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PAPER 3B: GOODS AND SERVICES TAX

STATUTORY UPDATE FOR SEPTEMBER 2025
EXAMINATION

For the sake of brevity, Central Goods and Services Tax, Integrated Goods and Services Tax,
Central Goods and Services Tax Act, 2017, Integrated Goods and Services Tax Act, 2017,
Central Goods and Services Tax Rules, 2017 and Integrated Goods and Services Tax Rules, 2017
have been referred to as CGST, IGST, CGST Act, IGST Act, CGST Rules and IGST Rules
respectively.

The provisions of the CGST Act, 2017 and the IGST Act, 2017 as amended by the Finance (No.
2) Act, 2024 including significant notifications and circulars issued and other legislative
amendments made, which have become effective up to 28.02.2025, are applicable for
September 2025 examination.
The amendments made by the Annual Union Finance Acts in the CGST Act, 2017 and IGST Act,
2017 are made effective from the date notified subsequently. Thus, those amendments made by
the relevant Finance Acts which have become effective till 28.02.2025 are applicable for
September, 2025 examination. Accordingly, all the amendments made by the Finance (No. 2)
Act, 2024 are applicable for September 2025 examination.
The subject matter of October edition of the Study Material of Goods and Services Tax is
based on the provisions of the CGST Act and the IGST Act as amended by the
notifications and circulars issued up to 31.10.2024. The amendments made vide relevant
Finance Acts, which have become effective till 31.10.2024, and significant notifications
and circulars issued upto 31.10.2024 have been incorporated in the Study Material.
Further, students are advised to read all the amendments made by the Finance (No. 2)
Act, 2024 given at the end of relevant chapters for September 2025 examinations as all
such amendments have become effective.
The significant notifications and circulars issued between 01.11.2024 and 28.02.2025 in
GST laws are given in this Statutory Update.
For the ease of reference, the amendments have been grouped into Chapters which correspond
with the Chapters of the Study Material.

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CHAPTER-3 CHARGE OF GST

1. Amendments in the list of notified services tax on which is payable under reverse
charge by the recipient
Notification No. 13/2017 CT (R) dated 28.06.2017 as amended has notified specified
categories of intra-State supply of services wherein whole of the tax shall be paid on
reverse charge basis by the recipient of services.
With effect from 16.01.2025, the said list of services, tax on which is payable under
reverse charge has been amended as follows:-
S. Category of supply of service Supplier of service Recipient of Service
No.
4 Services provided by way of Any person other Any body corporate
sponsorship to any body than a body or partnership firm
corporate or partnership firm. corporate located in the
taxable territory.
5AB Service by way of renting of Any Any unregistered Any registered
immovable property other than person person other than a
residential dwelling. person who has
opted to pay tax
under composition
levy.

Parallel amendment in Sr. No. 4 reverse charge entry pertaining to services provided by way
of sponsorship to any body corporate or partnership [Link] case of inter-State supply of
services have been carried out by amending Notification No. 10/2017 IT(R) dated
28.06.2017.
[Notification No. 07/2025 CT(R) dated 16.01.2025 and Notification No. 07/2025
IT(R) dated 16.01.2025]

2. Clarification whether DDA can be treated as local authority under GST law?
Services supplied by local authority to a business entity are taxable under reverse charge
(RCM) basis vide entry at Sr. No. 5 of Notification No. 13/2017CT(R) dated 28.06.2017.
Issue: The issue which arose for consideration was whether DDA can be treated as local
authority under GST law.
Clarification: Local authority means an authority which is similar to the elected self-
governing body such as Municipal Committee and which is entrusted with the control and
management of municipal or local fund can be termed as local authority.
Thus, it has been clarified that DDA cannot be treated as local authority under GST
law as DDA does not meet the requirement of local authority as per section 2(69)1 of
the CGST Act, 2017.
[Circular No. 245/02/2025-GST dated 28.01.2025]

1 Local authority under section 2(69) of the CGST Act, 2017 inter alia means “a
Municipal Committee, a Zilla Parishad, a District Board, and any other authority
legally entitled to, or entrusted by the Central Government or any State Government
with the control or management of a municipal or local fund.

