Latest GST News, notifications, circulars and latest GST updates for 2023, 2022, 2021 and 2020.
This page is all about keeping you updated with GST news, the latest GST notifications, circulars, and GST law changes by the government. The top GST News page is updated on a month-on-month basis. So that you do not miss out on any important GST news or notification!
Goods and Services Tax (GST) is a comprehensive indirect tax system in India that was introduced in July 2017, replacing multiple taxes such as VAT, Excise Duty, and Service Tax. GST is levied on the supply of goods and services, and the tax rate varies based on the type of goods and services being supplied. GST is a destination-based tax, meaning the tax revenue goes to the state where the goods or services are consumed. The GST council, consisting of the central and state government representatives, decides on the tax rate and any changes to the GST law.
GST News Updates month-wise 2024-25
GST News Updates month-wise 2023-24
GST News Updates of March 2024
GST News Updates of February 2024
GST News Updates of January 2024
GST News Updates of December 2023
GST News Updates of November 2023
GST News Updates of October 2023
GST News Updates of September 2023
GST News Updates of August 2023
GST News Updates of July 2023
GST News Updates of June 2023
GST News Updates of May 2023
GST News Updates of April 2023
GST News Updates month-wise 2022-23
GST News Updates of March 2023
GST News Updates of February 2023
GST News Updates of January 2023
GST News Updates of December 2022
GST News Updates of November 2022
GST News Updates of October 2022
GST News Updates of September 2022
GST News Updates of August 2022
GST News Updates of July 2022
GST News Updates of June 2022
GST News Updates of May 2022
GST News Updates of April 2022
GST News Updates month-wise 2021-22
GST News Updates of March 2022
GST News Updates of February 2022
GST News Updates of January 2022
GST News Updates of December 2021
GST News Updates of November 2021
GST News Updates of October 2021
GST News Updates of September 2021
GST News Updates of August 2021
GST News Updates of July 2021
GST News Updates of June 2021
GST News Updates of May 2021
GST News Updates of April 2021
GST News Updates month-wise 2020-21
GST News Updates month-wise 2019-20
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Top GST News for the month of September 2024
September 2024 saw significant GST updates in India, bringing new measures to enhance tax compliance and streamline processes. Key GST news this month included new notifications and circulars, updates to the GST return filing system, and the introduction of new advisories and guidelines to ensure smoother compliance. These GST updates are designed to improve transparency and ease the tax burden on businesses while ensuring better tax collection. Here’s a roundup of the top GST news for September 2024 and their potential impact on businesses across the country.
Latest GST Updates: GST Notifications Released in September 2024
- GST Notification 17/2024 dated 27-9-2024: Seeks to notify the provisions of Finance (No. 2) Act, 2024
Latest GST Updates: GST Circulars Released in September 2024
- GST Circular 24/2024 dated 11-9-2024: Clarification in respect of advertising services provided to foreign clients.
- GST Circular 25/2024 dated 11-9-2024: Clarification on availability of input tax credit in respect of demo vehicles.
- GST Circular 26/2024 dated 11-9-2024: Clarification on place of supply of data hosting services provided by service providers located in India to cloud computing service providers located outside India.
- GST Circular 27/2024 dated 11-9-2024: Clarification regarding regularization of refund of IGST availed in contravention of rule 96(10) of CGST Rules, 2017, in cases where the exporters had imported certain inputs without payment of integrated taxes and compensation cess.
54th GST Council Meeting
The 54th GST Council meeting, held at Sushma Swaraj Bhawan in New Delhi, brought together Union Finance Minister Nirmala Sitharaman and key representatives from various states to deliberate on significant tax-related issues. The gathering included finance ministers from multiple states, senior officials, and key policymakers, with discussions focusing on impactful measures.
The 54th GST Council meeting brought significant changes and recommendations aimed at streamlining tax rates, providing relief to individuals, and improving trade facilitation. Read the key highlights and decisions from the meeting: 54th GST Council Meeting here.
Latest GST News and Updates in August 2024
- GSTN has issued an advisory regarding the Invoice Management System (IMS), designed to facilitate corrections and amendments to invoices.
- The user interface of the “Bank Accounts” section on the GST portal has been updated by GSTN for improved visibility and clarity.
- CBIC released an advisory concerning the reporting of supplies to unregistered GST dealers in GSTR-1 and GSTR-5 forms.
- GSTN has added IDFC First and Bandhan Bank to the list of banks authorized for GST payments.
- The GSTN department has introduced the option for taxpayers in Arunachal Pradesh to make GST payments using UPI and debit or credit cards.
- A new advisory has been issued by the GST department for taxpayers in Bihar, Delhi, Karnataka, and Punjab, instructing them to verify GST registration applicants through Biometric-Based Aadhaar Authentication.
- GSTN has released an update for the QR Code Scanner mobile application aimed at taxpayers. Download it now at this link.
- The Karnataka GST Department has set up multiple centers to assist taxpayers with biometric Aadhaar authentication and document verification.
- The new advisory for businesses extends the due dates for re-opening claims related to input tax credit (ITC) reversal on the official GST portal.
- Important FAQs regarding the Invoice Management System (IMS) have been released for businesses.
- Taxpayers are advised to save and download their GST return data from the official portal before the expiration of the seven-year retention period.
- An advisory from GSTN addresses the issuance of Show Cause Notices (SCNs) and Orders that lack the digital signatures of the issuing authorities on the official portal.
- Odisha taxpayers are advised to activate Aadhaar Authentication and Document Verification for GST registration using biometric methods.
- A new advisory has been issued for taxpayers regarding the restoration of GST return data for July and August 2017, which was archived on August 1st and September 1st, respectively.
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Top GST News for the month of August 2024
In August 2024, several key GST updates were made to India’s GST framework, reflecting ongoing efforts to streamline and enhance the tax system. These changes impact various sectors, with implications for businesses of all sizes. From new GST compliance requirements to revisions in laws, the latest updates aim to enhance transparency, reduce complexities, and ensure better tax administration.
This article dives into the latest GST updates and latest GST news announced in August 2024, providing insights into how these changes may affect businesses and taxpayers across India.
Latest GST Updates: GST Notifications Released in August 2024
The GST notification No. 16/2024 dated 06/08/2024: Sets the implementation dates for specific provisions of the Finance Act, 2024. Section 13 will be effective from October 1, 2024, and Sections 11 and 12 from April 1, 2025.
Latest GST News and Updates in August 2024
- A comprehensive manual guide has been released for GSTR-1A filing, including essential FAQs to assist taxpayers in the process.
- The Ministry of Finance issued a notification (F. No. A-50050/150/2018-CESTAT-DoR) regarding the GST Appellate Tribunal (GSTAT), announcing the creation of new state branches along with a principal branch.
- The GST Network (GSTN) has introduced UPI and credit/debit card payment options in partnership with Axis Bank and Karnataka Bank to streamline and enhance the payment process.
- The latest GSTR-8 advisory has revised the existing tax rate, reducing it from 1% to 0.5%.
- A new advisory issued for Jammu & Kashmir and West Bengal requires mandatory biometric-based Aadhaar authentication along with document verification for GST registration.
- GST Instruction No. 03/2024 refers to Paragraph 2(g) of Instruction No. 01, which was released on March 30, 2024.
- The guidelines for the nationwide initiative targeting fraudulent GST registrations are now accessible on the official portal through Instruction No. 02/2024-GST.
- A new functionality has been added to the GST online portal, enabling registered taxpayers to modify their bank account details.
- The Kerala GST Department has launched a new software system designed for the filing of tax returns and processing of tax payments.
- The latest advisory for submitting GSTR-1/IFF now requires taxpayers to include their valid bank account details.
- The GSTN advisory introduces biometric-based Aadhaar verification and document checks for GST registration in Dadra and Nagar Haveli, Daman and Diu, and Chandigarh.
- The GST Portal has been upgraded to feature an RCM Liability/ITC Statement, which helps taxpayers accurately report their transactions.
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GST Collection for August 2024
As per the comprehensive report released on the Goods and Services Tax portal, the gross monthly GST collection increased by 10% in August 2024, reaching Rs. 1.75 lakh crore. This is up from Rs. 1.59 lakh crore during the same month last year.
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Top GST News for the month of July 2024
July 2024 was a month of significant developments in India’s tax landscape. The nation witnessed a flurry of GST updates, policy changes, and clarifications that have a direct impact on businesses and taxpayers. From crucial amendments introduced in the Union Budget to long-awaited relief measures, this month has been pivotal in shaping the GST ecosystem.
As we dive into the key highlights, it becomes evident that understanding these changes is essential for businesses to ensure compliance and optimize their tax liabilities. Let us learn more about the latest GST updates and top GST News from July 2024.
Latest GST Updates: GST Notifications Released in July 2024
- GST Notification 12/2024 dated 10-7-2024: Seeks to make amendments (Amendment, 2024) to the CGST Rules, 2017.
- GST Notification 13/2024 dated 10-7-2024: Seeks to rescind Notification no. 27/2022-Central Tax dated 26.12.2022.
- GST Notification 14/2024 dated 10-7-2024: Seeks to exempt the registered person whose aggregate turnover in FY 2023-24 is up to Rs. two crores, from filing annual return for the said financial year.
- GST Notification 15/2024 dated 10-7-2024: Seeks to amend Notification No. 52/2018-Central Tax, dated 20.09.2018
Latest GST Updates: GST Circulars Released in July 204
- GST Circular No. 17/2024 dated 10-07-2024: Amendment in circular no. 1/1//2017 in respect of Proper officer for provisions relating to Registration and Composition levy under the Central Goods and Services Tax Act, 2017 or the rules made thereunder.
- GST Circular No. 18/2024 dated 11-07-2024: Guidelines for recovery of outstanding dues, in cases wherein first appeal has been disposed of, till Appellate Tribunal comes into operation.
- GST Circular No. 19/2024 dated 11-07-2024: Clarification on various issues pertaining to taxability and valuation of supply of services of providing corporate guarantee between related persons.
- GST Circular No. 20/2024 dated 11-07-2024: Mechanism for refund of additional Integrated Tax (IGST) paid on account of upward revision in price of the goods subsequent to export.
- GST Circular No. 21/2024 dated 11-07-2024: Processing of refund applications filed by Canteen Stores Department (CSD).
- GST Circular No. 22/2024 dated 15-07-2024: Clarifications regarding applicability of GST on certain services -reg.
- GST Circular No. 23/2024 dated 15-07-2024: Clarification regarding GST rates & classification (goods) based on the recommendations of the GST Council in its 53rd meeting held on 22nd June 2024, at New Delhi –reg.
Latest GST News and Updates
- A new advisory for Uttarakhand taxpayers on Biometric Aadhaar Authentication and Document Verification for GST registration applications.
- GSTN has empowered the Canteen Stores Department (CSD) to electronically file refund claims for taxes paid on input supplies using Form GST RFD-10A. This online process is expected to streamline the refund application process for the CSD.
- A significant change has been implemented in GSTR-9, where Table 8A now reflects data from GSTR-2B instead of GSTR-2A. This update streamlines the process by automatically calculating the total eligible input tax credit for domestic supplies within GSTR-2B, simplifying the tax filing procedure for taxpayers.
- The GSTN department has added a new option for document uploads in the GST registration and amendment procedures.
- Exporters can breathe a sigh of relief as the GST Council has approved a mechanism to refund excess IGST paid on goods exported at higher prices. This move addresses a long-standing issue faced by exporters and is expected to provide much-needed financial relief to the industry.
- The GSTN department has implemented new features to improve address-related fields in GST registration.
- GSTN has rolled out functionalities that enable taxpayers to monitor their return filing status on a financial year basis.
- Taxpayers can now access information swiftly and accurately thanks to a new feature on the GST portal that enables searches by mobile number.
- The CBIC department has published a comprehensive handbook covering GST law, recent achievements, and forthcoming updates.
Latest GST News: E-invoicing Updates
New e-Invoice Portals Integration
GSTN informs that NIC will launch integrated services for the e-invoice-1 and e-invoice-2 portals on July 18, 2024, in sandbox mode and on August 1, 2024, in production mode. The main updates are:
- Both portals offer web and API modes for e-invoice services.
- You can use the same login credentials for both portals.
- The same token can be used for e-invoices and e-waybills on both portals.
- Use e-invoice-2 if there are issues with e-invoice-1.
- You can print, download, and cancel e-invoices across both portals.
- If e-invoice-1 is down, e-invoice-2 can handle all e-invoice services.
- Visit the sandbox portal (einv-apisandbox.nic.in) for API URLs and details.
- Test APIs in the sandbox before going live.
- Four other e-invoice portals (IRP-3/IRP-4/IRP-5/IRP-6) also offer similar services.
GST Collections in July 2024
According to data from the finance ministry, the central and state governments garnered ₹1.82 trillion in goods and services tax (GST) for July, reflecting a 10.3% increase compared to the same month last year. This figure also represents an increase from the ₹1.74 trillion collected in June 2024.
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Top GST News for the month of June 2024
June has been a bustling month for GST updates in India, with significant changes and announcements that could impact businesses and taxpayers nationwide. As we navigate through these updates, it’s crucial to understand their implications and prepare accordingly. Here’s a roundup of the top GST news for June.
- The Reintroduction of GSTR-1A
One of the most notable updates this month is the reintroduction of GSTR-1A. Remember GSTR-1A? It’s the form that allows taxpayers to amend sales details previously submitted via GSTR-1, based on modifications by the buyer in their GSTR-2B. This change aims to streamline the correction process, ensuring that tax records are accurate and consistent. But what does this mean for businesses? Essentially, it offers a more structured way to handle discrepancies, potentially saving time and reducing the hassle of rectifying errors in sales transactions. Read more about the return: Introduction of GSTR 1A: Relief for Suppliers yet Puzzle for Recipients - GST Council’s Latest Meeting Insights
The GST Council convened for its 53rd meeting, bringing forth a slew of decisions to ease compliance burdens and refine the GST framework. Among the highlights were discussions on rate rationalizations and measures to curb tax evasion. The council’s decisions often have far-reaching implications. Read how these latest resolutions might affect your business operations or tax planning strategies: 53rd GST Council Meeting Highlights. - Conditional Waiver of Interest and Penalties
In a move that brought relief to many, the GST Council announced a conditional waiver of interest and penalties under certain sections. This initiative is designed to alleviate the financial strain on taxpayers who may have inadvertently missed deadlines or faced challenges in compliance. - Uniform 12% GST Rate
A uniform 12% GST rate was announced for milk cans, among other items, standardizing the tax rate across similar products to simplify compliance and reduce confusion.
Looking Ahead: GST Compliance in the digital Age
As GST compliance evolves, it’s moving towards more digital and efficient processes. The reintroduction of GSTR-1A and decisions from the GST Council meetings highlight a commitment to simplifying tax compliance. To assist you in staying informed about GST due dates and ensuring timely compliance, we’ve curated a calendar. Get it here.
June has indeed been a month filled with important GST updates, each with the potential to significantly impact the way businesses handle their tax responsibilities. As we move forward, staying informed and proactive in understanding these changes will be key to navigating the GST landscape successfully. What are your thoughts on these updates? How do you see them affecting your business or tax planning? Let’s discuss and navigate these changes together.
