GST Rules: Here're the list of 25 key takeaways of final GST rules passed by GST council in meeting. Visit https://www.taxmann.com/BlogPost.aspx for more details on GST.

1. 25 KEY TAKEAWAYS OF FINAL GST
RULES
(PASSED BY GST COUNCIL)

2. 1.
PAN is mandatory for taking registration
under GST. PAN will be validated by CBDT.
After successful validation, registration will
be granted.

3. 2.
If a person has a SEZ unit, then he is
required to make separate registration
application for that unit. Similarly, a
separate application of registration is
required for becoming input Service
Distributor.

4. 3.
A non-resident
seeking
registration under
Non-Resident
Taxable Person has
to appoint an
authorized
signatory who will
sign the
application of
registration.

5. 3.(contd.)
That person must
be resident of India
having a valid PAN.

6. 4.
A person registered under GST is
required to display his certificate of
registration at a prominent location at
his principal place of business & GST
number on the name board at entry of
his principal place of business.

7. 5.
Physical verification of place of business will
not be conducted to grant registration
under GST. But officer can do physical
verification after granting of registration, if
he is satisfied that it is necessary to do the
same. He must upload verification report on
GST Portal within 15 working days after
verification.

8. 6.
Tax invoice in case of supply of taxable
services must be issued within 30 days of
date of supply of services. However, time
limit for banking company, insurance
company or financial institutions is 45 days.

9. 7.
The invoice shall be in triplicate for Supply
of Goods and in duplicate for Supply of
Services.

10. 8.
The serial number of invoices issued
will be furnished electronically on
GST Portal.

11. 9.
On receiving advance, Receipt
Voucher will be issued. If rate is not
determinable, tax is to be paid at
18%. If nature of supply is not
determinable, it will be treated as
Inter – State Supply.

12. 10.
If reverse charge is applicable, the
recipient will issue Payment
Voucher.

13. 11.
Electronic Liability Register shall be
maintained for each person liable to
pay tax on the GST Portal.

14. 12.
Electronic Credit Ledger and
Electronic Cash Ledger shall also be
maintained on the GST Portal for the
person eligible for input tax credit
and for person liable to pay tax
respectively.

15. 13.
Tax will be paid only through
Internet banking, RTGS, NEFT or
Debit and Credit Cards. However,
over the counter payment is allowed
through authorized banks for the
amount up to Rs.10,000 per challan
per tax period.

16. 14.
A separate formula is prescribed for
Maximum Refund in case of inverted
duty structure, i.e., GST rate is
higher on Inputs than on Output
Supply.

17. 15.
Refund application shall be filed
electronically on GST Portal.

18. 16.
The grant of provisional refund shall
be made if person clamming refund
has not been prosecuted during any
period of 5 years preceding the tax
period for which refund is claimed.
However, the following 2 condition
mentioned in Draft Refund rules
have been deleted.

19. 17.
If Commissioner wants to withhold
refund, order must be issued along
with reasons of withholding refund.

20. 18.
The Value of supply made by
principal to its agent or made to any
related person shall be 90% of price
charged for the supply of like kind
and quality to unrelated person.

21. 19.
The Value of a token, coupon or a
voucher shall be equal to the money
value of goods redeemable against
such token or voucher or coupon.

22. 20.
The expense incurred by a supplier as a
pure agent will not form value of supply
and shall be excluded. The supplier will be
treated as pure agent on complying with
following three conditions:

23. 20. (contd.)
• He makes payment to third party on
authorization by such recipient.
• The payment made by pure agent on
behalf of recipient has been shown
separately on invoice.

24. 20. (contd.)
The supplies procured from third party by
pure agent on behalf of recipient are in
addition to services he supplies on his own
account.
Earlier, in draft rules, 8 conditions were
prescribed. Now, only these three
conditions have to be fulfilled.

25. 21.
The person eligible to take credit in
respect of input of goods held in
stock after registration is required to
file a declaration on GST Portal that
he is eligible for input tax credit
within 30 days.

26. 22.
ITC would not be available to
registered person if tax has been
paid by supplier after issuing
demand order on account of fraud,
wilful misstatement or suppression
of facts.

27. 23.
The time limit to claim input tax
credit is not applicable to reclaim
credit reversed earlier due to non-
payment of consideration to
supplier.

28. 24.
Following persons will not be eligible
for composition scheme:
• Casual taxable person or non-
resident taxable person.
• Person having goods in stock which
were purchased in course of inter-
State trade or from unregistered
person.

29. 25.
Rates of Taxes for Composition Levy:
• Manufacturers, other than
manufacturers of such goods as may
be notified by the Government – at
1%

30. 25.(contd.)
• Suppliers making supplies referred to
in clause (b) of paragraph 6 of
Schedule II – at 2%.
• Any other supplier – at 0.5%.

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