The Telangana Goods and Services Tax Rules, 2017 – Amendment to certain Rules

GOVERNMENT OF TELANGANA
ABSTRACT

The Telangana Goods and Services Tax Rules, 2017 – Amendment to certain Rules
– Notification-Orders - Issued.

Revenue (CT-II) Department
G.O.Ms.No. 108 Dated: 01-06-2018

Read the following :-
1. G.O.Ms No. 121 Revenue (CT-II) Dept, Dt: 30-06-2017.
2. G.O.Ms No. 184 Revenue (CT-II) Dept, Dt: 18-08-2017.
3. G.O.Ms No. 215, Revenue (CT-II) Dept, Dt: 26-09-2017.
4. G.O.Ms No. 229, Revenue (CT-II) Dept, Dt: 09-10-2017.
5. G.O.Ms No. 268, Revenue (CT-II) Dept, Dt: 29-11-2017.
6. G.O.Ms No. 287, Revenue (CT-II) Dept, Dt:18-12-2017.
7. G.O.Ms No. 293, Revenue (CT-II) Dept, Dt:20-12-2017.
8. G.O.Ms No. 18, Revenue (CT-II) Dept, dt:22-01-2018.
9. G.O.Ms No. 20, Revenue (CT-II) Dept, dt:22-01-2018.
10. G.O.Ms No. 39, Revenue (CT-II) Dept, dt:23-02-2018.
11. G.O.Ms No. 67, Revenue (CT-II) Dept, dt:31-03-2018.
12. G.O.Ms No. 79, Revenue (CT-II) Dept, dt: 18-04-2018.
13. GOI, MOF DoR, CBEC, New Delhi, Notification No.21/2018-Central Tax, dt.
18.04.2018.
14. From the Commissioner of State Tax, Telangana, Hyderabad, Lr No.
CST’s Ref No. A(1)/70/2017, Dt. 15-05-2018.

*****
ORDER:-

The appended Notification will be published is an Extra-ordinary issue of
Telangana Gazette dated.01.06.2018.

The Commissioner of Printing, Stationery and Stores purchase (Publication
wing), Telangana, Hyderabad, is requested to supply 100 copies of notification to
this Department and 300 copies to the Commissioner of Commercial Taxes,
Telangana, Hyderabad

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF TELANGANA)
SOMESH KUMAR
PRINCIPAL SECRETARY TO GOVERNMENT

NOTIFICATION

In exercise of the powers conferred by Section 164 of the Telangana Goods
and Services Tax Act, 2017 (Act No.23 of 2017), the State Government hereby
makes the following Rules further to amend the Telangana Goods and Services Tax
Rules, 2017, namely:
(1)These Rules may be called the Telangana Goods and Services Tax (Fourth
Amendment) Rules, 2018.
(2) Save as otherwise provided, they shall deemed to have come into force
with effect from 18th day of April, 2018.
2. In the Telangana Goods and Services Tax Rules, 2017,-
(i) in rule 89, for sub-rule (5), the following shall be substituted, namely:
“(5). In the case of refund on account of inverted duty structure, refund of
input tax credit shall be granted as per the following formula:-
Maximum Refund Amount = {(Turnover of inverted rated supply of goods
and services) x Net ITC ÷ Adjusted Total Turnover} - tax payable on such
inverted rated supply of goods and services.
Explanation:- For the purposes of this sub-rule, the expressions
(a) “Net ITC” shall mean input tax credit availed on inputs during the
relevant period other than the input tax credit availed for which refund is
claimed under sub-rules (4A) or (4B) or both; and
(b) “Adjusted Total turnover” shall have the same meaning as assigned to it
in sub-rule (4).”;
(ii) for rule 97, the following rule shall be substituted, namely:
“97. Consumer Welfare Fund.-(1) All amounts of State Tax and income from
investment along with other monies specified in Section 57 of the Telangana
Goods and Services Tax Act, 2017 (23 of 2017) shall be credited to the Fund:
Provided that an amount equivalent to fifty per cent of the amount
of integrated tax determined under sub-section (5) of section 54 of the
Telangana Goods and Services Tax Act, 2017, read with section 20 of the
Integrated Goods and Services Tax Act, 2017, shall be deposited in the Fund.
(2) Where any amount, having been credited to the Fund, is ordered or
directed to be paid to any claimant by the proper officer, appellate
authority or court, the same shall be paid from the Fund.
(3) Accounts of the Fund maintained by the Government shall be subject to
audit by the Comptroller and Auditor General of India.
(4) The Government shall, by an order, constitute a Standing Committee
(hereinafter referred to as the „Committee‟) with a Chairman, a ViceChairman,
a Member Secretary and such other members as it may deem
fit and the Committee shall make recommendations for proper utilisation
of the money credited to the Fund for welfare of the consumers.
(5) (a) the Committee shall meet as and when necessary, generally four
times in a year;
(b) the Committee shall meet at such time and place as the Chairman,
or in his absence, the Vice-Chairman of the Committee may deem
fit;