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CHAPTER-4 PLACE OF SUPPLY

1. Clarification regarding place of supply of online services supplied by the suppliers of

services to unregistered recipients
It has been clarified that a conjoint reading of clause (b) of section 12(2) of the IGST Act,
20172, section 31(2) of the CGST Act3 and proviso to rule 46(f) of
2
Section 12(2)(b) of the IGST Act, 2017- The place of supply of services, except the
services specified in sub-sections (3) to (14), made to any person other than a registered
person shall be,–
(i) the location of the recipient where the address on record exists; and
(ii) the location of the supplier of services in other cases.

3
Section 31(2) of the CGST Act, 2017- A registered person supplying taxable services
shall, before or after the provision of service but within a prescribed period, issue a tax
invoice, showing the description, value, tax charged thereon and such other particulars as
may be prescribed. Provided that the Government may, on the recommendations of the
Council, by notification—
(a) specify the categories of services or supplies in respect of which a tax invoice shall
be issued, within such time and in such manner as may be prescribed;
(b) subject to the condition mentioned therein, specify the categories of services in
respect of which—
CGST Rules4 leads to a conclusion that in respect of supply of services made to
unregistered persons, irrespective of the value of the said supply, the supplier is
required to mandatorily record the
name of the State of the unregistered
recipient on the tax invoice, in cases
o Supplier of online
involving supply of online money gaming services to record
or supply of taxable services by or
name of State of
through an electronic commerce
operator or supply of online information
unregistered
and database access or retrieval recipient irrespective of
(OIDAR) services. value of supply
Recording of the name of State of the o Name of State shall be
unregistered recipient on the tax invoice deemed as address on
in respect of such supply of services record
shall be deemed as the address on
record of the recipient for the purpose o Place of Supply-
of determination of place of supply of Location of Recipient
the said services under section 12(2)(b)
of IGST Act, 2017.
Accordingly, in such cases, the place of supply of such services shall be considered
as the location of the recipient of the services as per provisions of clause (i) of
section 12(2)(b) of IGST Act, 2017.

(i) any other document issued in relation to the supply shall be deemed to be a tax
invoice; or
(ii) tax invoice may not be issued.

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4
Rule 46(f) of the CGST Rules, 2017- name and address of the recipient and the address
of delivery, along with the name of the State and its code, if such recipient is unregistered
and where the value of the taxable supply is less than fifty thousand rupees and the
recipient requests that such details be recorded in the tax invoice:
Provided that in cases involving supply of online money gaming or in cases where any taxable
service is supplied by or through an electronic commerce operator or by a supplier of online
information and database access or retrieval services to a recipient who is unregistered,
irrespective of the value of such supply, a tax invoice issued by the registered person shall
contain the name of the state of the recipient and the same shall be deemed to be the
address on record of the recipient Combined reading of the definitions of ‘electronic
commerce’ and ‘electronic commerce operator’ as per section 2(44)5 and section 2(45) of
the CGST Act6, along with rule 46(f) of CGST Rules, provides an understanding that all
services supplied to unregistered recipients over digital or electronic network, either by
the supplier using his own digital or electronic facility / platform or through any other
electronic or digital platform owned and operated by an independent electronic commerce
operator, will be covered under proviso to rule 46(f) of CGST Rules, 2017.
It is, accordingly, clarified that provisions of proviso to rule 46(f) of CGST Rules, 2017
shall be applicable in respect of all the online supplies of services supplied to an
unregistered recipient, in addition to the supply of online money gaming and OIDAR
services.
Some of the examples of such services are subscription of e-newspapers and emagazines,
online subscription of entertainment services (e.g. OTT platforms), online telecom services,
digital services through mobile applications etc.
Therefore, in respect of following cases of supplies to unregistered recipients, the
suppliers are mandatorily required to record the name of the State of the recipient on
the tax invoice, irrespective of the value of supply of such services, and to declare
place of supply of the said services as the location of the recipient (based on the
name of State of the recipient) in their details of outward supplies in FORM GSTR-
1/1A.:-
(i) supply of any such online/ digital services,
(ii) OIDAR services and
(iii) online money gaming
[Circular No. 242/36/2024 GST dated 31.12.2024]

5
Section 2(44)-"electronic commerce" means the supply of goods or services or
both,including digital products over digital or electronic network.
6
Section 2(45) - "electronic commerce operator" means any person who owns, operates
or manages digital or electronic facility or platform for electronic commerce.

