MOF in its monthly economic review for March, 2023 has stated that macro stability is likely to help sustain economic growth but financial year 2023-24 growth may be hit by global financial issues. Troubles in financial sector in developed countries is likely to increase risk aversion in financial markets.
In March, 2023, core industries growth rate of eight sectors has dipped to a 5-month low of 3.6%. This is half the rate of February, 2023, i.e. 7.2%. Overall, in financial year 2022-23, core industries output grew @7.6% as against 10.4% in financial year 2022. This could also impact the tax collections in coming months. On the other hand, as per data of S & P Global Market, manufacturing Purchasing Managers Index (PMI) rose to 57.2, a four month high, in April, 2023. Manufacturing contributes to about 15% of gross value added.
The issue of claiming input tax credit by insurance companies has brought action against automobile dealers on allegation of fake invoicing without rendering any services. Tax authorities are also investigating intermediaries involved as educational intermediaries for facilitating admissions of students from India to foreign Universities.
In one of the orders, Calcutta High Court has ruled that recipient of service can also take advance ruling order GST law. The Advance Ruling Authorities in various cases have held that only provider (and not recipient) can seek advance ruling. GSTN has issued advisories on validation of bank account and verification of document identification number on the portal.
Maharashtra State has issued an internal Circular on Amnesty Scheme for revocation of cancellation of GST registration. Though it is an internal Circular, it clarifies various related issues.
April, 2023 has registered a revenue collection (GST) at Rs. 187 lakh crore, which is the highest ever since introduction of GST in July, 2017. GST revenue for April, 2023 are 12 percent higher than April, 2022. Also, this April saw the highest single-day collection of Rs. 68,228 crore through 9.8 lakh transaction on the 20th, the due date for filing the GSTR-3 return Form (which shows actual tax payment after deducting input tax credit or ITC from gross tax liability. Prime Minister commented an this feat stating that “Great news for the Indian economy ! Rising tax collection despite lower tax rates shows the success of how GST has increased integration and compliance”. This indicates economic recovery, better discipline amongst taxpayers and improved compliance.
GSTN Advisory on Bank Account Validation
GSTN has issued an Advisory on functionality for validation of bank account.
- The bank account validation status can be seen under the Dashboard→My Profile→Bank Account Status tab in the FO portal.
- Tax Payers will also receive the bank account status detail on registered email and mobile number immediately after the validation is performed for his declared bank account.
- Whenever, the Tax Payer is shown ‘Failure’ icon with further details such as –
- The entered PAN number is invalid.
- PAN not available in the concerned bank account.
- PAN Registered under GSTIN, and the PAN maintained in the Bank Account are not same.
- IFSC code entered for the bank account details is invalid.
In these cases, the Tax Payer is expected to ensure that he has entered correct bank details and the KYC is completed by bank for his bank account.
- Whenever, the Taxpayer is shown, the status of his bank account as ‘Success With Remark’ icon with details “The account cannot be validated since the bank is not integrated with NPCI for online bank account validation”, the Tax Payer should provide alternate bank account number so that it can be revalidated to expedite further online processes.
- This feature is introduced to ensure that the bank accounts provided by the Taxpayer is correct.
[Source:https://tutorial.gst.gov.in/downloads/news/advisory_on_bank_account_validation_17 april 2023; GSTN Advisory dated 24.04.2023 (www.gst.gov.in)]
Facility to verify Document Reference Number (RFN) on GSTN
- GSTN has introduced a new facility to verify document Reference Number (RFN) mentioned on offline communications issued by State GST Authorities.
- GST portal generates various documents, such as notices/ orders, etc which are communicated to the taxpayer. Most of such documents have a system-generated unique identifier DIN (Document Identification Number)/ RFN (Reference Number).
- Though these are already traceable in the portal, mostly on the taxpayer’s dashboard, still, a facility for taxpayers to verify such documents through such auto-generated RFN will be provided shortly.
- In order to enable the taxpayers to ascertain that an offline communication (i.e. one which is not system-generated) was indeed sent by the State GST tax officer or not, a new facility for Reference Number (RFN) generation by State tax officer and verification by taxpayer has now been provided.
