the context otherwise requires,-

(a) ―Act‖ means the Central Goods and Services Tax Act, 2017 (12 of 2017); (b) ―FORM‖ means a Form appended to these rules;

(c) ―section‖ means a section of the Act;

(d) ―Special Economic Zone‖ shall have the same meaning as assigned to it in  clause (za) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005); (e) words and expressions used herein but not defined and defined in the Act shall  have the meanings respectively assigned to them in the Act.

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CHAPTER II

COMPOSITION [LEVY]1 

3. Intimation for composition levy.-(1) Any person who has been granted registration on a  provisional basis under clause (b) of sub-rule (1) of rule 24 and who opts to pay tax under  section 10, shall electronically file an intimation in FORM GST CMP-01, duly signed or  verified through electronic verification code, on the common portal, either directly or  through a Facilitation Centre notified by the Commissioner, prior to the appointed day, but  not later than thirty days after the said day, or such further period as may be extended by  the Commissioner in this behalf:

Provided that where the intimation in FORM GST CMP-01 is filed after the  appointed day, the registered person shall not collect any tax from the appointed day but  shall issue bill of supply for supplies made after the said day.  

(2) Any person who applies for registration under sub-rule (1) of rule 8 may give an option  to pay tax under section 10 in Part B of FORM GST REG-01, which shall be considered  as an intimation to pay tax under the said section.

(3) Any registered person who opts to pay tax under section 10 shall electronically file an  intimation in FORM GST CMP-02, duly signed or verified through electronic verification  code, on the common portal, either directly or through a Facilitation Centre notified by the  Commissioner, prior to the commencement of the financial year for which the option to pay  tax under the aforesaid section is exercised and shall furnish the statement in FORM GST  ITC-03 in accordance with the provisions of sub-rule (4) of rule 44 within a period of sixty  days from the commencement of the relevant financial year.

[Provided that any registered person who opts to pay tax under section 10 for the  financial year 2020-21 shall electronically file an intimation in FORM GST CMP-02, duly  signed or verified through electronic verification code, on the common portal, either  directly or through a Facilitation Centre notified by the Commissioner, on or before 30th  day of June, 2020 and shall furnish the statement in FORM GST ITC-03 in accordance  with the provisions of sub-rule (4) of rule 44 upto the 31st day of July, 2020.]2 

[(3A)Notwithstanding anything contained in sub-rules (1), (2) and (3), a person who has  been granted registration on a provisional basis under rule 24 or who has been granted  certificate of registration under sub-rule (1) of rule 10 may opt to pay tax under section 10  with effect from the first day of the month immediately succeeding the month inwhich he  files an intimation in FORM GST CMP-02, on the common portal eitherdirectly or  through a Facilitation Centre notified by the Commissioner, on or before the31st day of  March, 2018, and shall furnish the statement in FORM GST ITC-03inaccordance with the  provisions of sub-rule (4) of rule 44 within a period of [one hundred and eighty days]3from  the day on which such person commences to pay tax under section 10:

1Substituted for the word [Rules] vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019 2Inserted vide Notf no. 30/2020 – CT dt.03.04.2020 wef 31.03.2020

3Substituted for the word [ninety days] vide Notf no. 03/2018- CT dt. 23.01.2018

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Provided that the said persons shall not be allowed to furnish the declaration inFORM  GST TRAN-1 after the statement in FORM GST ITC-03 has been furnished.]4 

(4) Any person who files an intimation under sub-rule (1) to pay tax under section 10 shall  furnish the details of stock, including the inward supply of goods received from  unregistered persons, held by him on the day preceding the date from which he opts to pay  tax under the said section, electronically, in FORM GST CMP-03, on the common portal,  either directly or through a Facilitation Centre notified by the Commissioner, within a  period of [ninety]5days from the date on which the option for composition levyis exercised  or within such further period as may be extended by the Commissioner in this behalf.

(5) Any intimation under sub-rule (1) or sub-rule (3) [or sub-rule (3A)]6in respect of any  place of business in any State or Union territory shall be deemed to be anintimation in  respect of all other places of business registered on the same Permanent Account Number.  

4. Effective date for composition levy.-(1) The option to pay tax under section 10 shall be  effective from the beginning of the financial year, where the intimation is filed under sub rule (3) of rule 3 and the appointed day where the intimation is filed under sub-rule (1) of  the said rule.

(2) The intimation under sub-rule (2) of rule 3, shall be considered only after the grant of  registration to the applicant and his option to pay tax under section 10 shall be effective  from the date fixed under sub-rule (2) or (3) of rule 10.

5. Conditions and restrictions for composition levy.-(1) The person exercising the option to  pay tax under section 10 shall comply with the following conditions, namely:-

(a) he is neither a casual taxable person nor a non-resident taxable person; (b) the goods held in stock by him on the appointed day have not been purchased  in the course of inter-State trade or commerce or imported from a place outside India  or received from his branch situated outside the State or from his agent or principal  outside the State,where the option is exercised under sub-rule (1) of rule 3; (c) the goods held in stock by him have not been purchased from anunregistered  supplier andwherepurchased, hepaysthetax under sub-section (4) of section 9;

4Substituted vide Notf no. 45/2017-CT dt. 13.10.2017. for ―(3A) Notwithstanding anything contained in sub rules (1), (2) and (3), a person who has been granted registration on a provisional basis under rule 24 or who has  applied for registration under sub-rule (1) of rule 8 may opt to pay tax under section 10 with effect from the first  day of October, 2017 by electronically filing an intimation in FORM GST CMP-02, on the common portal either  directly or through a Facilitation Centre notified by the Commissioner, before the said date and shall furnish the  statement in FORM GST ITC-03 in accordance with the provisions of sub - rule (4) of rule 44 within a period of  ninety days from the said date:  

Provided that the said persons shall not be allowed to furnish the declaration in FORM GST TRAN-1 after the  statement in FORM GST ITC-03 has been furnished.‖ which was inserted vide Notf no. 34/2017-CT dt.  15.09.2017

5Substituted for the word [sixty] with effect from 17.08.2017 vide Notf no. 22/2017 – CT dt. 17.08.2017 6Inserted vide Notf no. 34/2017 – CT dt. 15.09.2017

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(d) he shall pay tax under sub-section (3) or sub-section (4) of section 9 on inward  supply of goods or services or both;

(e) he was not engaged in the manufacture of goods as notified under clause (e) of  sub-section (2) of section 10, during the preceding financial year;

(f) he shall mention the words ―composition taxable person, not eligible to collect  tax on supplies‖ at the top of the bill of supply issued by him; and

(g) he shall mention the words ―composition taxable person‖ on every notice or  signboard displayed at a prominent place at his principal place of business and at every  additional place or places of business.  

(2) The registered person paying tax under section 10 may not file a fresh intimation every  year and he may continue to pay tax under the said section subject to the provisions of the  Act and these rules.

6. Validity of composition levy.- (1)The option exercised by a registered person to pay tax  under section 10 shall remain valid so long as he satisfies all the conditions mentioned in  the said section and under these rules.

(2) The person referred to in sub-rule (1) shall be liable to pay tax under sub-section (1) of  section 9 from the day he ceases to satisfy any of the conditions mentioned in section 10 or  the provisions of this Chapter and shall issue tax invoice for every taxable supply made  thereafter and he shall also file an intimation for withdrawal from the scheme in FORM  GST CMP-04 within seven days of the occurrence of such event.

(3) The registered person who intends to withdraw from the composition scheme shall,  before the date of such withdrawal, file an application in FORM GST CMP-04, duly  signed or verified through electronic verification code, electronically on the common  portal.

(4) Where the proper officer has reasons to believe that the registered person was not  eligible to pay tax under section 10 or has contravened the provisions of the Act or  provisions of this Chapter, he may issue a notice to such person in FORM GST CMP-05 to show cause within fifteendays of the receipt of such notice as to why the option to pay  tax under section 10 shall not be denied.

(5) Upon receipt of the reply totheshowcausenoticeissuedundersub-rule (4) from the  registered person in FORM GST CMP-06, the proper officer shall issue an order in  FORM GST CMP-07within a period of thirty days of the receipt of such reply, either  accepting the reply, or denying the option to pay tax under section 10 from the date of the  option or from the date of the event concerning such contravention, as the case may be.

(6) Every person who has furnished an intimation under sub-rule (2) or filed an application  for withdrawal under sub-rule (3) or a person in respect of whom an order of withdrawal of  option has been passed in FORM GST CMP-07 under sub-rule (5), may electronically furnish at the common portal, either directly or through a Facilitation Centre notified by

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the Commissioner, a statement in FORM GST ITC-01containingdetails of the stock of  inputs and inputs contained in semi-finished or finished goods held in stock by him on the  date on which the option is withdrawn or denied, within a period of thirty days from the  date from which the option is withdrawn or from the date of the order passed in FORM  GST CMP-07, as the case may be.

(7) Any intimation or application for withdrawal under sub-rule (2) or (3) or denial of the  option to pay tax under section 10 in accordance with sub-rule (5) in respect of any place of  business in any State or Union territory, shall be deemed to be an intimation in respect of  all other places of business registered on the same Permanent Account Number.  

7. Rate of tax of the composition levy.-The category of registered persons, eligible for  composition levyunder section 10 and the provisions of this Chapter, specified in column  (2) of the Table below shall pay tax under section 10 at the rate specified in column (3) of  the said Table:-

[

]7

7Substituted vide Notf no. 50/2020-CT dt. 24.06.2020 wef 01.04.2020 for

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Page 6 of 164

CHAPTER III

REGISTRATION

8. Application for registration.-(1)Every person, other than a non-resident taxable person, a  person required to deduct tax at source under section 51, a person required to collect tax at  source under section 52 and a person supplying online information and database access or  retrieval services from a place outside India to a non-taxable online recipient referred to in  section 14 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) who is liable  to be registered under sub-section (1) of section 25 and every person seeking registration  under sub-section (3) of section 25 (hereafter in this Chapter referred to as ―the applicant‖)  shall, before applying for registration, declare his Permanent Account Number, mobile  number, e-mail address, State or Union territory in Part A of FORM GST REG-01 on the  common portal, either directly or through a Facilitation Centre notified by the  Commissioner:

[Provided that a person having a unit(s) in a Special Economic Zone or being a  Special Economic Zone developer shall make a separate application for registration as  a business vertical distinct from his other units located outside the Special Economic  Zone:]8 

Provided [further]9that every person being an Input Service Distributor shall make a  separate application for registration as such Input Service Distributor.

(2) (a) The Permanent Account Number shall be validated online by the common  portal from the database maintained by the Central Board of Direct Taxes.  

(b) The mobile number declared under sub-rule (1) shall be verified through a one time password sent to the said mobile number; and

 (c) The e-mail address declared under sub-rule (1) shall be verified through a  separate one-time password sent to the said e-mail address.

(3) On successful verification of the Permanent Account Number, mobile number and e mail address, a temporary reference number shall be generated and communicated to the  applicant on the said mobile number and e-mail address.

(4) Using the reference number generated under sub-rule (3), the applicant shall  electronically submit an application in Part B of FORM GST REG-01, duly signed or  verified through electronic verification code, along with the documents specified in the said  Form at the common portal, either directly or through a Facilitation Centre notified by the  Commissioner.

[(4A) Where an applicant, other than a person notified under sub-section (6D) of section 25, opts  for authentication of Aadhaar number, he shall, while submitting the application under sub-rule (4),  with effect from 21st August, 2020, undergo authentication of Aadhaar number and the date of  submission of the application in such cases shall be the date of authentication of the Aadhaar  

8 Omitted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019

9Omitted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019

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number, or fifteen days from the submission of the application in Part B of FORM GST REG-01 under sub-rule (4), whichever is earlier.]10 

(5) On receipt of an application under sub-rule (4), an acknowledgement shall be issued  electronically to the applicant in FORM GST REG-02.

(6) A person applying for registration as a casual taxable person shall be given a  temporary reference number by the common portal for making advance deposit of tax in  accordance with the provisions of section 27 and the acknowledgement under sub-rule (5)  shall be issued electronically only after the said deposit.

9. Verification of the application and approval.-(1)The application shall be forwarded to the  proper officer who shall examine the application and the accompanying documents and if  the same are found to be in order, approve the grant of registration to the applicant within a  period of [seven]11working days from the date of submission of the application.  

[Provided that where-

(a) a person, other than a person notified under sub-section (6D) of section 25, fails  to undergo authentication of Aadhaar number as specified in sub-rule (4A) of  rule 8 or does not opt for authentication of Aadhaar number; or

(b) the proper officer, with the approval of an officer authorised by the  Commissioner not below the rank of Assistant Commissioner, deems it fit to  carry out physical verification of places of business,

the registration shall be granted within thirty days of submission of application, after physical verification of the place of business in the presence of the said person, in the

10 (1) This was Inserted vide Notf no.16/2020 – CT dt. 23.03.2020 and was subsitituted vide Notf no.62/2020 – CT dt. 20.08.2020 w.e.f 01.04.2020 for ―(4A)The applicant shall, while submitting an application under sub-rule  (4), with effect from 01.04.2020, undergo authentication of Aadhaar number for grant of registration.‖  (2) Vide Notf no.94/2020 – CT dt. 22.12.2020 w.e.f a date to be notified ,the following shall be substituted ―(4A)  Every application made under rule (4) shall be followed by—

(a) biometric-based Aadhaar authentication and taking photograph, unless exempted under sub-section (6D) of section 25, if he has opted for authentication of Aadhaar number; or

(b) taking biometric information, photograph and verification of such other KYC documents, as notified, unless the applicant is exempted under sub-section (6D) of section 25, if he has opted not to get Aadhaar authentication done,

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  Centres notified by the Commissioner for the purpose of this sub-rule and the application shall be deemed to be  complete only after completion of the process laid down under this sub-rule.‖ .]  

11Subsitituted vide Notf no.94/2020 – CT dt. 22.12.2020 for ―three‖.

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manner provided under rule 25 and verification of such documents as the proper officer may deem fit.]12 

(2) Where the application submitted under rule 8 is found to be deficient, either in terms of  any information or any document required to be furnished under the said rule, or where the  proper officer requires any clarification with regard to any information provided in the  application or documents furnished therewith, he may issue a notice to the applicant  electronically in FORM GST REG-03 within a period of [seven] 13working days from the  date of submission of the application and the applicant shall furnish such clarification,  information or documents electronically, in FORM GST REG-04, within a period of  seven working days from the date of the receipt of such notice.  

[Provided that where-

(a) a person, other than a person notified under sub-section (6D) of section  25, fails to undergo authentication of Aadhaar number as specified in sub rule (4A) of rule 8 or does not opt for authentication of Aadhaar number; or

(b) the proper officer, with the approval of an officer authorised by the  Commissioner not below the rank of Assistant Commissioner, deems it fit to  carry out physical verification of places of business,

the notice in FORM GST REG-03 may be issued not later than thirty days from the date of submission of the application.]14 

Explanation.- For the purposes of this sub-rule, the expression ―clarification‖ includes  modification or correction of particulars declared in the application for registration, other  

12Subsitituted vide Notf no.94/2020 – CT dt. 22.12.2020 for ‖Provided that where a person, other than a person  notified under sub-section (6D) of section 25, fails to undergo authentication of Aadhaar number as specified  in sub-rule (4A) of rule 8 or does not opt for authentication of Aadhaar number, the registration shall be  granted only after physical verification of the place of business in the presence of the said person, in the  manner provided under rule 25:

 Provided further that the proper officer may, for reasons to be recorded in writing and with the approval of  an officer not below the rank of Joint Commissioner, in lieu of the physical verification of the place of  business, carry out the verification of such documents as he may deem fit.‖.

(This was Inserted vide Notf no.16/2020 – CT dt. 23.03.2020 wef 01.04.2020. Subsitituted vide Notf no.62/2020  – CT dt. 20.08.2020 w.e.f 21.08.2020 for ―Provided that where a person, other than those notified under sub section (6D) of section 25, fails to undergo authentication of Aadhaar number as specified in sub-rule (4A) of  rule 8, then the registration shall be granted only after physical verification of the principle place of business in  the presence of the said person, not later than sixty days from the date of application, in the manner provided  under rule 25 and the provisions of sub-rule (5) shall not be applicable in such cases.‖)

13Subsitituted vide Notf no.94/2020 – CT dt. 22.12.2020 for ―three‖.

14Subsitituted vide Notf no.94/2020 – CT dt. 22.12.2020 for ―Provided that where a person, other than a person  notified under sub-section (6D) of section 25, fails to undergo authentication of Aadhaar number as specified in  sub-rule (4A) of rule 8 or does not opt for authentication of Aadhaar number, the notice in FORM GST REG-03 may be issued not later than twenty one days from the date of submission of the application.‖(This was inserted  vide Notf no.62/2020 – CT dt.20.08.2020 w.e.f 21.08.2020.)

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than Permanent Account Number, State, mobile number and e-mail address declared in  Part A of FORM GST REG-01.

(3) Where the proper officer is satisfied with the clarification, information or documents  furnished by the applicant, he may approve the grant of registration to the applicant within  a period of seven working days from the dateof the receipt of such clarification or  information or documents.  

(4) Where no reply is furnished by the applicant in response to the notice issued under  sub-rule (2) or where the proper officer is not satisfied with the clarification, information or  documents furnished, he [may]15, for reasons to be recorded in writing, reject such  application and inform the applicant electronically in FORM GST REG-05.  

[(5) If the proper officer fails to take any action, -

(a) within a period of seven working days from the date of submission of the application in cases where the person is not covered under proviso to sub-rule (1); or

(b) within a period of thirty days from the date of submission of the application in cases where a person is covered under proviso to sub-rule (1); or

(c) within a period of seven working days from the date of the receipt of the clarification, information or documents furnished by the applicant under sub rule (2),

the application for grant of registration shall be deemed to have been approved.]16 

15Subsitituted vide Notf no.62/2020 – CT dt. 20.08.2020 w.e.f 21.08.2020for ―shall‖.  

16Subsitituted vide Notf no.94/2020 – CT dt. 22.12.2020 for ― (5) If the proper officer fails to take any action, -

(a) within a period of three working days from the date of submission of the application in cases  where a person successfully undergoes authentication of Aadhaar number or is notified under sub section (6D) of section 25; or

(b) within the time period prescribed under the proviso to sub-rule (2), in cases where a person,  other than a person notified under sub-section (6D) of section 25, fails to undergo authentication of  Aadhaar number as specified in sub-rule (4A) of rule 8; or

(c) within a period of twenty one days from the date of submission of the application in cases  where a person does not opt for authentication of Aadhaar number; or

(d) within a period of seven working days from the date of the receipt of the clarification,  information or documents furnished by the applicant under sub-rule (2),

the application for grant of registration shall be deemed to have been approved.‖(This was Subsitituted vide Notf  no.62/2020 – CT dt. 20.08.2020 w.e.f 21.08.2020for ―(5)If the proper officer fails to take any action, - (a) within a period of three working days from the date of submission of the application; or (b) within a period of seven working days from the date of the receipt of the clarification, information or  documents furnished by the applicant under sub-rule (2),

the application for grant of registration shall be deemed to have been approved.‖)

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10. Issue of registration certificate.-(1)Subject to the provisions of sub-section (12) of  section 25, where the application for grant of registration has been approved under rule 9, a  certificate of registration in FORM GST REG-06 showing the principal place of business  and additional place or places of business shall be made available to the applicant on the  common portal and a Goods and Services Tax Identification Number shall be assigned  subject to the following characters, namely:-

(a) two characters for the State code;

(b) ten characters for the Permanent Account Number or the Tax Deduction and  Collection Account Number;

(c) two characters for the entity code; and

(d) one checksum character.

(2) The registration shall be effective from the date on which the person becomes liable to  registration where the application for registration has been submitted within a period of  thirty days from such date.

(3) Where an application for registration has been submitted by the applicant after the  expiry of thirty days from the date of his becoming liable to registration, the effective date  of registration shall be the date of the grant of registration under sub-rule (1) or sub-rule (3)  or sub-rule (5) of rule 9.

(4) Every certificate of registration shall be [duly signed or verified through electronic  verification code]17by the proper officer under the Act.

(5) Where the registration has been granted under sub-rule (5) of rule 9, the applicant shall  be communicated the registration number, and the certificate of registration under sub-rule  (1), duly signed or verified through electronic verification code, shall be made available to  him on the common portal, within a period of three days after the expiry of the period  specified in sub-rule (5) of rule 9.

[10A.Furnishing of Bank Account Details.-After a certificate of registration in  FORMGST REG-06 has been made available on the common portal and a Goods and  Services Tax Identification Number has been assigned, the registered person, except those  who have been granted registration under rule 12 or, as the case may be rule 16, shall as  soon as may be, but not later than forty five days from the date of grant of registration or  the date on which the return required under section 39 is due to be furnished, whichever is  earlier, furnish information with respect to details of bank account, or any other  information, as may be required on the common portal in order to comply with any other  provision.]18 

17Substituted vide Notf no. 7/2017-CT dt.27.06.2017 for the words ―digitally signed‖

18Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019

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11. [Separate registration for multiple places of business within a State or a Union  territory.- (1) Any person having multiple places of business within a State or a Union  territory, requiring a separate registration for any such place of business under sub-section  (2) of section 25 shall be granted separate registration in respect of each such place of  business subject to the following conditions, namely:-

(a) such person has more than one place of business as defined in clause (85) of section 2;  

(b) such person shall not pay tax under section 10 for any of his places of business if he is  paying tax under section 9 for any other place of business;  

(c) all separately registered places of business of such person shall pay tax under the Act on  supply of goods or services or both made to another registered place of business of such  person and issue a tax invoice or a bill of supply, as the case may be, for such supply.  

