Amendment of Rule 43 - Notification No.14/2022-CT dated 05/07/2022

[Dipen Lathi]

Respected Experts,

Rule 43 of the CGST Rules, 2017 has been amended vide Notification No.14/2022-CT dated 05/07/2022. Accordingly, sub-clause (d) has been added to Explanation 1 in the said rule. While going through the said rule on TMI site, I find that the sub-clause (d) as per the present amendment is added to explanation under Sub-rule 1 of Rule 43.

In my understanding, the amendment is made to Explanation 1 under sub-rule 2 of Rule 43 and not to the explanation under sub-rule 1. As such, adding the new sub-clause (d) to the explanation to sub-rule 1 does not make sense.

However, when read under sub-rule 2, Explanation 1 the new clause makes sense in that the value of duty credit scripts sold would not be considered as an exempt supply for the purpose of Rule 42 and 43.

I request the experts to kindly throw light on this. Is it an inadvertent error on TMI site or is it my misunderstanding? Thank you.

CA Dipen Lathi

AI Summary

Amendment to CGST Rule 43 Excludes Duty Credit Scripts from Exempt Supplies; Clarification on Website Error Provided A discussion on a forum addresses the amendment of Rule 43 of the CGST Rules, 2017, introduced by Notification No.14/2022-CT. The amendment adds sub-clause (d) to Explanation 1, which excludes the value of duty credit scripts from being considered as exempt supplies under Rules 42 and 43. A participant questioned whether the amendment was incorrectly placed under sub-rule 1 on a website. Another respondent clarified that the amendment applies to the entire Rule 43, not specifically to sub-rules 1 or 2. The error on the website was acknowledged and reportedly corrected.