CBIC Notified Key Amendments to GST Rules Effective November 2024

The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 20/2024 – Central Tax on October 8, 2024, which introduces significant amendments to the Central Goods and Services Tax (CGST) Rules, 2017. These changes, effective from November 1, 2024, bring clarity and updates to various provisions, ensuring smoother compliance with the GST framework.

Key Amendments Introduced by CBIC:

1. Time Limit for Issuing Invoices in RCM Cases (Rule 47A)
   • A new rule, Rule 47A, has been inserted, mandating that in cases where a registered person is required to issue an invoice under the reverse charge mechanism (RCM) (i.e., under section 9(3) or 9(4) of the CGST Act), the invoice must be issued within 30 days from the date of receiving the supply of goods or services.
   Before: There was no specific timeline for issuing such invoices under RCM.After: Rule 47A specifies that invoices must be issued within 30 days from the date of receiving the supply, ensuring timely compliance.
2. Changes to Rule 46 (Invoice Requirements)
   • The second proviso to Rule 46 has been omitted, and amendments have been made to the third proviso to clarify the requirements for invoicing, particularly in export transactions.
   Before: Provisions required specific endorsements for export invoices.After: The amendments reorganize the provisions to ensure clarity and consistency, especially for supplies meant for export or to SEZ units.
3. Form GSTR-7 Filing Timeline (Rule 66)
   • Rule 66 has been amended to include a specific deadline for the filing of Form GSTR-7 (the return for TDS under GST). The return must now be filed by the 10th day of the month following the calendar month in which TDS was deducted.
   Before: There was no fixed timeline for filing Form GSTR-7.After: Deductors must file by the 10th day of the following month, ensuring timely TDS compliance and credit to suppliers.
4. Input Tax Credit (ITC) Reconciliation (Form GSTR-9)
   • ITC reconciliation requirements have been updated, replacing the ITC as per GSTR-2A with ITC as per GSTR-2B in Form GSTR-9, aligning with the current reconciliation mechanism for claiming ITC.
   Before: Reconciliation was based on GSTR-2A.After: ITC reconciliation is now based on GSTR-2B, simplifying compliance for taxpayers.
5. Other Amendments
   • Several other provisions and forms, including Form GST REG-20 (related to cancellation of GST registration) and Form GST REG-31 (pertaining to suspension of registration), have been updated to reflect the latest procedural changes, improving clarity and procedural transparency.

Summary Table of Key Changes:

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