Explanation. - For the purposes of clause (b), it is hereby clarified that where any place of  business of a registered person that has been granted a separate registration becomes  ineligible to pay tax under section 10, all other registered places of business of the said  person shall become ineligible to pay tax under the said section.

(2) A registered person opting to obtain separate registration for a place of business shall  submit a separate application in FORM GST REG-01 in respect of such place of business.

(3) The provisions of rule 9 and rule 10 relating to the verification and the grant of  registration shall, mutatis mutandis, apply to an application submitted under this rule‖.]19 

19 Substituted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019 for ―Separate registration for multiple  business verticals within a State or a Union territory.-(1)Any person having multiple business verticals within a  State or a Union territory, requiring a separate registration for any of its business verticals under sub-section (2)  of section 25 shall be granted separate registration in respect of each of the verticals subject to the following  conditions, namely:-

(a) such person has more than one business vertical as defined in clause (18) of section 2;  (b) the business vertical of a taxable person shall not be granted registration to pay tax under section 10 if  any one of the other business verticals of the same person is paying tax under section 9;

(c) all separately registered business verticals of such person shall pay tax under the Act on supply of goods  or services or both made to another registered business vertical of such person and issue a tax invoice for such  supply.  

Explanation.- For the purposes of clause (b), it is hereby clarified that where any business vertical of a registered  person that has been granted a separate registration becomes ineligible to pay tax under section 10, all other  business verticals of the said person shall become ineligible to pay tax under the said section.  (1) A registered person eligible to obtain separate registration for business verticals may submit a separate  application in FORM GST REG-01 in respect of each such vertical.

(3) The provisions of rule 9 and rule 10 relating to the verification and the grant of registration shall, mutatis  mutandis, apply to an application submitted under this rule.‖

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12. Grant of registration to persons required to deduct tax at source or to collect tax at  source.-(1)Any person required to deduct tax in accordance with the provisions of section  51 or a person required to collect tax at source in accordance with the provisionsofsection  52 shall electronically submit an application, duly signed or verified through electronic  verification code, in FORM GST REG-07 for the grant of registration through the  common portal, either directly or through a Facilitation Centre notified by the  Commissioner.

[(1A) A person applying for registration to [deduct or]20collect tax in accordance with the provisions of [section 51, or, as the case may be,]21section 52, in a State or Union territory where he does not have a physical presence, shall mention the name of the State or Union territory in PART A of the application in FORM GST REG-07 and mention the name of the State or Union territory in PART B thereof in which the principal place of business is located which may be different from the State or Union territory mentioned in PART A.]22 

(2) The proper officer may grant registration after due verification and issue a certificate of  registration in FORM GST REG-06 within a period of three working days from the date  ofsubmission of the application.  

(3) Where, upon anenquiry or pursuant to any other proceeding under the Act, the proper  officer is satisfied that a person to whom a certificate of registration in FORM GST REG 06 has been issued is no longer liable to deduct tax at source under section 51 or collect tax  at source under section 52, the said officer may cancel the registration issued under sub rule (2) and such cancellation shall be communicated to the said person electronically in  FORM GST REG-08:  

Provided that the proper officer shall follow the procedure as provided in rule 22 for  the cancellation of registration.

13. Grant of registration to non-resident taxable person.-(1)A non-resident taxable person  shall electronically submit an application, along with a self-attested copy of his valid  passport, for registration, duly signed or verified through electronic verification code, in  FORM GST REG-09, at least five days prior to the commencement of business at the  common portal either directly or through a Facilitation Centre notified by the  Commissioner:

Provided that in the case of a business entity incorporated or established outside  India, the application for registration shall be submitted along with its tax identification  number or unique number on the basis of which the entity is identified by the Government  of that country or its Permanent Account Number, if available.

(2) A person applying for registration as a non-resident taxable person shall be given a  temporary referencenumber by the common portal for makingan advance deposit of tax in  accordance with the provisions of section 27 and the acknowledgement under sub-rule (5)   

20Inserted vide Notf no. 33/2019-CT dt.18.07.2019

21Inserted vide Notf no. 33/2019-CT dt. 18.07.2019

22Inserted vide Notf no. 74/2018-CT dt. 31.12.2018

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of rule 8 shall be issued electronically only after the said deposit in his electronic cash  ledger.  

(3) The provisions of rule 9 and rule 10 relating to the verification and the grant of  registration shall, mutatis mutandis, apply to an application submittedunder this rule.

(4) The application for registration made by a non-resident taxable person shall be [duly  signed or verified through electronic verification code]23by his authorised signatory who  shall be a person resident in India having a valid Permanent Account Number.

14. Grant of registration to a person supplying online information and database access  or retrieval services from a place outside India to a non-taxable online recipient.- (1)Any person supplying online information and database access or retrieval services from  a place outside India to a non-taxable online recipient shall electronically submit an  application for registration, duly signed or verified through electronic verification code,  inFORM GST REG-10, at the common portal, either directly or through a Facilitation  Centre notified by the Commissioner.

(2) The applicant referred to in sub-rule (1) shall be granted registration, inFORM GST  REG-06, subject to such conditions and restrictions and by such officer as may be notified  by the Central Government on the recommendations of the Council.

15. Extension in period of operation by casual taxable person and non-resident taxable  person.-(1) Where a registered casual taxable person or a non-resident taxable person  intends to extend the period of registration indicated in his application of registration, an  application in FORM GST REG-11 shall be submitted electronically through the common  portal, either directly or through a Facilitation Centre notified by the Commissioner, by  such person before the end of the validity of registration granted to him.  

(2) The application under sub-rule (1) shall be acknowledged only on payment of the  amount specified in sub-section (2) of section 27.

16. Suomoto registration.-(1) Where, pursuant to any survey, enquiry, inspection, search or  any other proceedings under the Act, the proper officer finds that a person liable to  registration under the Act has failed to apply for such registration, such officer may register  the said person on a temporary basis and issue an order in FORM GST REG- 12.

(2) The registration grantedunder sub-rule (1) shall be effective from the date of such  order granting registration.  

(3) Every person to whom a temporary registration has been granted under sub-rule (1)  shall, within a period of ninetydays from the date of the grant of such registration, submit  an application for registration in the form and manner provided in rule 8 or rule 12:  

23 Substituted vide Notf no. 7/2017-CT dt. 27.06.2017 for ―signed‖

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Provided that where the said person has filed an appeal against the grant of temporary  registration, in such case, the application for registration shall be submitted within a period  of thirty days from the date of the issuance of the order upholding the liability to  registration by the Appellate Authority.

(4) The provisions of rule 9 and rule 10 relating to verification and the issue of the  certificate of registration shall, mutatis mutandis, apply to an application submitted under  sub-rule (3).

(5) The Goods and Services Tax Identification Number assigned, pursuant to the  verification under sub-rule (4), shall be effective from the date of the order granting  registration under sub-rule (1).

17.Assignment of Unique Identity Number to certain special entities.-(1) Every person  required to be granted a Unique Identity Number in accordance with the provisions of sub section (9) of section 25 may submit an application electronically in FORM GST REG-13,  duly signed or verified through electronic verification code, in the manner specified in rule  8 at the common portal, either directly or through a Facilitation Centre notified by the  Commissioner.  

[(1A) The Unique Identity Number granted under sub-rule (1) to a person under clause (a)  of sub-section (9) of section 25 shall be applicable to the territory of India.]24 

(2) The proper officer may, upon submission of an application in FORM GST REG-13 or  after filling up the said formor after receiving a recommendation from the Ministry of  External Affairs, Government of India25, assign a Unique Identity Number to the said  person and issue a certificate in FORM GST REG-06 within a period of three working  days from the date of the submission of the application.

18. Display of registration certificate and Goods and Services Tax Identification Number  on the name board.-(1)Every registered person shall display his certificate of registration  in a prominent location at his principal place of business and at every additional place or  places of business.

(2)Every registered person shall display his Goods and Services Tax Identification Number  on the name board exhibited at the entry of his principal place of business and at every  additional place or places of business.

24Inserted vide Notf no. 75/2017 – CT dt. 29.12.2017

25Inserted vide Notf no. 22/2017 – CT dt. 17.08.2017

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19. Amendment of registration.- (1)Where there is any change in any of the particulars  furnishedin the application for registration in FORM GST REG-01 or FORM GST REG 07 or FORM GST REG-09 or FORM GST REG-10 or for Unique Identity Number in  FORM GST-REG-13,either at the time of obtaining registration or Unique Identity  Number or as amended from time to time, the registered person shall, within a period of  fifteen days of such change, submit an application, duly signed or verified through  electronic verification code, electronically in FORM GST REG-14, along with the  documents relating to such change at the common portal, either directly or through a  Facilitation Centre notified by the Commissioner:

Provided that –(a) where the change relates to,-

(i) legal name of business;

(ii) address of the principal place of business or any additional place(s)  of business; or  

(iii) addition, deletion or retirement of partners or directors, Karta,  Managing Committee, Board of Trustees, Chief Executive Officer or  equivalent, responsible for the day to day affairs of the business,-

which does not warrant cancellation of registration under section 29, the proper officer  shall, after due verification, approve the amendment within a period of fifteen working  days from the date of the receipt of the application in FORM GST REG-14 and issue an  order in FORM GST REG-15 electronically and such amendment shall take effect from  the date of the occurrence of the event warranting such amendment;

(b) the change relating to sub-clause (i) and sub-clause (iii) of clause (a) in any State or  Union territory shall be applicable for all registrations of the registered person obtained  under the provisions of this Chapter on the same Permanent Account Number;

(c) where the change relates to any particulars other than those specified in clause (a), the  certificate of registration shall stand amended upon submission of the application in  FORM GST REG- 14 on the common portal;

(d) where a change in the constitution of any business results in the change of the  Permanent Account Number of a registered person, the said person shall apply for fresh  registration in FORM GST REG-01:

Provided further that any change in the mobile number or e-mail address of the  authorised signatory submitted under this rule, as amended from time to time, shall be  carried out only after online verification through the common portalin the manner provided  under [sub-rule(2) of rule 8]26.

[(1A) Notwithstanding anything contained in sub-rule (1), any particular of the application  for registration shall not stand amended with effect from a date earlier than the date of  submission of the application in FORM GST REG-14 on the common portal except with  

26Substituted vide Notf no. 7/2017-CT dt. 27.06.2017 for ―the said rule‖

Page 16 of 164

the order of the Commissioner for reasons to be recorded in writing and subject to such  conditions as the Commissioner may, in the said order, specify.]27 

(2) Where the proper officer is of the opinion that the amendment sought under sub-rule (1)  is either not warranted or the documents furnished therewith are incomplete or incorrect, he  may, within a period of fifteen working days from the date of the receipt of the application  in FORM GST REG-14, serveanoticeinFORM GST REG-03, requiring the registered  person to show cause, within a period of seven working days of the service of the  saidnotice, as to why the application submitted under sub-rule (1) shall not be rejected.

(3) The registered person shall furnishareply to the notice to show cause,issued under sub rule (2), in FORM GST REG-04, within a period of seven working days from the date of  the serviceof the said notice.

(4) Where the reply furnished under sub-rule (3) is found to be not satisfactory or where no  reply is furnished in response to the notice issued under sub-rule (2) within the period  prescribed in sub-rule (3), the proper officer shall reject the application submitted under  sub-rule (1) and pass an order inFORM GST REG -05.

(5)If the proper officer fails to take any action,-

(a) within a period of fifteen working days from the date of submission of the  application, or

(b) within a period of seven working days from the date of the receipt of the reply to  the notice to show cause under sub-rule (3),

the certificate of registration shall stand amended to the extent applied for and the  amended certificate shall be made available to the registered personon the common portal.  

20. Application for cancellation of registration.-A registered person, other than a person to  whom a registration has been granted under rule 12 or a person to whom a Unique Identity  Number has been granted under rule 17, seeking cancellation of his registration under sub section (1) of section 29 shall electronically submit an application in FORM GST REG 16, including therein the details of inputs held in stock or inputs contained in semi-finished  or finished goods held in stock and of capital goods held in stock on the date from which  the cancellation of registration is sought, liability thereon, the details of the payment, if any,  made against such liability and may furnish, along with the application, relevant documents  in support thereof, at the common portal within a period of thirty days of the occurrence of  the event warranting the cancellation, either directly or through a Facilitation Centre  notified by the Commissioner:

[Provided that no application for the cancellation of registration shall be considered  in case of a taxable person, who has registered voluntarily, before the expiry of a period of  one year from the effective date of registration.]28 

27Inserted vide Notf no. 75/2017-CT dt. 29.12.2017

28 Omitted vide Notf no. 03/2018-CT dt. 23.01.2018

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21.Registration to be cancelled in certain cases.-The registration granted to a person is  liable to be cancelled, if the said person,-

(a) does not conduct any business from the declared place of business; or  (b) issues invoice or bill without supply of goods or services [or both]29 in violation of  the provisions of this Act, or the rules made thereunder; or

[(c) violates the provisions of section 171 of the Act or the rules made thereunder]30. [(d) violates the provision of rule 10A]31 

[(e) avails input tax credit in violation of the provisions of section 16 of the Act or the rules made thereunder; or

(f) furnishes the details of outward supplies in FORM GSTR-1 under section 37 for one or more tax periods which is in excess of the outward supplies declared by him in his valid return under section 39 for the said tax periods; or

(g) violates the provision of rule 86B.]32 

[ 21A Suspension of registration.- (1) Where a registered person has applied for cancellation  of registration under rule 20, the registration shall be deemed to be suspended from the date  of submission of the application or the date from which the cancellation is sought,  whichever is later, pending the completion of proceedings for cancellation of registration  under rule 22.

(2) Where the proper officer has reasons to believe that the registration of a person is  liable to be cancelled under section 29 or under rule 21, he may,[ after affording the  said person a reasonable opportunity of being heard,]33suspend the registration of  such person with effect from a date to be determined by him, pending the completion  of the proceedings for cancellation of registration under rule 22.

[(2A) Where, a comparison of the returns furnished by a registered person under section 39 with

(a) the details of outward supplies furnished in FORM GSTR-1; or

(b) the details of inward supplies derived based on the details of outward supplies furnished by his suppliers in their FORM GSTR-1,

or such other analysis, as may be carried out on the recommendations of the Council,  show that there are significant differences or anomalies indicating contravention of the  provisions of the Act or the rules made thereunder, leading to cancellation of registration  of the said person, his registration shall be suspended and the said person shall be  intimated in FORM GST REG-31, electronically, on the common portal, or by sending a  communication to his e-mail address provided at the time of registration or as amended  

29Inserted vide Notf no.94/2020 – CT dt. 22.12.2020  

30Inserted vide Notf no. 07/2017-CT dt. 27.06.2017

31Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019

32Inserted vide Notf no.94/2020 – CT dt. 22.12.2020  

33Omitted vide Notf no.94/2020 – CT dt. 22.12.2020

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from time to time, highlighting the said differences and anomalies and asking him to  explain, within a period of thirty days, as to why his registration shall not be cancelled.]34 

(3) A registered person, whose registration has been suspended under sub-rule (1)or sub rule (2) [or sub-rule (2A)]35, shall not make any taxable supply during the period of  suspension and shall not be required to furnish any return under section 39.

[(3A) A registered person, whose registration has been suspended under sub-rule (2) or sub-rule (2A), shall not be granted any refund under section 54, during the period of suspension of his registration.]36 

[Explanation.-For the purposes of this sub-rule, the expression ―shall not make any taxable  supply‖ shall mean that the registered person shall not issue a tax invoice and, accordingly,  not charge tax on supplies made by him during the period of suspension.]37 

(4) The suspension of registration under sub-rule (1)or sub-rule (2) [or sub-rule (2A)]38 shall be deemed to be revoked upon completion of the proceedings by the proper officer  under rule 22 and such revocation shall be effective from the date on which the suspension  had come into effect.]39 

[Provided that the suspension of registration under this rule may be revoked by the  proper officer, anytime during the pendency of the proceedings for cancellation, if he  deems fit.]40 

[(5) Where any order having the effect of revocation of suspension of registration has been  passed, the provisions of clause (a) of sub-section (3) of section 31 and section 40 in  respect of the supplies made during the period of suspension and the procedure specified  therein shall apply.]41 

22.Cancellation of registration.-(1) Where the proper officer has reasons to believe that the  registration of a person is liable to be cancelled under section 29, he shall issue a notice to  suchperson in FORM GST REG-17,requiring him to show cause, within a period of seven  working days from the date of the service of such notice, as to why his registration shall not  be cancelled.

(2) The reply to the show cause notice issued under sub-rule (1) shall be furnished  inFORM REG–18 within the period specified in the said sub-rule.

(3)Where a person who has submitted an application for cancellation of his registration is  no longer liable to be registered or his registration is liable to be cancelled, the proper  officer shall issue an order in FORM GST REG-19, within a period of thirty days from the  date of application submitted under [sub-rule (1) of]42 rule 20 or, as the case may be, the  date of the reply to the show cause issued under sub-rule (1),[or under sub-rule (2A) of rule  

34Inserted vide Notf no.94/2020 – CT dt. 22.12.2020  

35Inserted vide Notf no.94/2020 – CT dt. 22.12.2020

36Inserted vide Notf no.94/2020 – CT dt. 22.12.2020  

37Inserted vide Notf no. 49/2019-CT dt. 09.10.2019

38Inserted vide Notf no.94/2020 – CT dt. 22.12.2020  

39 Inserted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019

40Inserted vide Notf no.94/2020 – CT dt. 22.12.2020  

41Inserted vide Notf no. 49/2019-CT dt. 09.10.2019

42Omitted vide Notf no. 7/2017-CT dt. 27.06.2017

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21A]43 cancel the registration, with effect from a date to be determined by him and notify  the taxable person, directing him to pay arrears of any tax, interest or penalty including the  amount liable to be paid under sub-section (5) of section 29.

(4) Where the reply furnished under sub-rule (2) [or in response to the notice issued under sub-rule (2A) of rule 21A]44 is found to be satisfactory, the proper officer shall drop the  proceedings and pass an order inFORM GST REG –20:

[Provided that where the person instead of replying to the notice served under sub-rule (1)  for contravention of the provisions contained in clause (b) or clause (c) of sub-section (2)  of section 29, furnishes all the pending returns and makes full payment of the tax dues  along with applicable interest and late fee, the proper officer shall drop the proceedings and  pass an order in FORM GST-REG 20]45 

(5) The provisions of sub-rule (3) shall, mutatis mutandis, apply to the legal heirs of a  deceased proprietor, as if the application had been submitted by the proprietor himself.

23. Revocation of cancellation of registration.-(1)A registered person, whose registration is  cancelled by the proper officer on his own motion, may submit an application for  revocation of cancellation of registration, in FORM GST REG-21, to such proper officer,  within a period of thirty days from the date of the service of the order of cancellation of  registration [or within such time period as extended by the Additional Commissioner or the  Joint Commissioner or the Commissioner, as the case may be, in exercise of the powers  provided under the proviso to sub-section (1) of section 30,]46 at the common portal, either  directly or through a Facilitation Centre notified by the Commissioner:

Provided that no application for revocation shall be filed, if the registration has been  cancelled for the failure of the registered person to furnish returns, unless such returns are  furnished and any amount due as tax, in terms of such returns, has been paid along with any  amount payable towards interest, penalty and late fee in respect of the said returns:

[Provided further that all returns due for the period from the date of the order of  cancellation of registration till the date of the order of revocation of cancellation of  registration shall be furnished by the said person within a period of thirty days from the  date of order of revocation of cancellation of registration:

Provided also that where the registration has been cancelled with retrospective effect,  the registered person shall furnish all returns relating to period from the effective date of  cancellation of registration till the date of order of revocation of cancellation of registration  within a period of thirty days from the date of order of revocation of cancellation of  registration]47 

43 Inserted vide Notf no.94/2020 – CT dt. 22.12.2020  

44 Inserted vide Notf no.94/2020 – CT dt. 22.12.2020  

45 Inserted vide Notf no. 39/2018-CT dt. 04.09.2018

46 Inserted vide Notf no. 15/2021-CT dt. 18.05.2021

47 Inserted vide Notf no. 20/2019 – CT dt. 23.04.2019

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(2) (a) Where the proper officer is satisfied, for reasons to be recorded in writing, that there  are sufficient grounds for revocation of cancellation of registration, he shall revoke the  cancellation of registration by an order in FORM GST REG-22 within a period of thirty  days from the date of the receipt of the application and communicate the same to the  applicant.

(b) The proper officer may, for reasons to be recorded in writing, under  circumstances other than those specified in clause (a), by an order in FORM GST REG 05, reject the application for revocation of cancellation of registration and communicate the  same to the applicant.

(3) The proper officer shall, before passing the order referred to in clause (b) of sub-rule  (2), issue a notice inFORM GST REG–23 requiring the applicant to show cause as to why  the application submitted for revocation under sub-rule (1) should not be rejected and the  applicant shall furnish the reply within a period of seven working days from the date of the  service of the notice inFORMGSTREG-24.

(4) Upon receipt of the information or clarification in FORM GST REG-24, the proper  officer shall proceed to dispose of the application in the manner specified in sub-rule (2)  within a period of thirty days from the date ofthe receipt of such information or  clarification from the applicant.

24.Migration of persons registered under the existing law.-(1) (a) Every person, other than  a person deducting tax at source or an Input Service Distributor, registered under an  existing law and having a Permanent Account Number issued under the provisions of the  Income-tax Act, 1961 (Act 43 of 1961) shall enrol on the common portal by validating his  e-mail address and mobile number, either directly or through a Facilitation Centre notified  by the Commissioner.

