Recent Updates In GST till 01st May 2023

Stay updated on recent GST developments until May 1, 2023. Explore insights into India’s economic growth projections, tax revenue expectations, and global positioning. Learn about the initiation of registration verification to counteract fake invoices and tax evasion. Discover CBIC’s advice on integrity in public life and updates on e-invoice thresholds and automated GST return scrutiny. Gain knowledge on extended due dates for GST returns in Manipur, scrutiny SOPs, and automated scrutiny modules. Stay informed on GSTN enabling GSTR-9 and 9C filing, date extensions for Manipur returns, and advisories for GTAs opting for forward charge. Access information on finding Invoice Reference Numbers and the record-breaking GST collection in May 2023. Keep yourself informed and compliant with the latest GST updates for a successful business journey.

Morgan Stanley has expressed that India may emerge as a key driver for Asia and global growth with growth differentials swinging in India’s favour. Also, India remains the fastest growing major economy in 2022-23.

According to Moody’s, Global Rating Agency, India may be the fastest growing G-20 economy in next five years with expansion of manufacturing and infrastructure sectors. However, reforms and policy barriers could hamper investments. There is likely growth in demand for housing, cement, cars etc. This may translate into bigger tax revenue in future.

According to NSO’s latest data, growth in Q4 of 2022-23 was 6.1% with overall growth in 2022-23 @ 7.2%, higher than the estimate of 7%. Services sector has maintained its momentum with strong consumption demand helping expansion in private capex. As such, prospects of Indian economy look brighter.

The drive to verify registration has kicked off from 16^th May, 2023 which will continue for two months. This will curb cases of fake invoices, fraudulent input tax credit and tax evasion.

CBIC Chairman in a communiqué to offices has advised on importance of integrity in public life. He says “integrity is a multi-faceted omnibus governing so aspects of our conduct. In its most restricted meaning it is equated with pecuniary integrity or non-acceptance of illegal gratification in performing our official duties. While there is no question that this interpretation is truly its core, integrity actually stands for many more things. As Civil Servants, our primary allegiance is to the Constitution and rule of law which implies that we must apply the laws that we administer in a fair, just and equitable manner It is also important that we do not allow our personal biases against individuals or organizations to color our perception when applying the law and we deal with issues on their own ‘merit’ ”. Good advice to implement.

CBIC has also lowered e-invoice threshold from Rs. 10 crores to Rs. 5 crores of turnover w.e.f. 1^st August, 2023. CBIC has also rolled out module for automated GST returns scrutiny which shall lead more compliances and transparency.

CBIC issued notifications for extending the due dates of returns for the state of Manipur to 31^st  May, 2023. It also issued detailed instructions or Standard Operating Procedure (SoP) for conducting scrutiny of returns under section 61 of CGST Act 2017 read with Rule 99 of CGST Rules, 2017 for the financial year 2019-20 and onwards. This will enable detailed workflow and smooth conduct of scrutiny. The online scrutiny functionality on ACES-GST application will further boost the efforts of the department to leverage technology and risk-based tools to encourage self-compliance and to conduct scrutiny of returns with minimal interaction with the registered person.

According to media reports, to ease credit disbursement friction by helping small firms to authorize lenders / banks to access financial information, GSTN and account aggregator linking may be possible by 1^st July, 2023. Lenders may use GST returns as financial statement to assess the health of such firms.  Nation wise campaign for fraudulent GSTNs is on and department is getting good response in terms of detection of such cases.

GST collection has been higher in May, 2023. It has crossed Rs. 1,50,000 crore. The gross Good & Services Tax (GST) revenue collected in the month of May, 2023 is Rs.1,57,090 crore of which CGST is Rs.28,411 crore, SGST is Rs.35,828 crore, IGST is Rs.81,363 crore (including Rs.41,772 crore collected on import of goods) and cess is Rs.11,489 crore (including Rs.1,057 crore collected on import of goods).The revenues for the month of May 2023 are 12% higher than the GST revenues in the same month last year. During the month, revenue from import of goods was 12% higher and the revenues from domestic transactions (including import of services) are 11% higher than the revenues from these sources during the same month last year. 

