Notification No.: 3/2017 – Central Tax
Date of Notification: 19th June 2017
Relevant Sections and Rules:
- Central GST Act, 2017: Section 164
- Relevant Rules Introduced: Rules 1 to 26 of the Central Goods and Services Tax Rules, 2017
Summary of Notification
- Enforcement of CGST Rules, 2017 from 22nd June 2017:
The notification brought into effect the Central Goods and Services Tax Rules, 2017 from 22nd June 2017. These rules lay down the procedural framework required for the administration of GST including composition levy, registration, amendments, cancellation, and revocation. - Composition Scheme Procedures (Rules 3–7):
Detailed rules were notified for taxpayers opting for the composition levy under Section 10 of the CGST Act:
- Rule 3: Procedures for existing and new taxpayers to opt for composition via forms CMP-01, CMP-02, CMP-03.
- Rule 4: Specifies effective date of levy.
- Rule 5: Lists eligibility conditions like not being a casual or non-resident taxable person and not dealing in inter-State supplies.
- Rule 6: Lays out procedures for withdrawal, denial, and continuance of composition option with related forms CMP-04 to CMP-07.
- Rule 7: Fixes tax rates for eligible categories:
- Manufacturers: 1%
- Suppliers under Schedule II clause (b): 2.5%
- Others: 0.5%
- Comprehensive Registration Framework (Rules 8–26):
The rules comprehensively define:
- Rule 8–10: Online registration procedure using PAN, mobile, email, and the GST portal.
- Rules 11–14: Grant of separate registrations for verticals, TDS/TCS authorities, non-resident taxable persons, and OIDAR suppliers.
- Rules 15–17: Extension of validity for casual/non-resident taxpayers, suo motu registrations, and Unique Identity Number (UIN) for special entities.
- Rules 18–19: Requirements for display of registration and amendment procedures.
- Rules 20–23: Cancellation and revocation of registration including timelines and required declarations.
- Rule 24: Migration of existing taxpayers under previous laws.
- Rule 25: Physical verification of business premises if needed.
- Rule 26: Authentication of electronic submissions via digital signature, e-sign, or other methods.