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CHAPTER-5 EXEMPTIONS FROM GST

Entry Nos. referred to in this chapter correspond to entries in Notification No. 12/2017 CT (R)
dated 28.06.2017 which grants exemption from GST for intra-State supply of specified
services. However, these entry numbers have been given only for reference purposes and are
not relevant for examination purpose.
1. Amendments in the services exempted from GST
Notification no. 12/2017 CT(R) dated 28.06.2017 provides list of services exempted from
CGST. Parallel exemptions from IGST have been granted to inter-State supply of services
vide Notification No. 9/2017 IT(R) dated 28.06.2017.
The amendments in the list of exempted services have been highlighted in bold italics/in
strikethrough form, hereunder:
(i) Amendments in the existing exemptions
Following existing exemptions have been amended:
Sl. Description of services Effective
No. from
25A Supply of services by way of providing metering equipment on 16.01.2025
rent, testing for meters/transformers/capacitors etc.,
releasing electricity connection, shifting of meters/service
lines, issuing duplicate bills etc., which are incidental or ancillary
to the supply of transmission and or distribution of electricity
provided by electricity transmission and or distribution utilities
to their consumers.
69 Any services provided by –
(a) the National Skill Development Corporation set up by the
Government of India;
(b) the National Council for Vocational Education and Training;
(c) an Awarding Body recognized by the National Council for
Vocational Education and Training;
(d) an Assessment Agency recognized by the National Council
for Vocational Education and Training;
(e) a Training Body accredited with an Awarding Body that is
recognized by the National Council for Vocational
Education and Training,
(f) a training partner approved by the National Skill
Development Corporation,
in relation to
(i) the National Skill Development Programme or any other
scheme implemented by the National Skill Development
Corporation; or
(ii) a vocational skill development course under the National
Skill Certification and Monetary Reward Scheme; or
(iii) any National Skill Qualification Framework aligned
qualification or skill in respect of which the National
Council for Vocational Education and Training has approved
a qualification package.

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(ii) New exemption introduced

Following new services have been exempted from CGST:

Sl. Description of services Effective

No. from
36B Services of insurance provided by the Motor Vehicle 16.01.2025
Accident Fund, constituted under section 164B of the Motor
Vehicles Act, 1988, against contributions made by insurers
out of the premiums collected for third party insurance of
motor vehicles.

(iii) New definition introduced

Following definition has been added in paragraph 2:-

Sl. Description of services Effective

No. from
zja "insurer" has the same meaning as assigned to it in sub- 16.01.2025
section (9) of section 2 of the Insurance Act, 1938.
As per Section 2(9) of the Insurance Act, 1938, "Insurer"
means—
(a) an Indian Insurance Company, or
(b) a statutory body established by an Act of Parliament to
carry on insurance business, or
(c) an insurance co-operative society, or
(d) a foreign company engaged in re-insurance business
through a branch established in India.
Explanation. — For the purposes of this sub-clause, the
expression “foreign company” shall mean a company or body
established or incorporated under a law of any country outside
India and includes Lloyd’s established under the Lloyd’s Act,
1871 (United Kingdom) or any of its Members

Parallel amendments in exemptions from IGST to inter-State supply of services have been
carried out by amending Notification No. 9/2017 IT(R) dated 28.06.2017.
[Notification No. 06/2025 CT(R) dated 16.01.2025 and Notification No. 06/2025
IT(R) dated 16.01.2025]