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Top GST News for the month of May 2024
In May 2024, India’s Goods and Services Tax (GST) landscape saw remarkable developments that underscored the country’s economic resilience and the effectiveness of its tax reforms. The GST collections for April 2024 hit a record high of ₹2.10 lakh crore, marking a significant 12.4% year-on-year growth. This unprecedented collection was fueled by robust domestic transactions and a notable increase in imports, reflecting the strong economic activities at the close of the fiscal year.
Additionally, state-wise collections revealed Maharashtra as the leader, with Karnataka and Gujarat following closely. Despite these impressive figures, GST revenue as a percentage of GDP remains below pre-GST levels, highlighting ongoing challenges and areas for improvement in the tax system. These updates provide a comprehensive view of the GST’s impact and the broader economic trends in India.
So, let’s explore the top GST news for May 2024, providing crucial insights for businesses and policymakers to navigate the economic landscape effectively.
Latest GST News
- The GST department has recently added Dhanlaxmi Bank as a new option for making GST payments on the official GST portal– This inclusion provides taxpayers with an additional banking choice, facilitating smoother and more flexible payment options for their GST dues. This update is part of ongoing efforts to enhance the efficiency and accessibility of the GST payment system for businesses and individuals across India.
- The e-Way Bill App for Android and iOS users has been enhanced to generate bills- These updates are aimed at empowering users to effortlessly generate bills while ensuring compliance with e-way bill regulations. With a user-friendly interface and improved functionalities, the enhanced app offers a seamless experience for businesses and individuals. Moreover, the latest version incorporates advanced features to enhance accuracy and efficiency in generating e-way bills, thereby facilitating smoother logistics operations, and promoting transparency in the transportation of goods across the country. If you are looking for an easy solution to manage your activities related to E-way bills from the comfort of a mobile phone, try the EasyWayBill app, developed by IRIS Logix Solutions Pvt. Ltd.
- UPI and credit/debit card (CC/DC) facilities for GST payments are now also available in Jammu & Kashmir- With the integration of these digital payment methods, businesses and taxpayers in Jammu & Kashmir can now enjoy greater flexibility and convenience in fulfilling their GST obligations. This move aligns with the broader national trend towards digitalization and aims to streamline the tax payment process while promoting financial inclusion and transparency.
- Information from manufacturers of Pan Masala and Tobacco taxpayers May 16th, 2024- Manufacturers of Pan Masala and Tobacco products were notified by the government to provide information via two designated forms, GST SRM-I and GST SRM-II. The former deals with machine registration and disposal, while the latter gathers data on monthly inputs and outputs. The GST Portal now offers the facility to register machines and file information using Form GST SRM-I. Form GST SRM-II will soon follow suit on the portal. This initiative aims to streamline tax compliance and data collection from taxpayers dealing in these specified goods, as outlined in Notification No. 04/2024 – Central Tax dated 05-01-2024.
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Top GST News for the month of April 2024
As April heralds the dawn of a new financial year, it sets the stage for businesses to recalibrate their strategies, budgets, and compliance frameworks. In this dynamic landscape, the Goods and Services Tax (GST) continues to play a pivotal role in shaping the country’s economic contours.
Let’s investigate the top GST news for April, illuminating the path for businesses and policymakers.
Latest GST News
- Self-Enablement for e-Invoicing
Taxpayers with turnovers exceeding INR 5 crores in FY 2023-2024 must commence e-Invoicing from April 1, 2024, or when crossing the threshold in subsequent years. Those meeting the criteria yet unregistered can self-enable via the provided portals: e-Invoice IRP 3 to 6 or NIC IRP 1 & 2. Assistance is available through the GST Helpdesk at 1800-103-4786 or the Grievance Redressal Portal for issue resolution.
IRIS is also now a government-authorized IRP along with being an ASP+GSP. You can read our blog Key Updates: Keeping Up with the Latest GST Advisories for more clarity. - Reset and Re-filing of GSTR-3B of Some Taxpayers
Taxpayers are notified of the chance to re-file GSTR-3B returns due to discrepancies in saved versus filed data in the GST system, notably regarding ITC availment and tax liabilities. The Grievance Redressal Committee of the GST Council decided to reset affected returns for correction. Only affected taxpayers received email notifications, urging them to re-file within 15 days. Assistance is accessible through jurisdictional tax officers or the GST grievance redressal portal for any re-filing difficulties. Here’s our blog on A Comprehensive Guide to GSTR-3B for you. - Auto-populate the HSN-wise Summary from e-Invoices into Table 12 of GSTR-1
GSTN announces a new feature enabling auto-population of HSN-wise summary from e-Invoices into GSTR-1’s Table 12 on the portal. This streamlines HSN data drafting directly from e-Invoices. Users are advised to reconcile auto-populated data with their records before submission. Any discrepancies or errors must be manually rectified or added to Table 12 before final submission. You can read our blog on The Auto-Population of HSN-wise Summary into Table 12 of GSTR-1 for details.
Other GST Updates
- Extension of Due date of GSTR-1 for the period March 24: Government extended March 2024 GSTR-1 filing deadline to April 12, 2024, for monthly taxpayers, per notification no. 09/24 – central tax.
- Extension of GSTR-1 due date to 12th April 2024: GSTN acknowledges taxpayers’ challenges in filing GSTR-1 due to portal technical issues. It suggested the CBIC to extend the due date by one day for monthly taxpayers, until April 12, 2024.
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Top GST News for the month of March 2024
Several new GST rules came into effect from the first day of March, which also marks the last month of the current financial year, impacting almost all taxpayers and businesses. And, as businesses in India gear up for compliance and prepare for the upcoming financial year, staying updated with the latest news and changes in the Goods and Services Tax (GST) regime is paramount during this crucial period. So, here’s a comprehensive roundup of the top GST news and updates for March 2024.
Remember, compliance is key, and staying informed is the first step towards achieving it!
Latest GST News and Updates
- Advisory on GSTR-1/IFF: Introduction of New 14A and 15A Tables
The recent advisory on GSTR-1/IFF introduces two new tables, 14A and 15A, aimed at capturing amendments related to supplies made through e-commerce operators. Our article on Table 14 & 15 in GSTR 1 Added delves into the implications of these additions for taxpayers and e-commerce operators. - Integration of E-Waybill System with New IRP Portals
GSTN announce the successful integration of E-Waybill services with four new IRP portals via NIC, enabling taxpayers to generate E-Waybills alongside E-Invoicing on these four IRPs. You can read our article on Streamlining Logistics: Integration of E-Waybill System with New IRP Portals for more clarity.
Other Updates
- Businesses with a turnover above Rs 5 crore are required to include e-invoice details for all B2B transactions, starting March 1. Under the GST regime, e-way bills are required for inter-state transportation of goods valued over ₹ 50,000.
- As the financial year ends, taxpayers must consider the importance of timely GST audits and assessments. Ensuring compliance with GST regulations and accurate reporting of financial transactions is imperative to avoid penalties and legal repercussions. You can read our article Year-end GST Checklist 2023-2024 for clarity.
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Top GST News for the month of February 2024
The Goods and Services Tax (GST) regime has been a cornerstone of India’s taxation system since its implementation in 2017. Designed to streamline taxation and create a unified market across the nation, GST has undergone numerous revisions and updates over the years. As we step into February 2024, let’s look at the top GST news and developments shaping the economic landscape of India.
Latest GST Notification For the month of February
GST Notification 06/2024-Central Tax– dated 22-Feb-2024- Seeks to notify “Public Tech Platform for Frictionless Credit” as the system with which information may be shared by the common portal based on consent under sub-section (2) of Section 158A of the Central Goods and Services Tax Act, 2017 (12 of 2017).
Latest GST News and Updates
Enhanced E-Invoicing Initiatives & Launch of Enhanced https://einvoice.gst.gov.in portal
GSTN on the occasion of one year of the successful going live with the additional five new IRP portals, the e-invoice master information portal, and the e-invoice QR Code Verifier app, announces the launch of the revamped e-invoice master information portal https://einvoice.gst.gov.in. This enhancement is part of the ongoing effort to further improve taxpayer services.
Other Important Updates
On February 1, 2024, Finance Minister Nirmala Sitharaman presented the Interim Budget for 2024-25 in Parliament. The 2024 Interim Budget emphasized empowering youth and women, developing infrastructure, supporting agriculture, promoting green growth, and enhancing the railway sector.
As we conclude our roundup of the top GST news for February 2024, it’s evident that the evolution of India’s taxation landscape continues to unfold. Looking ahead, it’s imperative for businesses to stay abreast of these developments and adapt their strategies accordingly to maintain compliance.
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Top GST News for the month of January 2024
As the wheels of the new year begin to turn, the Indian tax landscape witnesses dynamic changes in the Goods and Services Tax (GST) domain. The start of a new year often ushers in a flurry of updates and changes, and the world of GST is no exception.
January 2024 proved no different, offering a mix of noteworthy GST news, clarifications, and deadlines for Indian businesses. To help you navigate this evolving landscape, let’s delve into the top GST updates you need to know.
GST Notifications from the month of January 2024
GST Notification 03/2024-Central Tax dated 05-January-2024: Rescinding Notification No. 30/2023-Central Tax, which specifies the special procedure to be followed by a registered person engaged in manufacturing of certain goods i.e. Pan masala and tobacco items. The Notification shall be effective w.e.f. 01.01.2024.
GST Notification 02/2024-Central Tax dated 05-January-2024: Due date for filing GSTR-9 and GSTR-9C for FY 22-23 Extended for businesses in specified regions.
GST Notification 01/2024-Central Tax dated 05-January-2024: Due date for filing GSTR-3B for Nov 2023 Extended for businesses in specified regions.
Latest GST News and GST Updates:
- Online Declaration Filing in Annexure V & VI: The GSTN issued Advisory No. 620 on January 01, 2024, introducing the latest feature to file Annexure-V and VI online on the GST Portal. This option is specifically designed for newly registered Goods Transport Agencies (GTAs) opting for Forward Charge mechanism or the Reverse Charge mechanism.
- The GSTN has implemented two new changes, added table 14 and 15 in GSTR-1 in January 2024. These tables are designed to simplify e-commerce transaction reporting, eliminate discrepancies, and make compliance easier for both suppliers and e-commerce operators (ECOs). Read more here: Table 14 & 15 in GSTR 1 Added: New Changes in GSTR 1
- GST Payments Go Digital: A new facility has been introduced by the GST department in 10 states, allowing GST payments through UPI.
- The GSTN has issued an Advisory No. 623 dated January 22, 2024, for furnishing bank account details by registered taxpayers within 30 days of the grant of registration or before the due date of filing GSTR-1/IFF, whichever is earlier, under Rule 10A of the Central Goods and Services Tax Rules, 2017.
E-invoicing and E-way Bill Updates:
- Starting February 1, 2024, E-Way Bills will incorporate four and six-digit HSN codes. Furthermore, commencing March 2024, taxpayers with e-invoice capabilities will be mandated to include e-invoice/IRN details for the generation of E-way Bills, eliminating the option to generate them without such information.
- The NIC on January 5 withdrew its circular related to blocking the generation of e-way bill without e-Invoice/IRN. The said notification was to come into effect from March 1, 2024.
Other GST News Updates:
- GST council meeting schedule announced: The next GST council meeting is most likely to be scheduled for February 18th, 2024. Expect potential rate revisions, policy changes, and further clarifications from this meeting. You may read about past GST council meetings here: GST Council Meetings
- Increased focus on GST audits and inspections: Be prepared for heightened scrutiny from tax authorities in 2024. Maintain accurate records, comply with filing deadlines, and address any outstanding notices promptly to avoid penalties.
By staying informed about these key GST updates and maintaining compliance with the evolving regulations, you can navigate the world of GST smoothly and maximize your business efficiency in 2024. Remember, seeking professional guidance can be a valuable asset in this dynamic landscape.
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Top GST News for the month of December 2023
The government frequently amends and updates provisions related to various taxes. Changes are mostly made for the taxpayer’s ease. Hence, businesses must track GST news and updates to ensure timely and 100% compliance.
Let’s delve into the key GST news, updates, and changes that actively shaped the indirect tax landscape in December 2023.
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GST News & Updates
- Two-factor Authentication (2FA) Advisory released for Taxpayers to strengthen the login security to GST portal
- Taxpayers with an AATO of 5Cr or more were mandated to submit at least 6-digit HSN on their e-Invoices from 15th of December 2023 onwards
- GSTR 3B Rectification allowed by Kerala HC when ITC in GSTR 3B return accounted as IGST credit instead of CGST and SGST credit erroneously.
- Read more: Kerala HC permits GSTR 3B Rectification
- Taxpayers can now submit an appeal via FORM GST APL-01 on the GST portal on or before January 31, 2024, for orders passed on or before March 31, 2023.
- Read more here: GSTN Releases Advisory for Amnesty on Missed Appeal Filing Deadline on Orders Preceding March 31st 2023
- The GSTN has issued an Advisory regarding the due date extension for reporting the opening balance for ITC reversal. To facilitate taxpayers, the opportunity to declare the opening balance for ITC reversal in the statement has been extended till January 31, 2024. Furthermore, the facility to amend the declared opening balance for ITC reversal will be available till February 29, 2024.
GST Collections for December 2023
For the month of December 2023, the gross GST revenue reached ₹1,64,882 crore, with CGST contributing ₹30,443 crore, SGST at ₹37,935 crore, IGST totaling ₹84,255 crore (including ₹41,534 crore from the import of goods), and cess amounting to ₹12,249 crore (including ₹1,079 crore from the import of goods). Remarkably, this marks the seventh month of the year where collections have surpassed ₹1.60 lakh crore.
GST Notifications and Circulars
- GST Notification – 55/2023-Central Tax dated 20-Dec-2023: Extension of due date for filing of return in FORM GSTR-3B for the month of November 2023 for the persons registered in certain districts of Tamil Nadu.
- GST Notification – 56/2023– Central Tax dated 28-Dec-2023: Seeks to extend dates of specified compliances in exercise of powers under section 168A of CGST Act
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Top GST News for the month of November 2023
Tax regulations, including GST (Goods and Services Tax), continue to evolve, making it essential for all taxpayers to stay updated with the latest amendments and announcements. As of November 2023, there have been several significant updates. These changes comprise various dimensions of GST, including advisory on ITC Reversal, ITC Mismatch Compliance, amnesty schemes, registration protocols, and more. Here’s a rundown of all the latest GST news for the month of November.
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GST Collections for November 2023
In November 2023, the total GST revenue collected amounted to ₹1,67,929 crore, showcasing a significant growth rate of 15% year-on-year. This includes ₹30,420 crore in CGST, ₹38,226 crore in SGST, ₹87,009 crore in IGST (with ₹39,198 crore collected from the import of goods), and ₹12,274 crore in cess (inclusive of ₹1,036 crore from the import of goods).
