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GST Rules

Chapter 1: Preliminary

Rule 1 – Short title, extent, and commencement: These rules are called the Central Goods and Services Tax Rules, 2017. They extend to the whole of India and came into force on June 22, 2017.

Chapter 2: Composition Rules (Rules 3 to 7)
  • Rule 3: Conditions and eligibility for opting into the Composition Scheme.
  • Rule 4: Effective date of composition levy.
  • Rule 5: Conditions and restrictions for composition taxpayers.
  • Rule 6: Validity and withdrawal from composition scheme.
  • Rule 7: Tax rates under composition for different categories.
Chapter 3: Registration (Rules 8 to 19)
  • Prescribes the process for registration including application (Form GST REG-01), verification, approval, and issuance of certificate (Form GST REG-06).
  • Rules for amendment, cancellation, and revocation of registration.
Chapter 4: Determination of Value of Supply (Rules 27 to 35)
  • Rules for determining taxable value in cases where consideration is not fully in money, related party transactions, and value of supplies with discounts.
  • Special valuation rules for pure agents, money exchange, and insurer/broker services.
Chapter 5: Input Tax Credit (Rules 36 to 45)
  • Conditions for availing ITC, including documentary requirements.
  • Reversal of ITC for exempt supplies and non-business use.
  • Procedure for distribution of credit by ISD (Input Service Distributor).
Chapter 6: Tax Invoice, Credit and Debit Notes (Rules 46 to 55)
  • Prescribes format and contents of tax invoice.
  • Rules for issue of bill of supply, delivery challan, and credit/debit notes.
Chapter 7: Accounts and Records (Rules 56 to 58)
  • Specifies records to be maintained by registered persons—such as invoices, stock records, and supplier/customer details.
  • Requirements for storage and electronic access to records.
Chapter 8: Returns (Rules 59 to 79)
  • GSTR-1 (outward supplies), GSTR-3B (summary return), GSTR-9 (annual return), etc.
  • Rules for matching of input tax credit, return filing timelines, and revision process.
Chapter 9: Payment of Tax (Rules 85 to 88C)
  • Maintenance of electronic liability register, credit ledger, and cash ledger.
  • Methods of tax payment and interest for delayed payment.
  • New rules like 88C deal with discrepancies in returns and tax demands.
Chapter 10: Refund (Rules 89 to 97A)
  • Procedure for claiming refund of excess tax, ITC, or export refunds using Form GST RFD-01.
  • Special provisions for UIN holders and refund of IGST on exports.
Chapter 11: Inspection, Search and Seizure (Rules 139 to 141)
  • Procedure for inspection and seizure of goods/documents.
  • Provisional release of goods on execution of bond.
Chapter 12: Demand and Recovery (Rules 142 to 161)
  • Issuance of show cause notices and demand orders (DRC forms).
  • Recovery procedures including attachment, sale of goods, and garnishee proceedings.
Chapter 13–15: Advance Ruling, Appeals and Revision (Rules 103 to 109C)
  • Rules for filing applications before AAR/AAAR.
  • Procedures for appeals before Appellate Authority and Tribunal.
Other Chapters and Provisions:
  • Anti-profiteering Rules (Rule 122–137): Procedures for ensuring that GST rate benefits are passed to consumers.
  • E-Way Bill Rules: Separate chapter to govern inter/intra-state transport of goods.

Rule 1: Short title and commencement

This rule states the official name of the rules as the "Integrated Goods and Services Tax Rules, 2017" and specifies the date from which these rules shall be effective. It serves as the preliminary legal basis for the application of these rules.

Rule 2: Application of Central Goods and Services Tax Rules

This rule provides that the provisions of the Central Goods and Services Tax (CGST) Rules, 2017 shall apply *mutatis mutandis* (with necessary modifications) to the IGST Act, unless specifically provided otherwise. This creates uniformity in procedural aspects under both laws.

Rule 3: The proportion of value attributable to different States or Union territories

For transactions involving multiple States/UTs (e.g., a consolidated invoice for services in more than one State), this rule prescribes the manner of determining the proportion of IGST revenue that is to be attributed to each State/UT. This is crucial for accurate revenue sharing between the Centre and States under the destination-based tax structure.

Rule 4: The supply of services attributable to different States or Union territories

This rule applies to situations where a service is supplied from a single location but consumed across multiple States or UTs. It provides guidelines for attributing the place of supply and proportion of value to the respective jurisdictions for correct tax allocation and credit distribution.

Rule 5: The supply of services attributable to different States or Union territories, in the case of ...

This rule is generally interpreted as applying to bundled services or complex contracts where supply occurs across various locations. It provides a framework for apportioning the total value of services across multiple States based on service consumption or contract terms.

Rule 6: In the case of supply of services relating to a leased circuit

This rule deals with the attribution of value of services related to leased circuits (e.g., telecom lines) used in multiple States. It outlines the method for dividing the value between the States where the circuit is installed or used. If such division is not clearly identifiable, an appropriate valuation basis is prescribed by the rule.

Rule 7: In the case of services supplied in respect of goods

This rule covers services that are supplied with respect to goods—such as testing, repair, or maintenance. It provides that the place of supply is determined based on where the goods are located at the time the services are performed, or based on where the services are consumed if multiple States are involved.

Rule 8: In the case of supply of services directly in relation to an immovable property

This rule specifies that when services are supplied in relation to immovable property (such as architectural or interior design services), the supply is deemed to occur at the location of the property. If the property spans multiple States, the rule lays down the manner to apportion value among them proportionate to the property located in each State.

Rule 9: In the case of supply of services by way of admission to, or organisation of a cultural event

This rule addresses the place of supply for services like admission to or organization of cultural, artistic, sporting, educational, or entertainment events. The rule mandates that the location of the event determines the place of supply. If events are held in more than one State, the value of supply is to be distributed based on participation or ticket sales in each State.