2. Clarification in respect of applicability of GST on facility management services

provided to Municipal Corporation of Delhi (MCD) Headquarters.
Issue: MCD is receiving the services such as housekeeping, civil maintenance, furniture
maintenance and horticulture, from facility management agency, for the upkeep of their
office. The issue which arose for consideration was whether such services received by
them are exempt from GST in terms of Sr. No.3A of the Notification No. 12/2017-CT(R)
dated 28.06.2017 7.
Clarification: The services of facility management such as housekeeping, civil maintenance,
furniture maintenance and horticulture agency for the upkeep of office of MCD are not
supplied in relation to performing any functions entrusted to a Municipality under Article
243W of the Constitution of India. Such services are not covered under the scope of entry
at Sr. No. 3A of the Notification No. 12/2017-CT(R) dated 28.06.2017. Thus, it has been
clarified that GST is applicable on the services provided by facility management agency to

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MCD, Delhi HQ for upkeep of its head quarter building at applicable rates as these services
are not covered under the scope of entry at Sr. No. 3A of the Notification No. 12/2017-
CT(R) dated 28.06.2017.

7
Entry at Sr. No. 3A of Notification No. 12/2017-CT(R) dated 28.06.2017 provides
exemption to composite supply of goods and services in which the value of supply of
goods constitutes not more than 25% of the value of the said composite supply provided
to the Government or local authority by way of any activity in relation to any function
entrusted to a Panchayat under Article 243G of the Constitution of India or in relation
to any function entrusted to a Municipality under Article 243W of the Constitution of
India.
[Circular No. 245/02/2025-GST dated 28.01.2025]

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CHAPTER-8 INPUT TAX CREDIT

1. Clarification on availability of input tax credit as per clause (b) of section 16(2) of the
CGST Act, 2017 in respect of goods which have been delivered by the supplier at his
place of business under Ex-Works Contract
In automobile sector, the contract between the automobile dealers and the Original
Equipment Manufacturers (OEMs) is generally an Ex-Works (EXW) contract, and as per the
terms of the contract, the property in goods (i.e. vehicles) passes to the dealer at the
factory gate of the OEM, when the goods are handed over to the transporter at the
instance of the dealer, and the delivery on the part of the OEM is complete at his factory
gate.

Delivery of
Goods under
Ex Works
Contract
Original Equipment
Automobile
Manufacturer
Dealer
[OEM]

The transport may be arranged by the OEM on behalf of the dealer and where insurance
is arranged, it may also be done on behalf of the dealer. Any claim in case of loss has to
be lodged by the dealer.
Issue: Issue which arose for consideration was whether ITC can be availed by the
dealer only after the vehicles are physically received by automobile dealers at his
business premises or ITC can be availed on the date the vehicles are billed to him and
handed over to the transporter by the OEM at his factory gate.
Clarification
In such a scenario, the property in the said goods can be considered to have been passed
on to the dealer by the OEM upon handing over of the said goods to the transporter at
his factory gate, meaning thereby that the goods can be considered to have been
delivered to the registered person (the dealer), through the transporter, by the
supplier (the OEM) at his factory gate and the supply of the said goods can be
considered to have fructified at the factory gate of the OEM, even though the goods
may be physically received by the registered person (the dealer) after the transit
period.

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Accordingly, it is clarified that as per

Explanation to clause (b) of section 16(2) of
CGST Act8, the registered person (the ITC can be availed on the
dealer) can be considered to have date the vehicles are billed
“received” the said goods at the time of and handed over to the
such handing over of the goods by the transporter by the OEM at
supplier to the transporter, at his factory his factory gate
gate, for their onward transmission to the
said registered person (the dealer).

The same principle is applicable in respect of supply of other goods also where
the contract between the supplier and recipient is an EXW contract, and as per
terms of the contract, the goods are to be delivered by the supplier to the recipient,
or to any other person (including a transporter) on behalf of the recipient, at his
(supplier’s) place of business and the property in the goods stands transferred to
the recipient at the time of such handing over. In such cases, the said goods can be
construed to have been “received” by the said recipient at the time of handing over
the said goods to the recipient or to the transporter, as the case may be, as per
provisions of clause (b) of section 16(2) of CGST Act.

