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TMI BlogRECENT DEVELOPMENTS IN GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... RECENT DEVELOPMENTS IN GST - By: - Dr. Sanjiv Agarwal - Goods and Services Tax - GST - Dated:- 7-6-2024 - According to latest NSO data released on 31 st May 2024, India s FY 2024 growth rate has been 8.2%. It is for the 9 th time since 1961 that GDP growth rate is over 8%. This growth of 8.2% underlines the robust momentum in the economy which may accelerate with the stable government at the centre. The quarter wise growth during FY 2023-24 has been consistent and stable at 8.2%, 8.1%, 8.6% and 7.8% respectively. The growth momentum is likely to continue in current fiscal of 2024-25 as the domestic economic activities remain resilient, upbeat investment and consumption demand, robust corporate performance and likely good monsoon ahead. Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting agencies too have a positive outlook for India. Globally, GDP has grown in only 3 of the major 5 economies, i.e. China (5.3%) and UK (0.2%) in contrast to India. OECD expects that US and China economies may slow down in 2025. India continues to be the fastest growing major economy globally. GST regime shall be completing seven years next month since it came into existence w.e.f. 1 st July, 2027. Things that remained under continuous demand include setting-up of Appellate Tribunals and bringing petroleum products / gas under GST net. Further, GST is now all set for rampant litigation and disputes as the gear now shifts from procedures to adjudication and appeals. GSTN issued an advisory on the special procedure to be followed by manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turers of tobacco / pan masala and on personal hearing choice in GST DRC-01 . CBIC has issued new instructions for initiation of recovery of tax before three months of service of order. NIC has launched a new E-way bill-2 portal w.e.f. 1 st June, 2024 to ensure higher efficiency and will run in parallel to the main e-way bill portal. The gross Goods and Services Tax (GST) revenue for the month of May, 2024 stood at Rs. 1.73 lakh crore. This represents a 10% year-on-year growth, driven by a strong increase in domestic transactions (up 15.3%) and slowing of imports (down 4.3%). After accounting for refunds, the net GST revenue for May 2024 stands at Rs. 1.44 lakh crore, reflecting a growth of 6.9% compared to the same period last year. Change ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Territorial Jurisdiction of Central Tax Officers CBIC has amended Notification No. 02/2017-CT dated 19.06.2017 to amend / substitute territorial jurisdiction of principal Commissioners / Commissioners of Central Tax in respect of following jurisdictions in the State of Rajasthan: Entry No of Notification No. 2/2017 PC / Commissioner Territorial Jurisdiction 7 Alwar Districts of Alwar, Khairthal- Tijara, Bharatpur, Deeg, Dholpur, Dausa, Karauli, Sawaimadhopur, Gangapur City, Sikar, Neem Ka Thana, Jhunjhunu and Kotputli-Behror 49 Jaipur Districts of Jaipur, Jaipur (Rural), Dudu, Ajmer, Beawar, Tonk and Kekri 53 Jodhpur Districts of Jodhpur, Jodhpur (Rural), Phalodi, Nagaur, Didwana-Kuchaman, Pali, Sirohi, Jalore, Sanchore, Barmer, Balotra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Jaisalmer, Bikaner, Churu, Ganganagar, Hanumangarh and Anupgarh 102 Udaipur Districts of Udaipur, Salumbar, Rajsamand, Bhilwara, Shahpura, Chittorgarh, Pratapgarh, Dungarpur, Banswara, Bundi, Baran, Kota and Jhalawar The Notification issued u/s 3 and 5 of the CGST Act, 2017 , and u/s 3 of the IGST Act, 2017 , substitutes jurisdictional powers for specified districts in the state of Rajasthan. This amendment pertains to the jurisdiction of Central Tax Officers and reassigns jurisdiction for districts including Alwar, Jaipur, Jodhpur, and Udaipur in Rajasthan State. This shall come into force w.r.e.f. 5th August, 2023. (Source: Notification No. 10/2024-Central Tax dated 29.05.2024 and Notification No. 11/2024-Central Tax dated 30.05.2024 ) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CBIC Guidelines for Initiation Recovery of Proceedings CBIC has issued guidelines for initiation of recovery proceedings before three months from the date of service of demand order. Section 79(1) of the CGST Act, 2017 provides that where any amount payable by a person to the Government under any of the provisions of CGST Act or Rules made thereunder is not paid, the proper officer shall proceed to recover the amount by one or more of the modes specified. Section 78 of the CGST Act, 2017 provides for the time for