GST News & Updates
- Advisory for the procedures and provisions related to the amnesty for taxpayers who missed the appeal filing deadline for the orders passed on or before March 31, 2023
GSTN has issued an advisory that taxpayers can now file an appeal in FORM GST APL-01 on the GST portal on or before January 31, 2024, for orders passed by the proper officer on or before March 31, 2023. Furthermore, taxpayers should adhere to the provisions of Notification No. 53/2023 while making payments for the appeal to be entertained by the Appellate Officer. - CBIC notifies biometric-based Aadhaar authentication for GST registration in the State of Andhra Pradesh
CBIC vide Notification No. 54/2023- Central Tax on November 17, 2023, introduced further amendments to Notification No. 27/2022-Central Tax dated December 26, 2022. Provisions of sub-rule (4A) of Rule 8 of the CGST Rules, pertaining to the authentication of Aadhaar Numbers, shall now apply in the State of Andhra Pradesh. This modification includes adding “State of Andhra Pradesh” alongside “State of Gujarat” and “State of Puducherry”. - Comprehensive Guide and Instructions for Direct API Integration with Any of the 6 IRPs for E-Invoice Reporting
GSTN, on November 17th, 2023, released a step-by-step extensive guide for all taxpayers for facilitating direct API integration process with any of the 6 (Invoice Registration Portal) IRPs for e-invoice reporting purposes. - GSTN Advisory for ITC mismatch Compliance – GST DRC-01C
On November 14, 2023, the Goods and Services Tax Network (GSTN) introduced an important feature to address mismatches in Input Tax Credit (ITC) reporting. This advisory is initiated to guide taxpayers through the process of rectifying mismatches between ITC available in GSTR-2B statements and ITC claimed in GSTR-3B for each return period. - ITC Reversal on Account of Rule 37(A)
The amount of ITC required to be reversed on account of Rule 37A CGST Rules for FY 2022-2023 has been notified and communicated to taxpayers via email. Such recipients must reverse their ITC per rule 37A within 30th November 2023 in Table 4B (2) of GSTR 3B when filing the same. If the amount is however not reversed within the specified date by the registered person, the amount shall be payable along with the interest under Section 50.
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Top GST News for the month of October 2023
The month of October 2023 witnessed significant developments in the realm of GST, with multiple crucial announcements and revisions impacting businesses and taxpayers. From enhanced compliance regulations to the introduction of new digital functionalities, the GST landscape experienced notable transformations. Additionally, several measures were implemented to curb fraudulent activities, emphasizing the government’s commitment to strengthening the integrity of the GST framework. Let’s learn the key GST news and pivotal GST updates/ changes that shaped the indirect tax landscape in October 2023.
52nd GST Council Meeting: Key Highlights
The 52nd GST Council Meeting, led by Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman, took place on October 7, 2023 in New Delhi. The meeting saw the participation of Union Minister of State for Finance, Shri Pankaj Chaudhary, Chief Ministers of Goa and Meghalaya (who also handle finance portfolios), Finance Ministers from various states and union territories with legislative powers, and senior officials from the Ministry of Finance and respective states/union territories.
GST Collections for October 2023
In October 2023, the total GST revenue stood at ₹1,72,003 crore. This comprises ₹30,062 crore in CGST, ₹38,171 crore in SGST, ₹91,315 crore in IGST (inclusive of ₹42,127 crore from the import of goods), and ₹12,456 crore in cess (including ₹1,294 crore from the import of goods).
The changes are in 3 major categories:
A) Recommendations relating to GST rates on goods and services
B) Measures for facilitation of Trade
C) Other measures pertaining to law and procedure
Read here: 52nd GST Council Meeting
GST News on Compliance Changes in October 2023
- The GST department has activated the ITC mismatches feature between GSTR-2B and GSTR-3B in order to manage the DRC-01C form.
- The latest feature allowing the download of JSON e-Invoices is currently active on the official e-Invoice Portal.
- The government has introduced compliance related to DRC-01C, highlighting the variance in input tax credits between GSTR-2B and GSTR-3B.
- A platform has been started for online retailers that enables the provision of goods by unregistered suppliers.
- The registration choice is open to suppliers not registered under GST who wish to sell goods through online platforms.
- The Kerala GST Department has issued a recent directive regarding the issuance of distinct notices to taxpayers under sections 73 and 74.
- The GSTN department has released version 2.2 of the offline utility for TDS and TCS credit received.
- The GST department has issued guidance on GST REG-10 and Form GSTR-5A.
- During the period spanning April 2020 to September 2023, the DGGI flagged over 6,000 fraudulent ITC cases, amounting to a staggering Rs. 57,000 crore in GST evasion, resulting in the arrest of 500 individuals.
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Top GST News for the month of September 2023
The month of September brought forth a series of noteworthy developments in the realm of Goods and Services Tax in India. From crucial amendments and regulatory changes to discussions at the highest levels of governance, this month has been a pivotal one for businesses and taxpayers alike. Also, an announcement was made regarding the next GST Council Meeting which is taking place in October. Read on for the most recent and latest GST news and significant GST updates from September 2023.
GST Notifications released in September 2023
GST Notification – 45/2023 dated 6-9-2023: GST Notification No. 45/2023 | New Rule 31B and 31C inserted after Rule 31A.
GST Notification – 46/2023 dated 18-9-2023: Seeks to appoint adjudicating authority for notice issued to M/s
52nd GST Council Meeting Expectations
The GST Council is gearing up for its 52nd GST Council Meeting, scheduled for October 7, 2023, in New Delhi. This meeting holds immense significance as it plays a pivotal role in shaping India’s indirect-tax landscape. One of the key agenda items anticipated for the 52nd GST council meeting is to review the progress made by various states in implementing amendments to the State Goods and Services Tax (SGST) law.
Read the agenda and expectations here: 52nd GST Council Meeting
GST Collections for September 2023
In September 2023, the gross GST revenue collections are at ₹1,62,712 crore. This amount includes contributions from various GST components: CGST (Central Goods and Services Tax): ₹29,818 crore SGST (State Goods and Services Tax): ₹37,657 crore IGST (Integrated Goods and Services Tax): ₹83,623 crore (including ₹41,145 crore collected on the import of goods) Cess: ₹11,613 crore (including ₹881 crore collected on the import of goods).
E-invoicing News Updates
Two Factor Authentication Mandatory for Taxpayers with an ATTO of Rs. 20 Cr. and above: Effective November 1, 2023, taxpayers with an Annual Turnover exceeding Rs. 20 Crores in India need to adopt Two-Factor Authentication (2FA) during login. This new requirement enhances security by adding an extra layer of protection, typically a one-time password (OTP), alongside regular login credentials.
Revised Deadline for Invoice Reporting on the IRP Portal: GST Authority has introduced a new regulation requiring taxpayers with an Annual Aggregate Turnover (AATO) equal to or greater than 100 crores to report their invoices on e-invoice portals within 30 days from the invoice date.
Clarification Released on E-invoicing for Government Supplies: In a recent development, the GST Policy Wing has issued an important clarification regarding the application of e-invoicing. According to Circular No. 198/10/2023-GST dated July 17, 2023, the clarification pertains to supplies made to various government entities.
GST News on Compliance Changes in September 2023
- The GSTN has introduced Electronic Credit Reversal and Reclaimed Statements to ensure precise and proper reporting of Input Tax Credit (ITC) reversals, promoting accuracy in the process.
- According to a notification dated October 15, 2020, taxpayers with an aggregate annual turnover (AATO) exceeding Rs 5 Crore must incorporate a minimum 6-digit HSN code in both e-invoices and e-Waybills. For other taxpayers, a minimum 4-digit HSN code is required. Taxpayers have smoothly transitioned to this requirement and are anticipated to remain compliant by the stipulated deadline. Starting from October 1, 2023, adherence to this rule will be compulsory for both e-Waybills and e-Invoices.
- The GSTN department has recently introduced an enhanced geocoding functionality for Additional Places of Business.
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Top GST News for the month of August 2023
August 2023 has brought significant developments in the realm of Goods and Services Tax (GST), shaping the economic landscape for businesses and consumers alike. With governments worldwide adapting their tax policies to navigate a changing global market, this month’s GST news highlights pivotal changes, innovative strategies, and their potential impacts. Read on for the most recent and latest GST news and significant GST updates from August 2023.
GST Notifications released in August 2023
GST Notification – 36/2023 dated 4-8-2023: The notification states unique procedure for eCommerce operators for goods supplied through them by composition taxpayers.
GST Notification – 37/2023 dated 4-8-2023: The CBIC notify special procedure for e Commerce operators for goods supplied through them by unregistered person.
GST Notification – 38/2023 dated 4-8-2023: This notification marked the introduction of the Central Goods and Services Tax (Second Amendment) Rules, 2023.
GST Notification – 39/2023 dated 17-8-2023: The notification outlines specific amendments that are to be incorporated into Table II of Notification No. 02/2017-Central Tax. These changes are made in Serial Number 39 , 101, and 107 of Table II, related to Guntur, Tirupati and Visakhapatnam territorial jurisdiction.
GST Notification 40/2023 dated 17-8-2023: Seeks to appoint common adjudicating authority for notice issued to M/s United Spirits Ltd.
GST Notification 41/2023 dated 125-8-2023: Due date of GSTR 1 for April 23 to July 23 period extended for users having principal place of business in Manipur.
GST Notification 42/2023 dated 125-8-2023: Due date of GSTR 3B for April 23 to July 23 period extended for users having principal place of business in Manipur.
GST Notification 43/2023 dated 125-8-2023: Due date for filing GSTR-3B for Jun’ 23 Qtr. is extended for taxpayers registered in Manipur.
GST Notification 44/2023 dated 125-8-2023: Due date of GSTR 7 for April 23 to July 23 period extended for users having principal place of business in Manipur.
GST Collections for August 2023
The gross GST revenue collected in August 2023 is Rs 1,59,069 crore of which CGST is Rs 28,328 crore, SGST is Rs 35,794 crore, IGST is Rs 83,251 crore (including Rs 43,550 crore collected on import of goods) and cess is Rs 11,695 crore (including Rs 1,016 crore collected on import of goods).
GST News on Compliance Changes in August 2023
- The regions of Haryana, Assam, and Gujarat, along with the union territories of Dadra & Nagar Haveli, Daman & Diu, and Puducherry, are set to initiate an invoice incentive scheme starting from September 1, 2023.
- Mera Bill Mera Adhikar Scheme: As per the direction from the Government, the GSTN has developed and launched a mobile application (available on iOS and Android platforms) and also a web portal for the “Mera Bill Mera Adhikaar” scheme. This scheme will be implemented from 1st September, 2023 initially in the States of Gujarat, Assam, Haryana and UTs of Puducherry and Daman & Diu and Dadra & Nagar Haveli, as per the policy decision of the Government.
- Advisory on E-Invoice – Services Offered by the Four New IRPs | E-invoice Exemption Declaration Functionality Made Available
- Recent instructions provided for applicants with GST registration requests that are designated for biometric authentication using AADHAAR. Read details here: Aadhaar authentication under GST
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Top GST News for the month of July 2023
This section of the article serves as your comprehensive guide to the latest GST updates and news, unveiling the intricacies and implications of key discussions, reforms, and technological advancements that are shaping the path ahead. Read on for the most recent GST news and significant GST updates from July.
GST Notifications released in July 2023
- GST Notification 19/2023 dated 17-07-23: Due date for filing GSTR-3B for Jun’ 23 Qtr is extended till 31st Jul’ 2023 for the registered persons having principal place of business in Manipur.
- GST Notification 20/2023 dated 17-07-23: The due date for filing GSTR-3B for Jun’ 23 Qtr is extended till 31st Jul’ 2023 for taxpayers registered exclusively in Manipur.
- GST Notification – 21/2023 dated 17-07-23: Due date for filing GSTR 7 of Apr, May & Jun’ 23 is extended till 31st Jul’ 2023 for registered persons having principal place of business in Manipur.
- GST Notification – 22/2023 dated 17-07-23: Amnesty scheme for GSTR-4 extended from 30th Jun’23 to 31st of Aug’ 23, for the tax period from Jul’ 17 to Mar’ 22.
- GST Notification 23/2023 dated 17-07-23: Application to Revoke Cancelation of Reg Time limit Extd
- GST Notification – 24/2023 dated 17-07-23: Amnesty scheme for deemed withdrawal of assessment orders issued u/s 62 is extended to 31st Aug’23 from 30th Jun’23.
- GST Notification – 25/2023 dated 17-07-23: Amnesty scheme for GSTR-9 extended from 30th Jun’23 to 31st of Aug’ 23, for the tax period from Jul’ 17 to Mar’ 22.
- GST Notification – 26/2023 dated 17-07-23: Amnesty scheme for GSTR-10 extended from 30th Jun’23 to 31st of Aug’ 23, for the tax period from Jul’ 17 to Mar’ 22.
GST Collections for July 2023
The gross GST revenue collected in the month of July, 2023 is ₹1,65,105 crore of which CGST is ₹29,773 crore, SGST is ₹37,623 crore, IGST is ₹85,930 crore (including ₹ 41,239 crore collected on import of goods) and cess is ₹11,779 crore (including ₹ 840 crore collected on import of goods). The revenues for the month of July 2023 are 11% higher than the GST revenues in the same month last year.
GST News on Compliance Changes in July 2023
- On July 07, 2023, the Central Government made an amendment to the Prevention of Money-Laundering Act, 2002 (“the PML Act”) through Notification F. No. P.12011/2/2009-ES Cell-DOR. The introduced amendment includes the incorporation of the GSTN entry.
- The functionality for e-Invoice exemption declaration has been made available on the GST e-Invoice portal by the GSTN department. Read more here: E-invoice Exemption Declaration Functionality Made Available
- The 51st GST Council meeting is slated to take place on 2nd August 2023 through a video conferencing arrangement, as announced by the GSTN department.
- In celebration of 6 years of GST implementation, the GST department has released a comprehensive statistical report.
- Geocoding Functionality Now Live for All States and Union Territories: The geocoding functionality for the principal place of business address is now operational for all States and Union territories, as per the latest update from GSTN. This innovative feature is designed to convert location descriptions into precise geographic coordinates, ensuring the utmost accuracy in GSTN records and streamlining the address verification process.In a significant achievement, GSTN has successfully geocoded more than 1.8 crore addresses of principal places of business. Additionally, all new addresses registered after March 2022 undergo geocoding at the time of registration itself, guaranteeing the accuracy and standardization of address data right from the beginning.
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Top GST News for the month of June 2023
As we delve into the realm of GST in India, let’s take a closer look at the captivating developments that unfolded throughout the month of June 2023. This section of the article serves as your guide to the latest GST news or top GST news, unraveling the intricacies and implications of the key discussions, reforms, and technological advancements that are shaping the path ahead.
50th GST Council Meeting Expectations
The Union Finance Minister Nirmala Sitharaman will preside over the 50th GST Council Meeting, which is most likely to take place on 11th July 2023.
Read the expectations from the 50th GST Council Meeting here.
GST Collections for June 2023
The GST revenue for June 2023 has surpassed ₹1,61,497 crore, comprising ₹31,013 crore from CGST, ₹38,292 crore from SGST, ₹80,292 crore from IGST (which includes ₹39,035 crore collected on import of goods), and ₹11,900 crore from cess (including ₹1,028 crore collected on import of goods).
GST News on Compliance Changes in June 2023
- On June 26, 2023, a webinar was organized by the GSTN e-Invoice team and representatives of Invoice Registration Portals (IRPs) to provide insights and guidance on e-Invoicing and IRPs. Since IRIS is also an IRP, our team presented at the Live Webinar showcasing our advanced Invoice Registration Portal – IRIS IRP.