(c) the meeting of the Committee shall be presided over by the
Chairman, or in his absence, by the Vice-Chairman;
(d) the meeting of the Committee shall be called, after giving at least
ten days‟ notice in writing to every member;
(e) the notice of the meeting of the Committee shall specify the place,
date and hour of the meeting and shall contain statement of
business to be transacted thereat;
(f) no proceeding of the Committee shall be valid, unless it is presided
over by the Chairman or Vice-Chairman and attended by a minimum
of three other members.
(5)The Committee shall have powers –
(a) to require any applicant to get registered with any authority as the
State Government may specify;
(b) to require any applicant to produce before it, or before a duly
authorized officer of the State Government or the Central
Government, as the case may be, such books, accounts, documents,
instruments, or commodities in custody and control of the applicant,
as may be necessary for proper evaluation of the application;
(c) to require any applicant to allow entry and inspection of any
premises, from which activities claimed to be for the welfare of
consumers are stated to be carried on, to a duly authorised officer of
the State Government or the Central Government, as the case may
be;
(d) to get the accounts of the applicants audited, for ensuring proper
utilisation of the grant;
(e) to require any applicant, in case of any default, or suppression of
material information on his part, to refund in lump-sum along with
accrued interest, the sanctioned grant to the Committee, and to be
subject to prosecution under the Act;
(f) to recover any sum due from any applicant in accordance with the
provisions of the Act;
(g) to require any applicant, or class of applicants to submit a periodical
report, indicating proper utilisation of the grant;
(h) to reject an application placed before it on account of factual
inconsistency, or inaccuracy in material particulars;
(i) to recommend minimum financial assistance, by way of grant to an
applicant, having regard to his financial status, and importance and
utility of the nature of activity under pursuit, after ensuring that the
financial assistance provided shall not be misutilised;
(j) to identify beneficial and safe sectors, where investments out of
Fund may be made, and make recommendations, accordingly;
(k) to relax the conditions required for the period of engagement in
consumer welfare activities of an applicant;
(l) to make guidelines for the management, and administration of the
Fund.
(7) The Committee shall not consider an application, unless it has been
inquired into, in material details and recommended for consideration
accordingly, by the Member Secretary.

(8) The Committee shall make recommendations:-
(a) for making available grants to any applicant;
(b) for investment of the money available in the Fund;
(c) for making available grants (on selective basis) for reimbursing legal
expenses incurred by a complainant, or class of complainants in a
consumer dispute, after its final adjudication;
(d) for making available grants for any other purpose recommended by
the State Consumer Protection Council (as may be considered
appropriate by the Committee);
(e) for making available up to 50% of the funds credited to the Fund
each year, for publicity/ consumer awareness on GST, provided the
availability of funds for consumer welfare activities of the
Department of Consumer Affairs is not less than twenty five crore
rupees per annum.
Explanation.- For the purposes of this rule,
(a) 'applicant' means,
(i) the Central Government or State Government;
(ii) regulatory authorities or autonomous bodies constituted under an
Act of Parliament or the Legislature of a State or Union Territory;
(iii) any agency or organization engaged in consumer welfare
activities for a minimum period of three years, registered under
the Companies Act, 2013 (18 of 2013) or under any other law for
the time being in force;
(iv) village or mandal or samiti or samiti level co-operatives of
consumers especially Women, Scheduled Castes and Scheduled
Tribes;
(iv) an educational or research institution incorporated by an Act of
Parliament or the Legislature of a State or Union Territory in India
or other educational institutions established by an Act of
Parliament or declared to be deemed as a University under
section 3 of the University Grants Commission Act, 1956 (3 of
1956) and which has consumers studies as part of its curriculum
for a minimum period of three years; and
(v) a complainant as defined under clause (b) of sub-section (1) of
section 2 of the Consumer Protection Act, 1986 (68 of 1986), who
applies for reimbursement of legal expenses incurred by him in a
case instituted by him in a consumer dispute redressal agency.
(b) 'application' means an application in the form as specified by the
Standing Committee from time to time;
(c) 'State Consumer Protection Council' means the State Consumer
Protection Council, established under sub-section (1) of section 7 of
the Consumer Protection Act, 1986 (68 of 1986), for promotion and
protection of rights of consumers;
(d) 'Committee' means the Committee constituted under sub-rule (4);

