GST updates and compliance calendar for January 2023

December 2022 turned out to be a hectic month for the businesses, consultants, and tax practitioners alike in GST with 31^st December 2022 being the due date for filing of GSTR-9 and GSTR-9C for FY 2021-22. The month also saw the concurrence of 48^th GST Council Meeting with several important changes and decisions recommend. These changes were subsequently introduced through circulars and notifications issued in last week of December 2022.

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

Other returns and forms–

B. GST Updates:

• Circular No. 183/15/2022-GST dated 27 December 2022 has provided clarification on ITC reconciliation for FY 2017-18 and FY 2018-19. According to the Circular, for FY 2017-18 and FY 2018-19, the department should verify the fulfillment of conditions laid down in Section 16 of CGST Act i.e., –

a) he is in possession of a tax invoice or debit note issued by the supplier or such other tax paying documents.

b) he has received the goods or services or both.

c) he has made payment for the amount towards the value of supply, along with tax payable thereon, to the supplier.

The Circular is a welcome move as it will save the taxpayers from the exorbitant demands raised by the authorities and undue harassment to meet the tax targets.

• In respect of taxability of renting of residential dwelling under RCM, the following clarification has been provided –

No GST is payable where the residential dwelling is rented to a registered person if it is rented it in his/her personal capacity for use as his/her own residence and on his own account and not on account of his business.

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.