- From July 15, 2023, the implementation of two-factor authentication becomes mandatory for all taxpayers with an Annual Aggregate Turnover (AATO) exceeding 100 crores.
- CBIC released guidelines for processing of applications for GST registration. Instruction No. 03/2023 for obtaining fake/ bogus registration under GST
- The government released a new advisory on e-invoicing enablement status update for taxpayers. GSTN has enabled all eligible taxpayers with an Aggregate Annual Turnover (AATO) of 5 crores and above as per GSTN records in any preceding financial year for e-Invoicing. These taxpayers now have access to all IRP portals, including IRIS IRP, for e-Invoice reporting.
- The due dates for GSTR 7, GSTR 3B, and GSTR 1 forms have been extended for taxpayers residing in Manipur State as their principal place of residence.
- The deadline for filing the GSTR-3B form for districts including Kutch, Jamnagar, Morbi, Patan, and Banaskantha in Gujarat has been extended until June 30th for the month of May 2023.
- Online Compliance Pertaining to Liability / Difference Appearing in R1 – R3B (DRC-01B): GSTN has developed a functionality to enable the taxpayer to explain the difference in GSTR-1 & 3B return online as directed by the GST Council. This feature is now live on the GST portal.
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Top GST News for the month of May 2023
Important GST Notifications released in May 2023
GST Notification 10/2023 -Central Tax dated 1o-May-2023: Any entity whose turnover is Rs. 5 crores or above in any financial year from 2017-18 has to issue E-invoice w.e.f. 1st Aug’23.
GST Collections for May 2023
The gross Good & Services Tax (GST) revenue collected in the month of May 2023 has reached an impressive total of Rs.1,57,090 crores. This figure represents a significant 12% increase compared to the GST revenues recorded in the same month last year.
GST News on Compliance Changes
- To facilitate communication with taxpayers and RFN verification through the GST portal, the Odisha finance department of the commissionerate of CT & GST has released an advise on Document Reference Number (RFN) generation.
- The GSTN has released an advisory for taxpayers who had issues with their GSTR-3B filing during the month of March 2023.
- The 7-day E-Invoice Generation Limit has been deferred by the GSTN
- Regarding false GST registrations, the CBIC department has produced instruction guide no. 01/2023
- Automated Return Scrutiny Module for GST Returns Introduced by the CBIC: CBIC has introduced a new Automated Return Scrutiny Module for GST returns in the ACES-GST backend application for Central Tax Officers.
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Top GST News for the month of April 2023
As we enter April 2023, there are several GST-related developments that businesses and taxpayers need to be aware of. In this article, we will highlight the top GST news and latest from the month of April 2023. Whether you’re a business owner or a taxpayer, staying informed about these updates is crucial to ensure compliance and avoid any potential penalties.
GST News on Compliance Changes
- 7-day E-Invoice Generation Limit
For taxpayers with AATO higher than or equal to 100 crores, the Government has decided to impose a time limit on submitting old invoices on the e-invoice IRP portals. To ensure timely compliance, taxpayers in this category will not be allowed to report invoices older than 7 days on the date of reporting. This restriction will apply to the all-document types for which IRN is to be generated. Thus, once issued, the credit / Debit note will also have to be reported within 7 days of issue. Read: How 7-day E-Invoice Generation Limit will Impact Your GST Compliance
- New Update on Aadhaar authentication under GST
GST Notification 04/2023 – Changes have been made to Rules 8(4A) and 8(4B), which govern the process for Aadhar authentication and applicant bio-metric verification. Read: Aadhaar authentication under GST
- New Changes in TCS on Overseas Travel Packages:
In Budget 2023, the percentage of tax deducted at source (TCS) for international transfers made under LRS increased from 5% to 20%. This covers overseas travel, remittances, and other transfers, aside from those for health, education, and medical needs. On July 1st, 2023, the new regulation will become effective. For remittances under Rs. 7 lakhs, TCS formerly offered an exemption. This is no longer there. Read: New Changes in TCS on Overseas Travel Packages
- Advisory on Bank Account Validation
GSTN is pleased to inform you that the functionality for bank account validation is now integrated with the GST System. This feature is introduced to ensure that the bank accounts provided by the Tax Payer is correct. The bank account validation status can be seen under the Dashboard→My Profile→Bank Account Status tab in the FO portal. Tax Payers will also receive the bank account status detail on registered email and mobile number immediately after the validation is performed for his declared bank account.
- New facility to verify document Reference Number (RFN) mentioned on offline communications issued by State GST authorities
GST Collections for April 2023
- The gross GST revenue collected in the month of April, 2023 is Rs 1,87,035 crore. It is the highest collection ever!
- From the total gross GST Collection of April, CGST is Rs 38,440 crore, SGST is Rs 47,412 crore, IGST is Rs 89,158 crore (including Rs 34,972 crore collected on import of goods) and cess is Rs 12,025 crore (including Rs 901 crore collected on import of goods),
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Top GST News for the month of March 2023
March has been an eventful month for the Goods and Services Tax (GST) regime in India, with several noteworthy updates and developments. Not just for GST system at large but at IRIS GST as well. As we had informed you in the previous month, IRIS has been selected by the GSTN to be an authorized invoice registration portal for businesses to generate IRN. So, now our official website for the same is live: https://einvoice6.gst.gov.in/
In this section, we will discuss the top GST news updates from March 2023, highlighting the key changes and their implications for taxpayers. Whether you are a business owner, a tax professional, or a GST registered individual, this article will provide you with valuable insights into the latest developments in the GST regime.
Important GST Notifications released in March 2023
- GST Notification 03/2023-Central Tax dated 31-Mar-2023: Extension of time to apply for revocation of cancellation of GST registration
- GST Notification 04/2023-Central Tax dated 31-Mar-2023: Amendment in CGST Rules
- GST Notification 05/2023-Central Tax dated 31-Mar-2023: Rule8(4A) will apply to only applicants of Gujarat
- GST Notification 06/2023-Central Tax dated 31-Mar-2023: Amnesty scheme for assessment orders issued u/s 62
- GST Notification 07/2023-Central Tax dated 31-Mar-2023: Amnesty for GSTR9 non-filers
- GST Notification 08/2023-Central Tax dated 31-Mar-2023: The late fee over Rs.1,000 per return is waived
- GST Notification 09/2023-Central Tax dated 31-Mar-2023: Extension of limitation under Section 168A of CGST Act
GST Year-End Checklist: 13 Tasks To Be Completed
There are certain tasks that taxpayers need to carry out before April 1, 2023, and some mandates start from 1st April 2023. Likewise, there are some that need to be done every year when the Financial Year starts, yet some others were historically introduced on 1st April, the start of the financial year. And like every year, this year again we have brought you a GST Year-End checklist of all the activities that you need to complete before the financial year ends. Read here: GST Year-End checklist
GST Collections for March 2023
Gross GST revenue for March 2023 was Rs. 1,60,122 crore.
GST News on Compliance Changes
- New advisory stating GSTN launches e-invoice registration services with private IRPs: Following the GST Council’s recommendation, GSTN has begun offering e-invoice registration services through a number of private IRPs as another move towards further digitizing the business process flow. For the purpose of offering these e-invoice registration services to all GST taxpayers in the nation, the GSTN appointed four commercial businesses, namely IRIS Business Ltd – IRIS IRP, Cygnet, ClearTax and E&Y.
- HSN Reporting in E-invoicing: E-Invoice System will not accept 4-digit HSN codes and taxpayers will have to only use 6-digit HSN Codes on the E-Invoice Portal. On 22-03-23, a new update has been published by the GSTN stating that it is now mandatory for taxpayers to report a minimum of 6-digit valid HSN code for their outward supplies having AATO of more than 5 crores in any previous financial year.
- E-invoicing voluntary enablement: GST Notification 17/2022 dated 01-08-2022 mandates e-invoicing for taxpayers having AATO above Rs. 10 crores in any financial year since FY 2017-18 w.e.f 1st October, 2022. Now, taking a step further, the government has enabled the voluntary enablement of e-invoicing for FY 2022-23.
- Advisory for the taxpayer wishing to register as “One Person Company” in GST: Some issues have been raised by the persons registering as ‘One Person Company’ while they take GST registration. Upon analysis, it has been noticed that the option of choosing One Person Company is not there in form notified by CGST/SGST Acts and hence not available on the GSTN portal also. Read more here: One Person Company under GST
Top GST News for the month of February 2023
In February 2023, there were some significant developments in the world of Goods and Services Tax (GST) that impacted businesses and taxpayers in various ways. From changes in GST rates to updates in compliance requirements, the month witnessed several noteworthy updates that are crucial for businesses to stay informed and updated. In this section, we will discuss the top GST news updates from February 2023, highlighting the key changes and their implications for taxpayers.
- Union Budget 2023 Key Highlights
Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman announced the official budget for 2023 on 1st February. The finance minister highlighted that the Indian economy has increased in size in the last 9 years from being the 10th largest to being the fifth largest economy in the world. Read all the Union Budget 2023 Key Highlights here.
- Key GST Changes: Union Budget 2023 | Finance Bill 2023
The Union Budget 2023, presented on February 1, 2023, brought about several changes to the Goods and Services Tax (GST) regime in India. The changes, aimed at simplifying the tax system and boosting the economy, have generated much discussion and analysis in the business community. Read all about Key GST Changes: Union Budget 2023 | Finance Bill 2023
- 49th GST Council Meeting Key Highlights
The 49th GST Council Meeting was held on February 18th, 2023 in New Delhi under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman. The meeting was also attended by Union Minister of State for Finance Shri Pankaj Chaudhary besides Finance Ministers of States & UTs (with legislature) and senior officers of the Ministry of Finance & States/ UTs. Read all about the 49th GST Council Meeting here
GST Collections for February 2023
The gross GST revenue collected in the month of February 2023 is ₹1,49,577 crore of which CGST is ₹27,662 crore, SGST is ₹34,915 crore, IGST is ₹75,069 crore (including ₹35,689 crore collected on import of goods) and Cess is ₹11,931 crore (including ₹792 crore collected on import of goods).
GST News on Compliance Changes
- Advisory on opting for payment of tax under the forward charge mechanism by a Goods Transport Agency (GTA)
- The GSTN department has published a new advisory for reporting e-Invoice informing about new IRPs of which IRIS IRP is one of the first four chosen IRPs.
- The CBIC added FAQs for location-based geocoding of existing regular taxpayers’ principal places of business (Only applicable for Delhi and Haryana)
- The GST portal has introduced negative values in Table 4 which comes under form GSTR 3B return.
- For Financial Year 2023-24, regular taxpayers can opt for the composition scheme by navigating to the ‘Services-> Registration-> Composition Scheme Application Form’. It will be available on GST Portal until 31st March 2023.
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Top GST News for the month of January 2023
January, the time for new beginnings, hope and yes, new year resolutions! Overall also a great month for businesses. We will discuss all the important GST updates from the month in this section of the article. Read the latest GST news and GST updates from the month of January 2023 here
- Important GST Notifications released in January 2023
- 01/2023-Central Tax dt.04-Jan-2023: To assign powers of Superintendent of central tax to Additional Assistant Directors in DGGI, DGGST and DG Audit.
- Important GST Changes from January 2023
- In accordance with several rulings issued by the Central Board of Indirect Taxes and Customs (CBIC) earlier this month in the 48th GST Council Meeting, certain decisions pertaining to the Goods and Services Tax (GST) take effect from January 1, 2023. Read all the updates and GST changes from January 1 2023 stated by CBIC.
- Union Budget 2023 Expectations
- Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman is all set to announce the official budget for 2023 on 1st February. There are several expectations from this year’s union budget regarding GST rate reductions, interest rates on home loans, railways, education and farming sector etc. Read more about the Union Budget 2023 expectations here.
- GST Collections for January 2023
- The gross GST revenue collected in the month of January 2023 is Rs 1,55,922 crore of which CGST is Rs 28,963 crore, SGST is Rs 36,730 crore, IGST is Rs 79,599 crore (including Rs 37,118 crore collected on import of goods) and cess is Rs 10,630 crore (including Rs 768 crore collected on import of goods).
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GST News on Compliance Changes
- For the FY 2023–2024, the GSTN has made the new Letter of Undertaking (LUT) feature available.
- The department has informed the GST stakeholders in detail about the new functionalities. The functions for December 2022 deal with things like registration, returns, and refund claims.
Top GST News for the month of December 2022
crore, SGST is Rs 33,357 crore, IGST is Rs 78,434 crore (including Rs 40,263 crore collected on import of
goods) and Cess is Rs 11,005 crore (including Rs 850 crore collected on import of goods).
Year in GST: Top 7 Law Changes and GST Updates in 2022
Year 2022 has been the year of standing up again from the setback of the Covid pandemic that has impacted businesses globally for almost 2 years. Businesses are back in action and normalcy can be seen from the GST collections 2022. Let us look at the major updates in GST Rules and compliance requirements in 2022.
Read: Top 7 law changes in GST
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Top GST News for the month of November 2022
November, the second last month of the year has already gone by… With the bunch of new GST updates, November has kept us all on our toes. There were new GST notifications and circulars along with some fresh GST news updates. Also, with the launch of IRIS IRP, we also have several e-invoicing updates to share. Read all to get all the latest GST News and GST updates from the month of November 2022 here!
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Top GST News for the month of October 2022
October 2022 witnessed the celebration of one of the biggest festivals in the country – Diwali. And, Diwali is synonymous with shopping, thus a great time for businesses throughout the country. On the GST front, there were a few changes and GST updates that were released. Sharing all the latest GST news and GST updates from October here…
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Top GST News for the month of September 2022
In this section of our Top GST News and Latest GST Updates article, we will discuss everything about new GST updates, changes, notifications and circulars that have been released this month. Yes, read on to know all the latest GST updates from September 2022 that we have compiled for you here!
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Top GST News for the month of August 2022
The month of August saw a few important GST updates. Here, we have compiled all the latest GST news and updates for you… Read on!
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Top GST News for the month of July 2022
Important GST Notifications released in July 2022
- GST Notification 9/2022 dated 05-07-2022: Central Government hereby appoints the 5th July, 2022, as the date on which the provisions of clause (c) of section 110 and section 111of the said Act shall come into force.
- GST Notification 10/2022 dated 05-07-2022: Taxpayers having AATO upto Rs. 2 crores are exempted from furnishing GSTR 9/9A for FY 2021-22.
- GST Notification 11/2022 dated 05-07-2022: Due date of CMP 08 for June 2022 quarter is extended from 18th July to 31st July.
- GST Notification 12/2022 dated 05-07-2022: Late fees for delay in filing GSTR-4 for FY 2021-22 shall be waived till 28 July 2022.
- GST Notification 13/2022 dated 05-07-2022: Extension of time limit for issuance of notice w.r.t tax not paid/short paid for FY 2017-18. Exclusion of period of 1st Mar 20 to 28th Feb 22 from timelimit filing of refund application and Order for recovery of erroneous refunds.
- GST Notification 14/2022 dated 05-07-2022: Seeks to make amendments (First Amendment, 2022) CGST rules issued for EInvoice, Suspension status and more.
