Recent Updates In GST till 12th May 2023

Stay informed with the latest updates in GST as of May 12, 2023. Explore economic reviews, rating agency insights, Calcutta High Court rulings, CBIC guidelines on fake registrations, e-invoice timeline deferment, and more. Get comprehensive information on amnesty schemes, advisory on timely filing of GSTN returns, and the CBIC drive to detect fake registrations. Access details on the Internship Scheme in CBIC and the process for obtaining Digital Signature Certificates (DSC). Keep your knowledge up-to-date with the most recent developments in the GST landscape.

MoF in its monthly economic review for March, 2023 has stated that macro stability is likely to help sustain economic growth but financial year 2023-24 growth may be hit by global financial issues. Troubles in financial sector in developed countries is likely to increase risk aversion in financial markets.

Fitch global rating agency has recently held India’s rating at BBB- with stable outlook on India’s debt and states that India’s prospects have brightened in view of stronger investment growth outlook. India’s GDP growth is projected by different agencies between 5.9% and 6.5% (RBI 6.4%, Economic Survey 6.5%, ADB 6.4%, S & P 6.0%, IMF 5.9% and so on).

In one of the orders, Calcutta High Court has ruled that recipient of service can also take advance ruling order GST law. The Advance Ruling Authorities in various cases have held that only provider (and not recipient) can seek advance ruling. GSTN has issued advisories on validation of bank account and verification of document identification number on the portal.

The Finance Ministry has declined to intervene in a plea for relief made by the insurance industry, which is facing penal action from tax authorities for goods and services tax (GST) input tax credit violations. The Ministry has referred the matter to the insurance Regulatory and Development authority of India (IRDAI).

CBIC has issued guidelines to conduct a special two month drive to identify and catch hold of fake registration cases. This will be from 16 May, 2023 and be on a all India basis. Further, CBIC has extended the last date to opt for payment of GST under forward charge basis for GTAs till 31^st May, 2023. E-invoices shall be made mandatory for e-invoices of Rs. 5 crore and more w.e.f. 1 August, 2023.

The April, 2023 GST collections have been robust with an all time high at Rs. 1.87 lakh crore. The growth in GST collection has been more from smaller states and UT’s. Though the business reflected pertains to March, 2023, it is expected that the same momentum may continue in coming months too. However, e-way bill generation slipped to 8.44 crore which means lower trade and hence lower GST in May, 2023. Both, manufacturing and services PMI has also shown positive growth.

GTA option date for forward charge extended

• CBIC has extended the time for exercising option to opt for forward charge tax liability by Goods Transport Agencies (GTAs) for the FY 2023-24.
• The new time line shall be on or before 31^st May, 2023 instead of 15^th March, 2023. The required declaration (in prescribed format) can now be filed upto 31^st May, 2023 before jurisdictional authorities.
• Further, GTA who commences new business or crosses threshold for registration during any Financial Year, may exercise the option to itself pay GST on the services supplied by it during that Financial Year by making a declaration in Annexure V before the expiry of forty-five days from the date of applying for GST registration or one month from the date of obtaining registration, whichever is later.
• Necessary amended has been made in Notification No. 11/2017-CT (Rate) dated 28.06.2017.
• Similar Notification has been issued under IGST / UTGST Acts. 

(Source: Notification No. 5/2023-Central Tax (Rate) dated 09.05.2023) 

Threshold Limit for e-invoices reduced w.e.f. 1^st August, 2023 

• CBIC has notified that threshold limit for issuance of e-invoices shall stand reduced to Rs. 5 crore (presently Rs. 10 crore) w.e.f. 1^st August, 2023.
• Notification No. 13/2020-CT dated 21.03.2020 has been amended to this effect.

(Source: Notification No. 10/2023-CT  dated 10.05.2023) 

GSTN Advisory on Bank Account Validation  

GSTN has issued an Advisory on functionality for validation of bank account

• The bank account validation status can be seen under the Dashboard→My Profile→Bank Account Status tab in the FO portal.
• Tax Payers will also receive the bank account status detail on registered email and mobile number immediately after the validation is performed for his declared bank account.
• Whenever, the Tax Payer is shown ‘Failure’ icon with further details such as –
• The entered PAN number is invalid.
• PAN not available in the concerned bank account.
• PAN Registered under GSTIN, and the PAN maintained in the Bank Account are not same.
• IFSC code entered for the bank account details is invalid.

In these cases, the Tax Payer is expected to ensure that he has entered correct bank details and the KYC is completed by bank for his bank account.

• Whenever, the Taxpayer is shown, the status of his bank account as ‘Success With Remark’ icon with details “The account cannot be validated since the bank is not integrated with NPCI for online bank account validation”, the Tax Payer should provide alternate bank account number so that it can be revalidated to expedite further online processes.
• This feature is introduced to ensure that the bank accounts provided by the Taxpayer is correct.

