Central GST (Third Amendment) Rules, 2018 – Key Procedural Changes

Notification No.: 14/2018 – Central Tax
Date of Notification: 23rd March 2018
Relevant Sections and Rules:

• Central GST Act, 2017:
  • Section 164: Power to make rules
• CGST Rules, 2017 (Third Amendment Rules, 2018):
  • Rules 45, 124, 125, 127, 129, 133, 134, 137, 138D
• Integrated GST Act: Not applicable

Summary of Notification

1. Job Work Movement Simplified (Rule 45):
   Where goods are sent from one job worker to another, the challan may be issued by either the principal or the sending job worker. Endorsements by job workers are permitted for subsequent movements or return to the principal.
2. Minor Textual Clarifications (Rule 124):
   Inserted the letter “a” after “Provided that” in sub-rules (4) and (5) for consistency.
3. Appointment of Secretary to the Authority (Rule 125):
   Substituted to designate an officer of not below the rank of Additional Commissioner in the Directorate General of Safeguards as Secretary to the Authority.
4. Performance Reporting (Rule 127):
   Inserted the word “day” after “tenth” for grammatical clarity in reporting timelines to the GST Council.
5. Authority’s Discretion in Investigations (Rule 129):
   Replaced “Standing Committee” with “Authority” to give the Authority final say in allowing extensions for investigations.
6. Re-investigation Power (Rule 133(4)):
   The Authority may order further investigation by the Director General of Safeguards even when initial findings show compliance or non-compliance under Section 171.
7. Majority Decision Quorum (Rule 134):
   Substituted to state that a minimum of 3 members is required for quorum; decisions to be made by majority vote, with the Chairman holding a casting vote in case of a tie.
8. Expanded Definition of Complainant (Rule 137 Explanation):
   Included any person alleging non-passing of tax rate reduction or ITC benefit as a valid applicant under rule 128(1).
9. Clarification for Rail Transport Exclusion (Rule 138D Explanation):
   From 1st April 2018, movement of goods by rail does not include leasing of parcel space by Railways, which is thus excluded from e-way bill requirements.

Source: Notification No.: 14/2018 – Central Tax