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Important GST Circulars released in July 2022
- GST Circular 170/2022: Mandatory furnishing of correct and proper information of inter-State supplies and ineligible/blocked ITC and reversal thereof in return in GSTR-3B and statement in GSTR-1.
- GST Circular 171/2022: Clarification on issues relating to applicability of demand & penalty in respect of transactions involving fake invoices.
- GST Circular 172/2022: Clarification on various issue pertaining to GST.
- GST Circular 173/2022: Clarification on claiming refund under inverted duty structure where the supplier is supplying goods under the concessional notification.
- GST Circular 174/2022: Circular prescribes the manner of re-credit in electronic credit ledger using PMT-03A.
- GST Circular 175/2022: Circular specifies the manner of filing refund of unutilised ITC on account of export of electricity.
- GST Circular 176/2022: Rule 95A has been omitted, retrospectively w.e.f. 01.07.2019, vide notification No. 14/2022-Central Tax, dated 05.07.2022. Accordingly, the Board hereby withdraws Circular No 106/25/2019-GST dated 29.06.2019
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GST Updates on Compliance Changes
Updates in GSTR 3B – July 2022 | GSTR 3B and ITC Eligibility
GSTR 3B witnessed a bunch of updates in July 2022 after the two-day-long 47th GST Council Meeting. The CBIC has announced a bundle of clarifications and updates through the latest GST Council Meeting recommendations, GST Notifications and Circulars. And one of the most conversed topics is the updates in GSTR 3B. It’s a return through which GSTN collects tax from registered taxpayers, the said update will impact a majority of taxpayers. Read the summary of updates in GSTR 3B announced by the CBIC here: Updates in GSTR 3B – July 2022
- 47th GST Council Meeting Updates
- The 47th GST Council Meeting took place on 28th and 29th June 2022 to address multiple important issues like GST rate changes for an array of goods and services, compensation cess, E-way Bill and E-invoicing changes and so on. Chaired by Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman, the 47th GST Council Meeting was a physical meeting which was held in Chandigarh, Punjab.
- Read a detailed update on all the changes here: 47th GST Council Meeting
- GST Collection – July 2022
- The GST collection for the month of July 2022 is Rs. 1,48,995 crore. Out of the total revenue, CGST is Rs. 25,751 crore, SGST is Rs. 32,807 crore, IGST is Rs. 79,518 crore (including Rs. 41,420 crore collected on import of goods) and cess is Rs. 10,920 crore (including Rs. 995 crore collected on import of goods).
- E-invoicing Updates
- Taxpayers with an annual aggregate turnover between Rs. 5 Cr. to Rs. 20 Cr. are enabled for testing on Sandbox for e-invoicing. Read the consequences of non-compliance with e-invoicing: April 2022 onwards
- GST Updates
- Removal of negative balance in cash ledgers of some composition taxpayers: Due to the reversal of amount in the cash ledger of some composition taxpayers, the balance in the cash ledgers had become negative. The government has now decided that the negative balance in the cash ledgers of such taxpayers should be nullified. Accordingly, the negative balance has been nullified.
- Implementation of mandatory mentioning of HSN codes in GSTR-1: Via Notification No. 78/2020 – Central Tax dated 15th October, 2020, it is mandatory for the taxpayers to report minimum 4 digits or 6 digits of HSN Code in Table-12 of GSTR-1 on the basis of their Aggregate Annual Turnover (AATO) in the preceding Financial Year.
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Top GST News for the month of June 2022
- The department shared the details of the new functionalities for the GST stakeholders.
- The new GST rate of 6% is reported online in GSTR-1. Read more: Reporting 6% rate in GSTR-1
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Top GST News for the month of May 2022
- Annual Aggregate Turnover (AATO) computation for FY 2021-22 made available on GST Portal.
- The due date of form PMT-06 for the month of April has been extended to 27th May 2022.
- The CBIC released a new GST notification no. 05/2022 that extended GSTR 3B due date till 24th May 2022 from 20th May 2022.
- The GST department has released GST Notification 07/2022 under Section 47, which waives late costs for filing the GSTR 4 form until June 30, 2022 for the fiscal year 2021-2022.
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Top GST News for the month of April 2022
The following particulars are to be disclosed in such case:
- GST compensation for 8 months (out of 10 of 2021-22) has been disbursed to states, with a total of Rs 78,704 crore remaining, according to the Finance Ministry.
- The MGST department has released an internal circular no.6A stating instructions for revocation of cancelled GST registration under sub-section (2) of section 29.
- The new rules for the National Risk Management Committee (NRMC) / Local Risk Management Committee have been published by the Customs and GST department (LRMC).
- The new functionalities for GST stakeholders and taxpayers discussed in March 2022 are now available on the official GST portal. These new functionalities are regarding the advance ruling, GST registration, GST refund, and other miscellaneous topics.
- The new functionality to file an appeal for advance ruling and other formalities by unregistered persons is now available on the official GST portal.
- GSTR-1/IFF enhancements deployed on GST Portal
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Top GST News for the month of March 2022
- The CBIC has released a new advisory about the new functionality for the restoration of cancelled registration under GST via REG-21.
- Auto-population of e-invoice details into GSTR 1: Generation of e-invoice is mandatory for companies with an annual aggregate turnover of Rs. 20 Cr., as notified by the Government. These taxpayers are required to prepare & issue their e-invoices by reporting their invoice data in the prescribed format (e-invoice schema in FORM GST INV-01) and reporting the same on the IRP. Invoices reported successfully on the IRP are given a unique Invoice Reference Number (IRN). The documents (invoices, debit notes, credit notes) reported on the IRP are then transmitted electronically to the GST system and get auto-populated in the respective tables of GSTR-1.
- GSTR 1/IFF Changes: Quarterly GSTR-1 filers have been provided with an optional Invoice Furnishing Facility (IFF) for reporting their outward supplies to registered persons (B2B supplies) in the first two months of the quarter.
- Enhanced Registration application user interface (UI): The GSTN user interface (UI) feature has been added for filing the details in the GST REG-1 form on the official portal.
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Top GST News for the month of February 2022
- GSTR 1/IFF Changes: Quarterly GSTR-1 filers have been provided with an optional Invoice Furnishing Facility (IFF) for reporting their outward supplies to registered persons (B2B supplies) in the first two months of the quarter.
- Window to opt for Composition Scheme has been made available on the official GST portal for the year 2022-23. Eligible taxpayers can apply before 31st March 2022.
- GST enables a new facility for filing LUT (Letter of Understanding) for the financial year 2022-23.
- Module wise new functionalities deployed on the official portal for taxpayers
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Top GST News for the month of January 2022
- The GSTN has released a new advisory regarding the reporting of taxable supplies of restaurant services and other services by e-commerce operators in Table 3.1(a) and Table 3.1(c) of GSTR 3B. The E-commerce operator and the registered person would report taxable supplies notified under section 9(5) of CGST Act, 2017 and similar provisions in IGST/SGST/UTGST Act in the following manner.
Table 3.1(a) of GSTR-3B | |
Table 3.1(c) along with nil and exempted supply |
You can read more details here: GST Circular 167/2021.
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Top GST News for the month of December 2021
GST Circulars:
- GST Circular 167/2021: Clarification regarding tax on supplies of restaurant services supplied via e-commerce operators
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Top GST News for the month of November 2021
Circulars:
- GST Circular No 165/2021 dated 17-11-2021: Clarification regarding GST rates & classification (goods) based on the recommendations of the 45th GST Council
- GST Circular 166/2021 dated 17-11-2021: Clarifications related to refund related issues.
Read the explanation and summaries of GST Circulars 165 and 166 here.
- GST Rate hike: The Central Board of Indirect Taxation and Customs (CBIC) recently released a new GST notification 14/2021 related to the GST rate hike on fabrics, apparel, and footwear from 5%. This change will come into effect from 1st January 2022 onwards. Read the full update here: GST Rate hike on apparel, footwear and fabrics.
- GSTR 2B: The GSTIN once again updated the manual advisory for the auto-drafted ITC statement GSTR 2B form for the normal taxpayer.
- Central Board of Indirect Taxation and Customs department has notified the fresh instructions on the issuance of SCNs.
- Cancellation of Registration: There is an update related to form REG-16 on the government portal. Taxpayers can now withdraw their application for cancellation of registration (filed in Form REG-16) unless the tax officer has initiated action on it.
- GSTR 1 Filing Improvements: The government has updated and improved the GSTR 1 filing process making it more user friendly. You can read about the upcoming expected changes in GSTR 1 filing.
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Top GST News for the month of October 2021
Important GST Notifications and Circulars released in October 2021
Circulars:
- GST Circular No 163/19/2021: Clarification regarding GST rates & classification (goods) based on the recommendations of the 45th GST Council
- GST Circular 164/2020/2021: Clarifications regarding applicable GST rates & exemptions on certain services
Read the explanation of this circular here: Summary of GST Circular 164
GST Collection – October 2021
The gross GST revenue collected in the month of October 2021 is Rs. 1,30,127 crore of which CGST is Rs. 23,861 crore, SGST is Rs. 30,421 crore, IGST is Rs. 67,361 crore including Rs. 32,998 crore collected on import of goods and Cess is Rs. 8,484 crore including Rs. 699 crore collected on import of goods.
Updates on GST Compliance:
- Records (invoice or debit notes) for FY 2020-21 reported in GSTR-1 after the due date of GSTR-3B of September 2021 will not reflect as “ITC Available” in GSTR-2B of the recipients. Such records will reflect in “ITC Not Available” section of GSTR-2B and such ITC shall in turn not be auto-populated in GSTR-3B.
- Records (invoice or debit notes) for FY 2020-21 reported in GSTR-1 after the due date of GSTR-3B of September 2021 will also not reflect as “ITC as per GSTR-2A” in Table-8A of GSTR-9 of the recipients.
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Top GST News for the month of September 2021
Important GST Notifications and Circulars released in September 2021
- GST Notification 36/3021-central tax-dated 24-09-2021 – Seeks to amend Notification No. 03/2021 dated 23.02.2021.
Circulars:
- GST Circular 159/13/2021: Clarification on doubts related to the scope of “Intermediary”
- GST Circular 160/16/2021: Clarification in respect of certain GST related issues
- GST Circular 161/17/2021: Clarification relating to the export of services-condition (v) of section 2(6) of the IGST Act 2017
- GST Circular 162/18/2021: Clarification in respect of refund of tax specified in section 77(1) of the CGST Act and section 19(1) of the IGST Act.
GST Collection – September 2021
The gross GST revenue collected in the month of September 2021 is Rs 1,17,010 crore of which CGST is Rs 20,578 crore, SGST is Rs 26,767 crore, IGST is Rs 60,911 crore including Rs 29,555 crore collected on import of goods and Cess is Rs 8,754 crore including Rs 623 crore collected on import of goods.
GST Updates on Compliance:
- On-demand fetching of Bill of Entry details from ICEGATE Portal: To help importers of goods, and recipients of supplies from SEZ, search Bill of Entry details, which did not auto-populate in GSTR 2A, a self-service functionality has been made available on the GST Portal that can be used to search such records in GST System, and fetch the missing records from ICEGATE
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Top GST News for the month of August 2021
Important GST Notifications and Circulars released in August 2021
- GST Notification 33/3021-central tax-dated 29-08-2021 – Seeks to extend FORM GSTR-3B late fee Amnesty Scheme from 31.08.2021 up to 30.11.2021.
- GST Notification 34/3021-central tax-dated 29-08-2021 – Seeks to extend timelines for filing of the application for revocation of cancellation of registration to 30.09.2021, where the due date for filing such application falls between 01.03.2020 to 31.08.2021, in cases where registration has been cancelled under clause (b) or clause (c) of section 29(2) of the CGST Act.
GST Collection – August 2021
The GST Collection of August 2021 is Rs. 1,12,020 crore. This a gross amount that has been collected in August of which CGST is Rs. 20,522 crore, SGST is Rs. 26,605 crore, IGST is Rs. 56,247 crore (including Rs. 26,884 crore collected on import of goods) and Cess is Rs. 8,646 crore (including Rs. 646 crore collected on import of goods).
GST Updates on Compliance:
- Form GSTR 1: The Central Board of Indirect Taxation and Customs has released an advisory for filing of Form GSTR 1. Since taxpayers were not filling table 12 of the form correctly because of 3rd party offline utilities thus CBIC has advised to taxpayers for using the latest version (3.0.4) GSTR 1 offline tool, provided by GSTN.
- Form GSTR 9: The annual return form is available for e-Filing (financial year 2020-21) on the GST official web portal.
- HSN and GSTR 1 filing: In accordance with Notification No. 78/2020 – Central Tax, dated October 15, 2020, taxpayers need to declare Harmonised System of Nomenclature (HSN) Code of Goods and Services supplied by them on raising of tax invoices, with effect from 1st April 2021.
- Implementation of Rule-59(6) on GST Portal: Rule-59(6) of CGST Rules, 2017; inserted vide Notification No. 1/2021 dated 1st January 2021, provides for restriction in the filing of GSTR-1 in certain cases.
- Revocation application for cancellation of GST registration timeline: The due date of filing of an application for revocation of cancellation of registration falls between 1st March, 2020 to 31st August, 2021, the time limit for filing such application for revocation of cancellation of registration has been extended up to 30th September, 2021.
- Multiple New Functionalities released on the GST Portal: New functionalities related to check and update bank account details, module wise new functionalities related to Registration, Returns, Advance Ruling, Payment, Refund to name a few.
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Top GST News for the month of July 2021
In an attempt to reduce the rising COVID cases, the entire month of July 2021 in India went by in partial/ complete lockdown in different states. Staying abreast with what’s new is important, especially during current times when businesses are affected so much. There have been a few GST news updates this month that we have compiled here for your reference.
- Auto population of GSTR-3B liability from IFF and Form GSTR 1
- Nil filing of GSTR-1 (Quarterly) through SMS
- Impact of cancellation of registration on liability to file GSTR-1
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Top GST News for the month of June 2021
There are all the important GST news and updates from the month of June 2021 compiled it neatly for you at one single place. Dive in…
Important GST Notifications released in June 2021
- GST Notification 16/2021-Central Tax, dated. 01-06-2021: Effective from 1st June 2021 interest on delayed payments will be chargeable on net tax liability i.e. on the amount of the tax paid in cash.
- GST Notification 17/2021-Central Tax, date 01-06-2021:The due date of filing GSTR 1 is extended for the month of May 21 to 26th June 2021
- GST Notification 18/2021 – Central Tax dated 1-06-2021: Interest waived and lowered for the delay in filing GSTR-3B for a specified time for tax period March 21 to May 21
- GST Notification 19/2021 – Central Tax dated 1-06-2021: For tax period Jul 17 to Apr 21 conditional waiver of late fees announced, for tax period Mar 21 to May 21 waiver for the specified period announced and late fees rationalization announced on prospective GSTR 3B fining
- GST Notification 20/2021 – Central Tax dated 1-06-2021:For delays in filing GSTR 1 of upcoming tax periods, late fees on small taxpayers are being rationalized basis the tax liability/ turnover of the taxpayers
- GST Notification 21/2021 – Central Tax dated 1-06-2021: Maximum late fees applicable for delay in filing GSTR 4 from FY 2020-21 is rationalized
- GST Notification 22/2021 – Central Tax dated 1-06-2021: Late fees applicable for delay in filing GSTR 7 from the month of June-21 is rationalized
- GST Notification 23/2021 – Central Tax dated 1-06-2021:Government departments and local authorities are exempted from generating e-invoices
- GST Notification 24/2021 – Central Tax dated 1-06-2021: Relaxations under section 168A of the CGST Act: Time limit for completion of various actions, by any authority or by any person, under the GST Act, which falls during the period from 15th April, 2021 to 29th June, 2021, to be extended up to 30th June, 2021, subject to some exceptions.
