CGST (Third Amendment) Rules, 2025 – Major Procedural & Compliance Updates

Notification No.: 13/2025 – Central Tax
Date of Notification: 17th September 2025

Relevant Sections and Rules:

• Central GST Act, 2017:
  • Section 164 – Power of Government to make rules
• CGST Rules, 2017 (Amended):
  • Rule 31A(2) – Valuation for lottery, betting, gambling, and horse racing (rate updated)
  • Rule 39(1A) – Distribution of ITC by ISD (coverage expanded to include IGST Section 5(3)/(4))
  • Rule 91(2) – Provisional refund order process (time limit revised)
  • Rule 110–113 – Appellate Tribunal procedures (new Rule 110A on Single Member Bench)
  • Rule 113(2) – Tribunal to issue summary order in new FORM GST APL-04A
  • GSTR-9 & GSTR-9C – Major amendments for reporting ITC, imports, reversals, ECO supplies u/s 9(5), etc.
  • New Forms Introduced/Substituted:
    • FORM GST APL-02A – Provisional & final acknowledgement of appeals
    • FORM GST APL-04A – Summary of Tribunal order and demand
    • FORM GST APL-05, APL-06, APL-07 – Substituted with detailed new formats

Summary of Notification:

1. Rule 31A(2) Amendment:
   • Value multiplier for betting, gambling, and horse racing revised from 128 to 140, effective 22nd September 2025.
2. Rule 39(1A) Expansion:
   • ISD distribution of ITC explicitly extended to cover services taxed under IGST Act Section 5(3) and 5(4), effective 1st April 2025.
3. Rule 91(2) Amendment:
   • Refund sanctioning officer must issue FORM RFD-04 within 7 days from acknowledgement, based on system risk evaluation.
   • Officer may skip provisional refund (with reasons recorded) and proceed directly under Rule 92.
4. Appellate Tribunal Procedures (Rules 110–113):
   • Rule 110A introduced – permits transfer of appeals to Single Member Bench if no question of law involved.
   • Appeals involving identical issues already decided by Division Bench (Judicial + Technical) must also go to Division Bench.
   • Rule 113(2) substituted – Tribunal to issue summary order in APL-04A with quantified demand.
5. Annual Return (GSTR-9) Changes:
   • New reporting lines for ITC availed, reversed, and reclaimed.
   • Clear segregation for ITC of previous year, reclaimed credits, and import IGST availed in subsequent year.
   • Updated reporting for FY 2024-25 onwards – alignment with GSTR-2B auto-population.
6. Reconciliation Statement (GSTR-9C) Changes:
   • New line items for supplies where tax payable by e-commerce operators u/s 9(5).
   • Enhanced reconciliation for tax payable vs paid (cash or ITC).
   • Instructions updated for FY 2024-25 reporting.
7. New and Substituted Forms:
   • APL-02A – Two-part acknowledgment (Part A – provisional, Part B – final acceptance/rejection).
   • APL-04A – Standard summary of Tribunal orders with quantified demand.
   • APL-05, APL-06, APL-07 – Comprehensive redesign for appeal, cross-objections, and departmental appeals with structured annexures.

Source: Notification No.: 13/2025 – Central Tax