Navigating the GST Maze: 8 Recent Notifications

Business and taxation go hand in hand. With the surge of development, India also faced troubles like tax evasion. Consequently, the existing indirect tax regime was quashed. This came with the implementation of a brand new indirect tax regime, namely, the Goods and Services Tax (GST). It is now the primary law for application of taxes on sale of goods and services in India. Yet, even today, the stakeholders face certain challenges in practical implementation due issues like lack of awareness. Resultantly, there are amendments and changes to the Law which help the stakeholders in the need of an hour. For example, if the online systems somehow crash on the day of filing GST returns, the authorities may extend the deadline to make the process seamless for stakeholders. So, in this blog we will discuss 8 latest GST notifications. 

Introduction to Goods and Services Tax (GST)

Implemented on the 1st of July, 2017 the Goods and Services Tax (GST) is a streamlined version of the indirect taxes such as VAT, excise duty, and service taxes and more. The GST is applicable for all sorts of business transactions across the country. Moreover, it adds to the confusions of business owners because it is also destination based tax. Especially considering the fact that the tax rates also may differ from category to category. This law is a single tax applicable all over the country on the basis of destination of supply of the goods and services. The Goods and Services Tax is further categorised into different types in this tax regime, because in this case, tax is levied at each point of sale. Moreover, in the GST tax regime, set off benefits are available at each stage. The following are its key features:

Destination Based

The first thing that you as a business owner need to remember while dealing with the GST laws is that it is a destination based tax. The applicability of the GST depends on the destination where the goods or services are supplied. 

Importance of Supply 

In determining the applicable tax rates under the updated GST laws, the place of supply plays a really crucial role. You need to know the place of supply of the services or goods you deliver. 

Dual Effect

The centre and state can simultaneously levy the charges for goods and services tax. When the centre governs the GST amendments or tax rates, it is known as the Central Goods and Services Tax (CGST) and when the states levy this tax, its the State Goods and Services Tax (SGST). 

Inter State Tax 

When the goods or services are supposed to be supplied from one state to another, an integrated goods and services tax (IGST) is applicable. 

These features and different categories of this tax system helps are specifically curated to ensure GST compliance amongst the business owners. However, this comes along with certain challenges too. Due to the challenges, the tax authorities of India constantly provide GST updates to make the process simplified. 

Understanding the recent changes in GST

Even though GST was introduced to streamline the indirect tax regime of India, there were several challenges faced by the taxpayers, and lack of preparedness was just one factor leading to this. Besides, there were many other GST compliance related issues, where the business owners found increased costs due to implementation issues. Moreover, the multiple tax rate structure in this aspect also did not help in the beginning. As a result, the authorities brought forward the Goods and Services tax amendments , time and again to help the business owners pave their ways through this constant turmoil. 

These modifications to the laws are provided by the GST Council’s Notifications. For all businesses to keep their GST compliance in line, they need to be updated with these recent changes in GST laws. 

Exploring the 8 Recent GST Notifications

It’s evident why understanding the recent changes in GST laws, and keeping up with the updates through GST notifications is important for business owners. Here, we will delve into exploring the 8 recent GST notifications. Every year, as and when required, the GST council passes certain orders and notifications to the online GST portal. These notifications are usually issued to help the various stakeholders stay updated with the changes to GST laws. Let’s understand the nuances 8 most recent GST notifications in detail:

GST Notification- 1

This is the most recent GST notification issued by the Ministry of Finance, Central Board of Indirect Taxes and Customs (“CBIC”) on12.04.2024. It provides an extension in time limit for furnishing outward supplies details in FORM GSTR-1 with respect to registered users till 12.04.2024. This rule is made applicable to all registered suppliers who are required to furnish their returns every calendar month, as per the Section 39(1) of the CGST Act. This includes all registered suppliers with a few exceptions, such as:

• Input Service Distributors; or
• A non-resident but taxable person; or
• Persons paying tax under other provisions of the Act. 

GST Notification- 2

Just two days prior to the latest GST notification, another notification was passed by the Central Government on 10th April 2024. This No. 08/2024, is issued to make amendments to another latest GST notification   No.  04/2024, which was released on 5th of January this year.  That particular circular is important for manufacturers of certain goods such as Pan Masala as it provides a special procedure to be followed for GST Registered manufacturers in furnishing certain details to the tax authorities. Now, in the latest notification the CBIC has extended the timeline for implementation of these procedural rules from 1st of April till 15th of May, 2024. This will give all the users to whom this rule is applicable, a fair chance to follow the process set out by the tax authorities in the latest GST laws. 

GST Notification- 3

There were not only two but three latest GST notifications in April 2024 issued by the CBIC. The final one dt. 8th April, no. 7/2024 is significant to all applicants if FORM GSTR-3B. This latest GST order allows them a waiver of interest charges if they face technical difficulties in furnishing details in the applicable form. The GST notification also contains a table format to provide specific details of the class of registered users to whom such waiver of interest is applicable. The timeline herein ranges from July 2017 – June 2018. 

GST Notification- 4

On 22nd February 2024, the fourth latest GST update was issued by the Central Government. Simply speaking, this recent GST notification promotes the use of technology and innovation. According to the notification, the GST council has recommended to initiate a “Public Tech Platform for Frictionless Credit”. Moreover, it suggests that the platform must be conceptualised and regulated by the Reserve Bank of India to help keep an eye on the flow of digital credit in the country. The main objective of this platform is to allow free flow of information to facilitate frictionless credit through Application Programming Interface (API) framework.

GST Notification- 5

Notification No. 05/2024 issued on 30th January is an amendment to an earlier GST Notification No. 02/2017-Central Tax, dated the 19th June, 2017. The earlier notification was to introduce the jurisdiction of various government officials. This recent notification is to amend the jurisdiction by inclusion of territorial jurisdiction in the position of the Principal Commissioner of Central Tax through insertion of pin code “411069” in Pune District. 

GST Notification- 6

GST  NO. 04/2024 Dt. 5th January brings in useful updates for GST registered users – new and existing. As seen earlier, this recent GST update targets registered manufacturers of certain goods. It sets out a special process to be followed by them in furnishing their returns as per the recent GST amendments. As a part of this new process, the manufacturers of cigarettes, PAN masala and tobacco products, etc are required to furnish the following details in FORM GST SRM- 1: 

Apart from setting out these procedures, the GST notification also gives out instructions for filling the FORM GST SRM- 1. This shows the efforts of the government to make the entire process of application of GST laws easier through such timely amendments to GST Law in India. 

GST Notification- 7 

The recent GST circular containing notification no. 3/2024 issued by the CBIC on 5th January 2024 is to rescind a previously issued notification dt. 31st July, 2023. Moreover, the notification also states that the government shall respect all actions of stakeholders taken in accordance with that prior notification before its revision. This shows that it’s not always necessary to keep on adding new rules and regulations to make things easy. However, sometimes, certain actions and rules need to be rescinded and made obsolete to make the practicality of GST law easier for the stakeholders. Besides, this notification which was rescinded also provided a procedure for manufacturers of certain goods. However, the process was then later simplified through a more recent GST notification, covered in the upper part of this blog. 

GST Notification- 8 

The latest GST Notification no. 2/2024 includes an important GST update of 2024. The CBIC issued this particular update on 05.01.2024. It introduces the new amendments to the GST Rules, namely “Central Goods and Services Tax (Amendment) Rules, 2024”. The details of important update to the CGST Rules, 2017 are: 

Effect of the latest GST Updates 

Now that we’ve discussed these GST updates in detail, we can see that these constant updates happen with an aim to make the process easy for business owners as well as to maintain transparency between the authorities and the registered persons. The table below gives an insight on the effects of the latest GST Notifications that are discussed through this blog:

Conclusion

In conclusion, the government of India takes active measures to not only make the process easy and user friendly but also cost effective, and seamless for all GST registered business owners. Whether you’re from the organised or unorganised sector, the latest GST amendments are made to fit all. Moreover, as staying compliant to the laws is important not only for legalities but also for repute, it’s important that you make it your primary duty to stay updated with all recent changes and updates to GST laws in India. 

FAQs

• What is the latest update of GST? 

A recent update to the GST Law is brought through the notification no. 9/2024 by CBIC dt. 12th April 2024. It provides an extension in timeline for certain details in FORM GSTR-1. 

• Are the recent GST law changes beneficial? 

Yes, the updates and regular amendments to GST law are beneficial to business owners in many ways as each new update tries to simplify the return filing process easier and more seamlessly doable for all users. 

• What is the aim behind amendments to GST Laws? 

The aim behind amending the GST laws with time is to avoid tax evasion while still protecting the interests of regular tax payers and making things simpler for them. 

• Where do I find the latest GST notifications? 

You can find all the latest GST notifications on the official portal of the CBIC. they upload electronic copies of all recent notifications there to make it accessible for all users. 

• Is it important to stay updated with recent GST updates for business owners? 

Yes, it is very important to stay updated with all the changes to GST laws. This will help you stay compliant to the GST laws and allow you to claim the benefits of being a responsible taxpayer.

Diksha Shastri Legal Executive

Diksha is a seasoned writer of all things Law, Finance and Business. She aims to make things easy for the readers.

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