Analysis of GST Notification No. 35/2021 & 36/2021- Central Tax

Analysis of GST Notification No. 35/2021 & 36/2021- Central Tax, issued for decisions taken in 45th GST Council Meeting.

The Government has amended the CGST Rules, 2017 vide Notification No. 35/2021 – Central Tax and Notification No. 36/2021 – Central Tax, Dated 24th September 2021 in order to bring into effect some of the recommendations made in the 45th GST Council Meeting.

The brief of these amendments are as under-

1. Aadhaar authentication made mandatory for filing refund claims and applications for revocation of cancellation of registration.

Rule 10B has been inserted newly whereby Aadhaar authentication has been mandated for a Registered person in order to be eligible for filing:

  • Application for Revocation of cancellation of registration in Form REG-21 under Rule 23.
  • Refund application in Form RFD-01 under Rule 89.
  • Refund under Rule 96 of IGST paid on goods exported out of India.

Rule 23 which deals with revocation of cancellation of registration, has also been amended whereby to be eligible for filing application of revocation of cancellation of registration, the registered person has to authenticate Aadhaar number as per Rule 10B.

Rule 96 has also been amended whereby the applicant has to undergo Aadhaar authentication in the manner provided in rule 10B for claiming a refund of IGST paid on the export of goods or services out of India.

Who is required to link Aadhaar Card?

  • In the case of Proprietorship – Aadhaar of the Proprietor is to be updated.
  • In the case of Partnership – Aadhaar of Partner is to be updated.
  • In the case of HUF – Aadhaar of Karta is to be updated.
  • In the case of Company – Aadhaar of Managing Director or Whole Time Director is to be updated.
  • In the case of AOP/BOI/Society – Aadhaar of Managing Committee member is to be updated.
  • In the case of Trust – Aadhaar of trustee is to be updated.

If Aadhaar number has not been assigned to the person required to undergo authentication of the Aadhaar number, such person shall furnish the following identification documents, namely:

  • Aadhaar Enrolment ID, and
  • Bank passbook with photograph or Voter identity card issued by the ECOI or Passport or Driving license.

Provided that such person shall undergo the authentication of Aadhaar number within a period of thirty days of the allotment of the Aadhaar number.

The date of applicability has not been notified yet and shall come into force on the date of their publication in the Official Gazette.

2. Furnishing of Bank account on GST portal

Rule 10A has been amended whereby after obtaining registration, a registered person is required to upload his bank details, which are in his name and his PAN number is also updated with the bank. The details have to be furnished within 45 days of obtaining registration or else the registration might be canceled.

In case of a proprietorship concern, the Permanent Account Number of the proprietor shall also be linked with the Aadhaar number of the proprietor.

3. Amendment in Rule 45(3) for providing Relaxation in filing FORM GST ITC-04.

Rule 45(3) has been amended whereby Taxpayers whose Aggregate Turnover in preceding Financial Year is greater than 5 Crores shall furnish ITC-04 once in six months i.e for April to September & for October to March.

Taxpayers whose Aggregate Turnover in preceding Financial Year is less than 5 Crores shall furnish ITC-04 annually for a financial year.

This amendment will come into effect from October 1st, 2021.

4. Rule 59(6) regarding Restricting in the filing of Form GSTR-1.

In Rule 59(6), the words “for preceding two months”, have been substituted with the words “for the preceding month”. After the amendment, a Registered Person shall not be allowed to furnish FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for the preceding month.

This amendment will come into effect from January 01, 2022.

5. Refund to be disbursed in the bank account, which is linked with the same PAN.

Rule 96C has been inserted newly which states that the “bank account” for claiming refund shall be the bank account which is in the name of the applicant and obtained on his Permanent Account Number.

The date of applicability has not been notified yet and shall come into force on the date of their publication in the Official Gazette.

6. Specified Persons excluded from Aadhaar Authentication.

Government has vide Notification No. 36/2021 dated 24th September 2021 clarified that specified persons such as Government Departments, PSUs, the person who is not a citizen of India, etc. who are already registered under the GST law, are excluded from the requirement of getting Aadhaar Authentication vide Notification No. 35/2021 – Central Tax, Dated 24th September 2021.