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

Exclusion of Duty Credit Scrips - these scrips are not treated as exempt supplies for GST credit reversal calculations.
Notification No.14/2022 adds clause (d) to Explanation 1 to Rule 43, excluding the value of Duty Credit Scrips from the aggregate value of exempt supplies for purposes of computing input tax credit reversals under Rules 42 and 43; the amendment applies to Explanation 1 generally (not to a specific sub rule), and an initial online misplacement was corrected.