8
Section 16(2)(b)- Notwithstanding anything contained in this section, no registered
person shall be entitled to the credit of any input tax in respect of any supply of goods
or services or both to him unless,– he has received the goods or services or both.
Explanation.—For the purposes of this clause, it shall be deemed that the registered
person has received the goods or, as the case may be, services– (i) where the goods are
delivered by the supplier to a recipient or any other person on the direction of such
registered person, whether acting as an agent or otherwise, before or during movement
of goods, either by way of transfer of documents of title to goods or otherwise; (ii)
where the services are provided by the supplier to any person on the direction of and on
account of such registered person.

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It is also mentioned that as per provisions of section 16(1) of the CGST Act9, a
registered person is entitled to ITC only in respect of supply of goods and/or services,
which is used or intended to be used in the course or furtherance of business. Thus, if
the goods are found to have been diverted for non- business purposes at any
stage, either before physically receiving the said goods at his business
premises
or subsequently, the registered person
shall not be entitled to ITC on such goods
in terms of section 16(1) of CGST Act. NO ITC
Further, if at any time after “receiving”
-Goods used for non- business
the goods, such goods are lost, stolen,
purpose
destroyed, written off or disposed of by
way of gift or free samples, the - Goods are lost, stolen,
registered person would not be entitled to destroyed, written off or
the ITC in respect of such goods as per disposed of by way of gift
provisions of clause (h) of section 17(5) of or free samples
CGST Act10.

[Circular No. 241/35/2024 GST dated 31.12.2024]

9
Section 16(1) - Every registered person shall, subject to such conditions and
restrictions as may be prescribed and in the manner specified in section 49, be entitled
to take credit of input tax charged on any supply of goods or services or both to him
which are used or intended to be used in the course or furtherance of his business and
the said amount
shall be credited to the electronic credit ledger of such person. 10 Section 17(5)(h)-
Notwithstanding anything contained in sub-section (1) of section 16 and sub- section (1)
of section 18, input tax credit shall not be available in respect of the following, namely:—
goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples;
and

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CHAPTER-10 TAX INVOICE; CREDIT AND DEBIT NOTES

1. Time limit for issuing tax invoice specified in cases where recipient is required to issue
invoice [Rule 47A inserted]
Rule 47A has been inserted vide CGST (Second) Amendment Rules, 2024 issued vide
Notification No. 20/2024 CT dated 8th October, 2024 with effect from 01.11.2024.
Erstwhile section 31(3)(f) provides that a registered person who is liable to pay tax under
sub-section (3) or sub-section (4) of section 9 shall issue an invoice in respect of goods or
services or both received by him from the supplier who is not registered on the date of
receipt of goods or services or both;
However, section 31(3)(f) was amended vide the Finance (No. 2) Act, 2024 with effect
from 01.11.2024 so as to incorporate an enabling provision for prescribing the time period
for issuance of invoice by the recipient in case of reverse charge mechanism supplies. This
amendment was not applicable for May, 2025 examinations, but are applicable for
September, 2025 and January, 2026 examinations.
Amended section 31(3)(f) provides as follows:
Notwithstanding anything contained in sub-sections (1) and (2)—
(f) a registered person who is liable to pay tax under sub-section (3) or
sub-section (4) of section 9 shall within the period as may be prescribed issue an invoice
in respect of goods or services or both received by him from the supplier who is not
registered on the date of receipt of goods or services or both;
Thus, invoice to be issued by recipient within the prescribed time if he is liable to pay
tax under section 9(3)/(4) and receives supplies from an unregistered person
Consequently, the time limit for issuing tax invoice in case of reverse charge mechanism
supplies has been prescribed in newly inserted rule 47A simultaneously with effect from
01.11.2024.
Newly inserted rule 47A provides as follows:
Rule 47A provides that where an invoice referred to in rule 46 is required
to be issued under clause (f) of sub-section
Invoice to be
(3)11 of section 31 by a registered person,
issued within a
who is liable to pay tax under subsection (3)
period of 30days
or sub-section (4)12 of section 9, he shall from the date of
issue the said invoice within a period of 30 receipt of the
days from the date of receipt said supply
of the said supply of goods and/or services,
as the case may be.