initiation of such recovery proceeding. The general rule for initiating recovery proceedings is that, where any amount payable by a taxable person in pursuance of an order passed under the CGST Act is not paid within a period of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ree months from the date of service of such order, recovery proceedings shall be initiated by the proper officer only after the expiry of the said period of three months. Only in exceptional cases, where it is necessary in the interest of revenue, the proper officer may require the said taxable person to pay the said amount within a period less than the period of three months from the date of service of the order, as may be specified by him, after recording the reasons for doing so in writing. The proper officer for recovery under Section 79 of the CGST Act, 2017 is the jurisdictional Deputy or Assistant Commissioner of Central Tax. To ensure uniformity in implementation, the new instructions stipulate that: Proper officer is empowered to i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nitiate recovery before the 3 months period in specific cases only where revenue is at risk after proper justification and approval. Such initiation of recovery must be expedient in the interest of revenue. Where it is felt that recovery need to be initiated in the interest of revenue before completion of three months from the date of service of order, the matter shall be placed by the jurisdictional Deputy or Assistant Commissioner of Central Tax before the jurisdictional Principal Commissioner/ Commissioner of Central Tax, along with the reasons/ justification for such an action. Jurisdictional Principal Commissioner/ Commissioner of Central Tax shall examine the reasons/ justification given by the jurisdictional Deputy or Assistant Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner at the earliest and if he is satisfied that it is expedient in the interest of revenue to ask the said taxable person to pay the said amount before completion of three months from the date of service of the order, he must record in writing, the reasons as to why the concerned taxable person is required to make payment of such amount within such period, less than a period of three months, as may be specified by him. After recording such reasons in writing, he may issue directions to the concerned taxable person to pay the said amount within the period specified by him in the said directions. Copy of such directions must also be sent to the jurisdictional Deputy or Assistant Commissioner of Central Tax for information. Jurisdictional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Principal Commissioner/ Commissioner of Central Tax should provide the specific reason(s) for asking the taxable person for early payment of the said amount, clearly outlining the circumstances prompting such early action. Reasons to believe for the apprehension of risk to revenue should be based on credible evidence, which may be kept on record to the extent possible. The proper officer must duly consider the financial health, status of business operations, infrastructure, and credibility of the taxable person, and strike a balance between the interest of the revenue and ease of doing business. Such directions for early payment of the confirmed demand should not be issued in a mechanical manner, and must be issued only in cases where inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est of revenue is required to be safeguarded due to specific apprehension/ circumstances in the said case. Where the taxable person fails to make payment of the said amount within the period specified in the said directions, the jurisdictional Deputy or Assistant Commissioner of Central Tax shall proceed to recover the said amount as per the procedure specified in section 79(1) of CGST Act, 2017 . (Source: Instruction No. 01/2024-GST dated 30.05.2024) Information from manufacturers of Pan Masala / Tobacco / related products - Special procedure to be followed Government had issued a Notification No. 04/2024 Central Tax dated 05-01-2024 to seek information from taxpayers dealing in the goods mentioned therein. The new Notification No. 4/2024- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CT dated 05.01.2024 is applicable w.e.f. 01.04.2024 for the new special procedure. Two forms were notified vide notification, namely, GST SRM-I and GST SRM-II i.e., the former pertains to registration and disposal of machines while the later pertains to information on inputs and outputs during a month. GSTN portal has now made available facility to register the machines on