Due date for Form GSTR-1 extended for Manipur State

• CBIC for notified the extension of due date for furnishing Form GSTR-1 (Details of outward supplies of goods or services) for April, 2023 for all the registered persons whose principal place of business is in State of Manipur.
• The date has been extended till the 31^st day of May 2023.
• Thus, those registered taxpayers in State of Manipur who are required to file return under section 39(1) of CGST Act, 2017 can file return in Form GSTR-1 till 31^st May 2023.
• For this purpose, Notification No. 83/2020-CT dated 10.11.2020 has been amended by inserting a new proviso to the effect that the time limit for furnishing the details of outward supplies in FORM GSTR-1 of the said rules for the tax period April, 2023, for the registered persons required to furnish return under section 39 (1) of the said Act whose principal place of business is in the State of Manipur, shall be extended till the thirty-first day of May, 2023.
• This Notification comes into force w.e.f. 11.05.2023. 

(Source: Notification No. 11/2023-Central Tax dated 24.05.2023) 

Due date for Form –GSTR 3B extended for Manipur State

• CBIC for notified the extension of due date for furnishing Form GSTR-3B for April, 2023 for all the registered persons whose principal place of business is in State of Manipur.
• The date has been extended till the 31^st day of May 2023
• Thus, those registered taxpayers in State of Manipur who are required to file return under section 39(1) of CGST Act, 2017 can file return in Form GSTR-3B till 31^st May 2023.
• This Notification comes into force w.e.f. 20.05.2023.

(Source: Notification No. 12/2023-Central Tax dated 24.05.2023) 

Due date for Form –GSTR 7 extended for Manipur State

• CBIC for notified the extension of due date for furnishing Form GSTR-7 (Return for tax deducted at source) for April, 2023 for all the registered persons whose principal place of business is in State of Manipur.
• The date has been extended till the 31^st day of May 2023.
• Thus, those registered taxpayers in State of Manipur who are required to file return under section 39(3) of CGST Act, 2017 can file return in Form GSTR-7 till 31^st May 2023.
• For this purpose, Notification No. 26/2019-CT dated 28.06.2019 has been amended by inserting a new proviso to the effect that the return by a registered person, required to deduct tax at source under the provisions of section 51 of the said Act in FORM GSTR-7 of the Central Goods and Services Tax Rules, 2017 under section 39(3) of the said Act read with rule 66 of the Central Goods and Services Tax Rules, 2017, for the month of April, 2023, whose principal place of business is in the State of Manipur, shall be furnished electronically through the common portal, on or before the thirty-first day of May, 2023.
• This Notification comes into force w.e.f. 10.05.2023.

 (Source: Notification No. 13/2023-Central Tax dated 24.05.2023) 

Scrutiny of GST returns for FY 2019-20 onwards

• CBIC has issued instructions in the form of Standard Operating Procedure (SOP) for scrutiny of returns for the FY 2019-20 onwards on the manner, procedure and methodology to conduct scrutiny of returns under section 61 of CGST Act, 2017 read with Rule 99 of the CGST Rules, 2017.
• CBIC has modified the earlier instructions dated 22.03.2022 for the FY 2019-20 onwards. This SOP also provides for :
  • Selection of returns for scrutiny and communication of the same to the field formations
  • Scrutiny Schedule
  • Process of scrutiny by the Proper Officer
  • Timelines for scrutiny of returns
  • Reporting and Monitoring
• The progress of the scrutiny exercise as per the scrutiny schedule shall be monitored by the jurisdictional Principal Commissioner/ Commissioner on regular basis.
• Since the scrutiny functionality has been provided on ACES-GST application only for the Financial Year 2019-20 onwards, the procedure specified in Instruction No. 02/2022 dated 22.03.2022 shall continue to be followed for the scrutiny of returns for the financial years 2017-18 and 2018-19.

