GST updates and compliance calendar for May 2022

Goods and Service Tax (‘GST’) has evolved rapidly over the last 4+ years of its existence. Hundreds of notifications, circulars, clarifications, and instructions, all merged with the ever-increasing case laws, advance rulings and petitions have resulted in Government announcing frequent updates and improving the compliances for the taxpayers. The Government’s proactive approach towards improving compliances clubbed together with improving business has resulted in the highest ever GST collections in April 2022.

A. GST Updates:

The below points highlight the updation/ enhancements recently introduced in GST:

Updation of Annual aggregate turnover (‘AATO’) functionality:

a) Updated AATO functionality allows taxpayers to update the turnover details (auto-populated from filed GST return), if not appearing correctly.

b) For May 2022, this turnover can be updated twice post which it will go for jurisdictional officer verification and confirmation.

Enhancements in GSTR-1 on GSTN portal:

a) Removal of the ‘Submit’ button before filing –

Going forward, the GSTN portal provides for a single step filing i.e., ‘File statement’. The said process will provide the taxpayers the flexibility to add or modify records till the last step of filing is completed.

b) Consolidated summary –

Taxpayers will now be able to see a consolidated summary of the records uploaded in GSTR-1/IFF. This will give a detailed & table-wise summary of the records added by the taxpayers to verify the uploaded records.

c) Recipient-wise summary –

The consolidated summary will provide the recipient-wise summary, showing the total value & the tax involved in such supplies for each recipient.

d) Summary PDF –

The summary PDF format of GSTR-1 downloaded from the GSTN portal has been aligned with the notified format of GSTR-1. Going forward. the summary GSTR-1 will show the tax liability that will get auto-populated in GSTR-3B to avoid discrepancies and facilitate easy reconciliation.

B. GST Compliances Calendar:

Compliance is an integral part of any statute, GST in specific wherein, the government is increasingly focused on strengthening the compliances. 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 –

Note: From February 2022 onwards, if the GSTR-3B return for a particular month is not filed by the taxpayer, then it will not be allowed to file the GSTR-1 of the subsequent month. Thus, please ensure that GSTR-1 and GSTR-3B of April 2022 is filed on the GSTN portal.

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. ITC availed in GSTR-3B should be restricted to eligible ITC appearing in GSTR-2B. System-generated notices are getting issued to the taxpayers wherein ITC availed in the GSTR-3B is more than the ITC reflected in the GSTR-2B generated on the GSTN portal.

2. As per the Finance Act 2022, filing of GSTR-1 will become mandatory to file GSTR-3B for the tax period.

Other returns and forms–

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 [email protected].