- To verify a Reference Number mentioned on the offline communications sent by State GST officers, taxpayer can navigate to Services > User Services > Verify RFN option and provide the RFN to be verified.
- In case the RFN is of an offline communication generated by the State GST officer, the details with the valid RFN will be displayed.
- This facility is for offline correspondence issued by State GST authorities. For documents issued by Central GST officers, CBIC DIN facility may be used.
[Source: GSTN Advisory dated 28.04.2023 (www.gst.gov.in)]
Clarifications on Amnesty Scheme for Revocation of Cancellation of GST Registration – Maharashtra State
- The amnesty scheme will be applicable to the cases wherein the application for the purpose of revocation of cancellation of registration is being filed during the period from 1st April 2023 to 30th June 2023.
- However, it is limited to where registration which has been cancelled under section 29(2) (b or c) on or before 31st day of December, 2022, and who has failed to apply for revocation of cancellation of such registration within the time period specified in section 30 of the MGST Act, irrespective of the status of such applications.
- Benefit of this special procedure would be applicable to the cases wherein the application for revocation of cancellation of registration is either pending with the proper officer or has already been rejected by the proper officer.
- It would also be available in those cases which are either pending with the appellate authority or rejected by the appellate authority.
- Applicability of special procedure shall be as per following :
- The application for revocation of cancellation of registration has not been filed by the taxpayer - Taxpayer can file an online application for revocation before the proper officer during the period as provided vide the said notification and proper officer shall process such application.
- The application for revocation of cancellation of registration has already been filed and which are pending with the proper officer- In such cases, the proper officer shall process the application for revocation considering the timelines as provided vide the said notification.
- The application for revocation of cancellation of registration was filed, but was rejected by the proper officer and taxpayer has not filed any appeal against the rejection- Taxpayer can file a fresh application for revocation and the proper officer shall process the application for revocation considering the timelines as provided vide the said notification.
- The application for revocation of cancellation of registration was filed, the proper officer rejected the application and appeal against the rejection order is pending before appellate authority- Taxpayer can file fresh application for revocation and the proper officer shall process it. Simultaneously, taxpayer shall withdraw the appeal or appeal officer shall dispose off the appeal.
- The application for revocation of cancellation of registration was filed, the proper officer rejected the application and the appeal has been decided against the taxpayer-Taxpayer may file fresh application for revocation and the officer shall process the application for revocation.
- There is no separate facility for application under the special procedure. The online applications would be received by proper officer as usual.
- Therefore, the revocation applications received on or after 01st April, 2023 and covered under this special procedure shall be processed accordingly.
- The proper officer, before effecting revocation, shall ensure that all the returns due up to the effective date of cancellation of registration are filed, and payment of any amount due as tax, in terms of such returns, along with any amount payable towards interest, penalty and late fee in respect of the said returns is made.
- Proper officer shall also ensure that all returns due are also filed as provided in second and third proviso of rule 23.
(Source: Internal Circular No. 4A/2023 dated 31.03.2023)
GST Collection in April, 2023
- GST revenue collection for April 2023 is the highest ever at Rs 1.87 lakh crore
- The gross GST revenue collected in the month of April, 2023 is Rs. 1,87,035 crore of which CGST is Rs. 38,440 crore , SGST is Rs. 47,412 crore , IGST is Rs. 89,158 crore (including Rs. 34,972 crore collected on import of goods) and cess is Rs. 12,025 crore (including Rs. 901 crore collected on import of goods).
- Gross GST collection in April 2023 is an all time high, Rs 19,495crore more than the next highest collection of Rs. 1,67,540crore, in April, 2022.
- GST revenues for April 2023 are 12% higher than the GST revenues Y-o-Y.
- Highest tax collected on a single day ever at Rs. 68,228 crore through 9. 8 lakh transactions recorded on 20th April, 2023.
- For the first time, gross GST collection has crossed Rs. 1.75 lakh crore mark. Total number of e-way bills generated in the month of March 2023 was 9.0 crore, which is 11% higher than 8.1 crore e-way bills generated in the month of February 2023.
(Source: GST Collection Press Release ID- 1921186 dated 01.05.2023)
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