Central Goods and Services Tax (Fifth Amendment) Rules, 2018

Notification No.: 26/2018 – Central Tax
Date of Notification: 13th June 2018
Relevant Sections and Rules:

• Central GST Act, 2017:
  • Section 15(2)(b): Value of supply
  • Section 16(2): Conditions for claiming ITC
  • Section 54: Refund
  • Section 57: Consumer Welfare Fund
  • Section 164: Power to make rules
• CGST Rules, 2017 (Fifth Amendment Rules, 2018):
  • Rule 37(1), 83(3), 89(5), 95(3)(a), 97(1), 133(3), 138(14), 44, 81, 138, etc.
  • Forms: GSTR-4, GST PCT-01, GST RFD-01, RFD-01A
• Integrated GST Act: Applicable via refund and compensation cess provisions

Summary of Notification

1. ITC Deemed Payment Clarification (Rule 37):
   Supplies where value is increased per Section 15(2)(b) (like expense reimbursements) will be deemed paid for ITC reversal purposes under Section 16(2).
2. Extended Time for GSTP Exam (Rule 83):
   Time for passing the exam by enrolled GST practitioners extended from 1 year to 18 months from enrollment.
3. Revised Inverted Duty Refund Formula (Rule 89(5)):
   New formula introduced for refund of ITC on inverted duty structure with clarified definitions of Net ITC and Adjusted Total Turnover. Applies retrospectively from 1st July 2017.
4. Refund to Embassies (Rule 95):
   Supplies from registered persons under valid tax invoices made mandatory for refund eligibility.
5. Compensation Cess Deposit to Welfare Fund (Rule 97):
   50% of compensation cess refund under Section 54(5) read with GST (Compensation to States) Act must be deposited in the Consumer Welfare Fund.
6. Anti-Profiteering Orders Expanded (Rule 133):
   Authority may direct:

• Reduction in prices
• Refund to recipient with 18% interest
• 50% deposit in Central & State Welfare Funds if recipient untraceable
• Imposition of penalty
• Cancellation of registration

7. E-Way Bill Exemption (Rule 138):
   Exemption added for empty LPG cylinders moved for non-supply reasons.
8. GSTR-4 Relaxation (Instruction 10):
   Table 4A not to be furnished for quarters from July 2017 to June 2018.
9. GST Practitioner Eligibility (PCT-01):
   Eligibility extended to those who were:

• Sales Tax Practitioners or
• Tax Return Preparers for 5+ years under previous laws.
  Added declaration of citizenship, sound mind, insolvency, and criminal record.

10. Revised Refund Forms (RFD-01 & RFD-01A):
    Statements 1A (Inverted Tax ITC) and 5B (Deemed Exports) in both forms substituted with more detailed invoice-level fields for both inward and outward supplies.

Source: Notification No.: 26/2018 – Central Tax