(b) Upon enrolment under clause (a), the said person shall be granted registration on a  provisional basis and a certificate of registration inFORM GST REG-25, incorporating the  Goods and Services Tax Identification Number therein, shall be made available to him on  the common portal:

Provided that a taxable person who has been granted multiple registrations under the  existing law on the basis of a single Permanent Account Number shall be granted only one  provisional registration under the Act:

(2)(a) Every person who has been granted a provisional registration under sub-rule (1) shall  submit an application electronically in FORM GST REG–26, duly signed or verified  through electronic verification code, along with the information and documents specified in  the said application, on the common portal either directly or through a Facilitation Centre  notified by the Commissioner.

(b) The information asked for in clause (a) shall be furnished within a period of three  months or within such further period as may be extended by the Commissioner in this  behalf.

(c) If the information and the particulars furnished in the application are found, by the  proper officer, to be correct and complete, a certificate of registration in FORM GST

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REG-06 shall be made available to the registered person electronically on the common  portal.  

(3)Where the particulars or information specified in sub-rule (2) have either not been  furnished or not found to be correct orcomplete, the proper officer shall, after serving a  notice to show cause in FORM GST REG-27 and after affording the person concerned a  reasonable opportunity of being heard, cancel the provisional registration granted under  sub-rule (1) and issue an order in FORM GST REG-28:

[(3A) Where a certificate of registration has not been made available to the applicant on the  common portal within a period of fifteen days from the date of the furnishing of  information and particulars referred to in clause (c) of sub-rule (2) and no notice has been  issued under sub-rule (3) within the said period, the registration shall be deemed to have  been granted and the said certificate of registration, duly signed or verified through  electronic verification code, shall be made available to the registered person on the  common portal.

Provided that the show cause notice issued inFORM GST REG- 27 can be  withdrawn by issuing an order inFORM GST REG- 20, if it is found, after affording the  person an opportunity of being heard, that no such cause exists for which the notice was  issued.]48 

(4)Every person registered under any of the existing laws, who is not liable to be registered  under the Act may, on or before [31stMarch, 2018]49]50,at his option, submit an application  electronically in FORM GST REG-29 at the common portal for the cancellation of  registration granted to him and the proper officer shall, after conducting such enquiry as  deemed fit, cancel the said registration.

25[Physical verification of business premises in certain cases.-Where the proper officer is satisfied that the physical verification of the place of business of a person is required due to  failure of Aadhaar authentication [or due to not opting for Aadhaar authentication]51 before  the grant of registration, or due to any other reason after the grant of registration, he may  get such verification of the place of business, in the presence of the said person, done and  the verification report along with the other documents, including photographs, shall be  uploaded in FORM GST REG-30 on the common portal within a period of fifteen  working days following the date of such verification.]52 

48Inserted vide Notf no. 7/2017-CT dt. 27.06.2017

49Substituted for [30th October, 2017] vide Notf no. 51/2017-CT dt. 28.10.2017

50 Substituted for [31st December, 2017] vide Notf no. 03/2018 – CT dt. 23.01.2018

51Inserted vide Notf no.62/2020 – CT dt.20.08.2020 w.e.f 21.08.2020.

52Substituted vide Notf no. 16/2020 – CT dt. 23.03.2020 for ―Physical verification of business premises in  certain cases.-Where the proper officer is satisfied that the physical verification of the place of business of  aregistered person is required after the grant of registration, he may get such verification done and the  verification report along with the other documents, including photographs, shall be uploaded in FORM GST  REG-30 on the common portal within a period of fifteen working days following the date of such verification.‖

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26.Method of authentication.- (1)All applications, including reply, if any, to the notices,  returns including the details of outward and inward supplies, appeals or any other document  required to be submitted under the provisions of these rules shall be so submitted  electronically with digital signature certificate or through e-signature as specified under the  provisions of the Information Technology Act, 2000 (21 of 2000) or verified by any other  mode of signature or verification as notified by the Board in this behalf:

Provided that a registered person registered under the provisions of the Companies  Act, 2013 (18 of 2013) shall furnish the documents or application verified through digital  signature certificate.

[Provided further that a registered person registered under the provisions of the  Companies Act, 2013 (18 of 2013) shall, during the period from the 21st day of April, 2020 to  the 30thday of September, 2020, also be allowed to furnish the return under section 39 in  FORM GSTR-3B verified through electronic verification code (EVC).

Provided also that a registered person registered under the provisions of the Companies  Act, 2013 (18 of 2013) shall, during the period from the 27thday of May, 2020 to the 30thday  of September, 2020, also be allowed to furnish the details of outward supplies under section  37 in FORM GSTR-1 verified through electronic verification code (EVC). ]53 

[Provided also that a registered person registered under the provisions of the  Companies Act, 2013 (18 of 2013) shall, during the period from the 27th day of April, 2021 to  the [31st day of August, 2021]54, also be allowed to furnish the return under section 39 in  FORM GSTR-3B and the details of outward supplies under section 37 in FORM GSTR-1 or  using invoice furnishing facility, verified through electronic verification code (EVC).]55 

(2) Each document including the return furnished online shall be signed or verified through  electronic verification code-

(a) in the case of an individual, by the individual himself or where he is absent from  India, by some other person duly authorised by him in this behalf, and where the  individual is mentally incapacitated from attending to his affairs, by his guardian or  by any other person competent to act on his behalf;

(b) in the case of a Hindu Undivided Family, by a Karta and where the Karta is  absent from India or is mentally incapacitated from attending to his affairs, by any  other adult member of such family or by the authorised signatory of such Karta;

(c) in the case of a company, by the chief executive officer or authorised signatory  thereof;

(d) in the case of a Government or any Governmental agency or local authority, by an  officer authorised in this behalf;

53Substituted vide Notf no. 48/2020 – CT dt. 19.06.2020 w.e.f 27.05.2020 for ―Provided further that a registered  person registered under the provisions of the Companies Act, 2013 (18 of 2013) shall, during the period from the  21st day of April, 2020 to the 30th day of June, 2020, also be allowed to furnish the return under section 39 in  FORM GSTR-3B verified through electronic verification code (EVC)‖ which was inserted vide Notf No.  38/2020-CT dt.05.05.2020 with effect from 21.04.2020.

54 Substituted vide Notf no. 27/2021 – CT dt. 01.06.2021 w.e.f 31.05.2021 for ―31stday of May, 2021‖ 55 Inserted vide Notf no. 07/2021—CT dt. 27.04.2021

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(e) in the case of a firm, by any partner thereof, not being a minor or authorised  signatory thereof;

(f) in the case of any other association, by any member of the association or persons  or authorised signatory thereof;

(g) in the case of a trust, by the trustee or any trustee or authorised signatory thereof;  or  

(h) in the case of any other person, by some person competent to act on his behalf, or  by a person authorised in accordance with the provisions of section 48.

(3)All notices, certificates and orders under the provisions of this Chapter shall be issued  electronically by the proper officer or any other officer authorised to issue such notices or  certificates or orders, through digital signature certificate[or through E-signature as specified under the provisions of the Information Technology Act, 2000 (21 of 2000) or  verified by any other mode of signature or verification as notified by the Board in this  behalf.]56 

56Substituted vide Notf no. 7/2017-CT dt. 27.06.2017 for ―specified under the provisions of the Information  Technology Act, 2000 (21 of 2000)‖

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CHAPTER IV

DETERMINATION OF VALUE OF SUPPLY

27. Value of supply of goods or services where the consideration is not wholly in money.- Where the supply of goods or services is for a consideration not wholly in money, the value  of the supply shall,-

(a)be the open market value of such supply;

(b)if the open market value is not available under clause (a), be the sum total of  consideration in money and any such further amount in money as is equivalent to the  consideration not in money, if such amount is known at the time of supply;

(c)if the value of supply is not determinable under clause (a) or clause (b), be the value  of supply of goods or services or both of like kind and quality;  

(d)if the value is not determinable under clause (a) or clause (b) or clause (c), be the sum  total of consideration in money and such further amount in money that is equivalent  to consideration not in money as determined by the application of rule 30 or rule 31  in that order.  

Illustration:

(1) Where a new phone is supplied for twenty thousand rupees along with the exchange  of an old phone and if the price of the new phone without exchange is twenty four  thousand rupees, the open market value of the new phone is twenty four thousand  rupees.

(2) Where a laptop is supplied for forty thousand rupees along with the barter of a  printer that is manufactured by the recipient and the value of the printer known at the  time of supply is four thousand rupees but the open market value of the laptop is not known, the value of the supply of the laptop is forty four thousand rupees.

28. Value of supply of goods or services or both between distinct or related persons,  other than through an agent.-The value of the supply of goods or services or both between  distinct persons as specified in sub-section (4) and (5) of section 25 or where the supplier and  recipient are related, other than where the supply is made through an agent, shall-

(a) be the open market value of such supply;

(b) if the open market value is not available, be the value of supply of goods or  services of like kind and quality;

(c) if the value is not determinable under clause (a) or (b), be the value as determined  by the application of rule 30 or rule 31, in that order:

Provided that where the goods are intended for further supply as such by the recipient,  the value shall, at the option of the supplier, be an amount equivalent to ninety percent of the  price charged for the supply of goods of like kind and quality by the recipient to his customer  not being a related person:  

Provided further that where the recipient is eligible for full input tax credit, the value  declared in the invoice shall be deemed to be the open market value of the goods or services.

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29. Value of supply of goods made or received through an agent.-The value of supply of  goods between the principal and his agent shall-

(a) be the open market value of the goods being supplied, or at the option of the supplier,  be ninety percent. of the price charged for the supply of goods of like kind and quality by the  recipient to his customer not being a related person, where the goods are intended for further  supply by the said recipient.

Illustration: A principal supplies groundnut to his agent and the agent is supplying  groundnuts of like kind and quality in subsequent supplies at a price of five thousand rupees  per quintal on the day of the supply. Another independent supplier is supplying groundnuts of  like kind and quality to the said agent at the price of four thousand five hundred and fifty  rupees per quintal. The value of the supply made by the principal shall be four thousand five  hundred and fifty rupees per quintal or where he exercises the option, the value shall be 90  per cent. of five thousand rupees i.e., four thousand five hundred rupees per quintal.  

(b) where the value of a supply is not determinable under clause (a), the same shall be  determined by the application of rule 30 or rule 31 in that order.

30. Value of supply of goods or services or both based on cost.-Where the value of a supply  of goods or services or both is not determinable by any of the preceding rules of this Chapter,  the value shall be one hundred and ten percent of the cost of production or manufacture or the  cost of acquisition of such goods or the cost of provision of such services.

31.Residual method for determination of value of supply of goods or services or both.- Where the value of supply of goods or services or both cannot be determined under rules 27 to  30, the same shall be determined using reasonable means consistent with the principles and the  general provisions of section 15 and the provisions of this Chapter:  

Provided that in the case of supply of services, the supplier may opt for this rule,  ignoring rule 30.

[31A. Value of supply in case of lottery, betting, gambling and horse racing. -

(1) Notwithstanding anything contained in the provisions of this Chapter, the value in respect of supplies specified below shall be determined in the manner provided hereinafter.

[(2) The value of supply of lottery shall be deemed to be 100/128 of the face value of ticket or  of the price as notified in the Official Gazette by the Organising State, whichever is higher.

Explanation:– For the purposes of this sub-rule, the expression ―Organising State‖ has the same meaning as assigned to it in clause (f) of sub-rule (1) of rule 2 of the Lotteries (Regulation) Rules, 2010.]57 

57Substituted vide Notf no.08/2020 – CT dt. 02.03.2020wef 01.03.2020 for‖ (2) (a) The value of supply of lottery  run by State Governments shall be deemed to be 100/112 of the face value of ticket or of the price as notified in  the Official Gazette by the organising State, whichever is higher.

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(3) The value of supply of actionable claim in the form of chance to win in betting, gambling  or horse racing in a race club shall be 100% of the face value of the bet or the amount paid  into the totalisator.]58 

32. Determination of value in respect of certain supplies.-(1)Notwithstanding anything  contained in the provisions of this Chapter, the value in respect of supplies specified below  shall, at the option of the supplier, be determined in the manner provided hereinafter.

(2) The value of supply of services in relation to the purchase or sale of foreign currency,  including money changing, shall be determined by the supplier of services in the following  manner, namely:-

(a) for a currency, when exchanged from, or to, Indian Rupees, the value shall be equal  to the difference in the buying rate or the selling rate, as the case may be, and the  Reserve Bank of India reference rate for that currency at that time, multiplied by the  total units of currency:  

Provided that in case where the Reserve Bank of India reference rate for a  currency is not available, the value shall be one per cent. of the gross amount of Indian  Rupees provided or received by the person changing the money:  

Provided further that in case where neither of the currencies exchanged is  Indian Rupees, the value shall be equal to one per cent. of the lesser of the two  amounts the person changing the money would have received by converting any of the  two currencies into Indian Rupee on that day at the reference rate provided by the  Reserve Bank of India.

Provided also that a person supplying the services may exercise the  option to ascertain the value in terms of clause (b) for a financial year and such option  shall not be withdrawn during the remaining part of that financial year.

(b) at the option of the supplier of services, the value in relation to the supply of  foreign currency, including money changing, shall be deemed to be-  

(i) one per cent. of the gross amount of currency exchanged for an amount up to  one lakh rupees, subject to a minimum amount of two hundred and fifty  rupees;  

(ii) one thousand rupees and half of a per cent. of the gross amount of currency  exchanged for an amount exceeding one lakh rupees and up to ten lakh  rupees; and

(b) The value of supply of lottery authorised by State Governments shall be deemed to be 100/128 of the face  value of ticket or of the price as notified in the Official Gazette by the organising State, whichever is higher. Explanation:– For the purposes of this sub-rule, the expressions-(a) ―lottery run by State Governments‖ means a  lottery not allowed to be sold in any State other than the organizing State;

(b) ―lottery authorised by State Governments‖ means a lottery which is authorised to be sold in State(s) other  than the organising State also; and  

(c) ―Organising State‖ has the same meaning as assigned to it in clause (f) of sub-rule (1) of rule 2 of the  Lotteries (Regulation) Rules, 2010.‖

58 Inserted vide Notf no. 03/2018 – CT dt. 23.01.2018

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(iii) five thousand and five hundred rupees and one tenth of a per cent. of the  gross amount of currency exchanged for an amount exceeding ten lakh  rupees, subject to a maximum amount of sixty thousand rupees.

(3) The value of the supply of services in relation to booking of tickets for travel by air  provided by an air travel agent shall be deemed to be an amount calculated at the rate of five  percent. of the basic fare in the case of domestic bookings, and at the rate of ten per cent. of  the basic fare in the case of international bookings of passage for travel by air.  

Explanation.- For the purposes of this sub-rule, the expression ―basic fare‖ means that part of  the air fare on which commission is normally paid to the air travel agent by the airlines.

(4)The value of supply of services in relation to life insurance business shall be,-

(a) the gross premium charged from a policy holder reduced by the amount allocated  for investment, or savings on behalf of the policy holder, if such an amount is  intimated to the policy holder at the time of supply of service;

(b) in case of single premium annuity policies other than (a), ten per cent. of single  premium charged from the policy holder; or

(c) in all other cases, twenty five per cent. of the premium charged from the policy  holder in the first year and twelve and a half per cent. of the premium charged from the  policy holder in subsequent years:

Provided that nothing contained in this sub-rule shall apply where the entire premium  paid by the policy holder is only towards the risk cover in life insurance.

(5) Where a taxable supply is provided by a person dealing in buying and selling of second  hand goods i.e., used goods as such or after such minor processing which does not change the  nature of the goods and where no input tax credit has been availed on the purchase of such  goods, the value of supply shall be the difference between the selling price and the purchase  price and where the value of such supply is negative, it shall be ignored:  

Provided that the purchase value of goods repossessed from a defaulting borrower,  who is not registered, for the purpose of recovery of a loan or debt shall be deemed to be the  purchase price of such goods by the defaulting borrower reduced by five percentage points for  every quarter or part thereof, between the date of purchase and the date of disposal by the  person making such repossession.

(6) The value of a token, or a voucher, or a coupon, or a stamp (other than postage stamp)  which is redeemable against a supply of goods or services or both shall be equal to the money  value of the goods or services or both redeemable against such token, voucher, coupon, or  stamp.

(7) The value of taxable services provided by such class of service providers as may be  notified by the Government, on the recommendations of the Council, as referred to in  paragraph 2 of Schedule I of the said Act between distinct persons as referred to in section 25,  where input tax credit is available, shall be deemed to be NIL.

[32A. Value of supply in cases where Kerala Flood Cess is applicable.- The value of  supply of goods or services or both on which Kerala Flood Cess is levied under clause 14 of

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the Kerala Finance Bill, 2019 shall be deemed to be the value determined in terms of section  15 of the Act, but shall not include the said cess.]59 

33.Value of supply of services in case of pure agent.-Notwithstanding anything contained in  the provisions of this Chapter, the expenditure or costs incurred by a supplier as a pure agent  of the recipient of supply shall be excluded from the value of supply, if all the following  conditions are satisfied, namely,-

(i) the supplier acts as a pure agent of the recipient of the supply, when he makes the  payment to the third party on authorisation by such recipient;  

(ii) the payment made by the pure agent on behalf of the recipient of supply has been  separately indicated in the invoice issued by the pure agent to the recipient of service;  and  

(iii) the supplies procured by the pure agent from the third party as a pure agent of the  recipient of supply are in addition to the services he supplies on his own account.  Explanation.- For the purposes of this rule, the expression ―pure agent‖ means a person who- (a) enters into a contractual agreement with the recipient of supply to act as his pure  agent to incur expenditure or costs in the course of supply of goods or services or both;  (b) neither intends to hold nor holds any title to the goods or services or both so  procured or supplied as pure agent of the recipient of supply;  

(c) does not use for his own interest such goods or services so procured; and  (d) receives only the actual amount incurred to procure such goods or services in  addition to the amount received for supply he provides on his own account.  

Illustration.- Corporate services firm A is engaged to handle the legal work pertaining to the  incorporation of Company B. Other than its service fees, A also recovers from B, registration  fee and approval fee for the name of the company paid to the Registrar of Companies. The  fees charged by the Registrar of Companies for the registration and approval of the name are  compulsorily levied on B. A is merely acting as a pure agent in the payment of those fees.  Therefore, A‘s recovery of such expenses is a disbursement and not part of the value of supply  made by A to B.  

[34. Rate of exchange of currency, other than Indian rupees, for determination of value.- (1) The rate of exchange for determination of value of taxable goods shall be the applicable  rate of exchange as notified by the Board under section 14 of the Customs Act, 1962 for the  date of time of supply of such goods in terms of section 12 of the Act.  

(2) The rate of exchange for determination of value of taxable services shall be the applicable  rate of exchange determined as per the generally accepted accounting principles for the date of  time of supply of such services in terms of section 13 of the Act.]60 

59 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019 with effect from 01.07.2019

60Amended vide Notf no. 17/2017-CT dt. 27.07.2017. Till then, the rule read as follows–“34. Rate of exchange  of currency, other than Indian rupees, for determination of value.-The rate of exchange for the determination  of the value of taxable goods or services or both shall be the applicable reference rate for that currency as  determined by the Reserve Bank of India on the date of time of supply in respect of such supply in terms of  section 12 or, as the case may be, section 13 of the Act.‖

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35. Value of supply inclusive of integrated tax, central tax, State tax, Union territory  tax.-Where the value of supply is inclusive of integrated tax or, as the case may be, central  tax, State tax, Union territory tax, the tax amount shall be determined in the following manner,  namely,-

Tax amount = (Value inclusive of taxes X tax rate in % of IGST or, as the case may be,  CGST, SGST or UTGST) ÷ (100+ sum of tax rates, as applicable, in %)

Explanation.-For the purposes of the provisions of this Chapter, the expressions-

(a) ―open market value‖ of a supply of goods or services or both means the full value in  money, excluding the integrated tax, central tax, State tax, Union territory tax and the cess  payable by a person in a transaction, where the supplier and the recipient of the supply are  not related and the price is the sole consideration, to obtain such supply at the same time  when the supply being valued is made;

(b) ―supply of goods or services or both of like kind and quality‖ means any other supply  of goods or services or both made under similar circumstances that, in respect of the  characteristics, quality, quantity, functional components, materials, and the reputation of  the goods or services or both first mentioned, is the same as, or closely or substantially  resembles, that supply of goods or services or both.

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CHAPTER V

INPUT TAX CREDIT

36. Documentary requirements and conditions for claiming input tax credit.-(1)The input tax credit shall be availed by a registered person, including the Input Service Distributor,  on the basis of any of the following documents, namely,-

(a) an invoice issued by the supplier of goods or services or both in accordance with  the provisions of section 31;

(b) an invoice issued in accordance with the provisions of clause (f) of sub-section (3)  of section 31, subject to the payment of tax;

(c) a debit note issued by a supplier in accordance with the provisions of section 34; (d) a bill of entry or any similar document prescribed under the Customs Act, 1962 or  rules made thereunder for the assessment of integrated tax on imports;  

(e) an Input Service Distributor invoice or Input Service Distributor credit note or any  document issued by an Input Service Distributor in accordance with the provisions  of sub-rule (1) of rule 54.

(2) Input tax credit shall be availed by a registered person only if all the applicable  particulars as specified in the provisions of Chapter VI are contained in the said document,  and the relevant information, as contained in the said document, is furnished in  FORMGSTR-2bysuch person:

[Provided that if the said document does not contain all the specified particulars but contains  the details of the amount of tax charged, description of goods or services, total value of  supply of goods or services or both, GSTIN of the supplier and recipient and place of supply  in case of inter-State supply, input tax credit may be availed by such registered person.]61 

(3) No input tax credit shall be availed by a registered person in respect of any tax that has  been paid in pursuance of any order where any demand has been confirmed on account of  any fraud, willful misstatement or suppression of facts.

