Summary: In October 2024, the GST Network (GSTN) issued a series of advisories aimed at enhancing compliance and portal functionality. These updates include integration of Indian Railways’ Parcel Management System with the E-Way Bill (EWB) system for better traceability and compliance through automated data entry of RR/Parcel Way Bill numbers. GSTN also addressed new GST requirements for metal scrap transactions, requiring businesses in this sector to register through Form GST REG-07. The Invoice Management System (IMS) was introduced to allow taxpayers to reconcile invoices with supplier records for accurate Input Tax Credit (ITC) claims, beginning with the October 2024 return cycle. An advisory for GSTR-9/9C clarified that eligible ITC will now auto-populate in GSTR-9 based on GSTR-2B data. Additionally, a “hard lock” of the pre-filled tax liability in GSTR-3B is anticipated by January 2025 to enhance accuracy, while still allowing adjustments through GSTR-1A. Further improvements include validation of bank details during amendments, ensuring accuracy in taxpayer information. Collectively, these advisories underscore GSTN’s commitment to streamlining compliance for taxpayers through digital integration and automation.
Common portal of GST, GSTN keeps on issuing advisories on new functions / updates on the portal for upgradation of functionalities and new options or functions enabled for implementation by taxpayers.
During the month of October, 2024, the following advisories have been issued so far in relation to the various compliances by GSTN:
- Advisory on Proper Entry of RR No./Parcel Way Bill (PWB) Numbers in EWB system Post EWB-PMS
- Advisory for Taxpayers on new GST provision for Metal Scrap transactions
- Advisory on Invoice Management System (IMS)
- GSTN Advisory on GSTR-9/9C
- GSTN Advisory on Hard Locking of auto-populated liability in GSTR-3B
- Additional FAQs on IMS issued by GSTN
- Validation of bank account details while adding bank account as Non Core amendment
- Advisory – Reg 07
These are summarized below:
Advisory on Proper Entry of RR No./Parcel Way Bill (PWB) Numbers in EWB system Post EWB-PMS
- The GSTN has issued an update dated 04.10.2024 advising that Parcel Management System (PMS) of Indian Railways has now been integrated with the E-Way Bill (EWB) system via Application Programming Interfaces (APIs).
- This integration will facilitate the seamless transfer of RR No./Parcel Way Bill (PWB) data from Railways to e-way bill portal , ensuring better traceability and compliance. It is also important that taxpayers follow the correct process for entering Parcel Way Bill numbers into the EWB system.
- Following guidelines are also issued on:
- Applicability of RR No./PWB Entry in the EWB System
- Updating Part-B of EWB for Rail Transportation
- Format for Entering the RR No./PWB Number
- RR Number for FOIS or Leased Wagons
- EWB and RR No./PWB Number Validation
- Importance of Accurate Entry
- Assistance and Clarifications
(Source: GSTN Advisory dated 04.10.2024)
Advisory for Taxpayers on new GST provision for Metal Scrap transactions
- GSTN has issued an advisory dated 13.10.2024, in relation to new GST provision for Metal Scrap transactions.
- CBIC has issued Notification No. 25/2024 – Central Tax, dated October 9, 2024 under section 51 of the CGST Act, 2017 mandating compliance by the businesses dealing with Metal Scrap.
- The GST portal will soon be updated to enable compliance of registration through FORM GST REG-07 by this category of registered persons.
(Source: GSTN Advisory dated 13.10.2024)
Advisory on Invoice Management System (IMS)
- GSTN has issued an advisory which provides that Invoice Management System (IMS) will be made available to taxpayers from 14.10.2024.
- The new system shall facilitate taxpayers in matching their records/invoices vis a vis issued by their suppliers for availing the correct Input Tax Credit (ITC).
- The first GSTR-2B would be generated for the return period Oct’ 24 on 14th November, 2024 considering action taken on Invoice Management System.
- It may be noted that it is not mandatory to take action on invoices in IMS dashboard for GSTR-2B generation.
- Taxpayers can make use of this system to take action on the invoices reflecting on IMS from 14.10.2024.