- GST Notification 25/2021 – Central Tax dated 1-06-2021: Due date for filing GSTR-4 for FY 2020-21 is further extended to 31.07.2021
- GST Notification 26/2021 – Central Tax dated 1-06-2021:Due date for filing ITC 04 for the quarter ended Mar 21 is further extended to 31.07.2021
- GST Notification 27/2021 – Central Tax dated 1-06-2021: Rule 36(4) of claiming provisional ITC is now applicable cumulatively to April, May, and June 21. The date of reporting outward supplies using IFF also extended to 28th June 21
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GST Notification 28/2021 – Central Tax dated 30-06-2021: Penalty payable for noncompliance QR Code on B2C transactions waived further till 30th September 2021, subject to compliance from 1st October 2021
Important GST Circulars released in June 2021
- GST Circular No 149/2021 dated 17-06-2021: Catering services provided to educational institutions including Aganwadis shall be exempted from GST irrespective of the fact that such services are sponsored by Govt grants or corporate donations
- GST Circular No 150/2021dated 17-06-2021: GST is not exempt on the activity of construction of road where considerations are received in deferred payment (annuity).
- GST Circular No 151/2021 dated 17-06-2021: GST on supply of various services by Central and State Board (such as National Board of Examination) clarified
- GST Circular No 152/2021 dated 17-06-2021: GST @ 18% is applicable on construction services provided to a Government Entity, in relation to construction such as of a Ropeway on a turnkey basis
- GST Circular No 153/2021 dated 17-06-2021: Clarification issued w.r.t GST on milling of wheat into flour or paddy into rice for distribution by State Governments under PDS
- GST Circular No 154/2021 dated 17-06-2021:GST is exempt on service supplied by Central or State Govt. to their undertakings or PSUs by way of guaranteeing loans taken by them
- GST Circular No 155/2021 dated 17-06-2021: Laterals/parts to be used solely or principally with sprinklers or drip irrigation system, which are classifiable under heading 8424, would attract a GST of 12%, even if supplied separately. However, any part of general use, which gets classified in a heading other than 8424, shall attract GST @ 6%
- GST Circular 156/12/2021 dated 17-06-2021: Clarifications issued with respect to QR Code generation on B2C Invoices and compliance of notification 14/2020
GST Collection- June 2021
The gross GST revenue collected in the month of June 2021 further dropped to Rs. 92,849 crore. of this gross amount, CGST is Rs. 16,424 crore, SGST is Rs. 20,397, IGST is Rs. 49,079 crore (including Rs. 25,762 crore collected on import of goods) and Cess is Rs. 6,949 crore (including Rs. 809 crore collected on import of goods).
In June, the GST collection was taken into consideration from domestic transactions between 5 th June to 5 th July 2021 since taxpayers were given various relief measures.
Extension in dates of various GST Compliances
GST Due dates have been extended recently through the 43rdGST Council meeting as COVID Relief measures. The Relief has also been provided for GST Compliance as relaxation of penal interest and late fees. These announcements were followed by a bulk of GST due date extension notification 2021 to provide legal validity.
Extension of due dates notified via GST notification 16/2021, 17/2021, 25/2021, 26/2021 and 27/2021 . In addition to 1st June 2021 notifications, there were several notifications announced on 1st May 2021 as well which are mentioned above.
To check all the GST news updates regarding extended due dates and understand them in detail, please read: Updates in GST Return Due Dates.
New Covid 19- Relief Measures
The country is once again under lockdown citing the rising COVID-19 cases. Considering the prolonged pandemic, the government is taking measures in all areas for the well-being of the citizens. The finance ministry has been updating the new norms in multiple areas including GST. The Finance Ministry made new announcements and notifications in the month of May, followed by an update to the same in 43rd GST Council meeting and issue of new notifications on 1st June 2020. These measures are in the form of late fee waiver, interest waiver on GST Due dates and so on.
To read all the new Covid-19 – Relief measures in detail, read here: Covid-19 Relief Measures
44th GST Council Meeting
The 44th GST Council Meeting was held on June 12th, 2021 via video conference by our finance minister Nirmala Sitharaman in New Delhi. The meeting was also attended by the union minister of state (MoS) for finance Anurag Thakur and other finance ministers of states and Union territories (UTs). This meeting was held shortly after the 43rd GST council meeting to finalize the points proposed in it regarding GST rates reduction on medical and Covid-19 related equipments. Read highlights of the meeting here: 44th GST Council Meeting – Highlights
GST Updates on Compliance:
- Waiver of interest and late fee for normal taxpayers (filing returns on a monthly or quarterly basis) and composition taxpayers (Part1 and Part 2). We have mentioned all of these waiver details in our Updates in GST Return Due Dates article and the Covid Relief article.
- Relief to taxpayers, regarding late fees, for the delay in filing Form GSTR-3B returns. Details are mentioned in the Updates in GST Return Due dates article.
- Table-12 of GSTR-1 (Advisory on PDF): Table-12 of GSTR-1 pertains to the data related to the HSN-code wise supplies of goods & services declared in the aforesaid GSTR-1. It has been reported that in the GSTR-1 for the tax period of May 2021, the ‘Total Invoice value’ field in the preview PDF is displaying a value as ‘0’ (zero) instead of N.A, in the cases where the taxpayer has not reported any value in the concerned Table-12 of GSTR-1. Taxpayers have been informed to kindly proceed with their filing of GSTR-1 & ignore this error for the time being, till it is being fixed.
- New functionalities deployed for GST Stakeholders on the official GST Portal
E-invoicing Updates
A new set of clarifications regarding the applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of notification 14/2020–Central Tax dated 21st March, 2020 –Reg. have been released. These new clarifications and updates were communicated via GST Circular 156/12/2021 dated 17-06-2021.
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Top GST News for the month of May 2021
The entire month of May 2021 went in lockdown for most states in India. The vaccination scenario is rather slow and the pressure of the rising cases is supremely high. Thus, the overall impact of the present situation on the economy of the country is a known phenomenon. In this article, we have compiled all the latest information and GST news, GST updates from May for your reference. Read here…
Important GST Notifications and circulars released in May 2021
- GST Notification 08/2021-Central Tax, dated. 01-05-2021 – For GSTR 3B of Mar and Apr, interest is waived off for 15 days where taxpayers are having turnover up to 5 Cr. and is reduced to 9% for next 15 days, but where turnover exceeds 5 Cr. interest @ 9% is applicable for 15 days
- GST Notification 09/2021-Central Tax, dated. 01-05-2021 – Late fees are waived for March and April GSTR 3B for 15 days where turnover is up to 5 Cr. and 30 days where turnover exceeds 5 Cr.
- GST Notification 10/2021-Central Tax, dated. 01-05-2021 – Due date of GSTR 4 is extended to 31st May 21 for FY 20-21 from 30th Apr 21
- GST Notification 11/2021-Central Tax, dated. 01-05-2021 – Furnish ITC-04 of Mar 2021 quarter by 31st May, 2021 instead of 25th April 2021
- GST Notification 12/2021-Central Tax, dated. 01-05-2021 – Due date of filing GSTR 1 for the month of April 2021 is extended to 26th May 2021
- GST Notification 13/2021-Central Tax, dated. 01-05-2021 – Details of IFF for Apr 21 can be furnished from 1st May to 28th May 21
- GST Notification 14/2021-Central Tax, dated. 01-05-2021 – Timeline for all other proceedings, asset order, notices, etc. whose last date of completion falls between 15th April to 30th May is extended to 31st May
- GST Notification 15/2021-Central Tax, dated. 18-05-2021 – The fourth amendment rules 2021 introduced to amend refund rules notified by CGST 2017 rules and has also introduced new Form RFD-01W and RFD 07 Part A & B
Circular
- GST Circular No 148/2021 – Prescribes Standard Operating Procedure (SOP) for implementation of the provision of extension of time limit to apply for revocation of cancellation of registration under section 30 of the CGST Act, 2017 and rule 23 of the CGST Rules, 2017.
43rd GST Council Meeting
The much-awaited ‘43rd GST Council Meeting’ was held on the 28th of May 2021 from 11.00 am onwards. Finance Minister Nirmala Sitharaman chaired the GST Council Meeting from New Delhi via video conferencing. The meeting was attended by MOS Anurag Thakur along with Finance Ministers of States and UTs and Sr. Officers from Union Government and States. There were several GST updates and announcements related to GST Compensation Cess, waiver of taxes, and GST concessions on critical medical and health care equipments, vaccines, etc.
Read the Key Highlights of the 43rd GST Council Meeting
GST Collection – May 2021
The gross GST revenue collected in the month of May 2021 saw a slight drop. It amounted to Rs. 1,02,709 crore of which CGST is Rs. 17,592 crore, SGST is Rs. 22,653, IGST is Rs. 53,199 crore (including Rs. 26,002 crore collected on import of goods) and Cess is Rs. 9,265 crore (including Rs. 868 crore collected on import of goods).
43rd GST Council Meeting Updates:
The much-awaited ‘43rd GST Council Meeting’ is taking place on the 28th of May 2021 from 11.00 am onwards. Finance Minister Nirmala Sitharaman will chair the GST Council Meeting from New Delhi via video conferencing. The meeting will be attended by MOS Anurag Thakur along with Finance Ministers of States and UTs and Sr. Officers from Union Government and States. This is the very first GST Council meeting of 2021; after the deadly second wave of COVID-19 hit the country. Read here the expectations and assumptions from 43rd GST Council Meeting.
GST Updates on Compliance:
- Module wise new functionalities deployed on the GST Portal for taxpayers – Visit the GST Portal for more details.
- Extension of the due date of filing Revocation application of Cancellation: In view of Notification No. 14/2021 dated. 01.05.2021, the timeline for filing the ‘Application for Revocation of Cancellation’ has been extended for those applicants, for whom the due date to file the same falls between 15 April to 30th May, 2021. Now, they can file the said application till 31st May, 2021
- Generation of GSTR 2B for April 2021: Rule-60(7) of CGST Rules-2017 prescribes for generation of the auto-drafted statement containing the details of input tax credit in GSTR-2B for counter-party recipients. As per Rule-60(8) of CGST Rules-2017, GSTR-2B shall be made available to the recipients after the Due date of filing GSTR-1/IFF by the suppliers. Notification No. 12/2021-CT and 13/2021-CT, both dated 1st May 2021 extend the Due date of GSTR-1 and IFF for April 2021, to 26th and 28th May 2021, respectively. Consequently, GSTR-2B for April 2021 will be generated after the Due dates, on 29th May 2021.
- Taxpayers willing to file GSTR-3B for April 2021 before GSTR-2B generation may do so on a self-assessment basis. Notification No. 13/2021-CT dated 01.05.2021 prescribes a cumulative limit under Rule-36(4) for ITC claimed in periods April & May 2021
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Top GST News for the month of April 2021
The month of April witnessed yet another lockdown throughout the country. Some states imposed a partial lockdown while a few others held a complete lockdown considering the rising COVID-19 cases. In this article, we have compiled all the latest information and GST updates from April for your reference. So, let us dive straight into all the important GST news right here…
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Top GST News for the month of March 2021
The government has released a few notifications, circulars, and GST rule changes in March 2021. Here we have compiled all the data and latest GST news and changes so that you get all the important information at one place!
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Top GST News for the month of February 2021
There have been a few new changes, additions, and GST updates in the month of February 2021. Here we have compiled them together for your quick reference. Read on…
- GST Notification 03/2021-Central Tax, dated. 28-02-2021: CBIC notifies a list of persons who are exempted from Aadhaar Authentication
Also read: preparations to be done for GSTR1 – Post e-invoicing
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Top GST News for the month of January 2021
After the successful implementation of the e-invoicing mandate from 1st January 2021 onwards, there have been some changes in the GST compliance arena too. We have compiled all the top GST news updates of January 2021 here for your reference.
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Latest GST News for the month of December 2020:
GST laws are constantly being upgraded lately with new notifications and circulars. The areas of E-way Bill and E-invoicing have also seen major changes. Also, along with these, there are several other changes that have been implemented. So, we have compiled all the latest GST News and GST Updates from the month of December 2020 to give you a complete overview of the month at one place!
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Top GST News for the month of November 2020
- GST Notification 81/2020-Central Tax, dated. 10-11-2020: The new provisions of section 39 of the Central Goods and Services Tax Act, 2017 shall come into force from 10th Nov 20.
- GST Notification 82/2020-Central Tax0, date. 10-11-2020: CBIC seeks to make the Thirteenth amendment (2020) to the CGST Rules.201.
- GST Notification 83/2020-Central Tax, date. 10-11-2020: CBIC extends the time limit of filing GSTR 1
- GST Notification 84/2020-Central Tax, date. 10-11-2020: Option to file quarterly returns now available to taxpayers having turnover up to Rs. 5 Cr. notified by CBIC
- GST Notification 85/2020-Central Tax, date. 10-11-2020: CBIC notifies procedure to opt Quarterly GSTR 3B
- GST Notification 86/2020-Central Tax, date. 10-11-2020: Notification 76/2020-Central tax dated 15.08.2020 rescinded by CBIC, w.r.t to due dates of GSTR 3B for October 20 to March 21
- GST Notification 87/2020-Central Tax, date. 10-11-2020: ITC-04 due date for period July- September 2020 is extended till 30th November 2020
- GST Notification 88/2020-Central Tax, date. 10-11-2020: E-invoicing mandatory for taxpayers having aggregate turnover above Rs. 100 Cr from 01st Jan 2021
GST Circular Released in November 2020
GST Collection – November 2020
The gross GST revenue collected in the month of November 2020 is Rs. 1,04,963 crore of which CGST is Rs. 19,189 crore, SGST is Rs. 25,540 crore, IGST is Rs. 51,992 crore (including Rs. 22,078 crore collected on import of goods) and cess is Rs. 8,242 crore (including Rs. 809 crore collected on import of goods).
Updates on GST Compliance:
- Auto-populated Form GSTR 3B (PDF) to be made available for the taxpayers, from the month of October 2020 onwards.
- Staggered filing of Form GSTR 3B for the tax periods from October 2020 till March 2021.
- CBIC enabled auto-population of e-invoice details into GSTR-1
- Quarterly Return filing & Monthly Payment of Taxes (QRMP) Scheme has been introduced for the taxpayers below the turnover of Rs. 5 Cr
- GST portal has been scaled up to handle 3 lakh taxpayers concurrently.
- The finance ministry on Friday said taxpayers are required to report in the annual GST return of 2018-19 only the values of transactions pertaining to that financial year.
- GSTN has also issued the Taxpayers guide to GST Errors and Solution.
E-Way Bill Updates
The GST Network plans to activate an automated system from 1st December 2020 that will block the generation of E-way Bills for non-filers of monthly GST return form GSTR-3B, irrespective of turnover limits.