[(4) Input tax credit to be availed by a registered person in respect of invoices or debit notes,  the details of which have not been [furnished]62 by the suppliers under sub-section (1) of  section 37, [in FORM GSTR-1 or using the invoice furnishing facility]63 shall not exceed [5 per cent.]64 of the eligible credit available in respect of invoices or debit notes the details of  which have been [furnished]65 by the suppliers under sub-section (1) of section 37 [in FORM GSTR-1 or using the invoice furnishing facility]66.]67 

61Inserted vide Notf no. 39/2018-CT dt. 04.09.2018

62Subsitituted vide Notf no.94/2020 – CT dt. 22.12.2020 w.e.f 01.01.2021 for ―uploaded ― 63 Inserted vide Notf no.94/2020 – CT dt. 22.12.2020 w.e.f 01.01.2020

64 Subsitituted vide Notf no.94/2020 – CT dt. 22.12.2020 w.e.f 01.01.2021 for ―10 per cent.‖ 65Subsitituted vide Notf no.94/2020 – CT dt. 22.12.2020 w.e.f 01.01.2021 for ―uploaded ― 66 Inserted vide Notf no.94/2020 – CT dt. 22.12.2020 w.e.f 01.01.2020

67Inserted vide Notf no. 49/2019-CT dt. 09.10.2019

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[Provided that the said condition shall apply cumulatively for the period February,  March, April, May, June, July and August, 2020 and the return in FORM GSTR-3B for the  tax period September, 2020 shall be furnished with the cumulative adjustment of input tax  credit for the said months in accordance with the condition above.]68 

[Provided further that such condition shall apply cumulatively for the period April,  May and June, 2021 and the return in FORM GSTR-3B for the tax period June, 2021 or  quarter ending June, 2021, as the case may be, shall be furnished with the cumulative  adjustment of input tax credit for the said months in accordance with the condition above.]69 

37. Reversal of input tax credit in the case of non-payment of consideration.-(1)A  registered person, who has availed of input tax credit on any inward supply of goods or  services or both, but fails to pay to the supplier thereof, the value of such supply along with  the tax payable thereon, within the time limit specified in the second proviso to sub-section(2)  of section 16, shall furnish the details of such supply, the amount of value not paid and the  amount of input tax credit availed of proportionate to such amount not paid to the supplier in  FORM GSTR-2 for the month immediately following the period of one hundred and eighty  days from the date of the issue of the invoice:

Provided that the value of supplies made without consideration as specified in  Schedule I of the said Act shall be deemed to have been paid for the purposes of the second  proviso to sub-section (2) of section 16:

[Provided further that the value of supplies on account of any amount added in  accordance with the provisions of clause (b) of sub-section (2) of section 15 shall be deemed  to have been paid for the purposes of the second proviso to sub-section (2) of section 16.]70 

(2) The amountof input tax credit referred to in sub-rule (1) shall be added to the output tax  liability of the registered person for the month in which the details are furnished.  

(3) The registered person shall be liable to pay interest at the rate notified under sub-section  (1) of section 50 for the period startingfrom the date of availing credit on such supplies tillthe  date when the amount added to the output tax liability, as mentioned in sub-rule (2), is paid.

(4) The time limit specified in sub-section (4) of section 16 shall not apply to a claim for re availing of any credit, in accordance with the provisions of the Act or the provisions of this  Chapter,that had been reversed earlier.  

38. Claim of credit by a banking company or a financial institution.-A banking company  or a financial institution, including a non-banking financial company, engaged in the supply of  services by way of accepting deposits or extending loans or advances that chooses not to  

68Inserted vide Notf no. 30/2020-CT dt.03.04.2020

69 Substituted vide Notf no. 27/2021 – CT dt. 01.06.2021 for ―Provided further that the such condition shall apply  cumulatively for the period April and May, 2021 and the return in FORM GSTR-3B for the tax period May,  2021 shall be furnished with the cumulative adjustment of input tax credit for the said months in accordance with  the condition above‖ which was Inserted vide Notf no. 13/2021—CT dt. 01.05.2021

70Inserted vide Notf no. 26/2018-CT dt. 13.06.2018

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comply with the provisions of sub-section (2) of section 17, in accordance with the option  permitted under sub-section (4) of thatsection, shall follow the following procedure, namely,-

(a) the said company or institution shall not avail the credit of,-

(i) the tax paid on inputs and input services that are used for non-business  purposes; and  

(ii)the credit attributable to the supplies specified in sub-section (5) of section 17, in  FORM GSTR-2;  

(b) the said company or institution shall avail the credit of tax paid on inputs and input  services referred to in the second proviso to sub-section (4) of section 17 and not  covered under clause (a);

(c) fifty per cent. of the remaining amount of input tax shall be the input tax credit  admissible to the company or the institution and shall be furnished in FORM GSTR-2;

(d) the amount referred to in clauses (b) and (c) shall, subject to the provisions of sections  41, 42 and 43, be credited to the electronic credit ledger of the saidcompany or the  institution.  

39. Procedure for distribution of input tax credit by Input Service Distributor.-(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 furnishedinFORM GSTR-6in  accordance with the provisions of Chapter VIII of these rules;

(b) the Input Service Distributor shall, in accordance with the provisions of clause  (d), 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;  

(c) 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);

(d) the input tax credit that is required to be distributed in accordance with the  provisions of clause (d) and (e) of sub-section (2) of section 20 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 recipient(s)  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 -

C1 = (t1÷T) × C

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where,  

“C” is the amount of credit to be distributed,  

“t1” is the turnover, as referred to in section 20, 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 section  20;

(e) the input tax credit on account of integrated tax shall be distributed as input tax  credit of integrated tax to every recipient;

(f) 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 in accordance with clause (d);

(g) the Input Service Distributor shall issue an Input Service Distributor invoice, as  prescribed in sub-rule (1) of rule 54, clearly indicating in such invoice that it is issued  only for distribution of input tax credit;  

(h) the Input Service Distributor shall issue an Input Service Distributor credit note, as  prescribed in sub-rule (1) of rule 54, for reduction of credit in case the input tax credit  already distributed gets reduced for any reason;  

(i)any additional amount of input tax credit on account of issuance of a debit note to an  Input Service Distributor by the supplier shall be distributed in the manner and subject to  the conditions specified in clauses (a) to (f) and the amount attributable to any recipient  shall be calculated in the manner provided in clause (d) and such credit shall be  distributed in the month in which the debit note isincluded in the return in FORM  GSTR-6;  

(j) any input tax credit required to be reduced on account of issuance of a credit note to  the Input Service Distributor by the supplier shall be apportioned to each recipient in the  same ratio in which the input tax credit contained in the original invoice was distributed  in terms of clause (d), and the amount so apportioned shall be-

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(i) reduced from the amount to be distributed in the month in which the credit note  is included in the return in FORM GSTR-6; or

(ii) added to the output tax liability of the recipient where the amount so  apportioned is in the negative by virtue of the amount of credit under distribution  being less than the amount to be adjusted.

(2) If the amount of input tax credit distributed by an Input Service Distributor is reduced  later on for any other reason for any of the recipients, including that it was distributed to a  wrong recipient by the Input Service Distributor, the process specified in clause (j) of sub-rule  (1) shall apply, mutatis mutandis, for reduction of credit.  

(3) Subject to sub-rule (2), the Input Service Distributor shall, on the basis of the Input Service  Distributor credit note specified in clause (h) of sub-rule (1), issue an Input Service Distributor  invoice to the recipient entitled to such credit and include the Input Service Distributor credit  note and the Input Service Distributor invoice in the return in FORM GSTR-6 for the month  in which such credit note and invoice was issued.

40. Manner of claiming credit in special circumstances.-(1) The input tax credit  claimed in accordance with the provisions of sub-section (1) of section 18 on the inputs held  in stock or inputs contained in semi-finished or finished goods held in stock, or the credit  claimed on capital goods in accordance with the provisions of clauses (c) and (d) of the said  sub-section, shall be subject to the following conditions, namely,-

(a) the input tax credit on capital goods, in terms of clauses (c) and (d) of sub-section  (1) of section 18, shall be claimed after reducing the tax paid on such capital goods by  five percentage points per quarter of a year or part thereof from the date of the invoice  or such other documents on which the capital goods were received by the taxable  person.

[(b) the registered person shall within a period of thirty days from the date of becoming  eligible to avail the input tax credit under sub-section (1) of section 18, or within such  further period as may be extended by the Commissioner by a notification in this behalf,  shall make a declaration, electronically, on the common portal in FORM GST ITC-01

to the effect that he is eligible to avail the input tax credit as aforesaid:  

Provided that any extension of the time limit notified by the Commissioner of State tax  or the Commissioner of Union territory tax shall be deemed to be notified by the  Commissioner.]71 

(c) the declaration under clause (b) shall clearly specify the details relating to the  inputs held in stock or inputs contained in semi-finished or finished goods held in  stock, or as the case may be, capital goods–

71Substituted vide Notf no. 22/2017 – CT dt. 01.07.2017

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(i) on the day immediately preceding the date from which he becomes  liable to pay tax under the provisions of the Act, in the case of a claim under  clause (a) of sub-section (1) of section 18;

(ii) on the day immediately preceding the date of the grant of registration,  in the case of a claim under clause (b) of sub-section (1) of section 18;

(iii) on the day immediately preceding the date from which he becomes  liable to pay tax under section 9, in the case of a claim under clause (c) of sub section (1) of section 18;

(iv) on the day immediately preceding the date from which the supplies  made by the registered person becomes taxable, in the case of a claim under  clause (d) of sub-section (1) of section 18;

(d) the details furnished in the declarationunder clause (b) shall be duly certified by a  practicing chartered accountantor a cost accountant if the aggregate value of the claim  on account of central tax, State tax, Union territory tax and integrated tax exceeds two  lakh rupees;  

(e) theinput tax credit claimed in accordance with the provisions of clauses (c) and (d)  of sub-section (1) of section 18 shall be verified with the corresponding details  furnished by the corresponding supplier in FORM GSTR-1 or as the case may be, in  FORM GSTR- 4, onthecommon portal.  

(2) The amount of credit in the case of supply of capital goods or plant and machinery, for the  purposes of sub-section (6) of section 18, shall be calculated by reducing the input tax on the  said goods at the rate of five percentage points for every quarter or part thereof from the date of the issue of the invoice for such goods.  

41. Transfer of credit on sale, merger, amalgamation, lease or transfer of a business.- (1) A registered person shall, in the event of sale, merger, de-merger, amalgamation, lease or  transfer or change in the ownership of business for any reason, furnish the details of sale,  merger, de-merger, amalgamation, lease or transfer of business, in FORM GST ITC-02, electronically on the common portal along with a request for transfer of unutilized input tax  credit lying in his electronic credit ledger to the transferee:

Provided that in the case of demerger, the input tax credit shall be apportioned in the  ratio of the value of assets of the new units as specified in the demerger scheme.

[Explanation:- For the purpose of this sub-rule, it is hereby clarified that the ―value of assets‖  means the value of the entire assets of the business, whether or not input tax credit has been  availed thereon.]72 

72Inserted vide Notf no. 16/2019-CT dt. 29.03.2019

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(2) The transferor shall also submit a copy of a certificate issued by a practicing chartered  accountant or cost accountant certifying that the sale, merger, de-merger, amalgamation, lease  or transfer of business has been done with a specific provision for the transfer of liabilities.

(3) The transferee shall, on the common portal, accept the details so furnished by the  transferor and, upon such acceptance, the un-utilized credit specified in FORM GST ITC-02 shall be credited to his electronic credit ledger.

(4) The inputs and capital goods so transferred shall be duly accounted for by the transferee in  his books of account.

[Rule 41A. Transfer of credit on obtaining separate registration for multiple places of  business within a State or Union territory.- (1) A registered person who has obtained  separate registration for multiple places of business in accordance with the provisions of rule  11 and who intends to transfer, either wholly or partly, the unutilised input tax credit lying in  his electronic credit ledger to any or all of the newly registered place of business, shall furnish  within a period of thirty days from obtaining such separate registrations, the details in FORM  GST ITC-02A electronically on the common portal, either directly or through a Facilitation  Centre notified in this behalf by the Commissioner:

Provided that the input tax credit shall be transferred to the newly registered entities in  the ratio of the value of assets held by them at the time of registration.

Explanation.- For the purposes of this sub-rule, it is hereby clarified that the ‗value of assets‘  means the value of the entire assets of the business whether or not input tax credit has been  availed thereon.

(2) The newly registered person (transferee) shall, on the common portal, accept the details so  furnished by the registered person (transferor) and, upon such acceptance, the unutilised input  tax credit specified in FORM GST ITC-02A shall be credited to his electronic credit  ledger.]73 

42. Manner of determination of input tax credit in respect of inputs or input services  and reversal thereof.-(1) The input tax credit in respect of inputs or input services, which  attract the provisions of sub-section (1) or sub-section (2) of section 17, being partly used for  the purposes of business and partly for other purposes, or partly used for effecting taxable  supplies including zero rated supplies and partly for effecting exempt supplies, shall be  attributed to the purposes of business or for effecting taxable supplies in the following manner,  namely,-

(a) the total input tax involved on inputs and input services in a tax period, be denoted  as ‗T‘;

73Inserted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019

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(b) the amount of input tax, out of ‗T‘, attributable to inputs and input services  intended to be used exclusively for the purposes other than business, be denoted as  ‗T1‘;

(c) the amount of input tax, out of ‗T‘, attributable to inputs and input services intended to be used exclusively for effecting exempt supplies, be denoted as ‗T2‘;

(d) the amount of input tax, out of ‗T‘, in respect of inputs and input services on which  credit is not available under sub-section (5) of section 17, be denoted as ‗T3‘;

(e) the amount ofinput tax credit credited to the electronic credit ledger of registered  person, be denoted as ‗C1‘ and calculated as

C1 = T- (T1+T2+T3);

(f) the amount of input tax credit attributable to inputs and input services intended to  be used exclusively for effecting supplies other than exempted but including zero rated  supplies, be denoted as ‗T4‘;

[Explanation: For the purpose of this clause, it is hereby clarified that in case of supply  of services covered by clause (b) of paragraph 5 of Schedule II of the said Act, value  of T4 shall be zero during the construction phase because inputs and input services will  be commonly used for construction of apartments booked on or before the date of  issuance of completion certificate or first occupation of the project, whichever is  earlier, and those which are not booked by the said date.]74 

(g) ‗T1‘, ‗T2‘, ‗T3‘ and ‗T4‘ shall be determined and declared by the registered person  at the invoice level in FORM GSTR-2[and at summary level in FORM GSTR-3B]75;

(h) input tax credit left after attribution of input tax credit under clause [(f)]76 shall be  called common credit, be denoted as ‗C2‘ and calculated as

C2 = C1- T4;

(i) the amount of input tax credit attributable towards exempt supplies, be denoted as  ‗D1‘ and calculated as

D1= (E÷F) × C2 

where,

‗E‘ is the aggregate value of exempt supplies during the tax period, and

‗F‘ is the total turnover in the State of the registered person during the tax period:

74Inserted vide Notf no. 16/2019-CT dt. 29.03.2019wef 01.04.2019

75Inserted vide Notf no. 16/2019-CT dt. 29.03.2019wef 01.04.2019

76Substituted vide Notf no. 16/2019-CT dt. 29.03.2019wef 01.04.2019 for ―(g)‖

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[Provided that in case of supply of services covered by clause (b) of paragraph  5 of Schedule II of the Act, the value of ‗E/F‘ for a tax period shall be calculated for  each project separately, taking value of E and F as under:-

E= aggregate carpet area of the apartments, construction of which is exempt  from tax plus aggregate carpet area of the apartments, construction of which is not  exempt from tax, but are identified by the promoter to be sold after issue of completion  certificate or first occupation, whichever is earlier;

F= aggregate carpet area of the apartments in the project;

Explanation 1: In the tax period in which the issuance of completion certificate or first  occupation of the project takes place, value of E shall also include aggregate carpet  area of the apartments, which have not been booked till the date of issuance of  completion certificate or first occupation of the project, whichever is earlier;

Explanation 2: Carpet area of apartments, tax on construction of which is paid or  payable at the rates specified for items (i), (ia), (ib), (ic) or (id), against serial number 3  of the Table in the notification No. 11/2017-Central Tax (Rate), published in the  Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) dated 28th June, 2017  vide GSR number 690(E) dated 28th June, 2017, as amended, shall be taken into  account for calculation of value of ‗E‘ in view of Explanation (iv) in paragraph 4 of the  notification No. 11/2017-Central Tax (Rate), published in the Gazette of India,  Extraordinary, Part II, Section 3, Sub-section (i) dated 28th June, 2017 vide GSR  number 690(E) dated 28th June, 2017, as amended.]77 

[Provided further]78 that where the registered person does not have any  turnover during the said tax period or the aforesaid information is not available, the  value of ‗E/F‘ shall be calculated by taking values of ‗E‘ and ‗F‘ of the last tax period  for which the details of such turnover are available, previous to the month during  which the said value of ‗E/F‘ is to be calculated;  

Explanation: For the purposes of this clause, it is hereby clarified that the aggregate  value of exempt supplies and the total turnover shall exclude the amount of any duty or  tax levied under entry 84 [and entry 92A]79of List I of the Seventh Schedule to the  Constitution and entry 51 and 54 of List II of the said Schedule;

(j) the amount of credit attributable to non-business purposes if common inputs and  input services are used partly for business and partly for non-business purposes, be  denoted as ‗D2‘, and shall be equal to five per cent. of C2; and

77Inserted vide Notf no. 16/2019-CT dt. 29.03.2019wef 01.04.2019

78Substituted vide Notf no. 16/2019-CT dt. 29.03.2019wef 01.04.2019 for ―Provided‖

79 Inserted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019

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(k) the remainder of the common credit shall be the eligible input tax credit attributed  to the purposes of business and for effecting supplies other than exempted supplies but  including zero rated supplies and shallbe denoted as ‗C3‘, where,-

C3 = C2 - (D1+D2);

[(l) the amount ‗C3‗, ‗D1‘ and ‗D2‘ shall be computed separately for input tax credit of  central tax, State tax, Union territory tax and integrated tax and declared in FORM  GSTR-3B or through FORM GST DRC-03;]80 

(m) the amount equal to aggregate of ‗D1‘ and ‗D2‘ shall be [reversed by the registered  person in FORM GSTR-3Bor through FORM GST DRC-03:]81 

Provided that where the amount of input taxrelating to inputs or input services  used partly for the purposes other than business and partly for effecting exempt  supplies has been identified and segregated at the invoice level by the registered  person, the same shall be included in ‗T1‘ and ‗T2‘ respectively, and  theremainingamountofcredit on such inputs or input services shall be included in ‗T4‘.

(2)[Except in case of supply of services covered by clause (b) of paragraph 5 of the Schedule  II of the Act, the input tax credit]82determined under sub-rule (1) shall be calculated finally for  the financial year before the due date for furnishing of the return for the month of September  following the end of the financial year to which such credit relates, in the manner specified in  the said sub-rule and-

(a) where the aggregate of the amounts calculated finally in respect of ‗D1‘ and ‗D2‘  exceeds the aggregate of the amounts determined under sub-rule (1) in respect of ‗D1‘  and ‗D2‘, such excess shall be [reversed by the registered person in FORM GSTR 3Bor through FORM GST DRC-03]83in the month not later than the month of  September following the end of the financial year to which such credit relates and the  said person shall be liable to pay interest on the said excess amount at the rate specified  in sub-section (1) of section 50 for the period starting from the first day of April of the  succeeding financial year till the date of payment; or

(c) where the aggregate of the amounts determined under sub-rule (1) in respect of ‗D1‘  and ‗D2‘ exceeds the aggregate of the amounts calculated finally in respect of ‗D1‘ and  ‗D2‘, such excess amount shall be claimed as credit by the registered person in his  return for a month not later than the month of September following the end of the  financial year to which such credit relates.

80Substituted vide Notf no. 16/2019-CT dt. 29.03.2019wef 01.04.2019 for ―(l) the amount ‗C3‘ shall be computed  separately for input tax credit of central tax, State tax, Union territory tax and integrated tax;‖ 81Substituted vide Notf no. 16/2019-CT dt. 29.03.2019wef 01.04.2019 for ―added to the output tax liability of the  registered person:‖

82Substituted vide Notf no. 16/2019-CT dt. 29.03.2019wef 01.04.2019 for ―The input tax credit‖ 83Substituted vide Notf no. 16/2019-CT dt. 29.03.2019wef 01.04.2019 for ―added to the output tax liability of the  registered person‖

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[(3) In case of supply of services covered by clause (b) of paragraph 5 of the Schedule II of the  Act, the input tax determined under sub-rule (1) shall be calculated finally, for each ongoing  project or project which commences on or after 1st April, 2019, which did not undergo or did  not require transition of input tax credit consequent to change of rates of tax on 1st April, 2019  in accordance with notification No. 11/2017- Central Tax (Rate), dated the 28th June, 2017,  published vide GSR No. 690(E) dated the 28th June, 2017, as amended for the entire period  from the commencement of the project or 1stJuly, 2017, whichever is later, to the completion  or first occupation of the project, whichever is earlier, before the due date for furnishing of  the return for the month of September following the end of financial year in which the  completion certificate is issued or first occupation takes place of the project, in the manner  prescribed in the said sub-rule, with the modification that value of E/F shall be calculated taking value of E and F as under:

E= aggregate carpet area of the apartments, construction of which is exempt from tax plus  aggregate carpet area of the apartments, construction of which is not exempt from tax, but  which have not been booked till the date of issuance of completion certificate or first  occupation of the project, whichever is earlier:

F= aggregate carpet area of the apartments in the project;

and,-

(a) where the aggregate of the amounts calculated finally in respect of ‗D1‘ and ‗D2‘  exceeds the aggregate of the amounts determined under sub-rule (1) in respect of ‗D1‘  and ‗D2‘, such excess shall be reversed by the registered person in FORM GSTR 3Bor through FORM GST DRC-03 in the month not later than the month of  September following the end of the financial year in which the completion certificate is  issued or first occupation of the project takes place and the said person shall be liable  to pay interest on the said excess amount at the rate specified in sub-section (1) of  section 50 for the period starting from the first day of April of the succeeding financial  year till the date of payment; or

(b) where the aggregate of the amounts determined under sub-rule (1) in respect of  ‗D1‘ and ‗D2‘ exceeds the aggregate of the amounts calculated finally in respect of  ‗D1‘ and ‗D2‘, such excess amount shall be claimed as credit by the registered person  in his return for a month not later than the month of September following the end of  the financial year in which the completion certificate is issued or first occupation takes  place of the project.

