Key Highlights of the Delhi Goods and Services Tax (Amendment) Rules 2022

Ashish M. Shaji

01 Nov, 2022

The Delhi Government has notified the Delhi Goods and Services Tax (Amendment) Rules 2022. It further amends the Delhi Goods and Services Tax Rules of 2017. The said amendment comprises various substitutions, omissions, and insertion of clauses and sub-rules to the 2017 Rules. In this article, we shall discuss the key highlights of the Delhi GST (Amendment) Rules 2022, notified by the Government of Delhi.

Delhi Goods and Services Tax (Amendment) Rules 2022- Key Amendments

These amendments have been made to the Delhi GST Rules of 2017-

• In Delhi GST Rules 2017^[1] in rule 21A in sub-rule 4 after the proviso, this proviso shall be inserted- Where the registration is suspended under sub-rule 2A for the contravention of the provisions laid down in clause (b) or (c) of sub-section 2 of Section 29 and where the registration has not already been cancelled by the proper officer under Rule 22 of the Delhi GST Rules, the suspension of the registration will be deemed to be cancelled on providing with all the pending returns.
• In Delhi GST Rules 2017, in explanation 1 to Rule 43 after clause c, this proviso shall be inserted- the value of supply of duty credit scrips mentioned in the notification of GNCTD dated November 24, 2017.
• In Delhi GST Rules 2017, in rule 86, after sub-rule 4(A), sub-rule 4B will be inserted stating that where a registered person deposits any amount of erroneous refund approved to him- under sub-section (3) of Section 54 or sub-rule (3) of rule 96. thereby contravening sub-rule (10) of rule 96, with penalty & interest, wherever applicable. Through Form DRC- 03, debiting electronic cash ledger on their own or on being pointed out, the amount that is equal to the erroneous refund deposited by the registered person will be re-credited to the electronic cash ledger by the right officer by way of an order made in Form GST- PMT- 03A.
• Further, in Rule 87, in sub-rule (3), after clause (i), clauses stating UPI from any bank and IMPS from any bank shall be inserted. In sub-rule (5), after RTGS, Immediate Payment Service shall be inserted. After sub-rule (13), sub-rule (14) shall be inserted.
• In Rule 89 of the Delhi GST Rules 2017, in sub-rule 4, an explanation will be inserted- For the purposes of the sub-rule, the value of the goods exported will be taken as the free-on-board value stated in the bill of export form or shipping bill or, as per the shipping bill & the bill of export (forms) regulations 2017 or the declared value in tax invoice or bills of supply, whichever is less.
• In Rule 89, in sub-rule 5, the brackets, letters, and words will be substituted for tax payable on the such inverted rated supply of goods & services.
• In the Delhi GST Rules 2017, rule 95A will be deemed omitted from 1 July 2019.
• In Rule 96, in sub-rule (1) clause (b), the clause will be substituted with Form GSTR 3B with the exception that in case of any mismatch in the data provided by the exporter of goods in the shipping bill & those provided in the statement of outward supplies in the Form GSTR 1, then the application for refund of integrated tax paid on the exported goods will be deemed to have been filed on the date when the exporter rectifies the mismatch.

Delhi Goods and Services Tax (Amendment) Rules 2022- Manner of Calculating Interest on Delayed Payment of Tax

Rule 88B shall be deemed to have been inserted into Delhi GST Rules 2017. It states that the supplies provided during a tax period are declared in return for the period mentioned & the return is furnished post-due date as per Section 39 of the Act. Except where the return is provided after the beginning of any proceedings under Section 73/74 in respect of that period, the interest payable in respect of such supplies will be calculated on the tax amount paid by debit from the electronic cash ledger. In case of any delay in filing the return beyond the time limit, at a rate that may be notified under Section 50 (1).

In cases where the interest is payable as per sub-section (1) of Section 50, the interest will be calculated on the tax amount that is unpaid for the period beginning from the date when the tax became due to be paid till the date the tax is paid, at the rate that may be notified under Section 50 (1).

Where the interest is payable on the input tax credit wrongly availed and used as per Section 50 (3), the interest will be calculated on the input tax credit wrongly availed and used for the period beginning from the date of the utilization of the wrongly availed input tax credit till the reversal of the credit or tax payment in respect of such amountat a rate that may be notified under Section 50 (3).

Delhi Goods and Services Tax (Amendment) Rules 2022: Rule 96 sub-rule (5A) and (5B)- Refund Withheld

Sub-rule (5A)- If the refund has been withheld as per the provisions of clauses (a) or (c) of sub-rule 4, such claim will be transferred to the proper officer of Central,State, or Union Territory Tax, electronically through the common portal in a system generated Form GST- RFD- 01.

The intimation about the transmission will be sent to the exporter electronically via the common portal. Notwithstanding anything contrary to other rules, the said form will be deemed the refund application in such cases and will be filed on the date of such transmission.

Sub-rule (5B)-If the refund is withheld as per the provisions of clauses (b) of sub-rule 4, and the proper officer passed an order that the goods were exported in violation of the Customs Act, then theclaimwill be transmitted to the proper officer of either Central, State or Union Territory Tax, through the common portal electronically  in a system generated Form GST- RFD- 01.

The intimation of the transmission will be dispatched to the exporter electronically via the common portal. Notwithstanding anything contrary to other rules, the said form will be deemed the refund application in such cases and will be filed on the date of such transmission.

What is the date of enforcement of the said rules?

As per the notification released by the Government of Delhi in October, the Delhi Goods and Services Tax (Amendment) Rules 2022 has come into force from July 5, 2022. 

Conclusion

The Delhi Goods and Services Tax (Amendment) Rules seek to provide further clarity by omitting, adding and substituting specific regulations in the GST rules. These rules intend to bring about the much-needed changes for a better and seamless experience for taxpayers and to reduce the instances of tax evasion in the state.

Read our Article: GST Registration in Delhi – Procedure and Documents