Recent GSTN Advisories: New Banks, Forward Charge by GTAs, ITC Reversal

In the ever-evolving landscape of Goods and Services Tax (GST), the Goods and Services Tax Network (GSTN) has recently issued crucial advisories, shaping the compliance landscape for taxpayers. Noteworthy among these updates is the addition of Karnataka Bank and RBL Bank to the list of banks for seamless GST payments, expanding the options to 25 banks. Another significant development is the introduction of a forward charge option for newly registered Goods Transport Agencies (GTAs), streamlining the online filing process through Annexure-V. Furthermore, a deadline extension until January 31, 2024, has been granted for reporting opening balances related to Input Tax Credit (ITC) reversal, with subsequent amendment opportunities available until February 29, 2024. Recently, GSTN has recently issued advisories in relation to the following compliances:

GSTN adds new Banks for GST payment

• GSTN has added two new banks to facilitate GST payments.
• The two banks added to the list of banks are :
  • • Karnataka Bank Ltd.
    • RBL Bank Ltd.
• With these two banks, the total number of banks through which payment of tax can be made is 25 now.
• These banks are- Axis Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, City Union Bank, Federal Bank, HDFC Bank, ICICI Bank Limited, IDBI Bank, Indian Bank, Indian Overseas Bank, IndusInd Bank Limited, Jammu and Kashmir Bank Limited, Karnataka Bank Limited, Karur Vysya Bank, Kotak Mahindra Bank Limited, Punjab and Sind Bank, Punjab National Bank, RBL Bank Limited, South Indian Bank Limited, State Bank of India, UCO Bank and Union Bank of India.

(Source: https://twitter.com/Infosys_GSTN/status/173987600 dated 27.12.2023)

Option for forward charge by GTAs

• GSTN has enabled a new feature for online filing of declaration in Annexure-V by newly registered Goods Transport Agencies (GTAs).
• This declaration is required for opting for payment of GST under forward charge by the GTAs.
• This utility is designed and meant for GTAs newly registered by which users can upload manual Annexure -V.
• Annexure -V Form can be accessed through Dashboard > Services > User Services > GTA > Opting Forward Charge payment by GTA(Annexure-V).

(Source: GSTN Portal dated 27.12.2023)

 Date extension for reporting opening balance for ITC reversal

• GSTN has issued an advisory on date extension for reporting opening balance for ITC reversal
• In order to facilitate the taxpayers in correct and accurate reporting of ITC reversal and reclaim thereof and to avoid clerical mistakes, a new ledger namely Electronic Credit and Re-claimed Statement was introduced on the GST portal. This statement was made available to help the taxpayers in tracking their ITC that has been reversed in Table 4B(2) and thereafter re-claimed in Table 4D(1) and 4A(5).
• Now to facilitate taxpayers further, opportunity to declare opening balance for ITC reversal in the statement has been extended till 31st January, 2024.
• After declaring the opening balance for ITC reversal, only three amendment opportunities post the declaration will be provided to correct declared opening balance in case of any mistakes or inaccuracies in reporting.
• Facility to amend declared opening balance for ITC reversal will be available till 29th February, 2024.

(Source: GSTN Advisory dated 29.12.2023)

 Advisories for Functionalities on GSTN Portal for GTAs

The following Functionalities have been made available on the portal for the GTA Taxpayers:

• Filing of Online Declaration in Annexure V and Annexure VI for the existing GTA Taxpayers [As per the Notification No. 06/2023-Central Tax (Rate), dated 26.07.2023.]
  • • To Access Annexure V Form: Post login on the FO portal-Navigate to Services>>User Services>>GTA>>Opting Forward Charge Payment by GTA (Annexure V).
    • To Access Annexure VI Form: Post login on the FO portal-Navigate to Services>>User Services>>GTA>>Opting to Revert under Reverse Charge Payment by GTA (Annexure VI).
• Filing of Online Declaration in Annexure V for the Newly registered GTA Taxpayers [As per the Notification No. 5/2023-Central Tax (Rate), dated 09.05.2023]
  • • To Access: Post login on the FO portal-Click YES on the pop up message on post login (or) Navigate to Services>>User Services>>GTA>>Opting Forward Charge Payment by GTA (Annexure V).
• Uploading manually filed Annexure V Form for the FY 2023-24 on the portal.
  • • By utilizing the manual upload facility, one can upload the legible copy of duly acknowledged manually filed Annexure V for 2023-24, with correct particulars.
• It is also advised that:
  • • The option exercised by GTA to itself pay GST on the services supplied by it during a Financial Year shall be deemed to have been exercised for the next and future financial years unless the GTA files a declaration in Annexure VI to revert under reverse charge mechanism.
    • The GTAs who filed declaration for the FY 2024-25 on the portal for the period from 27.07.2023 till 22-08-2023 has been considered as filed and valid. Those taxpayers are requested that they need not file declaration in Annexure V Form for the subsequent FYs if they wish to continue their option for pay GST on Forward charge mechanism.

(Source: GSTN Advisory dated 01.01.2024)

Conclusion:

In conclusion, the recent GSTN advisories showcase a proactive approach towards addressing the evolving needs of taxpayers. By incorporating new banks, streamlining processes for GTAs, and extending deadlines for ITC reversal reporting, GSTN aims to create a more user-friendly and efficient ecosystem. These updates not only reflect a commitment to continuous improvement but also emphasize the importance of adaptability in the dynamic realm of GST compliance. Taxpayers are encouraged to leverage these enhancements for a smoother and more accurate filing experience, ultimately contributing to the broader goal of a transparent and responsive indirect tax system.