RECENT DEVELOPMENTS IN GST

[Dr. Sanjiv Agarwal]

While Union Budget for 2023-24 is to be presented in the Lok Sabha on 01.02.2023, rumors are large that Budget may present yet another tax dispute resolution scheme in direct and indirect taxes. This may have twin benefits of reducing tax disputes or litigation and recovery of arrears of tax demands. The Budget may not contain any major change in GST law but there is expected some announcement on constitution of tax Tribunals which is very much needed with GST in its sixth year now. 

According to Chairman of PM Economic Advisory Council, Indian economy is expected to grow @ 6.5% in FY 2024. However, as per World Bank, India may grow at robust 6.6% in FY 2024 despite global slowdown.

CBIC has empowered Additional Assistant Directors of GST Intelligence or Audit to act as Superintendents for the purpose of GST law. GSTN has made available the functionality of Letter of Undertaking (LUT) for FY 2023-24 on portal. CBIC has already issued Notifications and clarifications Circulars to implement decisions of 48^th GST Council meeting held in December, 2022.

 Authorization to officers as Central Excise Officers

• CBIC has amended Notification No. 14/2017-CT dated 01.07.2017 to authorize following class of officers to exercise the powers as are exercisable by Superintendent of CGST / IGST:

“Additional Assistant Director, Goods and Services Tax Intelligence or Additional Assistant Director, Goods and Services Tax or Additional Assistant Director, Audit”

• This has been done by inserting Entry No. ‘8A’ in the said Notification w.e.f. 04.01.2023.

(Source: Notification No. 01/2023-Central Tax dated 04.02.2023)

GST Registration

• For the purpose of PAN based GST registration, CBIC has tweeted that taxpayers mobile phone number and e-mail is not required.
• Permanent Account Number (PAN) shall be verified through separate OTPs sent to the mobile number and email address linked to the Permanent Account Number (PAN).
• The Amended Part a of Form GST REG-01 shall state that Email id and mobile number of the applicant shall be auto populated from the Income Tax database as linked with the PAN of the applicant.
• Notification No. 26/2022 – Central Tax dated 26.12.2022 already issued by CBIC had notified the Changed in GST Registration Rules to the effect that Mobile Number and Email shall be verified by OTPs.

(Source: CBIC Tweet dated 09.01.2023)

New functionality at GSTN for Letter of Undertaking (LUT)

• GSTN has enabled new functionality to furnish Letter of Undertaking (LUT) for Financial Year 2023-2024 on the GSTN portal.
• The new functionality can be accessed at Dashboard > Services > User Services > Furnish Letter of Undertaking > Select FY & apply.
• This is for the Financial Year 2023-24.

(Source: GST Portal)

Protocol for Roving Squad – Tamilnadu

• Tamil Nadu Government has issued guidelines for booking of offences by Roving Squad Officers under the State GST law and also on levy of penalty of various types under GST laws.
• For this, Circular No. 10/2019 dated 31.05.2019 (as already amended) has been amended
• The penalties have been made situation / circumstances based for which guidelines may be referred. 

(Source: Circular No. IW1/3365394/2022 dated 10.01.2023 issued by Principal Secretary / Commissioner of Commercial Taxes)

Clarification to deal with difference in Input Tax credit – Tamil Nadu

Government of Tamil Nadu, Commercial Taxes Department have issued four circulars, dealing with important issues and doubts of tax payers and officers.

• In Circular 1/2023 – TNGST (PP6/GSTT/156/2022) dated 04-01-2023:  The important issue relating to difference in ITC availed by the tax payer in GSTR-2B against Form 2A. has been clarified. It is for the years 2017-18 and 2018-19.  Detailed guidelines are given to reconciliation of the difference.
• In Circular 2 /2023 – TNGST (PP6/GSTT/156/2022) dated 04-01-2023: It deals with the clarification of placement of ITC in respect of Section 12 (8) of IGST Act 2017.
• In Circular 3/2023 – TNGST (PP6/GSTT/156/2022) dated 04-01-2023: It deals with quantification of turnover or tax etc. under Section 73 (1) and methodology to be adopted by the adjudication officer under Section 73 (10) and proper clarifications have also been issued.
• In Circular 4/2023 – TNGST (PP6/GSTT/156/2022) dated 04-01-2023: It deals with issues such liability of Insurance companies etc.

 (Source: Circular No. 1 to 4/2023-TNGST dated 04.01.2023)