Summary of Notification No. 12/2024 – Central Tax (Dated 10th July 2024)

Clause 1: Short Title and Commencement

• These rules will be called Central Goods and Services Tax (Amendment) Rules, 2024.
• Effective Date: These amendments come into force from 10th July 2024 unless stated otherwise.

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🔹 Clause 2: Amendments to Rule 8 (GST Registration Process)

Key Changes:

• Aadhaar Authentication Requirement:
  • If an applicant does not opt for Aadhaar authentication, they must appear in person at a GST Facilitation Center for:
    1. Photograph capture
    2. Document verification
  • This step is being introduced to prevent fake registrations and fraudulent ITC claims.

🛠 Impact on Businesses: ✅ Reduces fake registrations by adding an extra layer of verification.

✅ Slows down the registration process for applicants not opting for Aadhaar authentication.

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🔹 Clause 3: Introduction of GSTR-1A (Amendments in Outward Supply Reporting)

Key Changes:

• Before filing GSTR-3B, taxpayers can now use GSTR-1A to modify errors in GSTR-1.
• Any changes made in GSTR-1A will automatically be reflected in GSTR-3B.

🛠 Impact on Businesses: ✅ Avoids mismatches between GSTR-1 and GSTR-3B.

✅ Reduces unnecessary notices from GST authorities.

✅ Helps rectify errors before tax liability is finalized.

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🔹 Clause 4: Input Service Distributor (ISD) Amendments (Rule 39)

Key Changes:

• The method for distributing input tax credit (ITC) among branches has been modified.
• ITC must be allocated proportionally based on turnover instead of allowing arbitrary distribution.

🛠 Impact on Businesses: ✅ Ensures fair and transparent distribution of ITC among different branches.

✅ Reduces misuse of ITC claims.

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🔹 Clause 5: Refund Provisions for Canteen Stores Department (Rule 95B)

Key Changes:

• Canteen Stores Department (CSD), which supplies goods to the Armed Forces, is now eligible for a 50% GST refund on inward supplies.

🛠 Impact on CSD: ✅ Lowers the GST burden on CSD.

✅ Ensures cost savings for supplies to defense personnel.

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🔹 Clause 6: Electronic Filing of Appeals (Rules 110 & 111)

Key Changes:

• Appeals to the GST Appellate Tribunal must now be filed electronically.
• In exceptional cases, the Registrar may permit manual submission.

🛠 Impact on Businesses: ✅ Speeds up appeal processing.

✅ Reduces paperwork and physical visits to appellate offices.

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🔹 Clause 7: E-Way Bill Amendments (Rule 138)

Key Changes:

• Unregistered persons generating e-way bills must now enroll via FORM GST ENR-03.
• This aims to track casual taxable persons and unregistered dealers more effectively.

🛠 Impact on Businesses: ✅ Better tracking of unregistered suppliers.

✅ Reduces tax evasion through undocumented trade.

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🔹 Clause 8: Changes in Interest Calculation on Late Tax Payments (Rule 88B)

Key Changes:

• Interest on delayed tax payments will now be calculated only on the net tax liability.
• If tax is paid before filing GSTR-3B, no interest will apply.

🛠 Impact on Businesses: ✅ Saves taxpayers from unnecessary interest charges.

✅ Aligns interest calculation with industry demands.

📌 Example:

A taxpayer had to pay ₹1,00,000 in GST and deposited the amount before filing GSTR-3B.

• 🔴 Old Rule: Interest was still charged.
• ✅ New Rule: No interest applies if tax is paid before GSTR-3B filing.

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🔹 Clause 9: Amendments in Export Refund Rules (Rule 96A)

Key Changes:

• Exporters can now claim IGST refunds even if additional tax was paid due to price revisions after the original invoice.

🛠 Impact on Exporters: ✅ Ensures full refund availability even after price changes.

✅ Removes financial burden from exporters.

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🔹 Clause 10: GST Return Deadline for Composition Taxpayers

Key Changes:

• Composition taxpayers (small businesses paying a fixed GST rate) must file GSTR-4 by 30th June of the following financial year.

🛠 Impact on Businesses: ✅ Provides clarity on compliance deadlines.

✅ Reduces late filing penalties.

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🔹 Key Takeaways & Action Points

Change	Impact	Who Should Act?
Aadhaar verification for registration	Prevents fake GSTINs	New GST applicants
GSTR-1A before GSTR-3B	Fixes reporting errors	All GST filers
ITC distribution updates	Ensures fair allocation	Multi-location businesses
Refunds for CSD	Lowers costs for defense	CSD suppliers
e-Way bill enrollment	Tracks unregistered dealers	Casual taxable persons
Interest on late payments	Lowers interest burden	All taxpayers
Export refund updates	Full refund on price changes	Exporters
GSTR-4 deadline	Simplifies compliance	Composition taxpayers

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📢 Next Steps for Businesses

✅ Update your GST compliance software to reflect these rule changes.

✅ Ensure accountants and tax consultants are aware of the new GSTR-1A process.

✅ Modify ITC distribution mechanisms if operating multiple GST-registered locations.

✅ Exporters should apply for refunds under Rule 96A for price revision cases.

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Conclusion

This notification brings significant compliance improvements to taxpayers, businesses, and government authorities. The biggest changes include:

• Mandatory Aadhaar authentication or in-person verification for GST registration
• Introduction of GSTR-1A for fixing outward supply reporting before GSTR-3B
• Fairer ITC allocation under the ISD mechanism
• New refund processes for defense supplies and exports
• Better e-Way Bill tracking for unregistered persons

Action Required: Businesses must adjust their GST filing procedures and update ERP systems to comply with these changes.