E-invoicing Updates:
From 1st Jan 2021, the Government has made it mandatory for the taxpayers with aggregate turnover exceeding Rs. 100 Cr. (in any preceding financial year from 2017-18 onwards) to prepare e-invoice – Invoice with QR Code as per the Notification: 88/2020-Central Tax dated 10.11.2020.
As per sources, the Government plans to implement e-invoice for less than 100 Rs. Cr turnover companies as well in a few months time. As per Finance Secretary, monthly GST filing will not be necessary after the e-invoice system is in place.
GSTN on 16th Nov issued an advisory on e-invoicing for 100 CR companies and the way forward.
Other GST News and GST Updates
- Puducherry, Rajasthan, Telangana, Kerala and West Bengal- have opted for Centre’s Option-1 to meet the revenue shortfall arising out of Goods and Services Tax (GST) implementation.
- The government proposes to match the GST data mentioned in Form 26AS with the turnover numbers provided by taxpayers while filing income tax returns. IT profiling to help revenue dept nab fraudsters claiming fake GST credits however no extra compliance burden on taxpayers for GST turnover displayed in Form 26AS.
- The law committee of the GST Council has provided its recommendations with an aim to tighten compliance measures including the use of Aadhaar or Aadhaar-like biometric identification for new registrations, steps to identify businesses that pose a risk of revenue loss to the exchequer, use of income tax returns to verify the credentials of entrepreneurs seeking GST registration, and restriction on using tax credits from the purchase of raw materials to meet the final tax liability.
- Finance Ministry extends last date for filing applications under SVLDR Scheme for UT of Jammu & Kashmir and Ladakh.
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GST News Updates for the month of October 2020
GST News and GST Updates for the month of October 2020
E-invoicing has been the most important GST news for this month. The e-invoicing mandate goes LIVE for taxpayers with a turnover of more than Rs. 500 CR from October 1, 2020. Few important e-invoicing notifications were released to clarify that taxpayers who have crossed Rs. 500 CR turnover in any FY after 2017 are to be covered under e-invoicing. This has been a revolutionary step towards transparency and embracing technology. This is a GST news highlight for the month and yes, the recent GST Council Meeting also brought in a lot of new changes. We have compiled the list of latest GST news and updates for the month here:
GST Circular Released in October 2020:
Blocking EWB Generation: The decision was made to block the E-way Bill or EWB generation facility for taxpayers having AATO over ₹ 5 Crores after 15th October 2020.
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Latest GST News for the month of September 2020
The month of September had quite a few major changes and updates on the GST front. Let us go through all the top GST updates from the month of September 2020:
Important GST Notifications released in September 2020:
- GST Notification 71/2020-Central Tax ,dt. 30-09-2020: Requirement of Dynamic QR Code on B2C invoices is deferred to 1st December 2020.
- GST Notification 70/2020-Central Tax ,dt. 30-09-2020: Turnover from FY 2017-18 shall be considered for determining the applicability of E-Invoicing and e-invoice shall be generated for export transactions as well.
- GST Notification 69/2020-Central Tax ,dt. 30-09-2020: Due date of Annual Return GSTR 9/9C is extended to 31st October 2020
- GST Notification 68/2020-Central Tax ,dt. 21-09-2020: Late fees is capped to Rs. 500 if taxpayer files GSTR 10 between 22nd September 20 to 31st December 20
- GST Notification 67/2020-Central Tax ,dt. 21-09-2020: Late fees is capped to Rs. 500 for taxpayers having liability and fully waived off in case taxpayer filing nil GSTR 4 between 22.09.2020 to 31.10.2020, for tax period July 17 to March 19
- GST Notification 66/2020-Central Tax ,dt. 21-09-2020: CBIC has extended the time limit to 31st Oct, 2020 for issuing invoices in case of goods being sent or taken out of India on approval for sale or return, which falls during the period from March 20, 2020, to October 30, 2020
- GST Notification 65/2020-Central Tax ,dt. 01-09-2020: Timelimit of compliance of Anti Profeeting Measures u/s 171 is extended to 30th November 2020 by CBIC
GST Council Meeting and Compensation Cess
The centre had given two options in the 41st GST Council Meeting to the states to meet the shortfall of the compensation cess. Here are the options:
- Option I: The centre can aid Rs 97,000 crore to states as borrowings, through a special window by the RBI. This money can be repaid after 5 years on the collection of cess along with paying a reasonable rate of interest.
- Option II: Option two is that the states can borrow Rs 2,35,000 crore directly from the RBI.
The states had to evaluate both these options and choose one. In the 42nd GST Council meeting, the decision was made to extend Compensation Cess levy beyond June 2022. Compensation of ₹ 20,000 crores to be released to States towards loss of revenue during 2020-21. Additionally, an amount of approx. ₹ 25,000 CR towards IGST of 2017-18 was to be released soon.
GST Collection – September 2020
The GST collections in September amounted to Rs. 95,480 crore. Out of Rs 95,480 crore, Rs 17,741 crore is Central GST; Rs 23,131 crore is State GST; and Rs 47,484 crore Integrated GST, including Rs 22,442 crore collected on import of goods while Rs 7,124 crore is Cess, including Rs 788 crore on import of goods.
Important AAR/Orders/Judgements released in September 2020
- Delhi High Court rejects plea challenging 5% GST on all varieties of fabrics.
- GST to be imposed on wellness centres depending on services offered
- ITC can be availed on Equipment, Furniture, Reagents/consumables used for Performing Test
- 18% GST is applicable on Plastic Mechanical Liquid Dispenser
- Patrator liable to take GST Registration and pay GST on Supply of Goods and Services
- AAR ruled that 5% GST is not applicable on local transportation services.
- No GST on Scanning OMR Flying Slip, Marks Foil, Attendance Sheet etc. provided to Educational Institution
- The Karnataka AAR has adjudged that no deduction towards property taxes is allowed from the value of renting of immovable services (RIS). Further notional amount of interest on security deposit would be included in value, only if it influences the monthly rent.
Miscellaneous GST News and GST updates:
- Due- Date extended for Anti-profiteering related compliance to 30th November 2020
The government has given time till November 30 for authorities, like DGAP, to complete anti-profiteering related compliance, which falls due between March 20 and November 29. In a notification, the CBIC said “where any time limit for completion or compliance of any action, by any authority,…under section 171 of the said Act, which falls during the period from the March 20 to November 29, 2020, and where completion or compliance of such action has not been made within such time, then, the time-limit for completion or compliance … shall be extended up to November 30, 2020”.
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Latest GST News for the month of August 2020
August 2020, the month of independence and festivals saw major GST changes and Updates. The government release quite a few important notifications that were to be implemented. Also, the news about the new returns to be scrapped has been shared. We have created an array of resources about all the Top GST News in this month. Let us go through it one by one:
GST Notifications and Circulars Released in August 2020
New E-Invoice Schema Released:
New E-Invoice Schema is released as per Notification 60/2020.
E-Invoicing in India is going LIVE from 1st October 2020 as per Notification 61/2020.
E-invoice API Specification: Versions and Updates
With the new E-invoice APIs, E-way Bill generation flow has been enabled. Thus while sending invoice details for IRN generation, if transport details are included, E-way Bill Number (EWB) will get generated. The APIs available for the e-way bill are:
Generate IRN – Wherein transport details can be provided along with invoice details. Based on transport details are provided e-way bill number gets generated
Generate E-way Bill by using IRN – From the IRP portal itself, an E-way Bill can be generated by providing the IRN
Read more: E-invoice API Specification
GST Data Based Lending – The Emerging Case for MSMEs Credit Appraisal
We updated an article about GST Data based lending and how it can benefit MSMEs.
Changes Expected in Current GST Returns –New Returns Scrapped
Another important article that we published is this one where all the changes that were expected are explained in detail. This is where the introduction to GSTR 2B was made. Read: Expected Changes in GST Returns
How to generate an E-way Bill using IRP?
E-invoicing and E-way Bill generation can take place simultaneously as well. The Government has streamlined the generation of E-way Bill with E-Invoicing. An IRP can be used to generate not only IRN but also E-way bills, for the documents which qualify. Thus, depending on the data sent, the IRP system will return IRN or E-way Bill Number or both. Read all about E-invoicing and E-way Bill here.
GSTR-2B – What, When, Where and How of it
The new GST Return – GSTR-2B is an auto-drafted Input Tax Credit ( ITC ) statement, recently introduced by GSTN to simplify Input Tax Credit Claim for taxpayers. It is a fixed statement and will be generated on 12th of every month for every recipient on the basis of the information furnished by their suppliers in their respective GSTR-1, GSTR 5 and GSTR 6.
Read all about GSTR 2B here.
E-invoicing and B2C Transactions | QR Code – FAQs
Understanding E-invoicing and QR code generation for B2C transactions has become quite important in the current scenario when the e-invoicing system is set to be mandatorily implemented for taxpayers with turnover over INR 500 cr. from October 1, 2020. Read all about E-invoicing and B2C Transactions here.
Is Reverse Charge Transaction covered under E-invoicing?
Companies were in a state of confusion on RCM transactions because when e-invoice goes live as in the case of Reverse Charge Mechanism (RCM), Purchaser issues self-invoice which is reported in GST returns and under E-Invoicing, Purchasers under no situation can generate Invoice Reference Number (IRN). To understand the rules of e-invoicing in relation to Reverse Charge Mechanism (RCM), read: E-invoicing for RCM.
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Top GST News for the month of January 2020
With the arrival of the year 2020, GST is all set to pace up with some crucial updates. These updates are being brought into effect to simplify GST compliance, curb tax evasion, and, improve the GST filing ratio.
The main highlight of the year 2020 is going to be the new GST returns. The new returns shall introduce new and simplified forms GST Ret 1, Ret 2 and Ret 3 along with annexure form GST Anx 1 and Anx 2. Unlike the current filing system, the new forms shall be uploaded on a real-time basis, and backed with eInvoicing mechanism, it is expected to partially automate the form preparation process.
However, these returns forms will be introduced from the month of April 2020. Thus, going by a chronological sequence.
List of important updates and amendments for and from the month of January:
1. eInvoicing system is made available on a voluntary basis
The eInvoicing system has been made available on a voluntary basis for businesses with an aggregate turnover exceeding INR 500 crore. Under the eInvoicing system, a taxpayer can generate an eInvoice from any accounting/billing software of his preference. However, the generated eInvoice will be considered valid only once it has been reported on the IRP portal and a unique IRN number has been issued to it.
2. GST Collection crossed 1 lakh crores for the month of December
The GST collection for the month of December was INR 1.03 lakh crores. This is the 2nd consecutive month where the GST collection has exceeded 1 lakh crores, indicating the stabilisation of revenue collection, credits to the anti-evasion measures introduced by the government.
3. Sabka Vishwas Legacy and Dispute Resolution Scheme Extended
Sabka Vishwas LDRS is a dispute resolution and amnesty scheme under GST that came into force on September 1, 2019. The day to avail the benefits of the scheme was December 31st, 2019. However, considering the taxpayer response to the scheme, the central government has extended the same for a period of 15 days i.e. until January 15, 2020.
4. Aadhaar to be made mandatory for GST
The GST Network has decided to make Aadhaar authentication or physical verification mandatory for new dealers from January 1, 2020, to keep malpractice in check. This is because there are currently 66.79 lakh new dealers registered under the Goods and Service Tax who are contributing to just 15% of the total revenue under the tax regime.
5. GSTR 1 filing and EWB
The 38th GST Council waived off the late fee for unfurnished GSTR 1 form for the period between July 2017-November 2019, if the same is filed on or before January 10th, 2020. Henceforth, if a taxpayer does not file his GSTR 1 for 2 consecutive filing period, his/her EWB system will be blocked.
6. New Offline Tools (Version 1.6) for annual returns now available on GSTN Portal
In order to simplify annual return filing for a taxpayer, some changes have been brought into the annual return form GSTR 9 and the recon statement GSTR 9, vide Notification No. 56/2019 dated 17.11.2019. The last date to furnish the annual return forms was extended to January 31, 2020, on account of unavailability of the updated offline tool.
Accordingly, the changes in the application software and the offline tools are now made available on the GSTN portal. The GSTN has resolved the following two issues as per press note:
- Error JSON not showing any error now fixed.
- Column 5G, 12B and 12C made optional.
7. GSTN has enabled a Statistics column under downloads section for the taxpayers to access data
The GSTN has enabled a Statistics column under the download section. By clicking on the relevant tab, a taxpayer can access the following data from the statistics option are as under.
- Registration:The State-wise data having details of active taxpayers at the close of last month. This excludes those taxpayers whose registration has been cancelled but includes those taxpayer’s registration was restored on application/appeal.
- Tax Collection:
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- Tax data is divided into three parts viz. Tax Paid on GST Portal, IGST paid on Customs Portal and IGST settled to States/UTs.
- July 2017 is the first month, there was no settlement and hence there is no data under the same.
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Top GST News for the month of March 2019
CBIC has recently announced many updates to the existing GST rules in various meetings and through notifications. These are going to be in effect within 15 days from 1st April 2019. We have brought a compilation of all the updates for our users:
- 1. Notifications
- Following Notifications come into effect from 1st April 2019:
- 1. GST Registration Exemption
- W.e.f. 1st April 2019, any person who is engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed forty lakh rupees is exempt from obtaining the registration under GST Act except for the following:
- Persons required to take compulsory registration under section 24
- Person engaged in the supplies of Ice cream and other edible ice, whether or not containing cocoa , Pan masala and All goods, i.e. Tobacco and manufactured tobacco substitutes (24)
- Persons engaged in making intra-state supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand
- Persons exercising option under the provisions of sub-section (3) of section 25, or such registered persons who intend to continue with their registration
- [Notification 10/2019-Central Tax dt. 07-Mar-2019] & [Notification 02/2019-Union Territory Tax dt. 07-Mar-2019]
- 2. Due Date of filing GSTR-1
- The due date for filing GSTR 1 has been notified as follows:
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Period Turnover Upto Due Date April 19 – June 19 (Quarterly) 1.5 Crore 31.07.2019 Apr-19 Above 1.50 Crore 11.05.2019 May-19 Above 1.50 Crore 11.06.2019 Jun-19 Above 1.50 Crore 11.07.2019 - [Notification 11 & 12/2019-Central Tax dt. 07-Mar-2019]
- 3. Due date of filing GSTR-3B
- The due date for filing GSTR 3B for all the registered person is notified as follows:
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S.NO. Month Due Date 1 Apr-19 20.05.2019 2 May-19 20.06.2019 3 Jun-19 20.07.2019 - [Notification 13/2019-Central Tax dt. 07-Mar-2019]
- 4. Threshold limit of composition scheme
- Threshold limit of composition scheme has been increased which has to be opted from 01-04-2019.