(4) In case of supply of services covered by clause (b) of paragraph 5 of Schedule II of the  Act, the input tax determined under sub-rule (1) shall be calculated finally, for commercial  portion in each project, other than residential real estate project (RREP), which underwent  transition of input tax credit consequent to change of rates of tax on the 1st April, 2019 in  accordance with notification No. 11/2017- Central Tax (Rate), dated the 28th June, 2017,  published vide GSR No. 690(E) dated the 28th June, 2017, as amended for the entire period  from the commencement of the project or 1st July, 2017, whichever is later, to the completion

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or first occupation of the project, whichever is earlier, before the due date for furnishing of  the return for the month of September following the end of financial year in which the  completion certificate is issued or first occupation takes place of the project, in the following  manner.

(a) The aggregate amount of common credit on commercial portion in the project  (C3aggregate_comm) shall be calculated as under,

C3aggregate_comm =[aggregate of amounts of C3 determined under sub- rule (1) for the tax  periods starting from 1st July, 2017 to 31st March, 2019, x (AC / AT)] + [ aggregate of  amounts of C3 determined under sub- rule (1)for the tax periods starting from 1st April,  2019 to the date of completion or first occupation of the project, whichever is earlier]  

Where, -

AC = total carpet area of the commercial apartments in the project

AT = total carpet area of all apartments in the project  

(b) The amount of final eligible common credit on commercial portion in the project  (C3final_comm) shall be calculated as under

C3final_comm =C3aggregate_comm x (E/ F)

Where, -

E = total carpet area of commercial apartments which have not been booked till the date of  issuance of completion certificate or first occupation of the project, whichever is earlier. F = AC = total carpet area of the commercial apartments in the project

(c) where, C3aggregate_comm exceeds C3final_comm, such excess shall be reversed by the  registered person in FORM GSTR-3Bor through FORM GST DRC-03 in the month not  later than the month of September following the end of the financial year in which the  completion certificate is issued or first occupation takes place of the project and the said  person shall be liable to pay interest on the said excess amount at the rate specified in sub

section (1) of section 50 for the period starting from the first day of April of the  succeeding financial year till the date of payment;

(d) where, C3final_comm exceeds C3aggregate_comm, such excess amount shall be claimed as  credit by the registered person in his return for a month not later than the month of  September following the end of the financial year in which the completion certificate is  issued or first occupation takes place of the project.

(5) Input tax determined under sub- rule (1) shall not be required to be calculated finally on  completion or first occupation of an RREP which underwent transition of input tax credit  consequent to change of rates of tax on 1st April, 2019 in accordance with notification No.  11/2017- Central Tax (Rate), dated the 28th June, 2017, published vide GSR No. 690(E) dated  the 28th June, 2017, as amended.

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(6) Where any input or input service are used for more than one project, input tax credit with  respect to such input or input service shall be assigned to each project on a reasonable basis  and credit reversal pertaining to each project shall be carried out as per sub-rule (3).]84 

43. Manner of determination of input tax credit in respect of capital goods and reversal  thereof in certain cases.-(1) Subject to the provisions of sub-section (3) of section 16, the  input tax credit in respect of capital goods, which attract the provisions of sub-sections (1) and  (2) of section 17, being partly used for the purposes of business and partly for other purposes,  or partly used for effecting taxable supplies including zero rated supplies and partly for  effecting exempt supplies, shall be attributed to the purposes of business or for effecting  taxable supplies in the following manner, namely,-

(a) the amount of input tax in respect of capital goods used or intended to be used  exclusively for non-business purposes or used or intended to be used exclusively for  effecting exempt supplies shall be indicated in FORM GSTR-2[and FORM GSTR 3B]85and shall not be credited to his electronic credit ledger;

(b) the amount of input tax in respect of capital goods used or intended to be used  exclusively for effecting supplies other than exempted supplies but including zero-rated  supplies shall be indicated in FORM GSTR-2[and FORM GSTR-3B]86and shall be  credited to the electronic credit ledger;  

[Explanation: For the purpose of this clause, it is hereby clarified that in case of supply  of services covered by clause (b) of paragraph 5 of the Schedule II of the said Act, the  amount of input tax in respect of capital goods used or intended to be used exclusively  for effecting supplies other than exempted supplies but including zero rated supplies,  shall be zero during the construction phase because capital goods will be commonly  used for construction of apartments booked on or before the date of issuance of  completion certificate or first occupation of the project, whichever is earlier, and those  which are not booked by the said date.]87 

[(c) the amount of input tax in respect of capital goods not covered under clauses (a) and  (b), denoted as ‗A, being the amount of tax as reflected on the invoice, shall credit  directly to the electronic credit ledger and the validity of the useful life of such goods  shall extend upto five years from the date of the invoice for such goods:  

Provided that where any capital goods earlier covered under clause (a) is  subsequently covered under this clause, input tax in respect of such capital goods  denoted as ‗A‘ shall be credited to the electronic credit ledger subject to the condition  that the ineligible credit attributable to the period during which such capital goods were  covered by clause (a),denoted as ‗Tie‘, shall be calculated at the rate of five percentage  points for every quarter or part thereof and added to the output tax liability of the tax  period in which such credit is claimed:

84Inserted vide Notf no. 16/2019-CT dt. 29.03.2019wef 01.04.2019

85Inserted vide Notf no. 16/2019-CT dt. 29.03.2019wef 01.04.2019

86Inserted vide Notf no. 16/2019-CT dt. 29.03.2019wef 01.04.2019

87Inserted vide Notf no. 16/2019-CT dt. 29.03.2019wef 01.04.2019

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Provided further that the amount ‗Tie‘ shall be computed separately for input  tax credit of central tax, State tax, Union territory tax and integrated tax and declared in  FORM GSTR-3B.

Explanation.- An item of capital goods declared under clause (a) on its receipt shall not  attract the provisions of sub-section (4) of section 18, if it is subsequently covered under  this clause.]88 

[(d) the aggregate of the amounts of ‗A‘ credited to the electronic credit ledger under clause (c) in respect of common capital goods whose useful life remains during the tax period, to be denoted as ‗Tc‘, shall be the common credit in respect of such capital goods:

Provided that where any capital goods earlier covered under clause (b) are subsequently covered under clause (c), the input tax credit claimed in respect of such capital good(s) shall be added to arrive at the aggregate value ‗Tc‘;]89 

(e) the amount of input tax credit attributable to a tax period on common capital goods  during their useful life, be denoted as ‗Tm‘ and calculated as

Tm= Tc÷60

[Explanation.- For the removal of doubt, it is clarified that useful life of any capital goods shall be considered as five years from the date of invoice and the said formula shall be applicable during the useful life of the said capital goods.]90 

[(f) the amount of input tax credit, at the beginning of a tax period, on all common  capital goods whose useful life remains during the tax period, be denoted as ‗Tr‘ and  shall be the aggregate of ‗Tm‘ for all such capital goods;]91 

(g) the amount of common credit attributable towards exempted supplies, be denoted as  ‗Te‘, and calculated as

Te= (E÷ F) x Tr 

where,

88Substituted vide Notf no. 16/2020-CT dt. 23.03.2020wef 01.04.2020 for ―(c) the amount of input tax in respect  of capital goods not covered under clauses (a) and (b), denoted as ‗A‘, shall be credited to the electronic credit  ledger and the useful life of such goods shall be taken as five years from the date of the invoice for such goods: Provided that where any capital goods earlier covered under clause (a) is subsequently covered under this clause,  the value of ‗A‘ shall be arrived at by reducing the input tax at the rate of five percentage points for every quarter  or part thereof and the amount ‗A‘ shall be credited to the electronic credit ledger;

Explanation.- An item of capital goods declared under clause (a) on its receipt shall not attract the provisions of  sub-section (4) of section 18, if it is subsequently covered under this clause.‖

89Substituted vide Notf no. 16/2020-CT dt. 23.03.2020wef 01.04.2020 for ―(d) the aggregate of the amounts of  ‗A‘ credited to the electronic credit ledger under clause (c), to be denoted as ‗Tc‘, shall be the common credit in  respect of capital goods for a tax period:

Provided that where any capital goods earlier covered under clause (b) is subsequently covered under clause (c),  the value of ‗A‘ arrived at by reducing the input tax at the rate of five percentage points for every quarter or part  thereof shall be added to the aggregate value ‗Tc‘;‖

90Inserted vide Notf no. 16/2020-CT dt. 23.03.2020wef 01.04.2020

91Omitted vide Notf no. 16/2020-CT dt. 23.03.2020wef 01.04.2020

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‗E‘ is the aggregate valueofexempt supplies, made, during the tax period, and ‗F‘ is the total turnover [in the State]92of the registered person during the tax period:

[Provided that in case of supply of services covered by clause (b) of paragraph  5 of the Schedule II of the Act, the value of ‗E/F‘ for a tax period shall be calculated  for each project separately, taking value of E and F as under:

E= aggregate carpet area of the apartments, construction of which is exempt  from tax plus aggregate carpet area of the apartments, construction of which is not  exempt from tax, but are identified by the promoter to be sold after issue of completion  certificate or first occupation, whichever is earlier;

F= aggregate carpet area of the apartments in the project;

Explanation1: In the tax period in which the issuance of completion certificate or first  occupation of the project takes place, value of E shall also include aggregate carpet  area of the apartments, which have not been booked till the date of issuance of  completion certificate or first occupation of the project, whichever is earlier.

Explanation 2: Carpet area of apartments, tax on construction of which is paid or  payable at the rates specified for items (i), (ia), (ib), (ic) or (id), against serial number 3  of the Table in notification No. 11/2017-Central Tax (Rate) published in the Gazette of  India, Extraordinary, Part II, Section 3, Sub-section (i) dated 28th June, 2017 vide GSR  No. 690 (E) dated 28th June, 2017, as amended, shall be taken into account for  calculation of value of ‗E‘ in view of Explanation (iv) in paragraph 4 of the  notification No. 11/2017-Central Tax (Rate) published in the Gazette of India,  Extraordinary, Part II, Section 3, Sub-section (i) dated the 28th June, 2017 vide GSR  No. 690 (E) dated 28th June, 2017, as amended.]93 

[Provided further]94 that where the registered person does not have any  turnover during the said tax period or the aforesaid information is not available, the  value of ‗E/F‘ shall be calculated by taking values of ‗E‘ and ‗F‘ of the last tax period  for which the details of such turnover are available, previous to the month during  which the said value of ‗E/F‘ is to be calculated;  

Explanation.- For the purposes of this clause, it is hereby clarified that the aggregate  value of exempt supplies and the total turnover shall exclude the amount of any duty or  tax levied under entry 84 [and entry 92A]95of List I of the Seventh Schedule to the  Constitution and entry 51 and 54 of List II of the said Schedule;  

92Inserted vide Notf no. 16/2019-CT dt. 29.03.2019wef 01.04.2019

93Inserted vide Notf no. 16/2019-CT dt. 29.03.2019wef 01.04.2019

94 Substituted vide Notf no. 16/2019-CT dt. 29.03.2019wef 01.04.2019 for ―Provided‖ 95 Inserted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019

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(h) the amount Te along with the applicable interest shall, during every tax period of the  useful life of the concerned capital goods, be added to the output tax liability of the  person making such claim of credit.

[(i) The amount Te shall be computed separately for input tax credit of central tax, State  tax, Union territory tax and integrated tax and declared in FORM GSTR-3B.]96 

[(2) In case of supply of services covered by clause (b) of paragraph 5 of schedule II of the  Act, the amount of common credit attributable towards exempted supplies (Tefinal) shall be  calculated finally for the entire period from the commencement of the project or 1st July,  2017, whichever is later, to the completion or first occupation of the project, whichever is  earlier, for each project separately, before the due date for furnishing of the return for the  month of September following the end of financial year in which the completion certificate is  issued or first occupation takes place of the project, as under:

Tefinal= [(E1 + E2 + E3) /F] x Tcfinal,

Where,-

E1= aggregate carpet area of the apartments, construction of which is exempt from tax  E2= aggregate carpet area of the apartments, supply of which is partly exempt and partly  taxable, consequent to change of rates of tax on 1st April, 2019, which shall be calculated as  under, -

E2= [Carpet area of such apartments] x [V1/ (V1+V2)],-

Where,-

V1 is the total value of supply of such apartments which was exempt from tax; and V2 is the total value of supply of such apartments which was taxable  

E3 = aggregate carpet area of the apartments, construction of which is not exempt from tax,  but have not been booked till the date of issuance of completion certificate or first occupation  of the project, whichever is earlier:

F= aggregate carpet area of the apartments in the project;

Tcfinal= aggregate of Afinalin respect of all capital goods used in the project and Afinalfor each  capital goods shall be calculated as under,

Afinal= A x (number of months for which capital goods is used for the project/ 60)and,-

(a) where value of Tefinalexceeds the aggregate of amounts of Te determined for each tax  period under sub-rule (1), such excess shall be reversed by the registered person in FORM  GSTR-3Bor through FORM GST DRC-03 in the month not later than the month of  September following the end of the financial year in which the completion certificate is issued  or first occupation takes place of the project and the said person shall be liable to pay interest  

96Inserted vide Notf no. 16/2019-CT dt. 29.03.2019wef 01.04.2019

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on the said excess amount at the rate specified in sub-section (1) of section 50 for the period  starting from the first day of April of the succeeding financial year till the date of payment; or

(b) where aggregate of amounts of Te determined for each tax period under sub-rule (1)  exceeds Tefinal, such excess amount shall be claimed as credit by the registered person in his  return for a month not later than the month of September following the end of the financial  year in which the completion certificate is issued or first occupation takes place of the project.

Explanation.- For the purpose of calculation of Tcfinal, part of the month shall be treated as one  complete month.

(3) The amount TefinalandTcfinal shall be computed separately for input tax credit of central tax,  State tax, Union territory tax and integrated tax.

(4) Where any capital goods are used for more than one project, input tax credit with respect  to such capital goods shall be assigned to each project on a reasonable basis and credit reversal  pertaining to each project shall be carried out as per sub-rule (2).

(5) Where any capital goods used for the project have their useful life remaining on the  completion of the project, input tax credit attributable to the remaining life shall be availed in  the project in which the capital goods is further used;]97 

[Explanation 1: -For the purposes of rule 42 and this rule, it is hereby clarified that the  aggregate value of exempt supplies shall exclude: - 

(a) [the value of supply of services specified in the notification of the Government of  India in the Ministry of Finance, Department of Revenue No. 42/2017-Integrated Tax  (Rate), dated the 27th October, 2017 published in the Gazette of India, Extraordinary,  Part II, Section 3, Sub-section (i), vide number GSR 1338(E) dated the 27th October,  2017;]98 

(b) the value of services by way of accepting deposits, extending loans or advances in  so far as the consideration is represented by way of interest or discount, except in case  of a banking company or a financial institution including a non-banking financial  company, engaged in supplying services by way of accepting deposits, extending loans  or advances; and 

(c) the value of supply of services by way of transportation of goods by a vessel from  the customs station of clearance in India to a place outside India.]99100 

97 Substituted vide Notf no. 16/2019-CT dt. 29.03.2019wef 01.04.2019 for ―(2) The amount Te shall be computed  separately for central tax, State tax, Union territory tax and integrated tax.‖

98Omitted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019

99Inserted vide Notf no. 55/2017-CT dt. 15.11.2017

100Explanation substituted videNotf no. 03/2018 – CT dt. 23.01.2018. Till then it read as follows: - Explanation - For the purposes of rule 42 and this rule, it is hereby clarified that the aggregate value of exempt  supplies shall exclude the value of supply of services specified in the notification of the Government of India in

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[Explanation 2: For the purposes of rule 42 and this rule,-

(i) the term ―apartment‖ shall have the same meaning as assigned to it in clause (e) of  section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);

(ii) the term ―project‖ shall mean a real estate project or a residential real estate  project;

(iii) the term ―Real Estate Project (REP)‖ shall have the same meaning as assigned to it  in in clause (zn) of section 2 of the Real Estate (Regulation and Development) Act,  2016 (16 of 2016);

(iv) the term ―Residential Real Estate Project (RREP)‖ shall mean a REP in which the  carpet area of the commercial apartments is not more than 15 per cent. of the total  carpet area of all the apartments in the REP;

(v) the term ―promoter‖ shall have the same meaning as assigned to it in in clause (zk)  of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);

(vi) ―Residential apartment‖ shall mean an apartment intended for residential use as  declared to the Real Estate Regulatory Authority or to competent authority;

(vii) ―Commercial apartment‖ shall mean an apartment other than a residential  apartment;

(viii) the term "competent authority‖ as mentioned in definition of ―residential  apartment‖, means the local authority or any authority created or established under any  law for the time being in force by the Central Government or State Government or  Union Territory Government, which exercises authority over land under its  jurisdiction, and has powers to give permission for development of such immovable  property;

(ix) the term ―Real Estate Regulatory Authority‖ shall mean the Authority established  under sub- section (1) of section 20 (1) of the Real Estate (Regulation and  Development) Act, 2016 (No. 16 of 2016) by the Central Government or State  Government;

(x) the term ―carpet area‖ shall have the same meaning assigned to it in in clause (k) of  section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);

the Ministry of Finance, Department of Revenue No. 42/2017-Integrated Tax (Rate), dated the 27th October, 2017  published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number GSR 1338(E)  dated the 27th October, 2017.

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(xi) ―an apartment booked on or before the date of issuance of completion certificate  or first occupation of the project‖ shall mean an apartment which meets all the  following three conditions, namely-

(a) part of supply of construction of the apartment service has time of supply on  or before the said date; and  

(b) consideration equal to at least one installment has been credited to the bank  account of the registered person on or before the said date; and

(c) an allotment letter or sale agreement or any other similar document  evidencing booking of the apartment has been issued on or before the said date. (xii) The term ―ongoing project‖ shall have the same meaning as assigned to it in  notification No. 11/2017- Central Tax (Rate), dated the 28th June, 2017, published vide  GSR No. 690(E) dated the 28th June, 2017, as amended;

(xiii) The term ―project which commences on or after 1st April, 2019‖ shall have the  same meaning as assigned to it in notification No. 11/2017- Central Tax (Rate), dated  the 28th June, 2017, published vide GSR No. 690(E) dated the 28th June, 2017, as  amended;]101 

44. Manner of reversal of credit under special circumstances.-(1) The amount of input tax  credit relating toinputs held in stock, inputs contained in semi-finished and finished goods  held in stock, and capital goods held in stock shall, for the purposes of sub-section (4) of  section 18 or sub-section (5) of section 29, be determined in the following manner, namely,-

(a) for inputs held in stock and inputs contained in semi-finished and finished goods held  in stock, the input tax credit shall be calculated proportionately on the basis of the  corresponding invoices on which credit had been availed by the registered taxable  person on such inputs;

(b) for capital goods held in stock, the input tax credit involved in the remaining useful  life in months shall be computed on pro-rata basis, taking the useful life as five years.  

Illustration:

Capital goods have been in use for 4 years, 6 month and 15 days.

The useful remaining life in months= 5 months ignoring a part of the month Input tax credit taken on such capital goods= C

Input tax credit attributable to remaining useful life= C multiplied by 5/60

(2) The amount, as specified in sub-rule (1) shall be determined separately for input tax credit  of central tax, State tax, Union territory tax and integrated tax.

(3) Where the tax invoices related to the inputs held in stock are not available, the registered  person shall estimate the amount under sub-rule (1) based on the prevailing market price of the  

101Inserted vide Notf no. 16/2019-CT dt. 29.03.2019wef 01.04.2019

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goods on the effective date of the occurrence of any of the events specified in sub-section (4)  of section 18 or, as the case may be, sub-section (5) of section 29.

(4) The amount determined under sub-rule (1) shall form part of the output tax liability of the  registered person and the details of the amount shall be furnished in FORM GST ITC-03,  where such amount relates to any event specified in sub-section (4) of section 18 and in  FORM GSTR-10, where such amount relates to the cancellation of registration.  

(5) The details furnished in accordance with sub-rule (3) shall be duly certified by a  practicing chartered accountantor cost accountant.

(6) The amount of input tax credit for the purposes of sub-section (6) of section 18 relating to  capital goods shall be determined in the same manner as specified in clause (b) of sub-rule (1)  and the amount shall be determined separately for input tax credit ofcentral tax, State tax,  Union territory tax and integrated tax:

Provided that where the amount so determined is more than the tax determined on the  transaction value of the capital goods, the amount determined shall form part of the output tax  liability and the same shall be furnished in FORM GSTR-1.

