Eighth Amendment to CGST Rules, 2018 – Refunds, Job Work & Annual Returns

Notification No.: 39/2018 – Central Tax
Date of Notification: 4th September 2018
Relevant Sections and Rules:

• Central GST Act, 2017:
  • Section 29(2)(b)/(c): Cancellation of registration
  • Section 164: Power to make rules
• CGST Rules, 2017 (Eighth Amendment):
  • Rule 22(4): Cancellation proceedings and FORM GST REG-20
  • Rule 36(2): Conditions for availing ITC
  • Rule 55(5): Transport of goods in batches/lots
  • Rule 89(4)(E): Definition of Adjusted Total Turnover for refunds
  • Rule 96(10): Refund in case of specified exemptions (retrospective from 23.10.2017)
  • Rule 138A(1): E-Way Bill for imported goods
  • Rule 45(3): Substitution of FORM GST ITC-04
  • Rule 80: Introduction of FORM GSTR-9 (Annual Return) and GSTR-9A (Composition Return)
  • Rule 138A Notes: Clarification on “SKD or CKD or supply in batches or lots”

Summary of Notification

1. Relief from Cancellation of Registration for Non-Filers [Rule 22(4)]:
   If a registered person, instead of replying to a cancellation notice under Section 29(2)(b)/(c), files all pending returns and pays applicable dues, the proper officer shall drop the cancellation proceedings via FORM GST REG-20.
2. Relaxation for ITC Claims [Rule 36(2)]:
   Input tax credit may still be claimed if an invoice is missing minor details—provided it includes tax amount, description of goods/services, total value, GSTIN of both parties, and place of supply (if inter-State).
3. Batches or Lots in Transportation [Rule 55(5)]:
   Rule amended to allow movement of goods in “batches or lots,” not just “completely knocked down” (CKD) condition.
4. Refund Formula Updated [Rule 89(4)(E)]:
   “Adjusted Total Turnover” now excludes:
   • Exempt supplies (except zero-rated), and
   • Turnover related to supplies for which refund is claimed under Rule 89(4A)/(4B).
5. Restriction on Refunds for Exempt Supplies [Rule 96(10)]:
   Retrospectively from 23.10.2017, exporters cannot claim IGST refund if they availed benefits under specified exemption notifications under CGST/IGST/Customs.
6. E-Way Bill Requirement for Imported Goods [Rule 138A(1)]:
   For imported goods, the conveyance must carry a copy of the Bill of Entry and report its details in Part A of FORM GST EWB-01.
7. Substitution of FORM GST REG-20:
   New format of FORM GST REG-20 introduced for dropping cancellation of registration when dues are paid.
8. Substitution of FORM GST ITC-04:
   Comprehensive new format introduced to report movement and return of goods sent for job work, including loss/waste details.
9. Introduction of Annual Returns (FORM GSTR-9 and 9A):
   • GSTR-9: To be filed by regular taxpayers (detailed annual data on supplies, ITC, tax, and amendments).
   • GSTR-9A: To be filed by composition taxpayers (simplified annual summary).
10. Clarification in EWB Notes [Rule 138A]:
    “SKD or CKD” replaced with “SKD or CKD or supply in batches or lots” for better coverage of bulk transport scenarios.

Source: Notification No.: 39/2018 – Central Tax