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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 X X X X Extracts X X X X X X X X Extracts X X X X ..... cond phase of current Budget session of Parliament has begun on 10 March, 2025 and the Finance Bill, 2025 is likely to be passed later in the month. Central Government has appointed Mr. Tuhin Mehta as new SEBI Chairman for a period of three years. He was recently only appointed as Union Finance Secretary on then Secretary, Mr. Sanjay Malhotra sent to RBI as its new Governor. With this, two former Finance Secretaries now head two most crucial regulatory bodies-Banking and Capital markets. Mr. Mehta was made Finance Secretary only few days ahead of Union Budget, 2025. Mr. Ajay Seth has been assigned additional charge of Revenue Secretary. In February 2025, gross GST collections rose by 9.1 per cent to Rs 1.83 lakh crore. Gross Goods and Ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices Tax (GST) revenue includes a 10.2 per cent rise in domestic revenues at Rs 1.42 lakh crore and 5.4 per cent rise in revenues from imports to Rs 41,702 crore. During the month, mop up from Central GST stood at Rs 35,204 crore, State GST at Rs 43,704 crore, Integrated GST at Rs 90,870 crore and compensation cess of Rs 13,868 crore. GST Council is working on GST rate rationalization and given the robust revenue collections, we can expect some rate changes including reduction of tax slabs. It may be approved in the next meeting in April, 2025. The GST collections have shown a steady growth in recent months. The e-way bills generation has also been growing with more than 11.15 crore e-way bills in last three months. This may also favorabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of impact March tax revenue. The Central Goods and Services Tax (CGST) authorities have detected tax evasion cases worth Rs 1.95 trillion in the first ten months (April-January) of the current fiscal year. The number of GST evasion cases detected during this period stood at 25,397. Notably, taxpayers voluntarily deposited Rs 21,520 crore in these cases, indicating ongoing efforts to curb fraudulent activities. How things move in our country in conviction was recently revealed by way of an answer to Parliament question where Parliament was informed by MoF that only two out of 193 cases registered by the Enforcement Directorate (ED) could be convicted in last 10 years. These two cases were also done way back in 2016-17 and 2019-20. In 202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2-23, about 32 cases were registered by ED. The total number of input tax credit (ITC) fraud cases and amount detected in the first 10 months of FY25 exceeds the full year number of last fiscal by 41 per cent and 28 per cent, respectively. Data sourced from the GST Intelligence Wing for a written response in the Lok Sabha showed that over 13,000 ITC fraud cases came to light during April-January period of the current fiscal year. Supreme Court has in its latest judgment dated 27.02.2025 in Radhika Agarwal v. Union of India has emphasized the importance of 'reasons to believe' and 'grounds of arrest' and reiterated safeguard measures to avoid harassment of arrested person / taxpayer. It has also held that provisions of Code of Criminal Pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cedure (CrPC) would also apply to search / seizure / arrest under the Customs Act, 1962 and GST laws of 2017. Directors allowed to opt for Biometric Authentication * GSTN has issued an Advisory providing enhancements in Biometric functionality for allowing Directors to opt for Biometric Authentication in their Home State. * Presently, applicants selected for Biometric Authentication must visit the designated GST Suvidha Kendra (GSK) mapped to their jurisdiction. * GSTN has now introduced an additional facility allowing certain Promoters/Directors to complete their Biometric Authentication at any GSK in their Home State. * This facility applies to individuals listed in the Promoter/Partner tab for these types of businesses, i.e., Pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blic Limited Company, Private Limited Company, Unlimited Company, and Foreign Company. * Under this enhancement, such Promoters/Directors can now choose any available GSK within their Home State in India (as per REG-01) for Biometric Authentication. * This facility is currently available in 33 States/UTs where Biometric Authentication has been enabled. It will soon be extended to the remaining three states: Uttar Pradesh, Assam, and Sikkim. Such Promoters/Directors whose Home State is other than Uttar Pradesh, Assam, or Sikkim can opt for any GSK in their Home State. * Opting for Biometric Authentication at a GSK in the home state is not mandatory. Promoters/Directors can visit their designated jurisdictional GSK, if