[44A. Manner of reversal of credit of Additional duty of Customs in respect of Gold dore  bar.- The credit of Central tax in the electronic credit ledger taken in terms of the provisions  of section 140 relating to the CENVAT Credit carried forward which had accrued on account  of payment of the additional duty of customs levied under sub-section (1) of section 3 of the  Customs Tariff Act, 1975 (51 of 1975), paid at the time of importation of gold dore bar, on the  stock of gold dore bar held on the 1st day of July, 2017 or contained in gold or gold jewellery  held in stock on the 1stday of July, 2017 made out of such imported gold dore bar, shall be  restricted to one-sixth of such credit and five-sixth of such credit shall be debited from the  electronic credit ledger at the time of supply of such gold dore bar or the gold or the gold  jewellery made therefrom and where such supply has already been made, such debit shall be  within one week from the date of commencement of these Rules.]102 

45. Conditions and restrictions in respect of inputs and capital goods sent to the job  worker.-(1)The inputs, semi-finished goods or capital goods shall be sent to the job worker  under the cover of a challan issued by the principal, including where such goods are sent  directly to a job-worker, [and where the goods are sent from one job worker to another job  worker, the challan may be issued either by the principal or the job worker sending the goods  to another job worker:

Provided that the challan issued by the principal may be endorsed by the job worker,  indicating therein the quantity and description of goods where the goods are sent by one job  worker to another or are returned to the principal:

102Inserted vide Notf no. 22/2017-CT dt. 17.08.2017

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Provided further that the challan endorsed by the job worker may be further endorsed by  another job worker, indicating therein the quantity and description of goods where the goods  are sent by one job worker to another or are returned to the principal.]103 

(2) The challan issued by the principal to the job worker shall contain the details specified in  rule 55.

(3) The details of challans in respect of goods dispatched to a job worker or received from a  job worker [or sent from one job worker to another]104 during a quarter shall be included in  FORM GST ITC-04furnished for that period on or before the twenty-fifth day of the month  succeeding the said quarter[or within such further period as may be extended by the  Commissioner by a notification in this behalf:  

Provided that any extension of the time limit notified by the Commissioner of State tax  or the Commissioner of Union territory tax shall be deemed to be notified by the  Commissioner.]105 

(4) Where the inputs or capital goods are not returned to theprincipal within the time stipulated  in section 143,it shall be deemed that such inputs or capital goods had been supplied by the  principal to the job worker on the day when the said inputs or capital goods were sent out and  the said supply shall be declared in FORM GSTR-1 and the principal shall be liable to pay  the tax along with applicable interest.  

Explanation.- For the purposes of this Chapter,-

(1) the expressions ―capital goods‖ shall include ―plant and machinery‖ as defined in  the Explanation to section 17;

(2) for determining the value of an exempt supplyas referred to in sub-section (3) of  section 17-

(a) the value of land and building shall be taken as the same as adopted for the purpose  of paying stamp duty; and

(b)the value of security shall be taken as one per cent. of the sale value of such  security.  

103Inserted vide Notf no. 14/2018-CT dt. 23.03.2018

104Omitted vide Notf no. 74/2018-CT dt. 31.12.2108

105Inserted vide Notf no. 54/2017-CT dt. 28.10.2017

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CHAPTER VI

TAX INVOICE, CREDIT AND DEBIT NOTES

46. Tax invoice.-Subject to rule 54, a tax invoice referred to in section 31 shall be issued by  the registered person containing the following particulars, namely,-

(a) name, address and Goods and Services Tax Identification Number of the  supplier;  

(b) a consecutive serial number not exceeding sixteen characters, in one or multiple  series, containing alphabets or numerals or special characters- hyphen or dash  and slash symbolised as ―-‖ and ―/‖ respectively, and any combination thereof,  unique for a financial year;  

(c) date of its issue;  

(d) name, address and Goods and Services Tax Identification Number or Unique  Identity Number, if registered, of the recipient;  

(e) name and address of the recipient and the address of delivery, along with the  name of the State and its code, if such recipient is un-registered and where the  value of the taxable supply is fifty thousand rupees or more;  

(f) name and address of the recipient and the address of delivery, along with the  name of the State and its code, if such recipient is un-registered and where the  value of the taxable supply is less than fifty thousand rupees and the recipient  requests that such details be recorded in the tax invoice;

(g) Harmonised System of Nomenclature code for goods or services;  (h) description of goods or services;  

(i) quantity in case of goods and unit or Unique Quantity Code thereof;  (j) total value of supply of goods or services or both;  

(k) taxable value of the supply of goods or services or both taking into account  discount or abatement, if any;  

(l) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);  

(m) amount of tax charged in respect of taxable goods or services (central tax, State  tax, integrated tax, Union territory tax or cess);  

(n) place of supply along with the name of the State, in the case of a supply in the  course of inter-State trade or commerce;  

(o) address of delivery where the same is different from the place of supply;  (p) whether the tax is payable on reverse charge basis; and  

(q) signature or digital signature of the supplier or his authorised representative:

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(r) [Quick Response code, having embedded Invoice Reference Number (IRN) in  it, in case invoice has been issued in the manner prescribed under sub-rule (4)  of rule 48]106.

[Provided that the Board may, on the recommendations of the Council, by  notification, specify-

(i) the number of digits of Harmonised System of Nomenclature code for goods  or services that a class of registered persons shall be required to mention; or

(ii) a class of supply of goods or services for which specified number of digits  of Harmonised System of Nomenclature code shall be required to be mentioned  by all registered taxpayers; and

(iii) the class of registered persons that would not be required to mention the  Harmonised System of Nomenclature code for goods or services:]107 

Provided further that where an invoice is required to be issued under clause (f)  of sub-section (3) of section 31, a registered person may issue a consolidated invoice at  the end of a month for supplies covered under sub-section (4) of section 9, the  aggregate value of such supplies exceeds rupees five thousand in a day from any or all  the suppliers:

[Provided also that in the case of the export of goods or services, the invoice  shall carry an endorsement ―SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ  UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS ON PAYMENT  OF INTEGRATED TAX‖ or ―SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ  UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND  OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED  TAX‖, as the case may be, and shall, in lieu of the details specified in clause (e),  contain the following details, namely,- (i) name and address of the recipient; (ii)  address of delivery; and (iii) name of the country of destination:]108 

Provided also that a registered person[, other than the supplier engaged in  making supply of services by way of admission to exhibition of cinematograph films in  

106Inserted vide Notf no. 72/2020-CT dt. 30.09.2020.

107 Substituted vide Notf no. 79/2020-CT dt.15.10.2020 for ―Provided that the Board may, on the  recommendations of the Council, by notification, specify-

(i) the number of digits of Harmonised System of Nomenclature code for goods or services that a class of  registered persons shall be required to mention, for such period as may be specified in the said notification; and  (ii) the class of registered persons that would not be required to mention the Harmonised System of  Nomenclature code for goods or services, for such period as may be specified in the said notification:‖ 108Amended vide Notf no. 17/2017-CT dt. 27.07.2017. Till then it read as follows –

Provided also that in the case of the export of goods or services, the invoice shall carry an endorsement  ―SUPPLY MEANT FOR EXPORT ON PAYMENT OF INTEGRATED TAX‖ or ―SUPPLY MEANT FOR  EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED  TAX‖, as the case may be, and shall, in lieu of the details specified in clause (e), contain the following details,  namely,-

(i) name and address of the recipient;  

(ii) address of delivery; and  

(iii) name of the country of destination.

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multiplex screens,]109may not issue a tax invoice in accordance with the provisions of  clause (b) of sub-section (3) of section 31 subject to the following conditions, namely,- (a) the recipient is not a registered person; and  

(b) the recipient does not require such invoice, and  

shall issue a consolidated tax invoice for such supplies at the close of each day in  respect of all such supplies.  

[Provided also that the signature or digital signature of the supplier or his  authorised representative shall not be required in the case of issuance of an electronic  invoice in accordance with the provisions of the Information Technology Act, 2000 (21  of 2000).]110 

[Provided also that the Government may, by notification, on the  recommendations of the Council, and subject to such conditions and restrictions as  mentioned therein, specify that the tax invoice shall have Quick Response (QR)  code.]111 

[46A. Invoice-cum-bill of supply.- Notwithstanding anything contained in rule 46 or rule 49  or rule 54, where a registered person is supplying taxable as well as exempted goods or  services or both to an unregistered person, a single ―invoice-cum-bill of supply‖ may be issued  for all such supplies.]112 

47. Time limit for issuing tax invoice.- The invoice referred to in rule 46, in the case of the  taxable supply of services, shall be issued within a period of thirty days from the date of the  supply of service:  

Provided that where the supplier of services is an insurer or a banking company or a  financial institution, including a non-banking financial company, the period within which the  invoice or any document in lieu thereof is to be issued shall be forty five days from the date of  the supply of service:  

Provided further that an insurer or a banking company or a financial institution,  including a non-banking financial company, or a telecom operator, or any other class of  supplier of services as may be notified by the Government on the recommendations of the  Council, making taxable supplies of services between distinct persons as specified in section

25, may issue the invoice before or at the time such supplier records the same in his books of  account or before the expiry of the quarter during which the supply was made.  

48. Manner of issuing invoice.-(1)The invoice shall be prepared in triplicate, in the case of  supply of goods, in the following manner, namely,-

(a) the original copy being marked as ORIGINAL FOR RECIPIENT;  

(b) the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and  (c) the triplicate copy being marked as TRIPLICATE FOR SUPPLIER.  

109Inserted vide Notf no. 33/2019-CT dt. 18.07.2019 with effect from 01.09.2019

110Inserted vide Notf no. 74/2018-CT dt. 31.12.2018

111 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019with effect from 01.04.2020 as notified by Notification  No. 71/2019 dated 13.12.2019.  

112Inserted vide Notf no. 45/2017-CT dt. 13.10.2017

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(2) The invoice shall be prepared in duplicate, in the case of the supply of services, in the  following manner, namely,-

(a) the original copy being marked as ORIGINAL FOR RECIPIENT; and  (b) the duplicate copy being marked as DUPLICATE FOR SUPPLIER.  (3) The serial number of invoices issued during a tax period shall be furnished  electronically through the common portal in FORM GSTR-1.  

[(4) The invoice shall be prepared by such class of registered persons as may be notified by  the Government, on the recommendations of the Council, by including such particulars  contained in FORM GST INV-01 after obtaining an Invoice Reference Number by uploading  information contained therein on the Common Goods and Services Tax Electronic Portal in  such manner and subject to such conditions and restrictions as may be specified in the  notification.

[Provided that the Commissioner may, on the recommendations of the Council, by  notification, exempt a person or a class of registered persons from issuance of invoice under  this sub-rule for a specified period, subject to such conditions and restrictions as may be  specified in the said notification.]113 

(5) Every invoice issued by a person to whom sub-rule (4) applies in any manner other  than the manner specified in the said sub-rule shall not be treated as an invoice.  

(6) The provisions of sub-rules (1) and (2) shall not apply to an invoice prepared in the  manner specified in sub-rule (4).]114 

49. Bill of supply.-A bill of supply referred to in clause (c) of sub-section (3) of section 31  shall be issued by the supplier containing the following details, namely,-

(a) name, address and Goods and Services Tax Identification Number of the  supplier;  

(b) a consecutive serial number not exceeding sixteen characters, in one or  multiple series, containing alphabets or numerals or special characters -hyphen  or dash and slash symbolised as ―-‖ and ―/‖ respectively, and any combination  thereof, unique for a financial year;  

(c) date of its issue;  

(d) name, address and Goods and Services Tax Identification Number or Unique  Identity Number, if registered, of the recipient;  

(e) Harmonised System of Nomenclature Code for goods or services;  (f) description of goods or services or both;  

(g) value of supply of goods or services or both taking into account discount or  abatement, if any; and  

(h) signature or digital signature of the supplier or his authorised representative:    

113 Inserted vide Notf no. 72/2020-CT dt. 30.09.2020

114Inserted vide Notf no. 68/2019-CT dt. 13.12.2019

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Provided that the provisos to rule 46 shall, mutatis mutandis, apply to the bill of  supply issued under this rule:  

Provided further that any tax invoice or any other similar document issued  under any other Act for the time being in force in respect of any non-taxable supply  shall be treated as a bill of supply for the purposes of the Act.

[Provided also that the signature or digital signature of the supplier or his  authorised representative shall not be required in the case of issuance of an electronic  bill of supply in accordance with the provisions of the Information Technology Act,  2000 (21 of 2000).]115 

[Provided also that the Government may, by notification, on the recommendations of  the Council, and subject to such conditions and restrictions as mentioned therein, specify that  the bill of supply shall have Quick Response (QR) code.]116 

50. Receipt voucher.- A receipt voucher referred to in clause (d) of sub-section (3) of section  31 shall contain the following particulars, namely,-

(a) name, address and Goods and Services Tax Identification Number of the  supplier;  

(b) a consecutive serial number not exceeding sixteen characters, in one or  multiple series, containing alphabets or numerals or special characters-hyphen  or dash and slash symbolised as ―-‖ and ―/‖ respectively, and any combination  thereof, unique for a financial year;  

(c) date of its issue;  

(d) name, address and Goods and Services Tax Identification Number or Unique  Identity Number, if registered, of the recipient;  

(e) description of goods or services;  

(f) amount of advance taken;  

(g) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);  

(h) amount of tax charged in respect of taxable goods or services (central tax,  State tax, integrated tax, Union territory tax or cess);  

(i) place of supply along with the name of State and its code, in case of a supply  in the course of inter-State trade or commerce;  

(j) whether the tax is payable on reverse charge basis; and  

(k) signature or digital signature of the supplier or his authorised representative:  Provided that where at the time of receipt of advance,-

(i) the rate of tax is not determinable, the tax shall be paid at the rate of  eighteen per cent.;

115Inserted vide Notf no. 74/2018-CT dt. 31.12.2018

116 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019 with effect from a date to be notified later.

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(ii) the nature of supply is not determinable, the same shall be treated as inter State supply.

51. Refund voucher.-A refund voucher referred to in clause (e) of sub-section (3) of section  31 shall contain the following particulars, namely:-

(a) name, address and Goods and Services Tax Identification Number of the  supplier;  

(b) a consecutive serial number not exceeding sixteen characters, in one or  multiple series, containing alphabets or numerals or special characters-hyphen  or dash and slash symbolised as ―-‖ and ―/‖respectively, and any combination  thereof, unique for a financial year;  

(c) date of its issue;  

(d) name, address and Goods and Services Tax Identification Number or Unique  Identity Number, if registered, of the recipient;  

(e) number and date of receipt voucher issued in accordance with the provisions  of rule 50;

(f) description of goods or services in respect of which refund is made;  (g) amount of refund made;  

(h) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);  

(i) amount of tax paid in respect of such goods or services (central tax, State tax,  integrated tax, Union territory tax or cess);  

(j) whether the tax is payable on reverse charge basis; and  

(k) signature or digital signature of the supplier or his authorised representative.  

52. Payment voucher.-A payment voucher referred to in clause (g) of sub-section (3) of  section 31 shall contain the following particulars, namely:-

(a) name, address and Goods and Services Tax Identification Number of the  supplier if registered;  

(b) a consecutive serial number not exceeding sixteen characters, in one or  multiple series, containing alphabets or numerals or special characters-hyphen  or dash and slash symbolised as ―-‖ and ―/‖ respectively, and any combination  thereof, unique for a financial year;  

(c) date of its issue;  

(d) name, address and Goods and Services Tax Identification Number of the  recipient;  

(e) description of goods or services;  

(f) amount paid;  

(g) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);

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(h) amount of tax payable in respect of taxable goods or services (central tax,  State tax, integrated tax, Union territory tax or cess);  

(i) place of supply along with the name of State and its code, in case of a supply  in the course of inter-State trade or commerce; and  

(j) signature or digital signature of the supplier or his authorised representative.  

53. Revised tax invoice and credit or debit notes.-(1)A revised tax invoice referred to in  section 31 [and credit or debit notes referred to in section 34]117 shall contain the following  particulars, namely:-

(a) the word ―Revised Invoice‖, wherever applicable, indicated prominently;  (b) name, address and Goods and Services Tax Identification Number of the  supplier;  

(c )[nature of the document;]118 

(d) a consecutive serial number not exceeding sixteen characters, in one or  multiple series, containing alphabets or numerals or special characters-hyphen or  dash and slash symbolised as ―-‖ and ―/‖ respectively, and any combination thereof,  unique for a financial year;  

(e) date of issue of the document;  

(f) name, address and Goods and Services Tax Identification Number or Unique  Identity Number, if registered, of the recipient;  

(g) name and address of the recipient and the address of delivery, along with the  name of State and its code, if such recipient is un-registered;  

(h) serial number and date of the corresponding tax invoice or, as the case may be,  bill of supply; and

(i) [value of taxable supply of goods or services, rate of tax and the amount of the  tax credited or, as the case may be, debited to the recipient;]119 

(j) signature or digital signature of the supplier or his authorised representative.  

[(1A) A credit or debit note referred to in section 34 shall contain the following particulars,  namely:–

(a) name, address and Goods and Services Tax Identification Number of the  supplier;  

(b) nature of the document;  

(c) a consecutive serial number not exceeding sixteen characters, in one or  multiple series, containing alphabets or numerals or special characters-hyphen or dash  and slash symbolised as ―-‖ and ―/‖ respectively, and any combination thereof, unique  for a financial year;  

(d) date of issue of the document;  

(e) name, address and Goods and Services Tax Identification Number or Unique  Identity Number, if registered, of the recipient;  

117 Omitted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019

118 Omitted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019

119 Omitted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019

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(f) name and address of the recipient and the address of delivery, along with the  name of State and its code, if such recipient is un-registered;  

(g) serial number(s) and date(s) of the corresponding tax invoice(s) or, as the case  may be, bill(s) of supply;  

(h) value of taxable supply of goods or services, rate of tax and the amount of the  tax credited or, as the case may be, debited to the recipient; and

(i) signature or digital signature of the supplier or his authorised representative.]120 (2) Every registered person who has been granted registration with effect from a date  earlier than the date of issuance of certificate of registration to him, may issue revised tax  invoices in respect of taxable supplies effected during the period starting from the effective  date of registration till the date of the issuance of the certificate of registration:  

Provided that the registered person may issue a consolidated revised tax invoice in  respect of all taxable supplies made to a recipient who is not registered under the Act during  such period:  

Provided further that in the case of inter-State supplies, where the value of a supply  does not exceed two lakh and fifty thousand rupees, a consolidated revised invoice may be  issued separately in respect of all the recipients located in a State, who are not registered under  the Act.  

(3) Any invoice or debit note issued in pursuance of any tax payable in accordance with  the provisions of section 74 or section 129 or section 130 shall prominently contain the words  ―INPUT TAX CREDIT NOT ADMISSIBLE‖.  

54. Tax invoice in special cases.- (1)An Input Service Distributor invoice or, as the case may  be, an Input Service Distributor credit note issued by an Input Service Distributor shall contain  the following details:-  

(a) name, address and Goods and Services Tax Identification Number of the Input  Service Distributor;  

(b) a consecutive serial number not exceeding sixteen characters, in one or multiple  series, containing alphabets or numerals or special characters- hyphen or dash  and slash symbolised as- ―-‖, ―/‖ respectively, and any combination thereof,  unique for a financial year;  

(c) date of its issue;  

(d) name, address and Goods and Services Tax Identification Number of the  recipient to whom the credit is distributed;  

(e) amount of the credit distributed; and  

(f) signature or digital signature of the Input Service Distributor or his authorised  representative:  

Provided that where the Input Service Distributor is an office of a banking  company or a financial institution, including a non-banking financial company, a tax  

120 Inserted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019

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invoice shall include any document in lieu thereof, by whatever name called, whether  or not serially numbered but containing the information as mentioned above.  

[(1A) (a) A registered person, having the same PAN and State code as an Input Service  Distributor, may issue an invoice or, as the case may be, a credit or debit note to transfer the  credit of common input services to the Input Service Distributor, which shall contain the  following details:-

i. name, address and Goods and Services Tax Identification Number of the registered  person having the same PAN and same State code as the Input Service Distributor; ii. a consecutive serial number not exceeding sixteen characters, in one or multiple series,  

containing alphabets or numerals or special characters -hyphen or dash and slash  symbolised as ―-‖ and ―/‖ respectively, and any combination thereof, unique for a  financial year;

iii. date of its issue;

iv. Goods and Services Tax Identification Number of supplier of common service and  original invoice number whose credit is sought to be transferred to the Input Service  Distributor;

v. name, address and Goods and Services Tax Identification Number of the Input Service  Distributor;

vi. taxable value, rate and amount of the credit to be transferred; and

vii. signature or digital signature of the registered person or his authorised representative. (b) The taxable value in the invoice issued under clause (a) shall be the same as the value of  the common services.]121 

(2) Where the supplier of taxable service is an insurer or a banking company or a financial  institution, including a non-banking financial company, the said supplier [may]122 issue a [consolidated]123 tax invoice or any other document in lieu thereof, by whatever name called [for the supply of services made during a month at the end of the month]124, whether issued or  

made available, physically or electronically whether or not serially numbered, and whether or  not containing the address of the recipient of taxable service but containing other information  as mentioned under rule 46.

