On October 29, 2024, the Haryana Government’s Excise and Taxation Department issued a significant amendment to the Haryana Goods and Services Tax (GST) Rules, 2017. The amendments are made in exercise of the powers conferred under Section 164 of the Haryana Goods and Services Tax Act, 2017. These changes are based on the recommendations of the GST Council and aim to streamline processes, enhance compliance, and simplify tax administration for businesses in the state.
The changes introduced through the Haryana Goods and Services Tax (Second Amendment) Rules, 2024 will be effective from November 1, 2024, with certain provisions taking effect from October 8, 2024.
1. Amendment to Rule 36: Suppression of Facts
- Rule 36 (related to the maintenance of records for input tax credit) has been amended to include the phrase “under section 74” after the words “suppression of facts” in sub-rule (3).
What this means: The inclusion of Section 74 clarifies that suppression of facts can lead to proceedings under this section, specifically dealing with cases of tax evasion or fraud.
2. Modification to Rule 46: Issuance of Tax Invoices
- Effective from November 1, 2024, the second proviso in Rule 46 (which covers the issuance of tax invoices) has been omitted.
What this means: This change could simplify the process for businesses in terms of invoice issuance and compliance, although the specific impact will depend on the details of the proviso being removed.
3. Introduction of Rule 47A: Time Limit for Issuing Tax Invoice
- A new rule 47A has been inserted to specify a 30-day time limit for issuing tax invoices in certain circumstances. This applies where a registered person is required to issue an invoice under Section 31(3) of the Act, which deals with the liability of the recipient to pay tax in certain transactions.
What this means: Businesses that are required to issue invoices as recipients will have 30 days from the date of receipt of goods or services to issue the tax invoice, providing clarity and a defined timeframe.
4. Amendment to Rule 66: Form GSTR-7 Filing Deadline
- Rule 66 now specifies that the filing of Form GSTR-7 (which is used to report TDS under GST) must be done on or before the 10th day of the month succeeding the calendar month.
What this means: This ensures that there is a clear and standardized deadline for businesses to file GSTR-7, ensuring compliance with the timely reporting of tax deducted at source (TDS).
5. Changes in Rule 86: Adjustment of Input Tax Credit
- In Rule 86, the reference to contravention of sub-rule (10) of Rule 96 is omitted in sub-rule (4B).
What this means: This amendment removes the provision relating to the reversal of input tax credit in cases of contravention of refund procedures, which may simplify compliance and reduce disputes around input tax credit claims.
6. Amendments to Rules 88B and 88D: References to Section 74A
- The amendments in Rules 88B and 88D involve inserting references to Section 74A alongside Sections 73 and 74 in various parts of the rules.
What this means: The inclusion of Section 74A aligns these rules with the new provisions under Section 74A (which covers certain penalty provisions), expanding the scope of these rules to include additional tax recovery scenarios.
7. Changes in Rule 89: Refund Process Modifications
- Rule 89, which governs the process for the refund of input tax credit, has undergone several changes:
- Sub-rule (4) has been revised to exclude specific reference to input tax credit claimed in earlier sub-rules (4A and 4B).
- Sub-rules (4A) and (4B) have been omitted, simplifying the refund process.
- Sub-rule (5) has also been amended to remove certain references to input tax credit claimed for refunds under earlier sub-rules.
What this means: These changes streamline the refund process, making it simpler and more straightforward for businesses to claim refunds. The removal of redundant sub-rules should reduce compliance burdens.
8. Omission of Sub-rule (10) in Rule 96
- Rule 96, which deals with refund claims, has had sub-rule (10) omitted.
9. Modification of Rule 96B: Expansion of Sections for Recovery
- Rule 96B has been amended to replace references to Sections 73 and 74 with Sections 73, 74, and 74A, thereby extending the recovery provisions to include Section 74A.
What this means: This extension ensures that the recovery provisions cover the newly introduced section related to penalties and tax recovery, which could be important for businesses involved in disputes over tax liabilities.
10. Amendments to Rule 121: Clarity on Appeal and Recovery Procedures
- In Rule 121, references to Sections 73 and 74 are now substituted with Sections 73, 74, and 74A.
What this means: These changes clarify the scope of proceedings under the GST rules when it comes to appeals and recovery actions, ensuring that all relevant sections of the GST Act are incorporated.
11. Changes in Rule 142: Recovery Proceedings and Waiver of Penalty
- Rule 142, which deals with recovery proceedings, has undergone several changes:
- Provisions for waiver of penalty and interest have been introduced.
- A new procedure for closing proceedings under Section 128A related to tax demands has been outlined.
- New forms such as Form GST SPL-01 (for waiver applications) and Form GST DRC-03 (for payment intimation) have been introduced to facilitate this process.
What this means: These changes introduce greater clarity on the recovery process, particularly in cases where taxpayers are eligible for penalty waivers. The introduction of new forms streamlines these procedures.
12. Introduction of Rule 164: Procedure for Closure of Proceedings
- Rule 164 introduces the procedure for the closure of proceedings under Section 128A concerning demands under Section 73. This provides a clear process for businesses that wish to seek the waiver of interest, penalty, or both and specifies the forms required (e.g., Form GST SPL-01 and Form GST SPL-02).
What this means: This addition offers taxpayers a pathway to resolve pending tax disputes by submitting applications for the waiver of penalties or interest, subject to certain conditions and timelines.
THE FORMS INTRODUCED INCLUDE THE FOLLOWING:
