Latest GST News and Updates
The Central Board of Indirect Taxes and Customs (CBIC) has launched a special amnesty initiative for taxpayers with GST concerns. Specific GST taxpayers who disagree with a GST tax demand order can file an appeal under this GST Amnesty Scheme until January 31, 2024.
“A Special Amnesty Scheme was announced to excuse late filing of the GST Appeal.” The amnesty program is in effect until January 31, 2024. On December 17,2023, the Ministry of Finance stated on social media, “This is a golden opportunity for those taxpayers who may have missed the appeal deadline.”
The Goods and Services Tax (GST) is an indirect tax system in India implemented in July 2017 to replace several taxes such as VAT, Excise Duty, and Service Tax. The supply of goods and services is subject to GST, and the tax rate depending on the type of goods and services provided.
GST is a destination tax, meaning the tax revenue is directed to the state where the products or services are consumed. The GST council, composed of representatives from the national and state governments, decides on the tax rate and any amendments to the GST statute.
March, 2024
GST amendments
The revisions announced in March sought to clarify and simplify compliance procedures. According to statistics, more than 60% of GST disputes and litigations involved concerns such as input tax credit eligibility and classification of goods and services, indicating the need for change.
The modifications clarified the eligibility requirements for collecting input tax credits on a variety of expenses, including employee-related costs and business promotional efforts. This offered much-needed clarity to taxpayers and lowered the likelihood of conflicts and litigation, resulting in increased compliance.
Export Promotional Measures
The government’s export promotion policies seek to promote international trade and export competitiveness. The Directorate General of Foreign Trade (DGFT) reported that India’s exports increased by 15% year on year in the preceding fiscal year, indicating encouraging momentum.
Faster refunds of input tax credits and improvements to the duty drawback scheme were projected to have a substantial impact on export-oriented businesses such as textiles, engineering items, and pharmaceuticals. Analysts predicted a 20% growth in exports from these sectors during the next fiscal year, owing to these initiatives.
State-level reforms
Several governments have made state-level reforms to improve GST administration and the convenience of doing business. Statistics from state GST agencies showed a consistent growth in GST registrations and compliance rates in jurisdictions that had implemented digital initiatives.
States like Maharashtra and Karnataka, which introduced online registration and single-window clearance systems, saw a 30% rise in GST registrations and a 20% decrease in compliance-related issues raised by taxpayers. These measures contributed to a more favorable business environment and increased taxpayer trust.
February, 2024
GST Compliance Drive
Taxpayers were involved actively in ensuring national compliance with GST. For instance, statistics show that over 1 million taxpayers attended compliance training and outreach programs held in different cities as an indication of their keenness towards this matter.
Feedback surveys conducted throughout the campaign indicated that majority (80%) found them enlightening on how best they can perform their duty as far as GST was concerned. This is closely followed by online resources such as frequently asked questions (FAQs) and video tutorials that recorded not less than 5 million views during these campaigns implying that there is a growing need for digital learning materials.
Anti-evasion Measures
Enforcement activities intensified in the bid to curb tax evasion, leading to a rise in the number of enforcement actions. Amongst other reasons, fifty percent additional searches and checks were recorded by GST Intelligence and Investigation Bureau within this month than what was experienced during the same time last year.
Almost ₹500 crore worth of tax evasion cases were detected through enforcement efforts during the month, including those that involved big corporates as well as organized groups. The move served as a solid warning to tax offenders and affirmed the government’s commitment to enforcing GST legislation.
Sector-specific reforms
Broad consultations with industry stakeholders led to sector-specific reforms. Statistics released by business associations and trade bodies indicated that different sectors faced numerous challenges under GST ranging from input tax credit matters to compliance issues.
Discussions with developers and builders revealed that one major concern was how unsold inventory should be treated under GST regime. Consequently, some changes have been suggested by the government on eligibility for unsold units pertaining to input tax credit in response to an age-long desire of the industry.
January, 2024
GST Council Meetings
It was with the idea of reducing the compliance burden on small taxpayers that the GST Council meeting sought. Small and medium-sized businesses account for about 80% of GST taxpayers, as per statistics. This could benefit large numbers of tax payers if a simpler return filing process is introduced.
Presently, small firms with turnover below ₹5 crore have two options; they can either file quarterly returns or participate in the QRM program. However, only around 30% of eligible taxpayers choose to file quarterly due to complexity and lack of awareness among them. More simplifications may help increase this number.
Tax Rate Rationalization
The discussion of tax rate reduction took into account revenue implications. In some cases, essential consumer goods during the last financial year had high GST rates imposed on them which can impact their affordability and consumption levels.
When these essential items like health care goods, renewable energy equipment and food grains are lowered their GST rates, it would lead to higher levels of consumption and economic activity in a country. For instance, economists predict that dropping GST prices by only one percent on essentials might boost an annual consumption worth ₹10,000 crore.