(e) 'consumer' has the same meaning as assigned to it in clause (d) of subsection
(1) of section 2 of the Consumer Protection Act, 1986 (68 of
1986), and includes consumer of goods on which State tax has been
paid;
(f) ‘Fund’ means the Consumer Welfare Fund established by the State
Government section 57 of the Telanagana Goods and Services Tax Act,
2017 (23 of 2017);
(i) 'proper officer' means the officer having the power under the Act to
make an order that the whole or any part of the central tax is
refundable;
(iii) in FORM GST ITC-03, after entry 5 (e), for the instruction against the
expression “**”, the following shall be substituted, namely:-
“** The value of capital goods shall be the invoice value reduced by 1/60th
per month or part thereof from the date of invoice”;
(iv) after FORM GSTR-8, the following FORM shall be inserted, namely;
“FORM GSTR-10
(See rule 81)
Final Return
1. GSTIN
2. Legal name
3. Trade Name, if any
4. Address for future correspondence
5. Effective date of cancellation of registration
(Date of closure of business or the date from
which registration is to be cancelled)
6. Reference number of cancellation order
7. Date of cancellation order
8. Details of inputs held in stock, inputs contained in semi-finished or finished
goods held in stock, and capital goods/plant and machinery on which input tax
credit is required to be reversed and paid back to Government

9. Amount of tax payable and paid (based on Table 8)

10. Interest, late fee payable and paid

11. Verification
I hereby solemnly affirm and declare that the information given hereinabove
is true and correct to the best of my knowledge and belief and nothing has been
concealed therefrom.
Signature of authorized signatory _______________________________________
Name _______________________________________
Designation/Status ____________________________
Date - dd/mm/yyyy
Instructions:
1. This form is not required to be filed by taxpayers or persons who are
registered as:-
(i) Input Service Distributors;
(ii) Persons paying tax under section 10;
(iii) Non-resident taxable person;
(iv) Persons required to deduct tax at source under section 51; and
(v) Persons required to collect tax at source under section 52.
2. Details of stock of inputs, inputs contained in semi-finished or finished
goods and stock of capital goods/plant and machinery on which input tax
credit has been availed.
3. Following points need to be taken care of while providing details of stock
at Sl. No.8:
(i) where the tax invoices related to the inputs held in stock or inputs
contained in semi-finished or finished goods held in stock are not
available, the registered person shall estimate the amount under
sub-rule (3) of rule 44 based on prevailing market price of the
goods;
(ii) in case of capital goods/ plant and machinery, the value should be
the invoice value reduced by 1/60th per month or part thereof from
the date of invoice/purchase taking useful life as five years.
4. The details furnished in accordance with sub-rule (3) of rule 44 in the
Table at Sl. No. 8 (against entry 8 (d)) shall be duly certified by a
practicing chartered accountant or cost accountant. Copy of the certificate
shall be uploaded while filing the details.”;

(v) for FORM GST DRC-07, the following shall be substituted, namely:-
“FORM GST DRC-07
[See rule 142(5)]
Summary of the order
1. Details of order –
(a) Order No. (b) Order date (c) Tax period
2. Issues involved –<< drop down>> classification, valuation, rate of tax,
suppression of turnover, excess ITC claimed, excess refund released,
place of supply, others (specify)