Karnataka Goods and Services Tax (Third Amendment) Rules, 2022

Aug 06, 2022 | by TeamLease RegTech Legal Research Team

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Finance & Taxation ComplianceThe Government of Karnataka on August 04, 2022 has issued the Karnataka Goods and Services Tax (Third Amendment) Rules, 2022 to further amend the Karnataka Goods and Services Tax Act, 2017.

The following amendments have been made:

• In rule 21A, which specifies Suspension of Registration, in sub-rule (4) the following proviso has been inserted, namely:

"Provided further that where the registration has been suspended under sub-rule (2A) for contravention of the provisions contained in clause (b) or clause (c) of sub-section (2) of section 29 and the registration has not already been cancelled by the proper officer under rule 22, the suspension of registration shall be deemed to be revoked upon furnishing of all the pending returns."

• In rule 43, which specifies Manner of determination of input tax credit in respect of capital goods and reversal thereof in certain cases, in explanation 1, clause (d) has been inserted, namely:

"(d) the value of supply of Duty Credit Scrips specified in the notification of the Government of Karnataka No. F.12(56)FD/Tax/2017-111, dated the 13 October, 2017."

• In rule 46, which specifies Tax Invoice, clause (s) has been inserted, namely:

'(s) a declaration as below, that invoice is not required to be issued in the manner specified under sub-rule (4) of rule 48, in all cases where an invoice is issued, other than in the manner so specified under the said sub-rule (4) of rule 48, by the taxpayer having aggregate turnover in any preceding financial year from 2017-18 onwards more than the aggregate turnover as notified under the said sub-rule (4) of rule 48-

“I/we hereby declare that though our aggregate turnover in any preceding financial year from 2017-18 onwards is more than the aggregate turnover notified under sub-rule (4) of rule 48, we are not required to prepare an invoice in terms of the provisions of the said sub-rule."

• In rule 86, which specifies Electronic Credit Ledger, sub-rule 4B has been inserted, namely:

"(4B) Where a registered person deposits the amount of erroneous refund sanctioned to him, -

(a) under sub-section (3) of section 54 of the Act, or (b)under sub-rule (3) of rule 96, in contravention of sub-rule (10) of rule 96, along with interest and penalty, wherever applicable, through FORM GST DRC-03, by debiting the electronic cash ledger, on his own or on being pointed out, an amount equivalent to the amount of erroneous refund -deposited by the registered person shall be re-credited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-03A."

• Rule 88B, which specifies Manner of calculating interest on delayed payment of tax, has been inserted, namely:

"88B. Manner of calculating interest on delayed payment of tax.- (1) In case, where the supplies made during a tax period are declared by the registered person in the return for the said period and the said return is furnished after the due date in accordance with provisions of section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period, the interest on tax payable in respect of such supplies shall be calculated on the portion of tax which is paid by debiting the electronic cash ledger, for the period of delay in filing the said return beyond the due date, at such rate as may be notified under sub-section (1) of section 50.

(2) In all other cases, where interest is payable in accordance with sub section (l) of section 50, the interest shall be calculated on the amount of tax which remains unpaid, for the period starting from the date on which such tax was due to be paid till the date such tax is paid, at such rate as may be notified under sub-section (1) of section 50.

• In rule 89, which specifies Application for refund of tax, interest, penalty, fees or any other amount, in sub-rule (1) the following Explanation has been inserted, namely:

'Explanation. - For the purposes of this sub-rule, "specified officer" means a "specified officer" or an "authorised officer" as defined under rule 2 of the Special Economic Zone Rules, 2006.'