preferred. For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details, GSTN portal may be visited. (Source: GSTN Advisory dated 03.03.2025) Virtual Hearing Guidelines - Rajasthan State * Rajasthan State has announced virtual hearing under the GST law (RGST Act, 2017 / CGST Act, 2017), based on recent State Budget of 2025-26. * The Budget 2025-26 announced the availability of video conferencing facilities for hearings in all taxation-related matters, including GST, VAT, MV Act, Stamps Act, etc. Additionally, it is proposed to provide document submission and verification facilities at the district level through Facilitation Desks for actions taken at the headquarters level. * It has been provided that all hearings shall mandatorily be carried out in virtual mode and no person shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required to appear in person for personal hearing except with the prior permission of the concerned Additional Commissioner in cases where the taxpayer or his authorized representative has requested in writing for an in-person personal hearing. * The Virtual hearing shall be held from the office of the Proper Officer through the pre-intimated application and link provided for the same. The taxpayer or his authorized representative shall be required to download the required application on their computer system/ laptop/ mobile phone before hand and be ready with appropriate network connectivity and bandwidth for the virtual hearing and join the same at the time and date allocated to them. * In case of any technical issue in connecting for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the virtual hearing, the taxpayer or his authorized representative may be joined through t e l - conferencing through mobile phone for which they shall be required to keep their phone(s) available for incoming calls. * All persons participating in the virtual hearing shall be appropriately dressed and shall be required to maintain the decorum and dignity at all times. * The submissions made by the taxpayer or his authorized representative through the virtual hearing shall be noted in writing and a statement of the same shall be prepared so as to be uploaded in PDF format under the respective 'Proceedings' tab on the Boweb portal. * After receipt of the said documents, the nodal officer shall arrange for sending them to the conce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned officer so as to reach him maximum within five working days. The proceedings of virtual hearing as well as the documents submitted shall be deemed to be valid documents for the purpose of the RGST/CGST Act. 2017 in terms of Section 145 of the said Acts read with Section 4 of the Information Technology Act, 2000. (Source: Rajasthan GST Department Guidelines for Virtual Hearing) Update on GST tax evasion * GST evasion cases during the current fiscal of 2024-25 from April, 2024 to 31st January, 2025 stood at Rs. 1.95 trillion from 25397 cases out of which Rs. 21,520 crore was voluntarily deposited by taxpayers. * Among the 25,397 cases detected in the current fiscal, 13,018 cases are related to Input Tax Credit (ITC) fraud, invol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ving an amount of Rs 46,472 crore. * Breakup of tax evasion of Rs. 6.79 trillion from 86711 cases in last five years is: * 2023-24: Rs 2.30 trillion * 2022-23: Rs 1.32 trillion * 2021-22: Rs 73,238 crore * 2020-21: Rs 49,384 crore (Source: Reply to a question in Parliament dated 10.03.2025) GST: Things to do in March, 2025 FY 2024-25 comes to an end on 31st March, 2025. Here are few action points requiring attention of taxpayers: * Opting for Composition scheme in Form GST-CMP 02 online before 31.03.2025. * GTAs opting for payment of GST under forward charge mechanism for FY 2025-26 to file a declaration as per Annexure V by 15.03.2025. * Filing of application for LUT for making export of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upplies / zero rated supplies in FY 2025-26 before 31.03.2025. * Filing reconciliation GSTR-9C statement before 31.03.2025 if pending where GSTR-9 (Annual return) is already filed to avail late fee waiver. * Availing GST Amnesty scheme under Section 128A of CGST Act, 2017 for waiver of interest and penalty u/s 73 in Form GST SPL-1 and SPL 2 latest by 31.03.2025. * Opting for quarterly return monthly payment (QRMP) scheme for FY 2025-26. * Filing of annual RODTEP return for exporters by 31.03.2025( 30th June, 2025 with late fee of Rs. 10,000/-) * Applying for GST refunds for the period April, 2023 onwards. * Renewal of common input tax credit for exempt supplies in FY 2024-25 before 31.03.2025. * Reconciliation of GSTR-2A and G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... STR-3B to identify any excess ITC claims and its reversal. * Obtaining ISD registration which becomes mandatory w.e.f. 01.04.2025. * To close existing