Latest GSTN Advisories: ITC Compliance, Rule 37(A) Reversal, Biometric Authentication

In its continuous efforts to enhance the efficiency and functionality of the Goods and Services Tax (GST) system, the GST Network (GSTN) regularly issues advisories to inform taxpayers about new features and updates on the common GST portal. The period between November and December 2023 has seen a flurry of such advisories, each addressing specific compliances and introducing innovative solutions for taxpayers.

From ensuring online compliance for Input Tax Credit (ITC) mismatches to providing guidelines on the reversal of ITC under Rule 37(A), GSTN’s recent advisories cover a diverse range of topics. Additionally, instructions for direct Application Programming Interface (API) integration with Invoice Registration Portals (IRPs), an amnesty scheme for appeals, and a pilot project for biometric-based Aadhaar authentication in Andhra Pradesh are among the notable updates. Furthermore, the integration of GSTN into the Account Aggregators (AA) ecosystem as a Financial Information Provider (FIP) marks a significant milestone, offering taxpayers a comprehensive view of their financial data.

In this article, we delve into the key highlights of these recent GSTN advisories, shedding light on the implications and benefits for taxpayers navigating the dynamic landscape of GST compliance.

Summary of New GST Related Advisories From GSTN

1. Online compliance for Input Tax Credit (ITC) mismatch

• GSTN has issued an Advisory for Online Compliance Pertaining to ITC mismatch -GST DRC-01C i.e., Difference in Input Tax Credit (ITC) available in GSTR-2B & ITC claimed in the GSTR-3B.
• GSTN has developed a functionality to generate automated intimation in Form GST DRC-01C which enables the taxpayer to explain the difference in Input tax credit available in GSTR-2B statement & ITC claimed in GSTR-3B return online as directed by the GST Council.
• It compares the ITC declared in GSTR-3B/3BQ with the ITC available in GSTR-2B/2BQ for each return period.
• If the claimed ITC in GSTR 3B exceeds the available ITC in GSTR-2B by a predefined limit or the percentage difference exceeds the configurable threshold, taxpayer will receive an intimation in the form of DRC-01C.
• Upon receiving an intimation, the taxpayer is advised to file a response using Form DRC-01C Part B. The taxpayer has the option to either provide details of the payment made to settle the difference using Form DRC-03, or provide an explanation for the difference, or even choose a combination of both options.
• In case, no response is filed by the impacted taxpayers in Form DRC-01C Part B, such tax-payers will not be able to file their subsequent period GSTR-1/IFF.

(Source: GSTN Advisory dated 14.11.2023)

2. Advisory on Input Tax Credit (ITC) Reversal under Rule 37(A)

• GSTN has issued an advisory on ITC Reversal on account of Rule 37(A) of CGST Rules, 2017.
• As per Rule 37A of CGST Rules, 2017 the taxpayers have to reverse the Input Tax Credit (ITC) availed on such invoice or debit note, the details of which have been furnished by their supplier in their GSTR-1/IFF but the return in FORM GSTR-3B for the said period has not been furnished by their supplier till the 30th day of September following the end of financial year in which the Input Tax Credit in respect of such invoice or debit note had been availed.
• Such amount of ITC is required to be reversed by such taxpayers, while furnishing a re-turn in FORM GSTR-3B on or before the 30th day of November following the end of such financial year, as part of this legal obligation.
• To facilitate the taxpayers, such amount of ITC required to be reversed on account of Rule 37A of CGST Rules for the financial year 2022-23 has been computed from system and has been communicated to the concerned recipient. The email communication to this effect has been sent on the registered email id of the taxpayer.
• The taxpayers have been advised to take note of it and to ensure that such ITC, if availed by them, is reversed as per rule 37A of CGST Rules before 30th of November, 2023 in Table 4(B)(2) of GSTR-3B while filing the concerned GSTR-3B.

(Source: GSTN Advisory dated 14.11.2023)

3. Instructions for Direct API Integration with IRPs

• GSTN has issued Comprehensive Guidelines and Instructions for Direct API Integration with any of the 6 IRPs for E-Invoice Reporting.
• These pertain to all six IRP’s as on 14.11.2023.
• The instructions pertains to :
  • API functionality
  • Sandox testing and URL
  • API access steps and URL to register the request
  • API limits
  • Production access
  • Turnover verification
• Taxpayers can access and download the above said documents by clicking on the link be-low: https://tutorial.gst.gov.in/downloads/news/e-invoice_api_integration_guide_irps.pdf

(Source: GSTN Advisory dated 17.11.2023)