11
Section 9(3)-The recipient is liable to pay tax on reverse charge basis where he receives supply of such
goods/services/both which are notified for reverse charge purposes under section 9(3). Such supplies can be
received from a registered or an unregistered supplier.
12
Section 9(4) A builder/promoter is required to pay GST on reverse charge basis under section 9(4) in one or
more of the following cases:
(i) A builder/promoter must purchase 80% of inputs and input services used in supplying the service from
registered [Link] case of shortfall, he’s required to pay tax under reverse charge on all such inward
supplies (to the extent short of 80% of the inward supplies from registered supplier).
(ii) Where cement is received from an unregistered person, promoter/builder has to pay tax on supply of such
cement on reverse charge basis and
(iii) GST on capital goods purchased from unregistered person is payable by the promoter on reverse charge basis.
Thus, invoice to be issued within a period of 30 days from the date of receipt of the said supply of goods
and/or services, as the case may be.
[Notification No. 20/2024 CT dated 08.10.2024
[Effective from 01.11.2024]]

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CHAPTER-12 E-WAY BILL

1. Generation of unique enrolment number [Rule 138(3) amended] Fourth proviso had been
inserted in Rule 138(3) vide CGST Amendment Rules, 2024 dated 10th July, 2024 with
effect from a date to be notified. The same has become effective vide Notification No.
09/2025 CT dated 11.02.2025 with effect from 11.02.2025.
The newly inserted fourth proviso to rule 138(3) provides as follows:
Following persons required to generate the e-
way bill shall submit the details
electronically on the common portal in
prescribed form and, upon validation of the
details so furnished, a unique enrolment
number shall be generated and communicated
to the said person:-
(i) An unregistered person making inter-
State transport of handicraft goods
exempted from obtaining compulsory
registration and required to generate e-
way bill irrespective of the value of the
consignment.

(ii) An unregistered person opting to

generate e-way bill
[Notification No. 09/2025 CT dated 11.02.2025]
[Effective from 11.02.2025]

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CHAPTER-13 PAYMENT OF TAX

1. Reference of section 74A added in rule 88B prescribing manner of calculating interest
on delayed payment of tax
Since new section 74A13 has been incorporated by the Finance (No.2) Act, 2024 in the
CGST Act, 2017 with effect from 01.11.2024, so as to provide for determination of tax not
paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised
for any reason pertaining to the Financial Year 2024-25 onwards. Newly introduced
section 74A provides for the same limitation period for issuing demand notices and orders
in respect of demands from the Financial Year 2024-25 onwards, irrespective of whether
the charges of fraud, wilful misstatement, or suppression of facts are invoked or not, while
keeping a higher penalty, for cases involving fraud, wilful misstatement, or suppression of
facts. Consequently, reference of section 74A has also been added in rule 88B(1). Rule 88B
provides the manner of calculating interest on delayed payment of tax.
Amended rule 88B(1) provides as follows:
In case, where the supplies made during a tax period are declared by the registered person
in the return for the said period and the said return is furnished after the due date in
accordance with provisions of section 39, except where such return is furnished after
commencement of any proceedings under section 73 or section 74 or section 74A in
respect of the said period, the interest on tax payable in respect of such supplies shall be
calculated on the portion of tax which is paid by debiting the electronic cash ledger, for
the period of delay in filing the said return beyond

13
It may be noted that section 74A shall be discussed in detail at the Final level.
the due date, at such rate as may be notified under sub-section (1) of section 50. Provided
that where any amount has been credited in the Electronic Cash Ledger as per provisions of
sub-section (1) of section 49 on or before the due date of filing the said return, but is
debited from the said ledger for payment of tax while filing the said return after the due
date, the said amount shall not be taken into consideration while calculating such interest if
the said amount is lying in the said ledger from the due date till the date of its debit at the
time of filing return.
[Effective from 01.11.2024]
[Notification No. 20/2024 CT dated 08.10.2024]

