The Central Board of Indirect Taxes and Customs (CBIC) on October 8, 2024, via GST Notification No. 20/2024 – Central Tax, introduced Rule 47A into the Central Goods and Services Tax (CGST) Rules, 2017.
The very revision will come into force from 1st November 2024 and obligates a strict duration to issue the tax invoices for the recipients who are obligated to file the taxes as the Reverse Charge Mechanism (RCM) for supplies received from unregistered persons.
As per the updated rule, the recipients are needed to furnish the tax invoices within 30 days from the receipt date of the goods or services. The rule has the motive to ensure timely compliance with Section 31(3)(f) of the CGST Act and facilitate tax administration via lessening delays in invoicing.
Not following the 30-day timeframe may lead to interest charges and penalties, highlighting the importance of compliance for businesses.
To improve efficiency in the taxation system, bolster accountability, and encourage prompt tax collections the same new provision has been made.
For businesses obtaining supplies from unregistered individuals, it is significant to adjust the process of GST invoicing to complete this deadline and prevent fines.
This measure is witnessed as a part of the efforts of the government to ease the tax processes and improve the effectiveness of tax enforcement under the Goods and Services Tax (GST) regime.
