In exercise of the powers conferred by section 164 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017), on the recommendations of the council the Government of Karnataka hereby makes the following rules further to amend the Karnataka Goods and Services Tax Rules, 2017, namely:-

RULES

1. Title and commencement.-

(1) These Rules may be called the Karnataka Goods and Services Tax (Second Amendment) Rules, 2017.

(2) Save as otherwise provided, they shall come into force from the date of their publication in the Official Gazette.

2. Amendment of rule 24.-

In the Karnataka Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), in rule 24, in sub-rule (5), for the words "within a period of thirty days from the appointed day", the words and figures "on or before 30th September, 2017" shall be substituted with effect from 28th June, 2017.

3. Amendment of rule 34.-

For rule 34 of the said rules, the following shall be substituted, namely:-

"34. Rate of exchange of currency, other than Indian rupees, for determination of value.-

(1) The rate of exchange for determination of value of taxable goods shall be the applicable rate of exchange as notified by the Board under section 14 of the Customs Act, 1962 for the date of time of supply of such goods in terms of section 12.

(2) The rate of exchange for determination of value of taxable services shall be the applicable rate of exchange determined as per the generally accepted accounting principles for the date of time of supply of such services in terms of section 13."

4. Amendment of rule 44.-

In rule 44 of the said rules, for sub-rule (2), the following shall be substituted with effect from 1st July, 2017, namely:-

"(2) The amount, as specified in sub-rule (1) shall be determined separately for input tax credit of Central tax, State tax, Union territory tax and Integrated tax."

5. Amendment of rule 46.-

In rule 46 of the said rules, for the third proviso, the following proviso shall be substituted, namely:-

"Provided also that in the case of the export of goods or services, the invoice shall carry an endorsement "SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS ON PAYMENT OF INTEGRATED TAX" or "SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX", as the case may be, and shall, in lieu of the details specified in clause (e), contain the following details, namely,-

(i) name and address of the recipient;

(ii) address of delivery; and

(iii) name of the country of destination."

5. Amendment of rule 61.-

In rule 61 of the said rules, for sub-rule (5), the following sub-rules shall be substituted with effect from 1st July, 2017, namely:-

"(5) Where the time limit for furnishing of details in FORM GSTR-1 under section 37 and in FORM GSTR-2 under section 38 has been extended and the circumstances so warrant, the Commissioner may, by notification, specify that return shall be furnished in FORM GSTR-3B electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner.

(6) Where a return in FORM GSTR-3B has been furnished, after the due date for furnishing of details in

FORM GSTR-2,-

(a) Part A of the return in FORM GSTR-3 shall be electronically generated on the basis of information furnished through FORM GSTR-1, FORM GSTR-2 and based on other liabilities of preceding tax periods and PART B of the said return shall be electronically generated on the basis of the return in FORM GSTR-3B furnished in respect of the tax period;

(b) the registered person shall modify Part B of the return in FORM GSTR-3 based on the discrepancies, if any, between the return in FORM GSTR-3B and the return in FORM GSTR-3 and discharge his tax and other liabilities, if any;

(c) where the amount of input tax credit in FORM GSTR-3 exceeds the amount of input tax credit in terms of FORM GSTR-3B, the additional amount shall be credited to the electronic credit ledger of the registered person."

6. Amendment of rule 83.-

In rule 83 of the said rules, in sub-rule (3), in the second proviso, for the word "sub-section", the word "sub-rule" shall be substituted with effect from 1st July, 2017.

7. Amendment of rule 89.-

In rule 89 of the said rules, in sub-rule (4), in clause (E), for the words and figures "sub-section (112) of section 2", the words and figures "clause(112) of section 2" shall be substituted with effect from 1st July, 2017.

8. Amendment of FORM GST TRAN-1-

In FORM GST TRAN-1, of the said rules, in SI. No. 7, in Table (a), in column(2) for the heading, "HSN (at 6 digit level)" the heading "HSN as applicable" shall be substituted with effect from 1st July, 2017.

9. Amendment of FORM GST TRAN-2.-

In FORM GST TRAN-2, of the said rules, in SI. No. 4 and 5, in the Table, in column (1), for the heading, "HSN (at 6 digit level)" the heading "HSN as applicable" shall be substituted with effect from 1st July, 2017.

By order and in the name of the Governor of Karnataka,

K.S. PADMAVATHI

Under Secretary to Government,

Finance Department (C.T.-1).