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CHAPTER-15 RETURNS

1. Due date of filing Form GSTR-7 specified in rule 66 [Rule 66(1) amended] Erstwhile
section 39(3) provides that every registered person required to deduct tax at source under
the provisions of section 51 shall furnish a return in prescribed form (Form GSTR-7) and
manner, electronically, for the month in which such deductions have been made within 10
days after the end of such month.
However, section 39(3) was substituted vide the Finance (No. 2) Act, 2024 with effect
from 01.11.2024 so as to mandate the electronic furnishing of return for each month by the
registered person required to deduct tax at source, irrespective of whether any deduction
has been made in the said month or not. It also empowers the Government to prescribe by
rules, the form, manner and the time within which such return shall be filed14.
Therefore, earlier, filing of monthly return in Form GSTR-7 was linked to the calendar
month in which tax has been deducted at source by TDS deductor. However, amended
section 39(3) mandates furnishing of GSTR-7 for each month by the TDS deductor,
irrespective of whether any deduction has been

14
It is important to note that above amendment in section 39(3) was not applicable for May,
2025 examinations, but is effective for September, 2025 and January, 2026 examinations.

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made in the said month or not. Further, new section provides that the time within which
Form GSTR-7 is to be filed shall also be prescribed by rules.
Consequently, simultaneously with effect from 01.11.2024, rule 66(1) has been amended to
prescribe the time within which Form GSTR-7 can be filed.
Amended section 39(3) provides as follows:
Every registered person required to deduct tax at source under section 51 shall
electronically furnish a return for every calendar month of the deductions made during
the month in such form and manner and within such time as may be prescribed.
Provided that the said registered person shall furnish a return for every calendar
month whether or not any deductions have been made during the said month.
Amended rule 66(1) provides as follows:
Every registered person required to deduct tax at source under section 51 shall furnish a
return in Form GSTR-7 on or before the tenth day of the month succeeding the
calendar month, electronically through the common portal either directly or from a
Facilitation Centre notified by the Commissioner.
[Effective from 01.11.2024]
[Notification No. 20/2024 CT dated 08.10.2024]

2. Reference of section 74A added in rule 88D prescribing manner of dealing with
difference in ITC available in Form GSTR-2B and Form GSTR-3B
Since new section 74A15 has been incorporated by the Finance (No.2) Act, 2024 in the CGST
Act, 2017 with effect from 01.11.2024, so as to provide for determination of tax not paid or
short paid or erroneously refunded or input tax credit wrongly availed or utilised for any
reason pertaining to the Financial Year 2024-25 onwards. Newly introduced section 74A
provides for the same limitation period for issuing demand notices and orders in respect of
demands from the Financial Year 2024-25 onwards, irrespective of whether the charges of
fraud, wilful misstatement, or suppression of facts are invoked or not, while keeping a higher
penalty, for cases involving fraud, wilful misstatement, or suppression of facts.
Consequently, reference of section 74A has also been added in rule 88D(3).

15
It may be noted that section 74A shall be discussed in detail at the Final level.

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Rule 88D provides the mechanism which allows system-based intimation to the taxpayer
about the excess availment of lTC in Form GSTR-3B vis-a-vis that reported in Form
GSTR-2B, above a particular threshold and with provision for self-compliance on the
portal by the said taxpayer.
Amended rule 88D(3) provides as follows:
Where any amount specified in the intimation referred to in sub-rule (1) remains to be
paid within the period specified in the said sub-rule and where no explanation or reason
is furnished by the registered person in default or where the explanation or reason
furnished by such person is not found to be acceptable by the proper officer, the said
amount shall be liable to be demanded in accordance with the provisions of section 73 or
section 74 or section 74A, as the case may be.
[Effective from 01.11.2024]
[Notification No. 20/2024 CT dated 08.10.2024]

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