RECENT DEVELOPMENTS IN GST

[Dr. Sanjiv Agarwal]

As GST enters into 7^th year of its existence in India next week from 1^st July, 2024, it is expected from the GST Council, MoF and all concerned that it is high time (6 years of GST completed) that disputes should be addressed and settled, besides bringing the redressal system (Appellate Tribunal) in place at the earliest. Government can even think of an one-time amnesty scheme to reduce litigation from the beginning itself. GSTAT should not be burdened from day one with compliance related disputes.

According to a survey done by Deloitte, more than 80% of the MSME’s give credit to GST for reduction in costs. It hints at positive impact on all sizes of MSME’s.

GST Council is likely to have its 50^th meeting on 11 July, 2023 wherein two items on top agenda may be setting up of GST Appellate Tribunals as well as taxation of online games / winnings. It is understood that state Governments have been asked to amend the GST law by October, 2023. GST Tribunals may see the light of the day by year-end or early 2024. It may also review CBIC’s plans for additional validations in return filing to check tax evasion.

Central Government has once again extended the due dates for filing GST returns, viz, GSTR-1, GSTR-3B and GSTR-7 for April and May 2023 in the State of Manipur till 30^th June, 2023. It was earlier extended upto 31^st May, 2023. Notification Nos. 14 to 16/2023-CT, all dated 19.06.2023 have been issued to this effect. CBIC also issued new instructions to stipulate new registration guidelines.

GST department has so far detected around 11000 fake entities in its ongoing fake registration drive. Overall, it has identified over 60000 such cases. CBIC will also undertake 50000 new cases in financial year 2023-24 for audit, based on risk parameters.

Due date for Form GSTR-1 further extended for Manipur State

• CBIC for notified the extension of due date for furnishing Form GSTR-1 (Details of outward supplies of goods or services)  for April and May, 2023 for all the registered persons whose principal place of business is in State of Manipur.
• The date has now been extended till the 30^th June, 2023.
• Thus, those registered taxpayers in State of Manipur who are required to file return under section 39(1) of CGST Act, 2017 can now file return in Form GSTR-1 for April and May, 2023 till 30^th June, 2023.
• For this purpose, Notification No. 83/2020-CT dated 10.11.2020 has been amended by inserting a new proviso to the effect that the time limit for furnishing the details of outward supplies in FORM GSTR-1 of the said rules for the tax period April and May, 2023, for the registered persons required to furnish return under section 39 (1) of the said Act whose principal place of business is in the State of Manipur, shall be extended till the 30^th June, 2023.
• This Notification shall be deemed to come into force w.e.f. 31.05.2023.

(Source: Notification No. 14/2023-Central Tax dated 19.06.2023)

Due date for Form –GSTR 3B further extended for Manipur State           

• CBIC for notified the extension of due date for furnishing Form GSTR-3B for April and May, 2023 for all the registered persons whose principal place of business is in State of Manipur.
• The date has further been extended till the 30^th June, 2023
• Thus, those registered taxpayers in State of Manipur who are required to file return under section 39(1) of CGST Act, 2017 can now file return in Form GSTR-3B for April and May, 2023 till 30^th June, 2023.
• This Notification shall be deemed to come into force w.e.f. 31.05.2023.

(Source: Notification No. 15/2023-Central Tax dated 19.06.2023)

Due date for Form GSTR-7 further extended for Manipur State           

• CBIC for notified the extension of due date for furnishing Form GSTR-7 (Return for tax deducted at source) for April and May, 2023 for all the registered persons whose principal place of business is in State of Manipur.
• The date has now been extended till the 30 June, 2023.
• Thus, those registered taxpayers in State of Manipur who are required to file return under section 39(3) of CGST Act, 2017 can file return in Form GSTR-7 for April & May, 2023 till 30^th June, 2023.
• For this purpose, Notification No. 26/2019-CT dated 28.06.2019 has been amended by inserting a new proviso to the effect that the return by a registered person, required to deduct tax at source under the provisions of section 51 of the said Act in FORM GSTR-7 of the Central Goods and Services Tax Rules, 2017 under section 39(3) of the said Act read with rule 66 of the Central Goods and Services Tax Rules, 2017, for the month of April and May, 2023, whose principal place of business is in the State of Manipur, shall be furnished electronically through the common portal, on or before the 30^th  June, 2023.
• This Notification shall be deemed to come into force w.e.f. 30.05.2023.

 (Source: Notification No. 16/2023-Central Tax dated 19.06.2023)

New Guidelines for GST Registration

• CBIC has issued guidelines for processing of applications for registration under GST law to check menace of fake registrations and issuance of bogus invoices for passing of fake ITC.
• These guidelines are aimed at strengthening the process of verification of applications for registration at the end of tax officers in a uniform manner.
• Accordingly, immediately on receipt of the application for the registration in the Task List of the concerned officer on ACES-GST application, the officer shall initiate the process of scrutiny and verification of the details filled by the applicant and the documents uploaded by the applicant.
• To the extent possible, the authenticity of the documents furnished as proof of address will be cross-verified from the publicly available sources, such as websites of the concerned authorities such as land registry, electricity distribution companies, municipalities, and local bodies, etc.
• Proper officer shall check the risk rating made available by the DGARM in respect of the concerned ARN and take the same into consideration while verifying and processing the said application.
• Where the application is found to be deficient, he shall issue a notice to the applicant electronically in FORM GST REG-03 within the prescribed time limit.
• It will be ensured by the proper officer that the application is either rejected or accepted or relevant query is raised within the prescribed time limit and no application for grant of registration is approved on deemed basis for want of timely action on the part of tax officers.
• The concerned Commissionerate may get such physical verification of the place of business got conducted in other cases also, where ever required, based inter alia on various risk parameters and risk ratings as per tools available in ADVAIT/ BIFA or as per reports provided by DGARM, so as to verify authenticity of such registrations.

(Source: CBIC Instruction No. 03/2023-GST dated 14.06.2023)

GSTN Advisory on e-invoicing

• GSTN has issued an advisory / update on enablement status for taxpayers for –e-invoicing.
• As per Notification No. 10/2023 - Central Tax dated 10th May 2023, the threshold for e-Invoicing for B2B transactions has been lowered from 10 crores to 5 crores. This change will be applicable from 1st August 2023.
• Accordingly, GSTN has enabled all eligible taxpayers with an Aggregate Annual Turnover (AATO) of Rs. 5 crores and above as per GSTN records in any preceding financial year for e-Invoicing. These taxpayers are now enabled on all six IRP portals including NIC-IRP for e-Invoice reporting.
• While the listing of enabled GSTINs is purely based on the turnover criteria reported in GSTR-3B, it is essential for taxpayers to confirm whether they fulfil the conditions outlined in the notification/rules. Thus, it is the legal responsibility of the concerned taxpayer, both buyers and suppliers, to ensure compliance.
• In case, a taxpayer who is otherwise but not auto enabled on the e-Invoice portal, can self-enable for e-Invoicing using the functionality provided on the portal.
• Enablement status can be checked on the e-Invoice portal at https://einvoice.gst.gov.in

[Source: GSTN Advisory dated 16.06.2023 (www.gst.gov.in)]