RECENT DEVELOPMENTS IN GST

[Dr. Sanjiv Agarwal]

On economic front, World Bank has retained economic growth projection of India for FY 2025 @ 6.4%, mainly on account of strong economy demand, enhanced spending on public infrastructure and credit growth. At 6.4%, India may remain world’s fastest growing large economy. For China, growth may be 4.5%, and for US, 1.6% only. PHD Chamber of Commerce has forecasted 7.4% GDP growth for the current fiscal.

In one of the recent event in Gujarat, Prime Minister has expressed that India is bound to be the third largest economy and that’s the guarantee he gives. Today India is the fifth largest economy and is considered as an important pillar of stability and a global growth engine. Similarly, the Finance Minister has said that India’s GDP may hit $ 5 trillion by FY 2028.

E-way bills generated in December 2023 surged to 9.52 crore, second highest monthly figure of E-way bills in GST era so far. This is going to positively impact GST collection in January-February, 2024. In October 2023, it was 10.03 crore.

The National Informatic Centre (NIC) withdrew its Circular related with blocking the generation of e-way bill without e-invoice / IRN. The said notification was to come into effect from March, 1 2024. NIC issued an advisory on HSN codes in E-way bill system CBIC had attended the due dates for GSTR -3B and GSTR 9/9C for specified districts in Tamil Nadu by few days. Now payment of tax through debit cards and credit cards has been allowed.

The Union Budget for the year 2024-25 may not be presented for full year 2024-25 in February, 2024 due to ensuing general elections in the country. Instead there will be vote an account.

GSTR-3B due date extended for Tamil Nadu

• The due date for furnishing the return in Form GSTR-3 for the month of November, 2023 has been extended for specified districts of Tamil Nadu state.
• The new due date shall be 10^th January, 2024.
• This will apply to the registered taxpayers whose principal place of business is located in districts of Tirunelveli, Tenkasi, Kanyakumari, Thoothukudi and Virudhunagar in the state of Tamil Nadu.
• The effective date is 20^th December, 2023.

(Source: Notification No. 1/2024-Central Tax dated 05.01.2024)

Due dates extended for GSTR-9 and GSTR-9C for Tamil Nadu Districts

• CBIC has amended Rule 80 of CGST Rules, 2017 so as to extend the due dates of furnishing the GSTR-9 and GSTR-9C returns for the FY 2022-23 for specified districts of Tamil Nadu.
• For GSTR-9 (Annual Return), due date shall be 10^th January, 2024 [Rule(80 1B)]
• For GSTR-9 (Reconciliation Statement) due date shall be 10^th January, 2024 [Rule(80 3B)].
• Specified districts of state of Tamil Nadu are Chennai, Tiruvallur, Chengalpattu, Kancheepuram, Tirunelveli, Tenkasi, Kanyakumari, Thoothukudi and Virudhunagar.
• This shall come into force on 31^st December, 2023.

(Source: Notification No. 2/2024-Central Tax dated 05.01.2024)

Notification No. 30/2023-Central Tax dated 31.07.2023 rescinded

• CBIC has rescinded Notification No. 30/2023-CT dated 31.07.2023.
• Notification No. 30/2023-CT prescribed special procedure to be followed by a registered person engaged in manufacture of certain goods, i.e., tobacco and related products.
• The recession shall be effective from 1^st January, 2024.
• A new Notification No. 4/2024-CT dated 05.01.2024 has been issued w.e.f. 01.04.2024 for the new special procedure.

 

(Source: Notification No. 3 and 4/2024-Central Tax dated 05.01.2024)

Changes in GST Rate Notification

• CBIC has amended Notification No. 1/2017- Central Tax (Rate) dated 28.06.2017 to amend following entries :

S.No.	Existing old Chapter / Heading / Tariff	Amended Chapter / Heading / Tariff
165	2711         1200 2711         1300 2710         1900	2711          1200 2711          1300 2711          1910
165A	2711         1200 2711         1300 2711         1900	2711          1200 2711           1300      2711           1910

• These pertain to Liquefied Propane and Butane mixture, Liquefied Propane, Liquefied Butane and Liquefied Petroleum Gases (LPG).
• This shall be effective from 4^th January, 2024.

(Source: Notification No. 1/2024-Central Tax (Rate) dated 03.01.2024)

Changes in GSTR-1

• GSTN has introduced new changes in GSTR-1.
• Two new Tables -14 and 15 have been added to GSTR-1.
• Table 14 - Supplies made through E-Commerce Operators (In this table, taxpayers can add details of taxable outward supplies made through e-commerce operator.)
• Table 15 - Supplies under Section 9(5) of the CGST Act [In this table, taxpayers can add details of taxable outward supplies on which the E-Commerce Operator is liable to pay tax under Section 9(5)].
• Till now, GSTR-1 was not having specific tables for reporting these transactions separately. As a result, Table 3.1.1 in GSTR-3B was not auto-filled due to the absence of corresponding reporting sections.
• W.e.f. January 2024, GSTR-1 has introduced Tables 14 and 15 specifically designed for reporting supplies on which E-Commerce Operators are liable to pay tax.
• This modification ensures accurate auto-filling of Table 3.1.1 in GSTR-3B for both, suppliers and e-commerce operators.
• In GSTR – 3B, Table 3.1.1 addresses supplies notified under Section 9(5) of the CGST Act, 2017. This table requires suppliers and E-Commerce Operators (ECOs) to separately report supplies on which the E-commerce Operator is liable to pay tax.
• This will be effective from January, 2024.

(Source: GSTN Portal dated 03.01.2024)

GST payments through cards

• GSTN has enabled GST payments through Credit Cards/Debit Cards on the GST Portal.
• Accordingly, taxpayers will now have the option to make GST payments through Credit Cards and Debit Cards.
• For this, taxpayers should opt for the E-payment option, where they will find a specific section dedicated to Credit/Debit Card payments.
• It is advisable for taxpayers to carefully review the transaction charges associated with each payment method, particularly when selecting Credit Cards, Debit Cards, or Bhim UPI sub-payment modes.
• Charges will be applicable to payments made through credit cards, debit cards, and UPI.

(Source: GSTN Portal dated 05.01.2024)

Advisory on HSN Code –E-way Bill System

• New HSN Codes for E-way Bills shall come into force w.e.f. 1^st February, 2024. An advisory has been issued by National Informatics Centre.
• As per the Notification No. 78/2020-Central Tax, dated 15th October, 2020, it was made necessary to provide at least 6 digit HSN code for all the B2B and Export transactions by the taxpayers whose Annual Aggregate Turnover (AATO) is more than Rs. 5 Crores. The taxpayers, with AATO of  less than Rs. 5 Crores, need to provide at least 4 digit HSN Code.
• This validation will be implemented in E-Way Bill system from 1st February, 2024.
• The taxpayers are advised to make necessary changes in their systems and enter 4/6 digit HSN Codes while generating the E-Way Bills through web and API systems from 1st February, 2024.

(Source: NIC Advisory dated 05.01.2024)