[Provided that the signature or digital signature of the supplier or his authorised  representative shall not be required in the case of issuance of a consolidated tax invoice or any  other document in lieu thereof in accordance with the provisions of the Information  Technology Act, 2000 (21 of 2000).]125 

(3) Where the supplier of taxable service is a goods transport agency supplying services in  relation to transportation of goods by road in a goods carriage, the said supplier shall issue a  tax invoice or any other document in lieu thereof, by whatever name called, containing the  gross weight of the consignment, name of the consigner and the consignee, registration  number of goods carriage in which the goods are transported, details of goods transported,   

121 Inserted vide Notf no. 03/2018- CT dt. 23.01.2018

122Substituted for ―shall‖ vide Notf no. 55/2017-CT dt. 15.11.2017

123Inserted vide Notf no. 45/2017-CT dt. 13.10.2017

124Inserted vide Notf no. 45/2017-CT dt. 13.10.2017

125Inserted vide Notf no. 74/2018-CT dt. 31.12.2018

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details of place of origin and destination, Goods and Services Tax Identification Number of  the person liable for paying tax whether as consigner, consignee or goods transport agency,  and also containing other information as mentioned under rule 46.

(4) Where the supplier of taxable service is supplying passenger transportation service, a  tax invoice shall include ticket in any form, by whatever name called, whether or not serially  numbered, and whether or not containing the address of the recipient of service but containing  other information as mentioned under rule 46.

[Provided that the signature or digital signature of the supplier or his authorised  representative shall not be required in the case of issuance of ticket in accordance with the  provisions of the Information Technology Act, 2000 (21 of 2000).]126 

[(4A) A registered person supplying services by way of admission to exhibition of  cinematograph films in multiplex screens shall be required to issue an electronic ticket and the  said electronic ticket shall be deemed to be a tax invoice for all purposes of the Act, even if  such ticket does not contain the details of the recipient of service but contains the other  information as mentioned under rule 46:  

 Provided that the supplier of such service in a screen other than multiplex screens may, at  his option, follow the above procedure.]127 

(5) The provisions of sub-rule (2) or sub-rule (4) shall apply, mutatis mutandis, to the  documents issued under rule 49 or rule 50 or rule 51 or rule 52 or rule 53.

55. Transportation of goods without issue of invoice.-(1)For the purposes of-

(a) supply of liquid gas where the quantity at the time of removal from the place of  business of the supplier is not known,  

(b) transportation of goods for job work,  

(c) transportation of goods for reasons other than by way of supply, or  (d) such other supplies as may be notified by the Board,  

the consigner may issue a delivery challan, serially numbered not exceeding sixteen  characters, in one or multiple series, in lieu of invoice at the time of removal of goods for  transportation, containing the following details, namely:-

(i) date and number of the delivery challan;  

(ii) name, address and Goods and Services Tax Identification Number of the  consigner, if registered;  

(iii) name, address and Goods and Services Tax Identification Number or Unique  Identity Number of the consignee, if registered;  

(iv) Harmonised System of Nomenclature code and description of goods;  (v) quantity (provisional, where the exact quantity being supplied is not known);  (vi) taxable value;  

126 Inserted vide Notf no. 74/2018-CT dt. 31.12.2018

127Inserted vide Notf no. 33/2019-CT dt. 18.07.2019 with effect from 01.09.2019

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(vii) tax rate and tax amount – central tax, State tax, integrated tax, Union territory  tax or cess, where the transportation is for supply to the consignee;  

(viii) place of supply, in case of inter-State movement; and  

(ix) signature.  

(2) The delivery challan shall be prepared in triplicate, in case of supply of goods, in the  following manner, namely:–

(a) the original copy being marked as ORIGINAL FOR CONSIGNEE;  (b) the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and  (c) the triplicate copy being marked as TRIPLICATE FOR CONSIGNER.  

(3) Where goods are being transported on a delivery challan in lieu of invoice, the same  shall be declared as specified in rule 138.

(4) Where the goods being transported are for the purpose of supply to the recipient but  the tax invoice could not be issued at the time of removal of goods for the purpose of  supply, the supplier shall issue a tax invoice after delivery of goods.  

(5) Where the goods are being transported in a semi knocked down or completely knocked  down condition [or in batches or lots]128-

(a) the supplier shall issue the complete invoice before dispatch of the first  consignment;  

(b) the supplier shall issue a delivery challan for each of the subsequent  consignments, giving reference of the invoice;  

(c) each consignment shall be accompanied by copies of the corresponding  delivery challan along with a duly certified copy of the invoice; and  

(d) the original copy of the invoice shall be sent along with the last consignment.  

[55A. Tax Invoice or bill of supply to accompany transport of goods.- The person-in charge of the conveyance shall carry a copy of the tax invoice or the bill of supply issued in  accordance with the provisions of rules 46, 46A or 49 in a case where such person is not  required to carry an e-way bill under these rules.]129 

128Inserted vide Notf no. 39/2018-CT dt. 04.09.2018

129Inserted vide Notf no. 03/2018-CT dt. 23.01.2018

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CHAPTER VII

ACCOUNTS AND RECORDS

56. Maintenance of accounts by registered persons.-(1)Every registered person shall keep  and maintain, in addition to the particulars mentioned in sub-section (1) of section 35, a true  and correct account of the goods or services imported or exported or of supplies attracting  payment of tax on reverse charge along with the relevant documents, including invoices, bills  of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchersand  refund vouchers.

(2) Every registered person, other than a person paying tax under section 10, shall maintain the  accounts of stock in respect of goods received and supplied by him, and such accounts shall  contain particulars of the opening balance, receipt, supply, goods lost, stolen, destroyed,  written off or disposed of by way of gift or free sample and the balance of stock including raw  materials, finished goods, scrap and wastage thereof.  

(3) Every registered person shall keep and maintain a separate account of advances received,  paid and adjustments made thereto.  

(4) Every registered person, other than a person paying tax under section 10, shall keep and  maintain an account, containing the details of tax payable (including tax payable in  accordance with the provisions of sub-section (3) and sub-section (4) of section 9), tax  collected and paid, input tax, input tax credit claimed, together with a register of tax invoice,  credit notes, debit notes, delivery challan issued or received during any tax period.  

(5) Every registered person shall keep the particulars of -

(a) names and complete addresses of suppliers from whom he has received the goods or  services chargeable to tax under the Act;

(b) names and complete addresses of the persons to whom he has supplied goods or  services, where required under the provisions of this Chapter;

(c) the complete address of the premises where goods are stored by him, including goods  stored during transit along with the particulars of the stock stored therein.  

(6)If any taxable goods are found to be stored at any place(s) other than those declared under  sub-rule (5) without the cover of any valid documents, the proper officer shall determine the  amount of tax payable on such goods as if such goods have been supplied by the registered  person.  

(7) Every registered person shall keep the books of account at the principal place of business  and books of account relating to additional place of business mentioned in his certificate of  registration and such books of account shall include any electronic form of data stored on any  electronic device.

(8) Any entry in registers, accounts and documents shall not be erased, effaced or overwritten,  and all incorrect entries, otherwise than those of clerical nature, shall be scoredout under  attestation and thereafterthecorrect entry shall be recorded and where the registers and other

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documents are maintained electronically, a log of every entry edited or deleted shall be  maintained.

(9) Each volume of books of account maintained manually by the registered person shall be  serially numbered.  

(10) Unless proved otherwise, if any documents, registers, or any books of account belonging  to a registered person are found at any premises other than those mentioned in the certificate  of registration, they shall be presumed to be maintained by the said registered person.

(11) Every agent referred to in clause (5) of section 2 shall maintain accounts depicting the,- (a) particulars of authorisation received by him from each principal to receive or  supply goods or services on behalf of such principal separately;

(b) particulars including description, value and quantity (wherever applicable) of goods or  services received on behalf of every principal;

(c) particulars including description, value and quantity (wherever applicable) of goods or  services supplied on behalf of every principal;

(d) details of accounts furnished to every principal; and

(e) tax paid on receipts or on supply of goods or services effected on behalf of every  principal.

(12) Every registered person manufacturing goods shall maintain monthly production  accounts showing quantitative details of raw materials or services used in the manufacture and  quantitative details of the goods so manufactured including the waste and by products thereof.

(13) Every registered person supplying services shall maintain the accounts showing  quantitative details of goods used in the provision of services, details of input services utilised  and the services supplied.  

(14) Every registered person executing works contract shall keep separate accounts for works  contract showing -

(a) the names and addresses of the persons on whose behalf the works contract is  executed;

(b) description, value and quantity (wherever applicable) of goods or services received for  the execution of works contract;

(c) description, value and quantity (wherever applicable) of goods or services utilized in  the execution of works contract;

(d) the details of payment received in respect of each works contract; and (e) the names and addresses of suppliers from whom he received goods or services.  

(15) The records under the provisions of this Chapter may be maintained in electronic form  and the record so maintained shall be authenticated by means of a digital signature.  

(16) Accounts maintained by the registered person together with all the invoices, bills of  supply, credit and debit notes, and delivery challans relating to stocks, deliveries, inward  supply and outward supply shall be preserved for the period as provided in section 36 and

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shall, where such accounts and documents are maintained manually, be kept at every related  place of business mentioned in the certificate of registration and shall be accessible at every  related place of business where such accounts and documents are maintained digitally.

(17) Any person having custody over the goods in the capacity of a carrier or a clearing and  forwarding agent for delivery or dispatch thereof to a recipient on behalf of any registered  person shall maintain true and correct records in respect of such goods handled by him on  behalf of such registered person and shall produce the details thereof as and when required by  the proper officer.

(18) Every registered person shall, on demand, produce the books of accounts which he is  required to maintain under any law for the time being in force.

57. Generation and maintenance of electronic records.-(1) Proper electronic back-up of  records shall be maintained and preserved in such manner that, in the event of destruction of  such records due to accidents or natural causes, the information can be restored within a  reasonable period of time.  

(2) The registered person maintaining electronic records shall produce, on demand, the  relevant records or documents, duly authenticated by him, in hard copy or in any  electronically readable format. 

(3) Where the accounts and records are stored electronically by any registered person, he shall,  on demand, provide the details of such files, passwords of such files and explanation for codes  used, where necessary, for access and any other information which is required for such access  along with a sample copy in print form of the information stored in such files. 

58. Records to be maintained by owner or operator of godown or warehouse and  transporters.- (1)Every person required to maintain records and accounts in accordance with  the provisions of sub-section (2) of section 35, if not already registered under the Act, shall  submit the details regarding his business electronically on the common portal in FORM GST  ENR-01,either directly or through a Facilitation Centre notified by the Commissioner and,  upon validation of the details furnished, a unique enrolment number shall be generated and  communicated to the said person.

[(1A) For the purposes of Chapter XVI of these rules, a transporter who is registered in more  than one State or Union Territory having the same Permanent Account Number, he may apply  for a unique common enrolment number by submitting the details in FORM GST ENR-02 using any one of his Goods and Services Tax Identification Numbers, and upon validation of  the details furnished, a unique common enrolment number shall be generated and  communicated to the said transporter:

Provided that where the said transporter has obtained a unique common enrolment  number, he shall not be eligible to use any of the Goods and Services Tax Identification  Numbers for the purposes of the said Chapter XVI.]130 

130Inserted vide Notf no. 28/2018-CT dt. 19.06.2018

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(2) The person enrolled under sub-rule (1) as aforesaid in any other State or Union territory  shall be deemed to be enrolled in the State or Union territory.

(3) Every person who is enrolled under sub-rule (1) shall, where required, amend the details  furnished in FORM GST ENR-01 electronically on the common portal either directly or  through a Facilitation Centre notified by the Commissioner.

(4) Subject to the provisions of rule 56,-

(a)any person engaged in the business of transporting goods shall maintain records of  goods transported, delivered and goods stored in transit by him alongwiththe Goods  and Services Tax Identification Number of the registered consigner and consignee for  each of his branches.

(b) every owner or operator of a warehouse or godown shall maintain books of  accountswith respect to the period for which particular goods remain in the warehouse,  including the particulars relating to dispatch, movement, receipt and disposal of such  goods.

(5) The owner or the operator of the godown shall store the goods in such manner that they  can be identified item-wise and owner-wise and shall facilitate any physical verification or  inspection by the proper officer on demand.

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CHAPTER VIII

RETURNS

[59. Form and manner of furnishing details of outward supplies.-

(1) Every registered person, other than a person referred to in section 14 of the Integrated  Goods and Services Tax Act, 2017 (13 of 2017), required to furnish the details of outward  supplies of goods or services or both under section 37, shall furnish such details in FORM  GSTR-1 for the month or the quarter, as the case may be, electronically through the common  portal, either directly or through a Facilitation Centre as may be notified by the Commissioner.  

(2) The registered persons required to furnish return for every quarter under proviso to  subsection (1) of section 39 may furnish the details of such outward supplies of goods or  services or both to a registered person, as he may consider necessary, for the first and second  months of a quarter, up to a cumulative value of fifty lakh rupees in each of the months,- using  invoice furnishing facility (hereafter in this notification referred to as the ―IFF‖) electronically  on the common portal, duly authenticated in the manner prescribed under rule 26, from the 1st  day of the month succeeding such month till the 13th day of the said month.  

[Provided that a registered person may furnish such details, for the month of April,  2021, using IFF from the 1st day of May, 2021 till the 28th day of May, 2021.]131 

[Provided further that a registered person may furnish such details, for the month of  May, 2021, using IFF from the 1st day of June, 2021 till the 28th day of June, 2021.]132 

(3) The details of outward supplies furnished using the IFF, for the first and second months of  a quarter, shall not be furnished in FORM GSTR-1 for the said quarter.

(4)The details of outward supplies of goods or services or both furnished in FORM GSTR-1 shall include the–

(a) invoice wise details of all –

(i) inter-State and intra-State supplies made to the registered persons; and  

(ii) inter-State supplies with invoice value more than two and a half lakh rupees made  to the unregistered persons;  

(b) consolidated details of all –

(i) intra-State supplies made to unregistered persons for each rate of tax; and  

(ii) State wise inter-State supplies with invoice value upto two and a half lakh rupees  made to unregistered persons for each rate of tax;  

(c) debit and credit notes, if any, issued during the month for invoices issued previously.  

[(5) The details of outward supplies of goods or services or both furnished using the IFF shall  include the –

(a) invoice wise details of inter-State and intra-State supplies made to the registered persons;    

131 Inserted vide Notf No. 13/2021—CT dt 01.05.2021

132 Inserted vide Notf No. 27/2021—CT dt 01.06.2021

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(b) debit and credit notes, if any, issued during the month for such invoices issued  previously.]133]134 

[(6) Notwithstanding anything contained in this rule, -

(a) a registered person shall not be allowed to furnish the details of outward supplies of goods  or services or both under section 37 in FORM GSTR-1, if he has not furnished the return in  FORM GSTR-3B for preceding two months;

(b) a registered person, required to furnish return for every quarter under the proviso to sub section (1) of section 39, shall not be allowed to furnish the details of outward supplies of  goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing  facility, if he has not furnished the return in FORM GSTR-3B for preceding tax period;

133 Sub-rule (5) was inserted vide Notf No. 94/2020- CT dt 22.12.2020 as ―(5) Notwithstanding anything  contained in this rule, - (a) a registered person shall not be allowed to furnish the details of outward supplies of  goods or services or both under section 37 in FORM GSTR-1, if he has not furnished the return in FORM  GSTR-3B for preceding two months; (b) a registered person, required to furnish return for every quarter under  the proviso to sub-section (1) of section 39, shall not be allowed to furnish the details of outward supplies of  goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has  not furnished the return in FORM GSTR-3B for preceding tax period; (c) a registered person, who is restricted  from using the amount available in electronic credit ledger to discharge his liability towards tax in excess of  ninety-nine per cent. of such tax liability under rule 86B, shall not be allowed to furnish the details of outward  supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility,  if he has not furnished the return in FORM GSTR-3B for preceding tax period.‖ Rule 59 including sub-rule (5)  has been substituted w.e.f. 01.01.2021 in accordance with provisions of Notf no. 82/2020-CT dt. 10.11.2020.  

134 Substituted vide Notf no. 82/2020-CT dt. 10.11.2020 w.e.f. 01.01.2021 for ―59. Form and manner of  furnishing details of outward supplies.-(1)Every registered person, other than a person referred to in section 14  of the Integrated Goods and Services Tax Act, 2017, required to furnish the details of outward supplies of goods  or services or both under section 37, shall furnish such details in FORM GSTR-1 electronically through the  common portal, either directly or through a Facilitation Centre notified by the Commissioner.

(2) The details of outward supplies of goods or services or both furnished in FORM GSTR-1 shall include  the–

(a) invoice wise details of all -

(i) inter-State and intra-State supplies made to the registered persons; and

(ii) inter-State supplies with invoice value more than two and a half lakh rupees made to the  unregistered persons;

(b) consolidated details of all -

(i) intra-State supplies made to unregistered persons for each rate of tax; and

(ii) State wise inter-State supplies with invoice value upto two and a half lakh rupees made to  unregistered persons for each rate of tax;

(c) debit and credit notes, if any, issued during the month for invoices issued previously.

(3) The details of outward supplies furnished by the supplier shall be made available electronically to the  concerned registered persons (recipients) in Part A of FORM GSTR-2A, in FORM GSTR-4A and in FORM  GSTR-6A through the common portal after the due date of filing of FORM GSTR-1.

(4) The details of inward supplies added, corrected or deleted by the recipient in his FORM GSTR-2 under  section 38 or FORM GSTR-4 or FORM GSTR-6 under section 39 shall be made available to the supplier  electronically in FORM GSTR-1A through the common portal and such supplier may either accept or reject the  modifications made by the recipient and FORM GSTR-1 furnished earlier by the supplier shall stand amended  to the extent of modifications accepted by him‖

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(c) a registered person, who is restricted from using the amount available in electronic credit  ledger to discharge his liability towards tax in excess of ninety-nine per cent. of such tax  liability under rule 86B, shall not be allowed to furnish the details of outward supplies of  goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing  facility,if he has not furnished the return in FORM GSTR-3B for preceding tax period.]135 

[60. Form and manner of ascertaining details of inward supplies.-(1)The details of  outward supplies furnished by the supplier in FORM GSTR-1 or using the IFFshall be made  available electronically to the concerned registered persons (recipients) in Part A of FORM  GSTR-2A, in FORM GSTR-4A and in FORM GSTR-6A through the common portal, as the  case may be.

(2)The details of invoices furnished by an non-resident taxable person in his return in FORM  GSTR-5 under rule 63 shall be made available to the recipient of credit in Part A of FORM  GSTR 2A electronically through the common portal.  

(3)The details of invoices furnished by an Input Service Distributor in his return in FORM  GSTR-6 under rule 65 shall be made available to the recipient of credit in Part B of FORM  GSTR 2A electronically through the common portal.  

(4)The details of tax deducted at source furnished by the deductor under sub-section (3) of  section 39 in FORM GSTR-7 shall be made available to the deductee in Part C of FORM  GSTR-2A electronically through the common portal  

(5)The details of tax collected at source furnished by an e-commerce operator under section 52  in FORM GSTR-8 shall be made available to the concerned person in Part C of FORM  GSTR 2A electronically through the common portal.

(6) The details of the integrated tax paid on the import of goods or goods brought in domestic  Tariff Area from Special Economic Zone unit or a Special Economic Zone developer on a bill  of entry shall be made available in Part D of FORM GSTR-2A electronically through the  common portal.

(7) An auto-drafted statement containing the details of input tax credit shall be made available  to the registered person in FORM GSTR-2B, for every month, electronically through the  common portal, and shall consist of -

(i) the details of outward supplies furnished by his supplier, other than a supplier  required to furnish return for every quarter under proviso to sub-section (1) of section  39, in FORM GSTR-1, between the day immediately after the due date of furnishing  of FORM GSTR-1 for the previous month to the due date of furnishing of FORM  GSTR-1 for the month;

(ii) the details of invoices furnished by a non-resident taxable person in FORM  GSTR-5 and details of invoices furnished by an Input Service Distributor in his return  in FORM GSTR-6 and details of outward supplies furnished by his supplier, required  to furnish return for every quarter under proviso to sub-section (1) of section 39, in  FORM GSTR-1 or using the IFF, as the case may be,-

135 Inserted vide Notf no.01/2021 – CT dt. 01.01.2021

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(a)for the first month of the quarter, between the day immediately after the due  date of furnishing of FORM GSTR-1 for the preceding quarter to the due date  of furnishing details using the IFF for the first month of the quarter;

(b)for the second month of the quarter, between the day immediately after the due date of furnishing details using the IFF for the first month of the quarter to  the due date of furnishing details using the IFF for the second month of the  quarter;

(c) for the third month of the quarter, between the day immediately after the  due date of furnishing of details using the IFF for the second month of the  quarter to the due date of furnishing of FORM GSTR-1 for the quarter;

(iii) the details of the integrated tax paid on the import of goods or goods brought in  the domestic Tariff Area from Special Economic Zone unit or a Special Economic  Zone developer on a bill of entry in the month.

(8) The Statement in FORM GSTR-2B for every month shall be made available to the  registered person,-

(i) for the first and second month of a quarter, a day after the due date of furnishing of details  of outward supplies for the said month, in the IFF by a registered person required to furnish  return for every quarter under proviso to sub-section (1) of section 39, or in FORM GSTR-1  by a registered person, other than those required to furnish return for every quarter under  proviso to sub-section (1) of section 39, whichever is later;

(ii) in the third month of the quarter, a day after the due date of furnishing of details of  outward supplies for the said month, in FORM GSTR-1 by a registered person required to  furnish return for every quarter under proviso to sub-section (1) of section 39.]136  

136Substituted vide Notf no. 82/2020-CT dt. 10.11.2020 w.e.f. 01.01.2021 for ―60. Form and manner of  furnishing details of inward supplies.-(1) Every registered person, other than a person referred to in section  14 of the Integrated Goods and Services Tax Act, 2017, required to furnish the details of inward supplies of  goods or services or both received during a tax period under sub-section (2) of section 38 shall, on the basis of  details contained in Part A, Part Band Part C of FORM GSTR-2A, prepare such details as specified in sub

section (1) of the said section and furnish the same in FORM GSTR-2 electronically through the common portal,  either directly or from a Facilitation Centre notified by the Commissioner, after including therein details of such  other inward supplies, if any, required to be furnished under sub-section (2) of section 38.

