GST Framework Strengthened — First CGST Rules Amendment

Notification No.: 7/2017 – Central Tax
Date of Notification: 27th June 2017
Relevant Sections and Rules:

• Central GST Act, 2017: Section 164
• Central GST Rules, 2017 (Amendments): Rules 1, 10(4), 13(4), 19(1), 21(b), 22(3), 24(1) & 24(3), 26(3); Forms CMP-04, CMP-07, REG-12, REG-25
• Integrated GST Act: Not applicable directly

Summary of Notification

1. Title and Commencement:
   The rules are termed the Central Goods and Services Tax (Amendment) Rules, 2017 and are deemed to be effective from 22nd June 2017.
2. Key Rule Amendments:

• Rule 1: The word “Extent” removed from the title.
• Rule 10(4) and Rule 13(4): Substitution of “digitally signed” with “duly signed or verified through electronic verification code” to broaden authentication options.
• Rule 19(1): Clarifies that the second proviso refers to sub-rule (2) of rule 8.
• Rule 21(b): Expanded to include a new clause (c) covering violations of anti-profiteering provisions under Section 171.
• Rule 22(3): Text streamlined by removing redundant reference.
• Rule 24:
  • Removes the second proviso in sub-rule (1).
  • Introduces new sub-rule (3A) granting automatic registration if the certificate is not issued within 15 days and no notice is served.
• Rule 26(3): Allows for e-signatures and other Board-notified methods for verification in addition to digital signatures.

3. Form Modifications:

• CMP-04: Updated to specify three categories of composition taxpayers.
• CMP-07: Corrects reference from “rule 6(6)” to “rule 6(5)”.
• REG-12: Time to apply for proper registration after temporary registration extended from 30 days to 90 days.
• REG-25: Updates labels by replacing “Provisional ID” with GSTIN and removes location-specific labels.

Source: Notification No.: 7/2017 – Central Tax