## Report on the Delhi Goods and Services Tax First Amendment Rules, 2021
**1. Executive Summary:**
This report analyzes the Delhi Goods and Services Tax (DGST) First Amendment Rules, 2021, based on the official notification. The amendment, effective January 1, 2021, focuses on modifying Rule 59 of the DGST Rules, 2017, by introducing a new sub-rule. This sub-rule restricts registered persons from furnishing details of outward supplies (GSTR-1) if they have not filed their GSTR-3B returns for preceding periods. This change aims to improve compliance and ensure timely filing of GST returns. The primary stakeholders affected are registered taxpayers under the DGST Act.
**2. Introduction:**
This report aims to provide a comprehensive overview of the Delhi Goods and Services Tax (DGST) First Amendment Rules, 2021, based solely on the information presented in the provided government notification. The report outlines the key changes introduced by the amendment and their potential implications for taxpayers in Delhi.
**3. Policy Overview:**
* This document pertains to an **amendment** to the Delhi Goods and Services Tax Rules, 2017.
* **Core Objective(s):** The primary objective, inferred from the text, is to improve compliance with GST return filing requirements and to ensure timely reporting of tax liabilities.
**4. Background and Rationale:**
The amendment addresses potential issues with compliance related to the filing of GSTR-3B returns. By restricting the ability to file outward supply details (GSTR-1) for taxpayers who have not filed their GSTR-3B returns, the amendment incentivizes timely filing of returns and accurate reporting of tax liabilities. The amendment appears to be designed to tackle the issue of delayed or non-filing of GSTR-3B returns by registered persons.
**5. Key Provisions / Changes:**
This amendment focuses on modifying Rule 59 of the Delhi Goods and Services Tax Rules, 2017, by introducing the following sub-rule (referred to as sub-rule 6 in the document):
* **Specific Part of Original Policy Changed:** Rule 59 of the DGST Rules, 2017, is amended by adding a new sub-rule.
* **New Rule/Provision:** The new sub-rule 6 of Rule 59 states that a registered person will not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR1 under the following circumstances:
* **(a)** If they have not furnished the return in FORM GSTR3B for the preceding two months.
* **(b)** If they are required to furnish return for every quarter under the proviso to sub-section 1 of section 39, and have not furnished the return in FORM GSTR3B for the preceding tax period;
* **(c)** If they are restricted from using the amount available in electronic credit ledger to discharge his liability towards tax in excess of ninety-nine per cent. of such tax liability under rule 86B, and have not furnished the return in FORM GSTR3B for preceding tax period.
* **Difference/Effect of the Change:** This amendment directly links the ability to file GSTR-1 to the timely filing of GSTR-3B. This could potentially delay outward supplies reporting and tax payment for non-compliant taxpayers. By enforcing this restriction, the amendment aims to encourage regular filing of GSTR-3B returns.
**6. Target Audience and Stakeholders:**
The direct target audience and stakeholders are:
* Registered persons under the Delhi Goods and Services Tax Act, 2017.
* Specifically, those who have not filed their GSTR-3B returns for the preceding two months (for monthly filers) or the preceding tax period (for quarterly filers).
* Registered persons restricted under rule 86B from using electronic credit ledger.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The notification is issued by the Finance Expenditure Department of the Government of the National Capital Territory of Delhi. The Lieutenant Governor of Delhi approved the amendment on the recommendation of the Council.
* **Timelines/Procedures:** The amendment came into force on January 1, 2021. The amendment establishes a restriction on filing GSTR-1 for those who have not filed GSTR-3B returns.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcome of this amendment is:
* Improved compliance with GST return filing.
* Timely submission of GSTR-3B returns.
* Potentially increased tax revenue due to improved compliance.
* A possible short-term disruption for businesses that are accustomed to filing GSTR-1 before GSTR-3B.
**9. Conclusion:**
The Delhi Goods and Services Tax First Amendment Rules, 2021, aims to improve GST compliance by restricting the filing of GSTR-1 for taxpayers who have not filed GSTR-3B returns for preceding periods. This amendment is a significant step towards ensuring timely tax collection and maintaining the integrity of the GST system in Delhi. It is crucial for registered persons to adhere to the revised rules to avoid disruptions in their ability to report outward supplies.
