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CGST Sixth Amendment Rules-2019

CGST Sixth Amendment Rules

CGST Sixth Amendment Rules-2019

On October 9, 2019, the Government of India (GoI) has notified Sixth Amendment Rules, 2019, which have made some important changes to the existing Central Goods and Services Rules, primarily in the following areas:

  • Restriction on the input tax credit to 20% in case there is a difference with details uploaded by supplier in GSTR-1
  • It has also notified that GSTR-3B is a return under Section 39 with retrospective effect from 01-07-2017
  • Communication to be issued to chargeable persons before the actual issuance of show cause notice
  • Other clarifications

Below are details of the latest notified amendments:

Restriction on availing input tax credit in case of difference

According to the latest notification, a new rule has been inserted related to availing input tax credit which states that in respect of invoices or debit notes where the details have not been uploaded by the supplier in GSTR-1 and there is a difference. In such cases, the input tax credit availed shall not exceed 20% in respect of invoices or debit notes where the details have been uploaded.

This means that even if the actual eligible input tax credit based on invoices received is higher, because of non-reporting or incorrect reporting by the vendors, the actual credit that can be availed is restricted to 20% of the invoices that have been uploaded by the vendor.

Suspension of Registration

To clarify the period of suspension of registration, an explanation has been inserted in Rule 21A(3). The explanation states that the registered person shall not issue a tax invoice and, accordingly, not charge tax on supplies made by him during the suspension period.

If an order for cancellation of suspension is passed and registration is restored, then the invoice for the supplies made during the period of suspension can be revised so as to make it a valid tax invoice. The details of the supplies should be filed in the first return after such revocation of suspension.

Recognising status of GSTR-3B

According to the latest notification, the government has made an amendment from 01-07-2017, recognising that Form GSTR-3B is a ‘return’ under Section 39.

The notification states that wherever the time limit for filing GSTR-1 or GSTR-2 has been extended, the return shall be furnished in the Form GSTR-3B. Also, this is to be filed through GST portal, either directly or through a Facilitation Centre notified by the Commissioner:

In such cases, there will not be any requirement to file return in Form GSTR-3.

GST Practitioner 

The time limit given under Rule 83A (6) for any person enrolled as a goods and services tax practitioner to pass the examination has been aligned with Rule 83(3). Thus, the time limit for this year is thirty months from the appointed date. Thus, for eligible persons like sales tax practitioners or tax return preparers or retired tax officer in a government department, the time limit for passing the examination is December 31st, 2019.


All refunds by the central Government shall be based on the concept of consolidated payment advice issued from a single authority, in accordance and with effect from the 24th September, 2019. Consequently, rule no 91 has been amended to insert the concept of consolidated payment advice.

TRAN-I & TRAN-II extensions

Rule 117(1A) has been amended to allow:

  • Availment of transitional credits through Form TRAN-I till 31st December, 2019 in cases where registered persons could not submit the said declaration by the due date due to technical difficulties on the GST portal, and
  • Ifthe Council has made a recommendation for extension TRAN-II can be filed till 31st January, 2020.

Additional Step prior to Issuance of Show Cause Notice

New sub-rule 1(A) has been inserted in Rule 142, which provides that before the notice is served to a person chargeable with tax, interest and penalty; the proper officer shall issue a communication detailing the tax, interest and penalty ascertained by the officer, in Part A of Form GST DRC-01A.  Upon receipt of such communication, the chargeable person can choose to pay the proposed dues or pay a partial amount, as may be determined by his own ascertainment or, as communicated by the proper officer under sub-rule (1A).

If partial payment of the amount communicated to the person or in case he/she desires to file any submissions against the proposed liability, he may make such submission in Part B of Form GST DRC-01A.

Thus, a show-cause notice will be issued after the above step is completed, to allow for the hearing of submissions before going ahead with the notice.

The exact notification is posted below:

CGST-6th Amendment Rules