Fourth Amendment to CGST Rules, 2019 – New Compliance Provisions & Refund Framework

Notification No.: 31/2019 – Central Tax
Date of Notification: 28th June 2019
Relevant Sections and Rules:

• Central GST Act, 2017:
  • Section 164 – Power to make rules
  • Section 39 – Furnishing of returns
  • Section 49 – Payment of tax
  • Section 171 – Anti-profiteering
  • Section 148 – Special procedure for certain persons
• CGST Rules, 2017 (Amendments & Insertions):
  • New Rule 10A: Mandatory furnishing of bank account details post registration
  • New Rule 32A: Valuation for Kerala Flood Cess
  • New Rule 95A: Refund to retail outlets at departure area of international airports
  • Rule Amendments: Rules 21, 46, 49, 59, 61, 62, 66, 67, 87, 91, 92, 94, 128–133, 138, 138E
  • Form Updates: GSTR-4 (Revised), GSTR-9 (Modifications), GSTR-3B (No changes),
    New Forms: GST PMT-09, GST RFD-10B, Updated DRC-03
• Integrated GST Act, 2017: Section 20 (read with Rule 95A)

Summary of Notification

1. Mandatory Furnishing of Bank Details (New Rule 10A):
   Registered persons (except those under Rule 12 or Rule 16) must furnish their bank account details within 45 days of registration or before filing their first return under Section 39, whichever is earlier.
2. Cancellation of Registration for Non-Compliance (Rule 21):
   Registration may be cancelled if a taxpayer violates Rule 10A by not submitting bank account details timely.
3. Valuation for Kerala Flood Cess (Rule 32A):
   Value of supply for levy of Kerala Flood Cess will be exclusive of the cess and determined as per Section 15.
4. Introduction of QR Code on Tax Invoices and Bills of Supply (Rules 46 & 49):
   Government may notify that QR codes be made mandatory on tax invoices and bills of supply, subject to conditions.
5. GSTR-7 & GSTR-8 Updates (TDS/TCS Returns – Rules 66 & 67):

• Clarity added: TDS/TCS credits will be shown against deductees, not in Part C of GSTR-2A/4A.
• Claim mechanism updated for credit of tax deducted or collected.

6. PMT-09 Form Introduced – Cash Ledger Transfer (Rule 87):
   Registered persons can now transfer amounts between different tax heads (major/minor) within their electronic cash ledger using Form GST PMT-09.
7. Changes in Refund Processing (Rules 91, 92, 94):
   Terminology changed from “payment advice” to “payment order“; consolidated refund processing via updated Rule 92(4A) introduced.
8. Refund for Duty-Free Shops at International Airports (New Rule 95A):
   Retail outlets beyond immigration counters can claim refund of taxes paid on indigenous goods sold to outgoing international tourists, using Form GST RFD-10B.
9. Anti-Profiteering Rule Amendments (Rules 128–133):

• Investigation period extended from 3 to 6 months.
• Authority can re-initiate new investigations beyond initial scope if it finds additional contraventions.
• Interest @18% mandated on profiteered amount to be deposited.

10. E-Way Bill Rules Modified (Rules 138 & 138E):

• Multimodal shipment involving ship transport included in extended validity clause.
• Validity of expired e-way bills can now be extended within 8 hours of expiry.
• Clarified quarterly CMP-08 filing for composition scheme under Notification 2/2019.

11. Form Revisions and Insertions:

• GSTR-4: New format aligned with CMP-08 quarterly statements.
• GSTR-9: Clarified reporting periods, instructions updated for FY 2017-18.
• GST PMT-09: For intra-ledger transfers in cash ledger.
• DRC-03: Revised for voluntary payments or SCNs.
• GST RFD-10B: Monthly/Quarterly refund claim by duty-free shops.

Source: Notification No.: 31/2019 – Central Tax