4. GSTN Advisory on Amnesty Scheme for Appeals

• GSTN has issued on 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.
• Taxpayers can file an appeal in FORM GST APL-01 on the GST portal on or before January 31, 2024, for the order passed by the proper officer on or before March 31, 2023.
• The taxpayers should make payments for entertaining the appeal by the Appellate officer as per the provisions of Notification No. 53/2023. The GST Portal allows taxpayers to choose the mode of payment (electronic Credit/Cash ledger), and it is the responsibility of the taxpayer to select the appropriate ledgers and make the correct payments.
• The office of the Appellate Authority shall check the correctness of the payment before entertaining the appeal and any appeal filed without proper payment may be dealt with as per the legal provisions.
• If a taxpayer has already filed an appeal and wants it to be covered by the benefit of the amnesty scheme would need to make differential payments to comply with Notification No. 53/2023 which should be made against the demand order using the “Payment towards demand” facility available on the GST portal. The navigation step for making this payment is provided: Login >> Services >> Ledgers >> Payment towards Demand.
• Taxpayers who have previously filed an appeal but it was rejected as time barred in APL-02 by the Appellate authority, then the taxpayer would be able to refile the appeal.
• In case, the taxpayers face any issue while re-filing APL-01, a ticket shall be raised on the Grievance redressal portal: https://selfservice.gstsystem.in. The taxpayer shall select the Category “Amnesty Scheme” and the sub-category “Amnesty scheme- Issue in appeal filing” while raising a ticket.
• If the Appellate authority has issued a rejection order in APL-04 due to the appeal appli-cation being time-barred, then the taxpayer has to approach the respective Appellate authority office well in advance to comply with the dates in the said notification. The Appellate authority after checking the eligibility of the taxpayer for the amnesty scheme will forward the case to GSTN through the State Nodal officer.
• For the APL 04 issued cases no direct representations will be entertained by GSTN or through the Grievance redressal portal. APL 04-issued cases have to be compulsorily forwarded through the State Nodal officer.
• Post receiving the case from the State nodal officer, GSTN will enable the taxpayer to file an appeal against the concerned order.

[Source: GSTN Advisory dated 28.11.2023]

5. GSTN Advisory on Pilot Project for Biometric based Aadhaar Authentication in Andhra Pradesh

GSTN has issued an Advisory for Pilot Project of Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Andhra Pradesh

• This functionality has been developed by GSTN which will be rolled out in Andhra Pradesh on 4th December, 2023.
• The functionality provides for the document verification and appointment booking process. After the submission of the application in Form GST REG-01, the applicant will receive either of the following links in the e-mail,

(a) A Link for OTP-based Aadhaar Authentication OR

(b) A link for booking an appointment with a message to visit a GST Suvidha Kendra (GSK) along with the details of the GSK and jurisdiction, for Biometric-based Aadhaar Authentication and document verification (the intimation e-mail)

• If the applicant receives the link for OTP-based Aadhaar Authentication as mentioned in point (a), she/he can proceed with the application as per the existing process.
• If the applicant receives the link as mentioned in point (b), she/he will be required to book the appointment to visit the designated GSK, using the link provided in the e-mail. Once the applicant gets the confirmation of appointment through e-mail (the appointment confirmation e-mail), she/he will be able to visit the designated GSK as per the chosen schedule.
• At the time of the visit of GSK, the applicant is required to carry the following details.

(a) a copy (hard/soft) of the appointment confirmation e-mail

(b) the details of jurisdiction as mentioned in the intimation e-mail

(c) Aadhaar Number

(d) the original documents that were uploaded with the application, as communicated by the intimation e-mail.

• The biometric authentication and document verification will be done at the GSK, for all the required individuals as per the GST application Form REG-01.
• The applicant is required to choose an appointment for the biometric verification during the maximum permissible period for the application as indicated in the intimation e-mail. In such cases, ARNs will be generated once the Biometric-based Aadhaar Authentication process and docu-ment verification are completed.
• The feature of booking an appointment to visit a designated GSK is currently available for the applicants of the Andhra Pradesh.

(Source: GSTN Advisory dated 01.12.2023)

6. GSTN integrated in Account Aggregators (AA) Ecosystem as a Financial Information Provider (FIP)

• GSTN has been seamlessly integrated into the Account Aggregators (AA) Ecosystem as a Financial Information Provider (FIP).
• The said integration will enable taxpayers to access a holistic view of their financial data through the comprehensive services offered by Account Aggregators.
• Completed Returns Filed in the last 18 months for the following return types can be ac-cessed:
  • GSTR 1 (Table 4): Monthly or quarterly statement of all Outward Supplies to be furnished by all registered taxpayers
  • GSTR 3B: Monthly or quarterly Self-declared summary GST Returns
• Data will be made available for a period of 18 months.
• GSTN’s role as an FIP to account aggregators is a significant development that enhances the availability and accessibility of financial data for individuals and businesses.
• This framework will not only benefit taxpayers but also extends advantages to financial institutions and the broader financial ecosystem as a whole.
• Major advantages inter alia, include enhanced financial Inclusion, stimulated innovation & fintech growth and improved privacy & control for users.

(Source: GSTN Portal dated 05.12.2023)

7. GSTN functionality on Address and Contacts of Promoters

• GSTN portal has made available a new functionality on ‘Address and Contacts’ of pro-moters and authorized signatories of taxpayers.
• This has been made available under ‘my profile’ tab on the portal.
• Stakeholders can now take a look of names of all Promoters & Authorized signato-ries and their mobile / email / even address mentioned on the Goods and Services Tax Portal.
• Earlier, only Authorized person’s name / mobile / email were shown in the Portal.
• This enables knowing all information / details at one place.

(Source: GSTN Portal dated 07.12.2023)

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