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Taxable Person Turnover Taxable person located in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand 75 Lacs Taxable person located in states other
than above state
1.50 Crore - [Notification 14/2019-Central Tax dt. 07-Mar-2019]
- 5. New composition scheme for SME and MSME:
- New Composition has been announced for SME and MSME sector First supplies of goods or services or both upto an aggregate turnover of fifty lakh rupees made on or after the 1st day of April in any financial year, by a registered person. For availing this scheme following condition need to be satisfied:-
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Supplies are made by a registered person, –
- whose aggregate turnover in the preceding financial year was fifty lakh rupees or below;
- who is not eligible to pay tax under sub-section (1) of section 10 of the said Act;
- who is not engaged in making any supply which is not leviable to tax under the said Act;
- who is not engaged in making any inter-State outward supply;
- who is neither a casual taxable person nor a non-resident taxable person;
- who is not engaged in making any supply through an electronic commerce operator who is required to collect tax at source under section 52; and
- who is engaged in making the supplies of Ice cream and other edible ice, whether or not containing cocoa ( 2105 00 00), Pan masala (2106 90 20) and All goods, i.e. Tobacco and manufactured tobacco substitutes (24)
- 2. Where more than one registered persons are having the same Permanent Account Number, issued under the Income Tax Act, 1961(43 of 1961), central tax on supplies by all such registered persons is paid at the rate specified under this notification.
- The registered person shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax.
- The registered person shall issue, instead of tax invoice, a bill of supply as referred to in clause (c) of sub-section (3) of section 31 of the said Act with particulars as prescribed in rule 49 of Central Goods and Services Tax Rules.
- The registered person shall mention the following words at the top of the bill of supply, namely: – ‘taxable person paying tax in terms of notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, not eligible to collect tax on supplies’.
- The registered person opting to pay central tax at the rate of three percent under this notification shall be liable to pay central tax at the rate of three percent on all outward supplies specified in column (1) notwithstanding any other notification issued under sub-section (1) of section 9 or under section 11 of said Act. 7.
- The registered person opting to pay central tax at the rate of three percent on inward supplies on which he is liable to pay tax under sub-section (3) or, as the case may be, under sub-section (4) of section 9 of said Act at the applicable rates.
- Explanation: For the purposes of this notification, the expression “first supplies of goods or services or both” shall be for the purposes of determining eligibility of a person to pay tax under this notification, include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the said Act but for the purpose of determination of tax payable under this notification shall not include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the Act.
- In computing aggregate turnover in order to determine eligibility of a registered person to pay central tax at the rate of three per cent under this notification, value of supply of exempt services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount, shall not be taken into account.
- [Notification 02/2019-Central Tax (rate) dt. 07-Mar-2019] & [Notification 02/2019-Union Territory Tax (rate) dt. 07-Mar-2019]
- 2. Circulars
- Following Circulars come into effect from April 2019:
- 1. Sales Promotions Schemes
- Following clarification has been issued w.r.t. doubts related to treatment of sales promotion scheme under GST:
Transaction Type | Supply | Value | ITC |
Free Samples and Gifts given to other than distinct entity and related person |
No Supply | NIL |
No ITC to be availed and reversal 42, 43 needs to be made |
Free Samples and Gifts given to distinct entity and related person |
Supply |
Valuation in Accordance to Rule 28 of CGST Rules 2017 |
ITC to be availed on all the inputs, input services and capital goods |
Buy one get one free offer when goods or services are different or same |
One Supply /Mixed Supply /Composite Supply as the case may be |
Taxable value to be ascertained in accordance to Section 15 read with Valuation provisions |
ITC to be availed on all the inputs, input services and capital goods |
Discounts including ‘Buy more,save more’ offers ((if shown on invoice itself)
|
Supply |
Valuation will be after discounts |
ITC to be availed on all the inputs, input services and capital goods |
Staggered Discount Determined established before or at the time of supply |
Supply |
Valuation will be after discounts |
ITC to be availed on all the inputs, input services and capital goods |
Discount offered by way of Credit note after time of supply |
Original Supply |
Tax liability can be reduced only after ensuring recipient has reversed the IRC |
|
Secondary Discounts offered subsequently even if not known prior to supply |
Original Supplies |
Value to be considered without discount |
No impact on availability or otherwise of ITC in the hands of supplier in this case. |
- [Circular-No 92/11/2019- GST dt. 07-Mar-2019]
- 2. Nature of supply of Priority Sector Lending Certificates (PSLC)
- GST on PSLCs for the period 1.7.2017 to 27.05.2018 will be paid by the seller bank on forward charge basis and GST rate of 12% will be applicable on the supply as per Circular No. 62/36/2018-GST dated 12.09.2018
- GST on PSLC trading on reverse charge basis from 28.05.2018 onwards to be paid by the buyer bank as per Notification No. 11/2018-Central Tax (Rate) dated 28.05.2018
- Nature of supply of PSLC between banks may be treated as a supply of goods in the course of inter-State trade or commerce. Accordingly, IGST shall be payable on the supply of PSLC traded over e-Kuber portal of RBI for both periods i.e 01.07.2017 to 27.05.2018 and from 28.05.2018 onwards.
- However, where the bank liable to pay GST has already paid CGST/SGST or CGST/UTGST as the case may be, such banks for payment already made, shall not be required to pay IGST towards such supply.
- [Circular No. 93/12/2019-GST dt. 08-Mar-2019]
- 3. TCS Exclusion to compute GST liability:
- Corrigendum to Circular No. 76/50/2018-GST dated 31st December, 2018 issued vide F.No. CBEC- 20/16/04/2018-GST- Reg. TCS amount would be excluded from the value of goods for computing GST liability.
- The CBDT has clarified that TCS is not a tax on goods but an interim levy on the possible “income” rising from the sale of goods by the buyer In a relief to buyers of high value cars and jewellery, the Central Board of Indirect Taxes and Customs (CBIC) has said that the tax collection at source (TCS) amount would be excluded from the value of goods for computing GST liability.
- What is the correct valuation methodology for ascertainment of GST on Tax collected at source (TCS) under the provisions of the Income Tax Act, 1961?
- Section 15(2) of CGST Act specifies that the value of supply shall include “any taxes, duties cesses, fees and charges levied under any law for the time being in force other than this Act, the SGST Act, the UTGST Act and the GST (Compensation to States) Act, if charged separately by the supplier.”
- For the purpose of determination of value of supply under GST, Tax collected at source (TCS) under the provisions of the Income Tax Act, 1961 would not be includible as it is an interim levy not having the character of tax.
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Top GST News for the month of February 2019
Contravention of any of the provisions of the Act or the rules made there under will attracts a penalty of Rs. 25000/- as per sections 122 or 125 of the CGST Act.
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Latest GST News for the month of January 2019
- The Central Goods and Services Tax (Amendment) Act 2018
- The Integrated Goods and Services Tax (Amendment) Act 2018
- The Union Territory Goods and Services Tax (Amendment) Act 2018
- The Goods and Services Tax (Compensation to States) Amendment Act 2018.
The GST council in its 31st GST Council Meeting held on 22nd December 2018, has announced through the press release that the effective date of applicability of amendments in GST Act(s) 2018 will be from 1st February 2019.
Following are Some Key Changes in the Relevant Sections of CGST Act 2017 that are to be replaced with the Central GST Amendment Act 2018:
1. Omission of the definition of business vertical
[Amendment of Section 2(18) of the CGST Act, 2017]
Multiple registrations of GSTIN were allowed earlier in case of separate business verticals. The law now allows a separate registration for each place of business in respect of persons having multiple places of business in a state. So, the definition of business verticals is not required anymore under the GST law
2. Definition of services modified to cover facilitation or arranging transactions and securities [Amendment of Section 2(102)]
Service charges or service fees or documentation fees or broking charges or such like fees or charges are charged in relation to transactions in securities, the same would be a consideration for provision of service and chargeable to GST.
3. Restrictive applicability of Section 9 (4) [Amendment of section 9 (4)]
- Section 9(4) which deals with payment of tax on reverse charge basis by a registered person upon receipt of supply from unregistered persons is now under suspension
- It has been proposed that the government will notify certain class of registered person who shall be liable to pay tax on reverse charge basis in case of receipt of goods from an unregistered person.
- Only a notified class of registered taxpayers are purported to be covered by this substituted section now. This will bring a huge sigh of relief to those registered taxpayers who will now be outside the scope of this section as it involved a substantial burden of compliance and cash flow on their part.
4. Amendment of section 10
Increase in composition threshold limit, rationalization of reverse charge provisions and allowance of provision of services for composition dealers
- It has been specified that the tax payable under composition scheme will only be in lieu of tax leviable under normal charge/forward charge.
- Any reverse charge tax liability upon composition dealers will continue as applicable to a normal taxpayer.
- The limit has been raised from Rs 1 Crore to Rs 1.5 Crore so as to facilitate trade practices.
- At present, traders and manufacturers engaged in supply of services are not eligible for composition scheme even if a small proportion of their supplies relate to services.
- A new provision has been inserted which allows registered person engaged in supply of services (other than restaurant services) to opt for composition scheme subject to a threshold limit.
- The registered person shall be eligible for composition only if they supply services of value not exceeding 10% of their turnover in the preceding financial year in a State/ Union Territory or Rs 5 lakhs, whichever is higher.
5. Amendment of section 16
ITC on services provided to any person on direction of/on account of another person
- To avail ITC the registered person must be in receipt of goods or services
- In Bill-to-ship-to model, it is deemed that goods are received when the supplier delivers the goods to any other person on direction of the recipient
- This deemed assumption shall now be applicable in case of services as well.
- So, ITC will be allowed to a person on whose direction and account, the third person receives the services.
6. ITC availability on Schedule III items [Amendment of section 17(3)
- The new provision has been inserted so as to allow ITC on activities mentioned in Schedule III (other than sale of land and subject to clause (b) of paragraph 5 of Schedule II, sale of building) by removing it from the ambit of exempt supplies. Hence, these clauses will not entail any reversal of credit.
- Excluding of supplies covered under Schedule III from the scope of exempt supplies under Section 17(3) will result in lower reversal of credit particularly in case of high sea sales, Merchant trade transactions and supply of warehoused goods before clearance for home consumption.
7. Expansion of Scope of availability of ITC on motor vehicles [Section 17(5) clause (a)]
- The amendment is brought to expand the scope of availability of ITC on motor vehicles having approved capacity of not more than 13 persons (including the drivers) if used for specified purposes.
- ITC shall be available in respect of dumpers, work-trucks, fork-lift trucks.
- ITC shall not be available in respect of motor vehicles having capacity of not more than 13 persons (including the drivers), vessels and aircrafts if they are used for personal purpose.
- A new provision has been inserted allowing ITC on motor vehicles if they are used for transportation of money for or by banking company and financial institutions.
- ITC in respect of services of general insurance, servicing, repair and maintenance in respect of those motor vehicles, vessels and aircraft on which ITC is not available under clause (a) or (aa)
- Unrestricted ITC is allowed in respect of vehicles for transportation of goods
- ITC cannot be taken in respect of motor vehicles for transportation of persons even if used for transportation of goods
- In respect of vessels and aircrafts, ITC will be blocked except if it is used for certain specified purposes
- When used for an insurance company for supply of insurance services, Input tax credit will be available in respect of motor vehicles, vessels or aircraft insured by him.
- For all other conveyances, Input tax credit will be freely available (eg. motor vehicles for transportation of persons > 13 persons)
8. Expansion of Scope of ITC for Section 17(5) clause(b) [Section 17(5) clause (b)]
- The provisions have been amended so as to allow ITC in respect of goods or services or both specified above if it is made obligatory for an employer to provide such services under any law for the time being in force.
- ITC has been enabled on food and beverages, outdoor catering, beauty treatment, Health services etc. if required to be provided by the employer through any obligation Imposed under any law
- Renting or hiring of motor vehicles, vessels and aircraft are blocked only if the purchase of such motor vehicles, vehicles and aircrafts are blocked as per clause (a) of (aa)
9. Threshold exemption limit for registration increased for certain states [Amendment of section 22]
- The aggregate turnover limit for certain states has been increased from Rs 10 lakhs to Rs 20 lakhs.
- The power has been provided under the law to increase the threshold limit for registration for certain special category states on their request from Rs. 10 lakhs to Rs. 20 lakhs
- Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand have been excluded from the definition of special category states
10. Compulsory registration only for e-commerce operator required to collect TCS [Amendment of section 24]
- All E-commerce operators were required to compulsorily register themselves irrespective of whether they were required to collect TCS
- Even a person engaged in supply of goods or services through own website would have required compulsory registration irrespective of their turnover.
- This is now rationalized to compulsorily require registration only for those e-commerce operators who are required to collect TCS.
- This will benefit small e-commerce operator who are not required to collect tax at source under section 52 to enjoy the threshold exemption limit for registration purposes.
11. Multiple registrations for each place of business and separate registration for SEZ [Amendment of section 25]
- Multiple registrations were allowed earlier only in case of separate business verticals. The law now allows a separate registration for each place of business in respect of persons having multiple places of business in a state.
- It has now been expressly provided in the Act that a person in a SEZ or being a SEZ developer have to apply for separate registration as compared to his registration in respect of the place of business located outside the SEZ in the same state or territory. Earlier the said provision was contained only in the CGST Rules. To rationalize such provision, the empowering provision is now given in the Act.
12. Suspension allowed upon cancellation of registration [Amendment of section 29]
- The new proviso ensures that once the registration has been sought to be cancelled, the proper officer may suspend the registration till the procedural formalities have been completed
- The suspension will only be for the period and the manner as may be prescribed in the rules
- The registration suspended will not be required to file returns till the suspension is in effect
- A person who applied for cancellation and stopped collection and payment of taxes may face extreme hardships if the application for cancellation is rejected. He may not have any recourse as to collect the tax and paying the taxes out of his own pocket may be a huge burden for him.
13. Issue of consolidated credit note and Debit Note in a financial year [Amendment of section 34]
- The suppliers are now not required to link Credit and Debit notes with individual invoices.
- The supplier may now issue a consolidated credit and Debit note in respect of multiple invoices issued in the financial year.
14. Empowerment of time limit and periodicity for filing of return through rules [Amendment of section 39]
- Earlier the provisions of the Act required a person to file their GSTR 3/GSTR 3B by 20th of the next month. So, even though the government wished to make this return quarterly for a select group of taxpayers, it could not circumvent the provisions of the Act
- Through this amendment, the periodicity and time for filing of this return is now allowed to be prescribed through the rules
- Further, an enabling proviso has been inserted to allow the Government to notify certain category of taxpayers who will be allowed to file this return on a quarterly basis.
15. Utilization of IGST first against payment of any tax [Amendment of section 49]
- The new process of utilization requires the utilization of IGST first against payment of any output tax liability in the form of CGST/SGST/UTGST/IGST
- The balance of CGST/SGST/UTGST can be used only when the balance of IGST is exhausted
- This proviso has been inserted to minimise fund settlement on account of IGST
- This has been amended to restrict the utilisation of SGST/UTGST credit available against payment of IGST only when the balance in CGST credit is not available for payment of IGST.
IRIS has been in the financial compliance space for over 2 decades having worked with regulators and filing entities alike. In India, we have supported MCA filings for over 700 entities and GST compliance for over 300 entities including companies of groups such as Tata, Reliance, TVS, Godrej, Bajaj, L&T etc.
IRIS GST, an end to end GST filing solution, is a mix of our deep domain capabilities and strong technology backbone.
If you have any questions or would like to know how you can easily transition to IRISGST with minimum disruption to your business, please write to support@irisgst.com.
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