The CBIC vide Notification No. 35/2021–Central Tax dated September 24, 2021 has further amended Central Goods and Services Tax Rules, 2017 (“CGST Rules”) to adhere to the recommendations of 45th GST Council meeting held on September 17, 2021.
Background:
The GST Council in it’s 45th meeting made inter-alia a recommendation that, a registered person being ‘principal’ in a job-work transaction
a) whose annual aggregate turnover in preceding financial year is above Rs. 5 crores shall furnish ITC-04 once in six months;
b) whose annual aggregate turnover in preceding financial year is upto Rs. 5 crores shall furnish ITC-04 annually
Currently, a registered person being ‘principal’ is required to File Form GST ITC-04 on quarterly basis.
Notification:
Giving effect to the recommendation of GST Council meeting, the CBIC vide this Notification has amended CBIC Rules as under:
In Rule 45(3) of the CGST Rules, in sub-rule (3), with effect from the October 01, 2021, –
(i) for the words “during a quarter”, the words “during a specified period” shall be substituted;
(ii) for the words “the said quarter”, the words “the said period” shall be substituted;
(iii) after the proviso, the following explanation shall be inserted, namely: –
“Explanation. – For the purposes of this sub-rule, the expression “specified period” shall mean.-
(a) the period of six consecutive months commencing on the 1st day of April and the 1st day of October in respect of a principal whose aggregate turnover during the immediately preceding financial year exceeds five crore rupees; and
(b) a financial year in any other case.”
Rule 45(3) ibid now reads as under:
“(3) The details of challans in respect of goods dispatched to a job worker or received from a job worker during a specified period shall be included in FORM GST ITC-04 furnished for that period on or before the twenty-fifth day of the month succeeding the said period or within such further period as may be extended by the Commissioner by a notification in this behalf:
Provided that any extension of the time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.
Explanation. – For the purposes of this sub-rule, the expression “specified period” shall mean.-
(a) the period of six consecutive months commencing on the 1st day of April and the 1st day of October in respect of a principal whose aggregate turnover during the immediately preceding financial year exceeds five crore rupees; and
(b) a financial year in any other case.”
Conclusion:
Form GST ITC-04 shall be filed on half yearly basis for registered persons whose aggregate turnover during the immediately preceding financial year exceeds 5 crore rupees and on yearly basis for registered persons whose aggregate turnover in preceding financial year is upto 5 crores rupees.
Note: Supra amendment in CGST Rules shall be effective from October 01, 2021.
The Notification can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-35-central-tax-english-2021.pdf