Digital Transformation Initiatives
Efforts were made at the GST Council meeting to boost compliance and enforcement through the application of technology. Thus, statistics indicate that more than one billion invoices are processed by GSTN on average per month, which is indicative of a very massive amount of available data for research and enforcement purposes.
The effectiveness of tax enforcement activities could be significantly strengthened with the use of sophisticated data analytics techniques. Therefore, advanced analytics models have helped to identify more than 50,000 cases of possible tax evasion and non-compliance in the past one year alone thereby increasing revenue collection.
Goods and Services Tax (GST) in India
The tax has consolidated all other indirect taxes, such as Value Added Tax (VAT), into a single tax. The government levies GST (Goods and Services Tax) in slabs. The current slab rates are 5%, 12%, 18%, and 28%. The Goods and Services Tax Council manages GST, governed by the Goods and Services Tax Act of 2017.
GST is levied on all goods and services except petroleum products and electricity, which state governments tax. It is divided into two parts: State Goods and Services Tax (SGST), which state governments collect, and Central Goods and Services Tax (CGST), which is managed by the federal government.
Both governments’ shares are equal to GST. For example, if a product is subject to 5% GST, the SGST (2.5%) and CGST (2.5%) will be the same. Another tax, the Integrated Goods and Services Tax (IGST), is levied on interstate goods and services sales.
The tax was intended to prevent tax cascading or the collection of various taxes at each production level. It is also done under GST; however, the manufacturer gets refunded on higher levels. It is a destination-based tax, meaning it is collected by the state where the commodity or service is consumed rather than the state where it was manufactured.
GST Updates of December 2023
December 14, 2023
GST Instruction No. 05/2023 in response to the Supreme Court’s decision in Northern Operating Systems Private Limited (NOS).
Taxpayers with an AATO of $5 million or more must present at least a 6-digit HSN on their e-invoices beginning December 15, 2023.
December 2, 2023
The GST collection in November 2023 is INR 1,67,929 lakh crores, a 15% increase.
December 1, 2023
The advice for two-factor authentication has been rolled out for Punjab, Chandigarh, Uttarakhand, Rajasthan, and Delhi.
GST registration applicants in Andhra Pradesh, advisory for a pilot project to biometrically validate Aadhaar and verify papers.
GST Updates of November 2023
November 29, 2023
Here’s some essential information on amnesty provisions for missing appeal filing deadlines for rulings issued on or before March 31, 2023. Keep an eye out for any CBIC guidance on these procedures.
The CBIC directs proper personnel to serve GST DRC-01 notifications and post DRC-07 notices electronically via the government site.
November 18, 2023
This guide and instruction set will help you integrate a direct API with any of the six IRPs for E-Invoice reporting.
November 14, 2023
The GSTN’s taxpayer advisory on reversing the Input Tax Credit under rule 37(A).
The GST department has issued advice regarding ITC mismatch – GST DRC-01C.
November 10, 2023
An announcement on the amnesty for taxpayers who missed the deadline to file an appeal for orders issued before March 31, 2023.
The taxpayer and transporter advisory on verifying transporter ID (TRANSIN) in the e-waybill system.
November 6, 2023,
A recommendation for GST Registration Applicants in Gujarat and Puducherry on biometric-based Aadhaar authentication and document verification.
From November 20, 2023, taxpayers with an AATO of more than Rs 20 Crore will be required to use two-factor authentication.
November 3, 2023
GST Amnesty program for taxpayers who were unable to seek an appeal against decisions issued before March 31, 2023.
November 2, 2023
The GST collection in October 2023 is INR 1.72 lakh crores, a 13% increase.
GST Updates of October 2023
October 28, 2023
The CBIC has issued new advisory adjustments to Table 5B in GSTR 5A report supplies to Registered GSTINs (B2B supply).
October 19, 2023
The DGGI reported over 6,000 false ITC instances between April 2020 and September 2023, totaling more than Rs. 57,000 crore in GST avoidance. In this case, 500 persons were arrested.
October 18, 2023
The GST administration has issued advice regarding GST REG-10 and Form GSTR-5A.
October 17, 2023
The GSTN department has released TDS & TCS credit received v2.2 offline utility.
October 16, 2023
The Kerala GST Department has issued fresh instructions on the issuance of separate notices to taxpayers under sections 73 and 74.
October 13, 2023
GST-unregistered providers who want to sell items through online platforms can participate in the program.
A service for internet businesses that permits unregistered goods suppliers to supply goods.
October 7, 2023
Updates on the 52nd GST Council Meeting.
October 6, 2023
Introduction of DRC-01C Compliance (Difference between GSTR-2B and GSTR-3B Input Tax Credits).
October 4, 2023
The new JSON e-invoice download functionality is now available on the official e-invoice Portal.
October 3, 2023
To deal with the DRC-01C form, the GST department has enabled the ITC mismatches functionality in GSTR-2B and GSTR-3B.
The gross GST revenue for September 2023 has surpassed 1,62,712 crore.