the GST Portal to file the information in Form GST SRM-I. All taxpayers dealing in these specific items may use the facility to file the information about machines. Form GST SRM-II will also be made available on the portal shortly. (Source: GSTN Advisory dated 16.05.2024 ) Migration of CBIC to GSTN Back Office During the migration process, new registration applications ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e either marked for deemed approval or are assigned to counterpart tax administration. In CBIC s case, it has been chosen that all new registration application during the period 25.05.2024 to 31.05.2024 will be assigned to concerned States. State tax administration is expected to feel surge of applications in fresh registration cases by way of extra registration application coming to them during the said period. These taxpayers will remain assigned to States in future too and hence the preparations needed, if any to handle the extra load may be made at State level. (Source: GSTN F. No. GSTN/PMO/CBIC/2023 dated 22.05.2024 ) Launch of E-way Bill 2 Portal GSTN has issued an advisory on launch of E-way bill 2 portal by National Informatics Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re (NIC) w.e.f. 1st June, 2024. Presently, E-Way Bill 2 Portal provides the critical services of E-Way Bill system, and gradually it will be extended with other services of e-way bill system. E-Way Bills can be generated and updated on the E-Way Bill 2 Portal independently. E-Way Bill 2 portal provides the web and API modes of operations for e-way bill services. The taxpayers and logistic operators can use the E-Way Bill 2 portal with the login credentials of the main portal. The taxpayers and logistic operators can use the E-Way Bill 2 portal during technical glitches in e-way bill main portal or any other exigencies. The Criss-Cross operations of printing and updating of Part-B of E-Way Bills can be carried out on these portals. That is, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... updating of Part-B of the E-Way bills of portal 1 can be done at portal 2 and vice versa. In case E-Way Bill main portal is non-operational because of technical reasons, the Part-B can be updated to the E-Way Bills, generated at Portal 1, at portal 2 and carry both the E-way Bill slips. This portal shall ensure high availability and runs in parallel to the e-way Bill main portal (https://ewaybillgst.gov.in). (Source: GSTN Advisory dated 28.05.2024 ) Personal hearing option in GST-DRC-01 Response GSTN has enabled Personal Hearing choice in GST DRC-01 responses. The GSTN has introduced a new functionality in the GST portal by which taxpayers will be able to opt for a personal hearing in GST DRC-01 Responses by selecting either Yes or No . Hit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herto, this option was not available, and as such, No was the default choice for personal hearings. This new option is an outcome of Madras High Court order In GABRIEL INDIA LIMITED REPRESENTED BY ITS AUTHORISED SIGNATORY MR. RISHI LUHARUKA VERSUS STATE TAX OFFICER OFFICE OF THE JOINT COMMISSIONER (ST) (INTELLIGENCE) GROUP IV, STATE TAX OFFICER OFFICE OF THE JOINT COMMISSIONER (ST) GROUP-II, STATE TAX OFFICER OFFICE OF THE JOINT COMMISSIONER (ST) ADJUDICATION-I, ASSISTANT COMMISSIONER (ST) HOSUR II CIRCLE - 2023 (12) TMI 232 - MADRAS HIGH COURT . (Source: GSTN Advisory dated 04.06.2024) GST collection in May, 2024 Gross GST revenue collection in May, 2024 stood at Rs. 1.73 lakh crore which records a 10% growth on Y-o-Y basis. Rs. 3.83 lakh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crore is gross cumulative GST revenue collection in FY2024-25 (till May, 2024) which records a 11.3% Y-o-Y basis growth. Breakdown of May 2024 collections: Central Goods and Services Tax (CGST): Rs. 32,409 crore; State Goods and Services Tax (SGST): Rs. 40,265 crore; Integrated Goods and Services Tax (IGST): Rs. 87,781 crore, including Rs. 39,879 crore collected on imported goods; Cess: Rs. 12,284 crore, including Rs. 1,076 crore collected on imported goods. The leading states in terms of growth on YoY basis in GST collection are Delhi, Punjab, Uttarakhand and Haryana. The laggards are Himachal Pradesh, Mizoram, Assam, West Bengal, Madhya Pradesh and Tamil Nadu. The states which have recorded a negative growth on YoY basis include Chandigar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h, Arunachal Pradesh, Nagaland, Meghalaya, Lakshadweep and Ladakh (Source: PIB Release ID 2022459 dated 01.06.2024 ) - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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