(Source: CBIC Instruction No. 02/2023-GST dated 26.05.2023) 

Constitution Advance Ruling Authority in Union Territories

Notification Nos. 1/2023-UTGST dated 12.05.2023 and 2/2023-UGST dated 25.05.2023 have been issued to amend Notification No. 14/2018-UGST dated 08.10.2018 for reconstitution of Advance Ruling Authority in Union Territories in the UT’s of Chandigarh and Dadra and Nagar Haveli and Daman and Diu

 (Source: Notification Nos. 1/2023-UTGST dated 12.05.2023 and

Notification No. 2/2023-UTGST dated 25.05.2023) 

Automated Returns Scrutiny

• CBIC has rolled out Automated Return Scrutiny Module for GST returns in ACES-GST backend application for Central Tax Officers
• This is a non-intrusive means of compliance verification on the directions of MOF to roll out Automated Return Scrutiny Module for GST returns.
• This Module will enable the officers to carry out scrutiny of GST returns of Centre Administered Taxpayers selected on the basis of data analytics and risks identified by the System.
• In the Module, discrepancies on account of risks associated with a return are displayed to the tax officers.
• Tax officers are provided with a workflow for interacting with the taxpayers through the GSTN Common Portal for communication of discrepancies noticed under FORM ASMT-10, receipt of taxpayer’s reply in FORM ASMT-11 and subsequent action in form of either issuance of an order of acceptance of reply in FORM ASMT-12 or issuance of show cause notice or initiation of audit.
• The implementation of this Automated Returns Scrutiny Module has commenced with the scrutiny of GST returns for FY 2019-20.

(Source: PIB Release dated 11.05.2023)

GSTN enables GSTR-9 and 9C for FY 2022-23

• GSTN portal has enabled the option to file annual forms GSTR-9 and GSTR-9C for the financial year 2022-23 on the common portal.
• GSTR-9 is for Annual Return and GSTR-9C is Annual Reconciliation Statement
• The due date to file GSTR-9 and GSTR-9C for the financial year 2022-23 is December 31, 2023.

(Source: GSTN Portal dated 16.05.2023) 

GSTN Advisory on date extension of GST returns for Manipur State

• GSTN has issued an advisory on due date extension of GST returns for the State of Manipur
• Vide Notifications No. 11/2023 – Central Tax, 12/2023 – Central Tax and 13/2023 – Central Tax, all dated 24th May 2023, the Government has extended the due date of filing GSTR-1, GSTR-3B & GSTR-7 of April-2023 tax period till 31st May 2023 for all the taxpayers having principal place of business in the state of Manipur.
• These changes have been implemented on the GST Portal from 27th May 2023 onwards.
• The late fee paid by the taxpayers who have filed their returns before 27th May 2023, shall be credited into their ledgers. The interest amounts, shown in the next return, if any, may be corrected by the taxpayers themselves, as it is an editable field.

[Source: GSTN Advisory dated 28.05.2023 (//www.gst.gov.in)] 

Advisory on filing of declaration by GTAs opting for Forward Charge

• GSTN has issued an Advisory on Filing of Declaration In Annexure-V by Goods Transport Agency (GTA) opting to pay tax under forward charge mechanism.
• The GTAs, who commence business or cross registration threshold on or after 1st April, 2023, and wish to opt for payment of tax under forward charge mechanism are required to file their declaration in Annexure V for the FY 2023-24 physically before the concerned jurisdictional authority.
• The declaration may be filed within the specified time limits, as prescribed in the  No. 05/2023-Central Tax (Rate), dated. 09.05.2023.

[Source: GSTN Advisory dated 30.05.2023(//www.gst.gov.in)]

How to find invoice reference number

• GSTN has enabled a functionality to find at Invoice Reference Number (IRN) through or by using document number
• Taxpayers can access the GSTN portal< (https://einvoice.gst.gov.in/einvoice/dashboard> Or <https://einvoice.gst.gov.in/einvoice/search-irn>.
• Within the search section, users can enter the Document Number in the designated field and initiate the search process.
• The system will thereafter retrieve and display the relevant IRN(s) linked to the specified document.

(Source: GSTN Portal) 

GST collection in May, 2023

• 1,57,090 crore gross GST revenue has been collected for May 2023.
• Monthly GST revenues is more than Rs.1.4 lakh crore for 14 months in a row, with Rs.1.5 lakh crore crossed for the 5th time since inception of GST.
• The gross Good & Services Tax (GST) revenue collected in the month of May, 2023 is Rs.1,57,090 crore of which CGST is Rs.28,411 crore, SGST is Rs.35,828 crore, IGST is Rs.81,363 crore.
• On YoY basis, there is more than 25% growth in tax collection in 8 states / UTs while there is negative growth in 3 states/ UTs. 

(Source: Press Release ID 1929031 dated 01.06.2023)