• In rule 89, which specifies Application for refund of tax, interest, penalty, fees or any other amount, in sub-rule (2) clause BA has been inserted, namely:

"(ba) a statement containing the number and date of the export invoices, details of energy exported, tariff per unit for export of electricity as per agreement, along with the copy of statement of scheduled energy for exp0l1ed electricity by Generation Plants issued by the Regional Power Committee Secretariat as a part of the Regional Energy Account (REA) under clause (nnn) of sub-regulation 1 of Regulation 2 of the Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 20 I0 and the copy of agreement detailing the tariff per unit, in case where refund is on account of export of electricity;"

• In rule 89, which specifies Application for refund of tax, interest, penalty, fees or any other amount, in sub-rule (4) the following Explanation has been inserted, namely:

"Explanation. - For the purposes of this sub-rule, the value of goods exported out of India shall be taken as -

(i) the Free on Board (FOB) value declared in the Shipping Bill or Bill of EXp0l1 form, as the case may be, as per the Shipping Bill and Bill of Export (Forms) Regulations, 2017; or

(ii) the value declared in tax invoice or bill of supply, whichever is less”

• In rule 96, which specifies Refund of integrated tax paid on goods [or services] exported out of India, in sub-rule (1) clause (b) has been inserted, namely:

(b) the applicant has furnished a valid return in FORM GSTR-3B:

Provided that if there is any mismatch between the data furnished by the exporter of goods in Shipping Bill and those furnished in statement of outward supplies in FORM GSTR-l, such application for refund of integrated tax paid on the goods exported out of India shall be deemed to have been filed on such date when such mismatch in respect of the said shipping bill is rectified by the exporter;"

• In rule 96, which specifies Refund of integrated tax paid on goods [or services] exported out of India, in sub-rule (4) clause (C) has been inserted, namely:

"(c) the Commissioner in the Board or an officer authorised by the Board, on the basis of data analysis and risk parameters, is of the opinion that verification of credentials of the exporter, including the availment of ITC by the exporter, is considered essential before grant of refund, in order to safeguard the interest of revenue.";

• In rule 96, which specifies Refund of integrated tax paid on goods [or services] exported out of India, in sub-rule (5) has been omitted.

• In rule 96, which specifies Refund of integrated tax paid on goods [or services] exported out of India, sub-rule (5A), (5B) and (5C) have been inserted, namely:

"(5A)Where refund is withheld in accordance with the provisions of clause (a) or clause (c) of sub-rule (4), such claim shall be transmitted to the proper officer of Central tax, State tax or Union . territory tax, as the case may be, electronically through the common pOlial in a system generated FORM GST RFD-01 and the intimation of such transmis ion shall also be sent to the exporter electronically through the common portal, and notwithstanding anything to the contrary contained in any other rule, the said system generated form shall be deemed to be the application for refund in such cases and shall be deemed to have been filed on the date of such transmission.

(5B) Where refund is withheld in accordance with the provisions of clause (b) of sub-rule (4) and the proper officer of the Customs passes an order that the goods have been exported in violation of the provisions of the Customs Act, 1962 (52 of 1962), then, such claim shall be transmitted to the proper officer of Central tax, State tax or Union territory tax, as the case may be, electronically through the common portal in a system generated FORM GST RFD-01 and the intimation of such transmission shall also be sent to the exporter electronically through the common portal, and notwithstanding anything to the contrary contained in any other rule, the said system generated form shall be deemed to be the application for refund in such cases and shall be deemed to have been filed on the date of such transmission

(5C) The application for refund in FORM GST RFD-01 transmitted electronically through the common portal in terms of sub-rules (5A) and (58) shall be dealt in accordance with the provisions of rule 89."

• In rule 96, which specifies Refund of integrated tax paid on goods [or services] exported out of India, sub-rule (6) and (7) have been omitted.

• FORM GSTR 3B has been amended.

• FORM GSTR – 9, which specifies Annual Return has been amended.

• FORM GSTR-9C has been amended.

• FORM GST PMT-03A, which specifies Order for re-credit of the amount to electronic credit ledger has been inserted.

• FORM GST PMT-06, which specifies Challan for deposit of goods and services tax has been amended.

• FORM GST PMT-7, which specifies Application for intimating discrepancy relating to payment has been amended.

• FORM GST PMT 09, has been amended.

• FORM GST RFD-1, which specifies Application for Refund has been amended.

• FORM GST RFD-10B has been amended.

[NOTIFICATION (4-A/2022)]


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