(Source: GSTN Advisory dated 14.10.2024)
GSTN Advisory on GSTR-9/9C
- GSTN has issued an Advisory which provides that GST system will auto-populate eligible ITC for domestic supplies (excluding reverse charge and imports ITC) from table 3(I) of GSTR-2B to table 8A of GSTR-9.
- A validation utility will be executed progressively (for validation by taxpayers) to complete the auto population of GSTR-9 from GSTR-2B for Apr-23 till Mar-24.
- These changes in GSTR-9 and 9C for the FY 2023-24 are available on the GST portal from i.e., 15th October 2024 onwards.
(Source: GSTN Advisory dated 15.10.2024)
GSTN Advisory on Hard Locking of auto-populated liability in GSTR-3B
- GSTN has issued an advisory in relation to locking of auto-populated liability in GSTR-3B. In order to assist taxpayers in filing their returns and minimizing human errors, GSTN has continuously improving the GST return filing process and in this endeavor the GST Portal now provides a pre-filled GSTR-3B form, where the tax liability is auto-populated from the declared supplies in GSTR-1/ GSTR-1A/ IFF by the supplier, while the Input Tax Credit (ITC) is auto-populated from GSTR-2B. A detailed system generated pdf of the auto populated GSTR-3B is also provided to all the taxpayers.
- Now, taxpayers also have a facility to amend their incorrectly declared outward supplies in GSTR-1/IFF through GSTR-1A, allowing them an opportunity to correct their liabilities before filing their GSTR-3B. Additionally, to manage inward supplies and ensure accurate ITC claims in GSTR-3B, taxpayers have the option to take informed actions of accept/reject/pending on inward supplies via the Invoice Management System (IMS) which is now available to the taxpayers.
- It may be noted that tentatively from January, 2025 tax period, the GST Portal is going to restrict making changes in auto-populated liability in pre-filled GSTR-3B from GSTR-1/1A/IFF to further enhance accuracy in return filing. It is once again suggested hereby that in case any change is required in auto-populated liability, the same may please be handled through GSTR-1A.
- However, locking of auto-populated ITC in GSTR-3B, after the roll out of IMS, will be implemented from a later date. For the same a separate advisory would be issued after addressing all the issues related to IMS, raised by the trade.
(Source: GSTN Advisory dated 17.10.2024)
Additional FAQs on IMS issued by GSTN
- Invoice Management System (IMS) is now available to taxpayers. This new system shall facilitate taxpayers in matching their records/invoices vis a vis issued by their suppliers for availing the correct Input Tax Credit (ITC).
- Taxpayers can now make use of this facility to seamlessly accept, reject, or keep invoices pending in the system to avail later as and when required.
- The first GSTR-2B on the basis of actions taken in IMS would be generated for the return period Oct’ 24 on 14th November, 2024.
(Source: GSTN Advisory dated 17.10.2024)
Validation of bank account details while adding bank account as Non Core amendment
- The GSTN has a validation process has been implemented and new procedure for cases where a taxpayer attempts a non-core amendment to update bank account details. Therefore, the taxpayers are requested to follow the prescribed procedure while adding bank account details on the portal.
- As per the new procedure, when the bank account details are entered, the taxpayer is required to click on “VALIDATE ACCOUNT DETAILS” button and prior to clicking the “Validate Account” button, the “Save” button at the bottom of the screen as shown remains disabled.
(Source: GSTN Advisory dated 22.10.2024)
Advisory – Reg 07
- GSTN has introduced an update to facilitate the registration compliance for buyers of metal scrap through form GST REG-07.
- This update follows the new GST provisions for metal scrap buyers as outlined in the advisory issued on October 13.
- Taxpayers in this category are required to select “Others” in Part B of Table 2 under the “Constitution of Business” section. A text box will appear where the taxpayer must enter “Metal Scrap Dealers.”
- This entry is mandatory for those selecting the “Others” option. Once this is completed, the remaining details in form GST REG-07 should be filled and submitted on the common portal to meet the registration requirements as per Notification No. 25/2024 – Central Tax, dated October 9, 2024.
(Source: GSTN Advisory dated 22.10.2024)
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