(2) Every registered person shall furnish the details, if any, required under sub-section (5) of section 38  electronically in FORM GSTR-2.  

(3) The registered person shall specify the inward supplies in respect of which he is not eligible, either fully  or partially, for input tax credit in FORM GSTR-2 where such eligibility can be determined at the invoice level.

(4) The registered person shall declare the quantum of ineligible input tax credit on inward supplies which  is relatable to non-taxable supplies or for purposes other than business and cannot be determined at the invoice  level in FORM GSTR-2.

(4A) The details of invoices furnished by an non-resident taxable person in his return in FORM GSTR-5 under rule 63 shall be made available to the recipient of credit in Part A of FORM GSTR 2A electronically  through the common portal and the said recipient may include the same in FORM GSTR-2.

(5) The details of invoices furnished by an Input Service Distributor in his return in FORM GSTR-6 under  rule 65 shall be made available to the recipient of credit in Part B of FORM GSTR 2A electronically through  the common portal and the said recipient may include the same in FORM GSTR-2.

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[61. Form and manner of furnishing of return.-(1) Every registered person other than a  person referred to in section 14 of the Integrated Goods and Services Tax Act, 2017 (13 of  2017) or an Input Service Distributor or a non-resident taxable person or a person paying tax  under section 10 or section 51 or, as the case may be, under section 52 shall furnish a return in  FORM GSTR-3B, electronically through the common portal either directly or through a  Facilitation Centre notified by the Commissioner, as specified under –

(i) sub-section (1) of section 39, for each month, or part thereof, on or before the twentieth day  of the month succeeding such month:

(ii) proviso to sub-section (1) of section 39,for each quarter, or part thereof, for the class of  registered persons mentioned in column (2) of the Table given below, on or before the date  mentioned in the corresponding entry in column (3) of the said Table, namely:– Table

(2)Every registered person required to furnish return, under sub-rule (1) shall, subject to the  provisions of section 49, discharge his liability towards tax, interest, penalty, fees or any other  amount payable under the Act or the provisions of this Chapter by debiting the electronic cash  ledger or electronic credit ledger and include the details in the return in FORM GSTR-3B.

(6) The details of tax deducted at source furnished by the deductor under sub-section (3) of section 39 in  FORM GSTR-7 shall be made available to the deductee in Part C of FORM GSTR-2A electronically through  the common portal and the said deductee may include the same in FORM GSTR-2.  

(7) The details of tax collected at source furnishedby an e-commerce operator under section 52in FORM  GSTR-8 shall be made available to the concerned person in Part C of FORM GSTR 2A electronically through  the common portal and such person may include the same in FORM GSTR-2.

(8) The details of inward supplies of goods or services or both furnished in FORM GSTR-2 shall  includethe-

(a) invoice wise details of all inter-State and intra-State supplies received from registered persons or  unregistered persons;

(b) import of goods and services made; and

(c) debit and credit notes, if any, received from supplier.‖

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(3)Every registered person required to furnish return, every quarter, under clause (ii) of sub rule (1) shall pay the tax due under proviso to sub-section (7) of section 39, for each of the  first two months of the quarter, by depositing the said amount in FORM GST PMT-06, by  the twenty fifth day of the month succeeding such month:

Provided that the Commissioner may, on the recommendations of the Council, by  notification, extend the due date for depositing the said amount in FORM GST PMT-06, for  such class of taxable persons as may be specified therein:

Provided further that any extension of time limit notified by the Commissioner of State  tax or Union territory tax shall be deemed to be notified by the Commissioner:

Provided also that while making a deposit in FORM GST PMT-06, such a registered  person may –

(a) for the first month of the quarter, take into account the balance in the  electronic cash ledger.

(b) for the second month of the quarter, take into account the balance in the  electronic cash ledger excluding the tax due for the first month.

(4) The amount deposited by the registered persons under sub-rule (3) above, shall be debited  while filing the return for the said quarter in FORM GSTR-3B, and any claim of refund of  such amount lying in balance in the electronic cash ledger, if any, out of the amount so  deposited shall be permitted only after the return in FORM GSTR-3B for the said quarter has  been filed.]137 

137 Substituted w.e.f. 01.01.2021 vide Notf no. 82/2020-CT dt. 10.11.2020 for ―61.Form and manner of  submission of monthly return.-(1) Every registered person other than a person referred to in section 14 of the  Integrated Goods and Services Tax Act, 2017 or an Input Service Distributor or a non-resident taxable person or  a person paying tax under section 10 or section 51 or, as the case may be, under section 52 shall furnish a return  specified under sub-section (1) of section 39 in FORM GSTR-3 electronically through the common portal either  directly or through a Facilitation Centre notified by the Commissioner.  

(2) Part A of the return under sub-rule (1) shall be electronically generated on the basis of information  furnished through FORM GSTR-1, FORM GSTR-2 and based on other liabilities of preceding tax periods.  

(3) Every registered person furnishing the return under sub-rule (1) shall, subject to the provisions of  section 49, discharge his liability towards tax, interest, penalty, fees or any other amount payable under the Act or  the provisions of this Chapter by debiting the electronic cash ledger or electronic credit ledger and include the  details in Part B of the return in FORM GSTR-3.

(4) A registered person, claiming refund of any balance in the electronic cash ledger in accordance with the  provisions of sub-section (6) of section 49, may claim such refund in Part B of the return in FORM GSTR-3 and such return shall be deemed to be an application filed under section 54.

[(5) Where the time limit for furnishing of details in FORM GSTR-1 under section 37 or in FORM GSTR-2 under section 38 has been extended, the return specified in sub-section (1) of section 39 shall, in such manner and  subject to such conditions as the Commissioner may, by notification, specify, be furnished in FORM GSTR-3B electronically through the common portal, either directly or through a Facilitation Centre notified by the  Commissioner:

Provided that where a return in FORM GSTR-3B is required to be furnished by a person referred to in sub-rule  (1) then such person shall not be required to furnish the return in FORM GSTR-3.](Substituted w.e.f 01.07.2017  for “[(5) Where the time limit for furnishing of details in FORM GSTR-1 under section 37 and in FORM GSTR 2 under section 38 has been extended and the circumstances so warrant, the Commissioner may, by notification,

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[61A. Manner of opting for furnishing quarterly return.- (1) Every registered person  intending to furnish return on a quarterly basis under proviso to sub-section (1) of section 39,  shall in accordance with the conditions and restrictions notified in this regard, indicate his  preference for furnishing of return on a quarterly basis, electronically, on the common portal,  from the 1st day of the second month of the preceding quarter till the last day of the first month  of the quarter for which the option is being exercised:

Provided that where such option has been exercised once, the said registered person  shall continue to furnish the return on a quarterly basis for future tax periods, unless the said  registered person,–

(a) becomes ineligible for furnishing the return on a quarterly basis as per the  conditions and restrictions notified in this regard; or  

(b) opts for furnishing of return on a monthly basis, electronically, on the common  portal:

Provided further that a registered person shall not be eligible to opt for furnishing  quarterly return in case the last return due on the date of exercising such option has not been  furnished.

[specify the manner and conditions subject to which the] return shall be furnished in FORM GSTR-3B electronically through the common portal, either directly or through a Facilitation Centre notified by the  Commissioner.” vide Notf no. 49/2019 – CT dt 09.10.2019)

[(6) Where a return in FORM GSTR-3B has been furnished, after the due date for furnishing of details in  FORM GSTR-2—

(a) Part A of the return in FORM GSTR-3 shall be electronically generated on the basis of information  furnished through FORM GSTR-1, FORM GSTR-2 and based on other liabilities of preceding tax  periods and PART B of the said return shall be electronically generated on the basis of the return in  FORM GSTR-3B furnished in respect of the tax period;  

(b) the registered person shall modify Part B of the return in FORM GSTR-3 based on the discrepancies, if any,  between the return in FORM GSTR-3B and the return in FORM GSTR-3 and discharge his tax and other  liabilities, if any; (c) where the amount of input tax credit in FORM GSTR-3 exceeds the amount of input tax  credit in terms of FORM GSTR-3B, the additional amount shall be credited to the electronic credit ledger of the  registered person.](Inserted wef 01.07.2017 vide Notf no. 17/2017 – CT dt 27.07.2017. Omitted w.e.f. 01.07.2017  vide Notf no. 49/2019-CT dt. 09.10.2019)

[(6) Every registered person other than a person referred to in section 14 of the Integrated Goods and Services  Tax Act, 2017 (13 of 2017) or an Input Service Distributor or a non-resident taxable person or a person paying  tax under section 10 or section 51 or, as the case may be, under section 52 shall furnish a return in FORM  GSTR-3B, electronically through the common portal either directly or through a Facilitation Centre notified by  the Commissioner, on or before the twentieth day of the month succeeding such tax period:

Provided that for taxpayers having an aggregate turnover of up to five crore rupees in the previous financial year,  whose principal place of business is in the States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra,  Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and  Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep, the return in FORM  GSTR-3B of the said rules for the months of October, 2020 to March, 2021 shall be furnished electronically  through the common portal, on or before the twenty-second day of the month succeeding such month:  

Provided further that for taxpayers having an aggregate turnover of up to five crore rupees in the previous  financial year, whose principal place of business is in the States of Himachal Pradesh, Punjab, Uttarakhand,  Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura,  Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh,  Chandigarh or Delhi, the return in FORM GSTR-3B of the said rules for the months of October, 2020 to March,  2021 shall be furnished electronically through the common portal, on or before the twenty-fourth day of the  month succeeding such month.] (Inserted vide Notf no. 82/2020-CT dt. 10.11.2020)

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(2) A registered person, whose aggregate turnover exceeds 5 crore rupees during the current  financial year, shall opt for furnishing of return on a monthly basis, electronically, on the  common portal, from the first month of the quarter, succeeding the quarter during which his  aggregate turnover exceeds 5 crore rupees.]138 

62. [Form and manner of submission of statement and return]139.-(1) Every  registered person [paying tax under section 10 [or paying tax by availing the benefit of  notification of the Government of India, Ministry of Finance, Department of Revenue No.  02/2019– Central Tax (Rate), dated the 7th March, 2019, published in the Gazette of India,  Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.189 (E), dated the 7th  March, 2019]140 shall-

(i) furnish a statement, every quarter or, as the case may be, part thereof, containing the  details of payment of self-assessed tax in FORM GST CMP-08, till the 18th day of the month  succeeding such quarter; and

(ii) furnish a return for every financial year or, as the case may be, part thereof in FORM  GSTR-4, till the thirtieth day of April following the end of such financial year,]141 

electronically through the common portal, either directly or through a Facilitation Centre  notified by the Commissioner.

[Provided that the registered person who opts to pay tax under section 10 with effect  from the first day of a month which is not the first month of a quarter shall furnish the return  in FORM GSTR-4 for that period of the quarter for which he has paid tax under section 10  and shall furnish the returns as applicable to him for the period of the quarter prior to opting to  pay tax under section 10.]142 143 

(2) Every registered person furnishing the [statement under sub-rule (1) shall discharge his  liability towards tax or interest]144payable under the Act or the provisions of this Chapter by  debiting the electronic cash ledger.  

(3) The return furnished under sub-rule (1) shall includethe-

(a) invoice wise inter-State and intra-State inward supplies received from registered  and un-registered persons; and

(b) consolidated details of outward supplies made.

138Inserted vide Notf. No. 82/2020-CT dtd. 10.11.2020

139Substituted vide Notf no. 20/2019-CT dt. 23.04.2019 for ―Form and manner of submission of quarterly return  by the composition supplier‖

140Omitted vide Notfno. 82/2020-CT dt. 10.11.2020

141Substituted vide Notf no. 20/2019-CT dt. 23.04.2019 for ―paying tax under section 10 shall, on the basis of  details contained in FORM GSTR-4A, and where required, after adding, correcting or deleting the details, furnish  the quarterly return in FORM GSTR-4‖

142Inserted vide Notf no. 45/2017 - CT dt 13.10.2017

143 Omitted vide Notf no. 20/2019-CT dt. 23.04.2019

144Substituted vide Notf no. 20/2019-CT dt. 23.04.2019 for ―return under sub-rule (1) shall discharge his liability  towards tax, interest, penalty, fees or any other amount‖

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(4) A registered person who has opted to pay tax under section 10 [or by availing the benefit  of notification of the Government of India, Ministry of Finance, Department of Revenue No.  02/2019– Central Tax (Rate), dated the 7th March, 2019, published in the Gazette of India,  Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.189 (E), dated the 7th  March, 2019]145146from the beginning of a financial year shall, where required, furnish the  details of outward and inward supplies and return under rules 59, 60 and 61 relating to the  period during which the person was liable to furnish such details and returns till the due date  of furnishing the return for the month of September of the succeeding financial year or  furnishing of annual return of the preceding financial year, whichever is earlier.

Explanation.– For the purposes of this sub-rule, it is hereby declared that the person shall not  be eligible to avail [of]147 input tax credit on receipt of invoices or debit notes from the  supplier for the period prior to his opting for the composition scheme[or opting for paying tax  by availing the benefit of notification of the Government of India, Ministry of Finance,  Department of Revenue No. 02/2019– Central Tax (Rate), dated the 7th March, 2019,  published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide  number G.S.R.189 (E), dated the 7th March, 2019]148149.

(5) A registered person opting to withdraw from the composition scheme at his own motion or  where option is withdrawn at the instance of the proper officer shall, where required, furnish  [a statement in FORM GST CMP-08 for the period for which he has paid tax under the  composition scheme till the 18th day of the month succeeding the quarter in which the date of  withdrawal falls and furnish a return in FORM GSTR-4 for the said period till the thirtieth  day of April following the end of the financial year during which such withdrawal falls]150.

[(6) A registered person who ceases to avail the benefit of notification of the Government of  India, Ministry of Finance, Department of Revenue No. 02/2019– Central Tax (Rate), dated  the 7th March, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub section (i) vide number G.S.R.189 (E) , dated the 7th March, 2019, shall, where required,  furnish a statement in FORM GST CMP-08 for the period for which he has paid tax by  availing the benefit under the said notification till the 18th day of the month succeeding the  quarter in which the date of cessation takes place and furnish a return in FORM GSTR - 4 for  the said period till the thirtieth day of April following the end of the financial year during  which such cessation happens.]151152 

145Inserted vide Notf no. 20/2019-CT dt. 23.04.2019

146Omitted vide Notfno. 82/2020-CT dt. 10.11.2020

147 Omitted vide Notf no. 20/2019-CT dt. 23.04.2019

148Inserted vide Notf no. 20/2019-CT dt. 23.04.2019

149Omitted vide Notfno. 82/2020-CT dt. 10.11.2020

150 Substituted vide Notf no. 20/2019-CT dt. 23.04.2019 for ―the details relating to the period prior to his opting  for payment of tax under section 9 in FORM GSTR- 4 till the due date of furnishing the return for the quarter  ending September of the succeeding financial year or furnishing of annual return of the preceding financial year,  whichever is earlier‖

151Inserted vide Notf no. 20/2019-CT dt. 23.04.2019

152Omitted vide Notfno. 82/2020-CT dt. 10.11.2020

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63. Form and manner of submission of return by non-resident taxable person.-Every  registered non-resident taxable person shall furnish a return in FORM GSTR-5 electronically  through the common portal, either directly or through a Facilitation Centre notified by the  Commissioner, including therein the details of outward supplies and inward supplies and shall  pay the tax, interest, penalty, fees or any other amount payable under the Act or the provisions  of this Chapter within twenty days after the end of a tax period or within seven days after the  last day of the validity period of registration, whichever is earlier.

64. Form and manner of submission of return by persons providing online  information and database access or retrieval services.-Every registered person providing  online information and data base access or retrieval services from a place outside India to a  person in India other than a registered person shall file return in FORM GSTR-5A on or  before the twentieth day of the month succeeding the calendar month or part thereof.

65. Form and manner of submission of return by an Input Service Distributor.-Every  Input Service Distributor shall, on the basis of details contained inFORM GSTR-6A, and  where required, after adding, correcting or deleting the details, furnish electronically the return  in FORM GSTR-6, containing the details of tax invoices on which credit has been received  and those issued under section 20, through the common portal either directly or from a  Facilitation Centre notified by the Commissioner.

66. Form and manner of submission of return by a person required to deduct tax at  source.-(1) Every registered person required to deduct tax at source under section 51  (hereafter in this rule referred to as deductor) shall furnish a return in FORM GSTR-7 electronically through the common portal either directly or from a Facilitation Centre notified  by the Commissioner.

(2) The details furnished by the deductor under sub-rule (1) shall be made available  electronically to each of the [deductees]153[suppliers in Part C of FORM GSTR-2A and  FORM-GSTR-4A]154on the common portal after [the due date of]155filing of FORM GSTR 7[for claiming the amount of tax deducted in his electronic cash ledger after validation]156.

(3) The certificate referred to in sub-section (3) of section 51 shall be made available electronically to the deducteeon the common portal in FORM GSTR-7A on the basis of the  return furnished under sub-rule (1).

67. Form and manner of submission of statement of supplies through an e-commerce  operator.-(1) Every electronic commerce operator required to collect tax at source under  section 52 shall furnish a statement in FORM GSTR-8 electronically on the common portal,  either directly or from a Facilitation Centre notified by the Commissioner, containing details  of supplies effected through such operator and the amount of tax collected as required under  sub-section (1) of section 52.

(2) The details furnished by the operator under sub-rule (1) shall be made available  electronically to each of the suppliers [in Part C of FORM GSTR-2A]157on the common    

153 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019

154 Omitted vide Notf no. 31/2019 – CT dt. 28.06.2019

155 Omitted vide Notf no. 31/2019 – CT dt. 28.06.2019

156 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019

157 Omitted vide Notf no. 31/2019 – CT dt. 28.06.2019

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portal after [the due date of]158filing of FORM GSTR-8[for claiming the amount of tax  collected in his electronic cash ledger after validation]159.

[[[67A. Manner of furnishing of return or details of outward supplies by short messaging  service facility.- Notwithstanding anything contained in this Chapter, for a registered person  who is required to furnish a Nil return under section 39 in FORM GSTR-3B or a Nil details of  outward supplies under section 37 in FORM GSTR-1 or a Nil statement in FORM GST  CMP-08 for a tax period, any reference to electronic furnishing shall include furnishing of the  said return or the details of outward supplies or statement through a short messaging service  using the registered mobile number and the said return or the details of outward supplies  orstatement shall be verified by a registered mobile number based One Time Password facility.  

Explanation. - For the purpose of this rule, a Nil return or Nil details of outward supplies or  Nil statement shall mean a return under section 39 or details of outward supplies under section  37 or statement under rule 62, for a tax period that has nil or no entry in all the Tables in  FORM GSTR-3B or FORM GSTR-1 or FORM GST CMP-08, as the case may  be.]160]161]162 

68. Notice to non-filers of returns.-A notice in FORM GSTR-3A shall be issued,  electronically, to a registered person who fails to furnish return under section 39 or section 44  or section 45 or section 52.

69. Matching of claim of input tax credit .-The following details relating to the claim of  input tax credit on inward supplies including imports, provisionally allowed under section 41,  shall be matched under section 42 after the due date for furnishing the return in FORM  GSTR-3-

(a) Goods and Services Tax Identification Number of the supplier;

(b) Goods and Services Tax Identification Number of the recipient;

158 Omitted vide Notf no. 31/2019 – CT dt. 28.06.2019

159 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019

160Inserted vide Notf no. 38/2020 – CT dt.05.05.2020 with effect from 08.06.2020 as notified by Notification  No. 44/2020 dated 08.06.2020.

161Substituted vide Notf no. 58/2020 – CT dt. 01.07.2020 w.e.f 01.07.2020 for ―Manner of furnishing of return  by short messaging service facility.- Notwithstanding anything contained in this Chapter, for a registered person  who is required to furnish a Nil return under section 39 in FORM GSTR-3B for a tax period, any reference to  electronic furnishing shall include furnishing of the said return through a short messaging service using the  registered mobile number and the said return shall be verified by a registered mobile number based One Time  Password facility.  

Explanation. - For the purpose of this rule, a Nil return shall mean a return under section 39 for a tax period that  has nil or no entry in all the Tables in FORM GSTR-3B.‖  

162Substituted vide Notf no. 79/2020 – CT dt. 15.10.2020 for ―Manner of furnishing of return or details of  outward supplies by short messaging service facility.- Notwithstanding anything contained in this Chapter, for  a registered person who is required to furnish a Nil return under section 39 in FORM GSTR-3B or a Nil details  of outward supplies under section 37 in FORM GSTR-1 for a tax period, any reference to electronic furnishing  shall include furnishing of the said return or the details of outward supplies through a short messaging service  using the registered mobile number and the said return or the details of outward supplies shall be verified by a  registered mobile number based One Time Password facility.  

Explanation. - For the purpose of this rule, a Nil return or Nil details of outward supplies shall mean a return  under section 39 or details of outward supplies under section 37, for a tax period that has nil or no entry in all the  Tables in FORM GSTR-3B or FORM GSTR-1, as the case may be.‖

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