Key Entities Referenced
Delhi Goods and Services Tax Act, 2017: A tax law enacted in Delhi, India.
National Capital Territory of Delhi: A Union Territory and city in India. Often referred to as Delhi.
Delhi Goods and Services Tax Rules, 2017: Rules pertaining to the Delhi Goods and Services Tax Act, 2017.
Delhi Goods and Services Tax First Amendment Rules, 2021: Amendment to the Delhi Goods and Services Tax Rules, 2017.
Council: The council who's recommendations led to amending the Delhi Goods and Services Tax Rules, 2017
FORM GSTR1: Form for furnishing the details of outward supplies of goods or services
FORM GSTR3B: Form for furnishing the return
Electronic credit ledger: Ledger to discharge liability towards tax.
Ravinder Kumar: Deputy Secretary in Finance department, National Capital Territory of Delhi.
Mayapuri, New Delhi: Location of the Government of India Press.
Delhi: Location of the Controller of Publications.
रजिस्ट्री स.ं डी.एल.- 33002/99 REGD. No. D. L.-33002/99
भारत सर कार
GOVERNMENT OF INDIA
एस.जी.-डी.एलx.x-xअG.I-D2H9x1x1x2 021-231454
SG-DL-Ex-x2xG91ID1E20xx2x1 -231454
असाधारण
EXTRAORDINARY
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 355] दिल्ली, िक्रु वार, नवम्बर 26, 2021/अग्रहायण 5, 1943 [रा.रा.रा.क्ष.ेदि. स.ं 279
No. 355] DELHI, FRIDAY, NOVEMBER 26, 2021/AGRAHAYANA 5, 1943 [N. C. T. D. No. 279
भाग IV
PART IV
राष्ट्रीय रािधानी राज्य क्षत्रे दिल्ली सरकार
GOVERNMENT OF THE NATIONAL CAPITAL TERRITORY OF DELHI
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FINANCE (EXPENDITURE-I) DEPARTMENT
NOTIFICATION
Delhi the 26th November 2021
No. 01/2021– State Tax
No. F.3(131)/Fin.(Exp-I)/2020-21/DS-I/334—In exercise of the powers conferred by section 164 of the
Delhi Goods and Services Tax Act, 2017 (03 of 2017), the Lieutenant Governor of the National Capital Territory of
Delhi, on the recommendations of the Council, hereby makes the following rules further to amend the Delhi Goods
and Services Tax Rules, 2017, namely: -
1. Short title and commencement. - (1) These rules may be called the Delhi Goods and Services Tax (First
Amendment) Rules, 2021.
(2) These rules shall come into force on the 1st day of January, 2021.
2. In the Delhi Goods and Services Tax Rules, 2017 (hereafter in this notification referred to as the said rules), in rule
59, after sub-rule (5), the following sub-rule shall be inserted namely:-
“(6) Notwithstanding anything contained in this rule, -
(a) a registered person shall not be allowed to furnish the details of outward supplies of goods or services or both
under section 37 in FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for preceding
two months;
(b) a registered person, required to furnish return for every quarter under the proviso to sub-section (1) of section
39, shall not be allowed to furnish the details of outward supplies of goods or services or both under section
37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM
GSTR-3B for preceding tax period;[PART IV DELHI GAZETTE : EXTRAORDINARY 3
(c) a registered person, who is restricted from using the amount available in electronic credit ledger to discharge
his liability towards tax in excess of ninety-nine per cent. of such tax liability under rule 86B, shall not be
allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM
GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3B for
preceding tax period.”.
By Order and in the Name of the
Lt. Governor of the National Capital Territory of Delhi,
RAVINDER KUMAR, Dy. Secy. I (Finance)
Note: The principal rules were published in the Gazette of Delhi, Extraordinary, Part IV, vide notification, dated the
22nd June, 2017, published vide No. F.3 (10)/Fin (Rev-I)/2017-18/DS-IV/342, dated the 22nd June, 2017 and was last
amended vide notification No. 94/2020- State Tax, dated the 24th November 2021, published in the Gazette of Delhi,
Extraordinary, Part IV, published vide No. F.3(127)/Fin.(Exp.-I)/2021-22/DS-I/330 dated the 24th November 2021.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.