State Tax

## Report on the Delhi Goods and Services Tax Second Amendment Rules, 2021 **1. Executive Summary:** This report analyzes the Delhi Goods and Services Tax Second Amendment Rules, 2021, based on the official notification provided. This amendment, effective from April 27, 2021, modifies the Delhi Goods and Services Tax Rules, 2017. The core purpose of this amendment is to allow certain registered persons, specifically those registered under the Companies Act, 2013, to verify the filing of returns and outward supplies details using an Electronic Verification Code (EVC) during a specific period. The key finding is that this amendment provides an alternative verification method for a limited time to a defined group of taxpayers. **2. Introduction:** This report aims to provide an informative overview of the Delhi Goods and Services Tax Second Amendment Rules, 2021. The analysis is based solely on the provided government policy text and seeks to clarify the amendment's purpose, key provisions, and potential impact. **3. Policy Overview:** * This document is an amendment to the Delhi Goods and Services Tax Rules, 2017. * **Core Objective(s):** Based on the text, the core objective of *this amendment* is to provide an alternative method of verification (Electronic Verification Code - EVC) for a specific category of registered persons for filing returns and details of outward supplies. **4. Background and Rationale:** This amendment appears to address a need for an alternative verification method for companies registered under the Companies Act, 2013, specifically during the period from April 27, 2021, to May 31, 2021. This suggests that the standard verification methods may have presented challenges for this group of taxpayers during that time, or that facilitating EVC verification was seen as a way to improve filing rates. This amendment aims to provide a temporary solution to facilitate compliance. **5. Key Provisions / Changes:** This document details an amendment, so this section focuses on the changes introduced. * **Specific Part of Original Policy Changed:** The amendment modifies Rule 26, Sub-rule 1 of the Delhi Goods and Services Tax Rules, 2017 by inserting a new proviso after the third proviso. * **New Rule/Provision:** The new proviso states that a registered person registered under the provisions of the Companies Act, 2013, is *also* allowed, during the period from April 27, 2021 to May 31, 2021, 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 Change:** Previously, it is implied that Companies Act registered companies may have been required to use a different or potentially more cumbersome verification method. This amendment provides them the *additional* option of using an EVC for verification. This likely simplified the filing process for this specific group during the specified period. **6. Target Audience and Stakeholders:** The direct target audience and stakeholders are: * Registered persons who are also registered under the provisions of the Companies Act, 2013. * The National Capital Territory of Delhi's tax administration. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Finance Department of the Government of the National Capital Territory of Delhi is responsible for implementing the amendment. * **Timelines:** The amendment was effective from April 27, 2021, and the provision allowing EVC verification was applicable until May 31, 2021. * Companies registered under the Companies Act, 2013, were required to utilise the EVC verification option for GSTR 1 and GSTR 3B filings between April 27, 2021, and May 31, 2021, if they chose to adopt this alternate verification mechanism. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this amendment is to: * Simplify the process of filing returns (FORM GSTR3B) and outward supplies details (FORM GSTR1) for companies registered under the Companies Act, 2013, during the specified period. * Improve compliance rates by providing a more convenient verification method. * Facilitate smoother tax administration by ensuring timely and accurate filing of returns. **9. Conclusion:** The Delhi Goods and Services Tax Second Amendment Rules, 2021, introduces a temporary provision allowing companies registered under the Companies Act, 2013, to use Electronic Verification Code (EVC) for verifying their GSTR-1 and GSTR-3B filings between April 27, 2021, and May 31, 2021. This amendment aimed to simplify the filing process and improve compliance for this specific group of taxpayers. The introduction of the EVC option demonstrates responsiveness to the needs of taxpayers and highlights the government's commitment to streamlining the GST filing process.

Key Entities Referenced