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

## Report on the Delhi Goods and Services Tax Eighth Amendment Rules, 2020 **1. Executive Summary:** This report analyzes the Delhi Goods and Services Tax (DGST) Eighth Amendment Rules, 2020, as notified on July 7, 2021. This amendment introduces a provision allowing registered persons required to furnish Nil returns (GSTR-3B) or Nil details of outward supplies (GSTR-1) to do so via SMS using their registered mobile number and a One Time Password (OTP). This change aims to simplify the filing process for taxpayers with no transactions during a tax period, potentially improving compliance and reducing administrative burden. **2. Introduction:** This report provides an overview of the Delhi Goods and Services Tax Eighth Amendment Rules, 2020, based on the official notification. The purpose is to inform stakeholders about the specific changes introduced by this amendment and their potential impact. **3. Policy Overview:** * **Original Policy:** The amendment modifies the Delhi Goods and Services Tax Rules, 2017. * **Core Objective(s):** The primary objective of the amendment, as inferred from the text, is to simplify the process of filing Nil returns and Nil details of outward supplies for registered taxpayers. This simplification aims to improve ease of compliance and reduce the burden on taxpayers with no transactional activity during a tax period. **4. Background and Rationale:** This amendment likely addresses the need to streamline the return filing process for taxpayers who have no outward supplies or transactions in a given tax period. Filing Nil returns through the standard electronic portal might be perceived as cumbersome for taxpayers with no activity. This amendment aims to alleviate this burden by providing a more convenient SMS-based filing option, thereby potentially encouraging better compliance. **5. Key Provisions / Changes:** This amendment introduces a new rule 67A to the DGST Rules, 2017. * **Specific Part of Original Policy Changed:** The amendment substitutes the existing rule 67A. * **New Rule/Provision:** The new rule 67A allows registered persons who are required to furnish a Nil return under section 39 in FORM GSTR3B or a Nil details of outward supplies under section 37 in FORM GSTR1 for a tax period, to furnish the said return or details of outward supplies through SMS using the registered mobile number. The return or details must be verified using a registered mobile number-based One Time Password (OTP). The text specifically mentions that "any reference to electronic furnishing shall include furnishing of the said return or the details of outward supplies through a short messaging service using the registered mobile number" * **Difference/Effect of the Change:** This change introduces an alternative, simplified method for filing Nil returns and details of outward supplies. Taxpayers who meet the criteria can now avoid logging into the GST portal and instead file via SMS, potentially saving time and effort. **6. Target Audience and Stakeholders:** The direct target audience for this amendment are registered persons under the Delhi Goods and Services Tax Act, 2017 who are required to furnish either a Nil return (GSTR-3B) or Nil details of outward supplies (GSTR-1) for a given tax period. These taxpayers will benefit from the simplified filing process. The Indirect target audience are the policy makers and implementers who will expect a higher rate of compliance and ease of compliance for those that need to file nil returns. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The notification is issued by the Lt. Governor of the National Capital Territory of Delhi on the recommendations of the Council, indicating involvement of both the Delhi government and the GST Council in the amendment process. The Deputy Secretary, Finance Department is responsible for issuing the order. * **Timelines/Procedures:** The amendment came into force on July 1, 2020. The procedure involves registered taxpayers using their registered mobile number to send an SMS to a designated service, which then verifies the submission via an OTP sent to the same mobile number. * **Implementation of Changes:** Taxpayers will need to be informed about the availability of the SMS-based filing option and the specific procedures involved. The relevant authorities will need to ensure the SMS service and OTP verification system are functional and reliable. **8. Expected Outcomes / Impact of Changes:** The primary expected outcome of this amendment is increased compliance in filing Nil returns and Nil details of outward supplies. The simplified SMS-based filing process is expected to reduce the burden on taxpayers, leading to more timely and accurate filings. This could also translate to reduced administrative costs for the government in terms of processing and following up on Nil returns. A potential secondary outcome could be a reduction in congestion on the GST portal. **9. Conclusion:** The Delhi Goods and Services Tax Eighth Amendment Rules, 2020, represents a significant step towards simplifying GST compliance for taxpayers with no transactional activity during a tax period. By introducing an SMS-based filing option for Nil returns and Nil details of outward supplies, the amendment aims to reduce the burden on taxpayers, improve compliance rates, and potentially reduce administrative costs. This amendment is a targeted measure with the potential to make a substantial positive impact on the ease of doing business in Delhi.

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