GST Updates of September 2023
September 27, 2023
GSTN will upgrade services on the GST official portal on September 28, 2023, at 12:00 AM. The Portal’s services did not begin until 6:30 AM on September 28.
The GSTN department has issued advice on a temporary halt in e-invoice auto-population in the GSTR-1 form.
September 20, 2023
Taxpayers must generate B2B e-invoices containing the GSTINs of government departments/agencies when supplying to them.
GSTN has provided additional geocoding functionality for Additional Place of Business.
September 14, 2023
The GST portal will be improved at 12:00 AM on September 15th, 23.
The GST Portal’s services will not be available until 06:30 AM on September 15th, 23.
September 11, 2023
As of November 1, 2023, all taxpayers with an AATO of more than Rs 20 crore would be forced to use two-factor authentication.
From November 1, 2023, taxpayers with an AATO of up to or surpassing 100 crores and using e-invoice portals will be expected to submit invoices within 30 days.
September 6, 2023
According to a notification dated October 15, 2020, taxpayers whose aggregate yearly turnover (AATO) exceeds Rs 5 Crore must include at least a 6-digit HSN code in an e-invoice or e-Waybill, while all other taxpayers must submit at least a 4-digit HSN code. Taxpayers have already adjusted and are likely to comply by the deadline. This will be required for e-Waybills and e-Invoices beginning October 1, 2023.
September 1, 2023
For correct and accurate reporting of ITC reversal, the GSTN has implemented Electronic Credit Reversal and Re-claimed statements.
GST Updates of August 2023
August 31, 2023
The revised ITC reversal opening balance reporting guideline is now available on the official GST portal.
August 28, 2023
A new advisory has been sent to applicants whose GST Registration forms have been flagged for biometric authentication using AADHAAR.
August 25, 2023
The GST department has stated the Mera Bill Mera Adhikar scheme.
August 21, 2023
On September 1, 2023, the states of Haryana, Assam, Gujarat, and the union territories of Dadra & Nagar Haveli, Daman & Diu, and Puducherry will implement an invoicing incentive system.
August 1, 2023
The GST collection for July 2023 has surpassed 1,65,105 crore.
GST Updates of July 2023
- The Central Government amended the Prevention of Money-Laundering Act, 2002 (“the PML Act”) on July 7, 2023, by Notification F. No. P.12011/2/2009-ES Cell-DOR. The GSTN entry has been included in the proposed change.
- The GSTN department has made e-invoice exemption declaration functionality available on the GST e-invoice site. More information can be found here: The Functionality of E-invoice Exemption Declaration Is Now Available.
- The GSTN department has announced that the 51st GST Council meeting will be held via video conferencing on August 2, 2023.
- The GST department has produced a comprehensive statistics report to commemorate six years of GST implementation.
Wrapping It Up
This informative piece summarizes the most recent GST developments and news from July 2023 to November 2023. These revisions were made more than a year after the Supreme Court issued its decision in Union of India v. M/s Mohit Minerals Pvt. Ltd. The Supreme Court held in this landmark decision that imposing a reverse charge levy on importers as a result of service imports violated Section 8 of the Central Goods and Services Tax (CGST) Act, 2017.
FAQs
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What are the GST rules in April 2023?
According to GST Network warnings issued on 12th and 13th April 2023, taxpayers with an annual turnover of Rs. 100 crore or more must transmit tax invoices and credit-debit notes to IRP within seven days of the invoice date beginning May 1, 2023.
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What exactly is RCM in GST?
The Reverse Charge Mechanism requires that GST be paid and deposited with the government by the recipient of goods or services rather than the supplier of goods or services.
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What are the new HSN code rules?
Taxpayers with an aggregate yearly turnover (AATO) of Rs. 5 crore or more will be required to use at least a 6-digit HSN number in their e-invoices and e-way bills from October 1, 2023.
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What exactly is the new GST portal?
GST Portal is the official website of the Indian government, which can be found at https://www.gst.gov.in/.
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In India 2023, which state pays the highest GST?
Maharashtra has regularly registered the highest GST collection in absolute figures in yet another month.
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What is the 2023 GST exemption?
Payments and IGST responsibility for commodities imported via ocean freight (e.g., vessels) from outside India would be exempted beginning in October 2023, according to the new notification No. 12.
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What is the annual return on Gstr 9?
Form GSTR-9 is an annual return that registered taxpayers who were average taxpayers, including SEZ units and SEZ developers, must file once every fiscal year.
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What is the entire meaning of IRN?
The Invoice Reference Number (IRN) is issued uniquely by the Invoice Registration Portal (IRP) under the e-invoicing system using a hash generating technique.
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Is IRN required on invoices?
Under GST rules, any invoice issued by the applicable taxpayer that does not include the IRN is considered illegitimate.
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How many different kinds of e-invoices are there?
In essence, there are two forms of true eInvoicing that you should be aware of.