series of invoice numbering on 31.03.2025 and commence a new series from 1st April, 2025 to maintain unique invoice services numbering. GST on Insurance related services * MoF replied to a Parliament Question on reduction of GST on health and life insurance policies as under: * GST rates and exemptions on all services and goods are prescribed on the recommendations of the GST Council which is a Constitutional body comprising of members from both the Union and State/UT Governments. * The GST Council had recommended to constitute a Group of Ministers (GoM) to holistically look into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the issues pertaining to GST on life insurance and health insurance. * A Group of Ministers (GoM) on Life and Health Insurance has been constituted under the Convenorship of Shri Samrat Choudhary, Hon'ble Deputy CM, Bihar. * GoM recommendations are awaited. * Further, an effective regulatory framework in the form of regulations on insurance products and master circulars issued thereon is in place to monitor insurance products, which includes designing insurance products and setting insurance premiums. * As the GST rates are applicable over and above the insurance premium, if the GST rate is reduced, it is expected to benefit the policyholder directly especially in a competitive market with many insurers. (Source: Reply to Par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liament Question in Lok Sabha on 17.03.2025) Issues in filing applications (SPL 01/SPL 02) under waiver scheme * The GSTN has issued an advisory dated 21.03.2025 in relation to issue in filing applications (SPL 01/SPL 02) under waiver scheme. * The Goods and Services Tax Network (GSTN) has received multiple grievances from taxpayers regarding difficulties faced while filing waiver applications. The GSTN team is actively working to resolve the following reported issues: * The order number is not appearing in the dropdown for selection. * Order details are not getting auto-populated after selecting a specific order in SPL-02. * Payment details are not getting auto populated in table 4 of SPL-02. * After filing SPL-02 for a demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order, taxpayers are unable to make payments using the "Payment Towards Demand" functionality. Taxpayers cannot adjust the amount paid through DRC-03 against the same demand order using DRC-03A. * Taxpayers are unable to withdraw Appeal applications (APL-01) filed before the First Appellate Authority against a specific order. * Further, there is a misconception among taxpayers regarding the last date to file waiver applications. It may be noted that: * The deadline to file waiver applications is NOT 31.03.2025. * As per Rule 164(6) of the CGST Rules, 2017, taxpayers must file waiver applications within three months from the notified date. Hence, waiver applications in SPL-01/02 can be filed until 30.06.2025. * However, as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Notification 21/2024-CT dated 08.10.2024, the due date for tax payment to avail of the waiver scheme is 31.03.2025. * Taxpayers are advised to make the necessary payment by 31.03.2025 using the "Payment Towards Demand" functionality on the GST portal. * If any difficulty arises while using this functionality, taxpayers should make a Voluntary Payment using Form DRC-03 under the category 'Others'. * After payment, submit Form DRC-03A to link the payment with the relevant demand order. * If payment details are not auto-populated in Table 4 of SPL-02, verify them in the Electronic Liability Ledger on the GST portal. * Navigation path: Login >> Services >> Ledgers >> E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lectronic Liability Register. (Source: GST Advisory dated 21.03.2025) GST Collection in February, 2025 * Gross GST collection in February, 2025 is Rs. 1,83,643 showing a growth of 9.1% from Rs. 1,68,337 crore in February, 2024. * Of this, domestic tax collection is Rs. 1,41,945 showing a growth of 10.2% of YoY basis. * Total refunds in February, 2025 amounted to Rs. 20,889 crore within is 17.3% higher than in February, 2024. * Total net GST revenue has been recorded at Rs. 1,62,758 crore with 8.1% growth from Rs. 1,50,528 crore in February, 2024. * The breakup of net tax collection in February, 2025 is CGST Rs. 32,597 crore, SGST Rs. 40,621 crore, IGST Rs. 76,057 crore and compensation cess Rs. 13,481 crore. * The states wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h higher tax collection growth are Himachal Pradesh, Rajasthan, Uttar Pradesh, Tripura, Madhya Pradesh and Andman & Nicobar Islands.
* The states with negative growth are J & K, Manipur, Mizoram, Lakshadweep and Ladakh.
(Source: GST Revenue February, 2025 of GSTN Portal dated 01.03.2025) X X X X Extracts X X X X X X X X Extracts X X X X
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