In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act

Okay, I will generate the policy analysis report based on the provided government policy text, adhering to the specified structure and guidelines. **Policy Analysis Report: Central Goods and Services Tax Second Amendment Rules, 2021** **1. Executive Summary:** This report analyzes the Central Goods and Services Tax Second Amendment Rules, 2021, as notified on April 27, 2021. This amendment modifies the Central Goods and Services Tax Rules, 2017, by introducing a new proviso related to furnishing returns and outward supply details. The key change allows registered persons under the Companies Act, 2013, a specific temporary allowance for using electronic verification code (EVC) to verify GSTR-3B and GSTR-1 forms. This report details the specifics of the amendment, its likely rationale, affected parties, and potential impact. **2. Introduction:** The purpose of this report is to provide an informative analysis of the Central Goods and Services Tax Second Amendment Rules, 2021, based solely on the text of the official notification. It aims to clarify the amendment's provisions and its implications for affected stakeholders. **3. Policy Overview:** * **Amendment:** This is an amendment to the Central Goods and Services Tax Rules, 2017. * **Core Objective(s):** The primary objective, as inferred from the text, is to provide a temporary allowance to registered persons under the Companies Act, 2013, to use Electronic Verification Code (EVC) for furnishing returns and outward supply details, within a specified timeframe. **4. Background and Rationale:** * **Amendment Rationale:** The amendment likely addresses a need to provide flexibility or facilitate compliance for companies registered under the Companies Act, 2013. The temporary nature suggests this is related to a specific circumstance or transition period. The allowance of EVC verification implies there might have been a limitation or requirement for other verification methods that proved challenging. **5. Key Provisions / Changes:** * **Specific Part of Original Policy Changed:** The amendment modifies Rule 26 of the Central Goods and Services Tax Rules, 2017, specifically sub-rule 1, by inserting a new proviso after the third proviso. * **New Rule/Provision:** The new proviso states: "Provided also that a registered person registered under the provisions of the Companies Act, 2013 18 of 2013 shall, during the period from the 27th day of April, 2021 to the 31st day of May, 2021, also be allowed to furnish the return under section 39 in FORM GSTR3B and the details of outward supplies under section 37 in FORM GSTR1 or using invoice furnishing facility, verified through electronic verification code EVC." * **Difference/Effect of the Change:** This amendment grants a temporary (April 27, 2021, to May 31, 2021) allowance to companies registered under the Companies Act, 2013, to verify their GSTR-3B and GSTR-1 forms using Electronic Verification Code (EVC). This provides an *additional* verification method (as the word "also" suggests) to those companies for the specified period. **6. Target Audience and Stakeholders:** The direct target audience is registered persons (companies) registered under the Companies Act, 2013. Stakeholders include these companies' accounting and tax departments, tax consultants and advisors, and the Central Board of Indirect Taxes and Customs (CBIC). **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, Ministry of Finance is the responsible body, as indicated by the notification. * **Timelines or Procedures:** The amendment specifies a limited timeframe: April 27, 2021, to May 31, 2021. The procedure involves registered persons using EVC for verification of GSTR-3B and GSTR-1 forms. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this amendment is to ease the compliance burden for companies registered under the Companies Act, 2013, during the specified period. The allowance of EVC verification may facilitate smoother and more efficient filing of returns and outward supply details, possibly due to challenges experienced with other verification methods. **9. Conclusion:** The Central Goods and Services Tax Second Amendment Rules, 2021, provides a temporary allowance for companies registered under the Companies Act, 2013, to use EVC for verifying GSTR-3B and GSTR-1 forms. This change simplifies compliance for this specific group during the limited period, potentially addressing difficulties they may have encountered with other verification methods. The amendment is a targeted measure with a specific timeframe and is primarily relevant to companies registered under the Companies Act, 2013, and their compliance processes.

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