GST compliance calendar & litigation updates for February 2023

The Financial Budget of Indian Economy for FY 2023-24 is out with growing focus on spending and developing a robust infrastructure for the

The article enlists the important compliances due dates and various updates under the GST that have taken place during the past month, impacting the GST taxpayers at large.

A. GST Compliance Calendar:

The below tables capture these compliances in detail to ensure that the taxpayer files the returns and pay taxes under GST within the timeline to avoid late fee and interest liabilities.

GSTR-1 –

GSTR-3B –

This return contains the details of outward supplies (consolidated data of GSTR-1), inward supplies subject to RCM payment, ITC details, exempt, nil-rated, and non-GST inward supplies, payment of tax details, etc.

Note:

1. Reconciliation of ITC with GSTR-2B auto-populated details of invoices is mandatory for availment of ITC in GSTR-3B by the recipient taxpayer.

2. Mandatory separate disclosures of ineligible ITC and ITC reclaimed during the month in GSTR-3B. The Department has started sending intimation to the companies to comply with the disclosure norms for Ineligible ITC in GSTR-3B.

3. As a result of the implementation of budget changes, the portal is no longer allowing the taxpayers to file the GSTR-3B if the GSTR-1 return for the same tax period is no filed. Consequently, sequential filing of GST returns has become mandatory on GSTN portal.

4. Recompute Interest button introduced in GSTR-3B to allow for the re-computation of interest liability.

Other returns and forms–

GST Legal Updates:

• SCN and Order for cancellation of GST registration issues without giving the opportunity of personal hearing is not sustainable. GST registration must be restored – Mahendra Junabhai Zala v/s Office of Deputy Commissioner, State Tax (R/Special Civil Application No. 13597 of 2022, dated November 25, 2022)
• SCN issued without justification for reason for cancellation of registration is against principle of natural justice – Dee Cubes Diamonds Pvt. Ltd. v/s State of Gujarat (R/Special Civil Application No. 22875 of 2022 dated December 16, 2022)
• The Department cannot retain any amount paid as tax because of inadvertent error committed by the taxpayer. Further, since the error is accidental in nature, the taxpayer should have the opportunity to rectify the same – M/s. Varshan Enterprises v/s Office of the GST Council (Writ Petition No.10637 of 2021, dated December 09, 2022)
• Taxpayer is allowed to rectify its GSTR-1 for September 2017 and March 2018 for claiming of ITC by the recipient because the taxpayer had erroneously mentioned B2B supplies as B2C in the return. The taxpayer will be prejudiced if it is not allowed to avail the benefits of ITC – M/s. Shiva Jyoti Construction v/s The Chairperson, Central Board of Excise & Customs and others (W.P. (C) No. 18216 of 2017 dated January 12, 2023).

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Disclaimer: The above article is based on the author’s understanding and view of the tax laws, tax rules, the relevant circulars, and notifications. Please refer to the latest law and consult the author before forming any opinion basis the information provided above as tax laws are subject to frequent changes. The author is not responsible for any issues arising because of opinion based on the above article without consultation. In any manner whatsoever, the views expressed in this article should not be construed as the views of the firm, the author is associated with. The author can be contacted at gauravmittal756@gmail.com.