As a step towards implementation of GST in India, the Central Board of Excise and Customs (“CBEC”) has released the Draft Goods and Services Tax Rules (“GST Rules”) on the public domain recently. Along with GST Rules, CBEC has also released draft formats of the various Forms mentioned in the said Rules. This presentation gives a summary of the provisions of the Draft Rules.

1. Draft GST Rules
- Summary of Provisions
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2. Index
2
≫ Introduction
≫ Draft GST Rules - Registration
≫ Draft GST Rules – Payments
≫ Draft GST Rules – Refunds
≫ Draft GST Rules - Returns
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3. Introduction
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4. Introduction
4
As a step towards implementation of GST in India, the Central Board of Excise and
Customs (“CBEC”) has released the Draft Goods and Services Tax Rules (“GST Rules”)
on the public domain recently. Along with GST Rules, CBEC has also released draft
formats of the various Forms mentioned in the said Rules.
The Draft GST Rules provides an insight as to how the Rules would be framed under
the GST Regime. The GST Rules released by CBEC covers only the topics relating to
Registration, Payments, Refunds, Invoicing System and Returns under the Model GST
Act.
It is expected that the GST Council would convene a meeting on September 30, 2016
to finalise the provisions relating to Rules and hence CBEC has also invited
suggestions and recommendations from the Trade and Industry in relation to the
same.
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5. Draft GST Rules
- Registration
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6. Draft GST Rules - Registration
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≫ Application for registration to be made electronically on the Common Portal or
the GST Network (“GSTN”) within the due dates as per the Model GST Act (“GST
Law”)
≫ Validation of PAN, E-Mail ID and Contact Number is mandatory before submission
of application.
≫ Documents prescribed for registration has to be uploaded before submission of
application.
≫ Registration will be granted within 3 common working days if no discrepancy
found. If any discrepancy is found, the same will be communicated through the
GSTN within the above time limit.
≫ Any discrepancy communicated by Central GST officer would also be forwarded to
the concerned State GST Officer for his action and vice versa. Reply to
discrepancies has to be furnished within 7 common working days.
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7. Draft GST Rules - Registration
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≫ The Registration is deemed to have been granted if the officer fails to take action
within the prescribed time limits.
≫ Registration Certificate will be available on the GSTN for the principle place of
business and for every additional place of business.
≫ Separate registration for each business vertical is allowed subject to conditions.
≫ Display of Registration Certification and GSTIN is mandatory.
≫ No fee is prescribed for obtaining registration. However, the advance deposit of
tax is applicable to prescribed persons before obtaining registration.
≫ Amendments has to be communicated filing prescribed form on GSTN within
fifteen days of occurrence. Certain amendments are approved immediately upon
submission of application.
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8. Draft GST Rules - Registration
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≫ There are separate provisions and forms for Suo Moto Registration, Cancellation
of Registration and its Revocation.
≫ Verification of premises may be taken up by the proper officer after granting
registration.
Transition Provision
≫ All existing dealers will be automatically granted registration under the GST law
on a provisional basis.
≫ The provisional registration will be given final status upon submission of
prescribed information and documents within six months. No time limit
prescribed for the officer to grant final registration.
≫ Any person holding provisional registration may file a declaration on GSTN that
he is not required to obtain registration under the GST Law and the provisional
registration would be cancelled.
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9. Draft GST Rules
- Payment
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10. Draft GST Rules - Payment
10
≫ The tax payable by every person under GST Law including interest, penalty or any
other sum is reflected in “Electronic Tax Liability Register”.
≫ The basis for amounts payable as per Electronic Tax Liability Register can be on
account of self assessed tax in periodical returns or input tax credit mismatches
or tax demands by authorities etc.
≫ Payment of amounts reflected in Electronic Tax Liability Register can be made
through the balances in “Electronic Credit Ledger” or “Electronic Cash Ledger”.
≫ Balance in Electronic Credit Ledger represents the claim of input tax credits made
through periodical returns.
≫ Balance in Electronic Cash Ledger represents the amounts deposited by the
taxable person.
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11. Draft GST Rules - Payment
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≫ The balances of both ledgers can be used for payment of tax and other liabilities
reflected in Electronic Tax Liability Register subject to the restrictions as per the
GST Law.
≫ The payments are made through debit and corresponding credit entries in
Ledgers and Liability Register respectively. A unique transaction number will be
assigned by GSTN for each payment.
≫ Different Modes are prescribed for deposit of amount in Cash Ledger including
over the counter payments in banks by generating payment challan in GSTN.
≫ Credit or Cash ledger stands has to be debited to the extent of refund claimed as
per the provisions of GSTN. The amount would be added back to the respective
ledger to the extent of refund rejected.
≫ All of the above transactions are required to be made through GSTN.
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12. Draft GST Rules
- Refunds
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13. Draft GST Rules - Refunds
13
≫ A common refund application is prescribed for all refunds arising on various
instances including refund of unutilised input tax credits except for certain
persons notified. The refund application has to be filed through GSTN.
≫ The refund of balance in Electronic Cash Ledger can be claimed through periodical
returns.
≫ Refund application has to be accompanied by prescribed documents along with
CA Certificate to certify that incidence of the tax has not been passed to any
person, wherever applicable.
≫ The acknowledgment for filing refund application will be available in GSTN only
after verification of information and documents filed. Any deficiency will be
communicated in prescribed form through GSTN.
≫ Any deficiency noted by Central GST officer will be communicated to State GST
officer and vice versa.
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14. Draft GST Rules - Refunds
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≫ Acknowledgment for refund of balance in Electronic Cash Ledger will be given
immediately.
≫ The refund of tax on supplies made to Developer of SEZ or Unit in a SEZ shall be
made by the respective developer of the SEZ or the SEZ unit itself.
≫ Provisional Refund of 80% to prescribed taxable persons as per the GST law is
subject to conditions including GST Compliance Rating of more than 5 on a scale
of 10.
≫ Refunds including provisional refunds will be directly credited to the bank
accounts of the tax payer as declared while obtaining registration including
interest on delayed refunds.
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15. Draft GST Rules
- Returns
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16. Draft GST Rules - Returns
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≫ Separate forms are prescribed for outward supplies, inward supplies and the
discrepancies noted between the two.
≫ Separate forms are prescribed for periodical returns by Regular Taxable Persons,
Persons who have opted for Composition, Non-Resident Taxable Persons, Persons
who are required to deduct or collect tax at source etc.
≫ Separate forms are prescribed for communicating the input tax mismatches, final
acceptance, mismatches adding to the output liability etc.
≫ Annual Returns is mandatory for all registered persons. Apart from Annual
Returns, CA Certified audit report has to be filed for persons whose turnover
crosses the threshold limit.
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17. Contact Us
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The information contained in this document is prepared by the team of SLP & Associates, Chartered
Accountants. The information contained in this document is only for informative purposes. You may
consult your professional advisor before taking any decisions.
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