 [Source:https://tutorial.gst.gov.in/downloads/news/advisory_on_bank_account_validation_17 april 2023; GSTN Advisory dated 24.04.2023 (www.gst.gov.in)] 

Facility to verify Document Reference Number (RFN) on GSTN

• GSTN has introduced a new facility to verify document Reference Number (RFN) mentioned on offline communications issued by State GST Authorities.
• GST portal generates various documents, such as notices/ orders, etc which are communicated to the taxpayer. Most of such documents have a system-generated unique identifier DIN (Document Identification Number)/ RFN (Reference Number).
• Though these are already traceable in the portal, mostly on the taxpayer’s dashboard, still, a facility for taxpayers to verify such documents through such auto-generated RFN will be provided shortly.
• In order to enable the taxpayers to ascertain that an offline communication (i.e. one which is not system-generated) was indeed sent by the State GST tax officer or not, a new facility for Reference Number (RFN) generation by State tax officer and verification by taxpayer has now been provided.
• To verify a Reference Number mentioned on the offline communications sent by State GST officers, taxpayer can navigate to Services > User Services > Verify RFN option and provide the RFN to be verified.
• In case the RFN is of an offline communication generated by the State GST officer, the details with the valid RFN will be displayed.
• This facility is for offline correspondence issued by State GST authorities. For documents issued by Central GST officers, CBIC DIN facility may be used. 

[Source: GSTN Advisory dated 28.04.2023 (www.gst.gov.in)] 

Clarifications on Amnesty Scheme for Revocation of Cancellation of GST Registration – Maharashtra State

Maharashtra State has issued an internal Circular to clarify issues relating to filing of application and its processing arising out of special procedure vide Notification No. 3/2023-State Tax / Central Tax dated 31.03.2023.

• The amnesty scheme will be applicable to the cases wherein the application for the purpose of revocation of cancellation of registration is being filed during the period from 1^st April 2023 to 30th June 2023.
• However, it is limited to where registration which has been cancelled under section 29(2) (b or c) on or before 31st day of December, 2022, and who has failed to apply for revocation of cancellation of such registration within the time period specified in section 30 of the MGST Act, irrespective of the status of such applications.
• Benefit of this special procedure would be applicable to the cases wherein the application for revocation of cancellation of registration is either pending with the proper officer or has already been rejected by the proper officer.
• It would also be available in those cases which are either pending with the appellate authority or rejected by the appellate authority.
• Applicability of special procedure shall be as per following :

a) The application for revocation of cancellation of registration has not been filed by the taxpayer – Taxpayer can file an online application for revocation before the proper officer during the period as provided vide the said notification and proper officer shall process such application.

b) The application for revocation of cancellation of registration has already been filed and which are pending with the proper officer– In such cases, the proper officer shall process the application for revocation considering the timelines as provided vide the said notification.

c) The application for revocation of cancellation of registration was filed, but was rejected by the proper officer and taxpayer has not filed any appeal against the rejection- Taxpayer can file a fresh application for revocation and the proper officer shall process the application for revocation considering the timelines as provided vide the said notification.

d) The application for revocation of cancellation of registration was filed, the proper officer rejected the application and appeal against the rejection order is pending before appellate authority- Taxpayer can file fresh application for revocation and the proper officer shall process it. Simultaneously, taxpayer shall withdraw the appeal or appeal officer shall dispose off the appeal.

e) The application for revocation of cancellation of registration was filed, the proper officer rejected the application and the appeal has been decided against the taxpayer-Taxpayer may file fresh application for revocation and the officer shall process the application for revocation.

• There is no separate facility for application under the special procedure. The online applications would be received by proper officer as usual.
• Therefore, the revocation applications received on or after 01st April, 2023 and covered under this special procedure shall be processed accordingly.
• The proper officer, before effecting revocation, shall ensure that all the returns due up to the effective date of cancellation of registration are filed, and payment of any amount due as tax, in terms of such returns, along with any amount payable towards interest, penalty and late fee in respect of the said returns is made.
• Proper officer shall also ensure that all returns due are also filed as provided in second and third proviso of rule 23.

(Source: Internal Circular No. 4A/2023 dated 31.03.2023) 

Internship Scheme in CBIC

• CBIC has introduced an ‘Indirect Tax Internship Scheme for its Directorate of Legal Affairs (DLA)
• DLA is entrusted with defending all indirect taxes matters (Customs, Central Excise, Service Tax and GST) before the Hon’ble Supreme Court of India. The Directorate has invited applications for internship for the F.Y 2023-24.
• It shall be recruiting law graduate and law students as interns.
• The role of interns will be to assist CBIC in legal cases by way of study case files, assist in legal research and drafting of petitions, briefing the counsels and extend any other related legal/general assistance to officers/counsels.
• The interns may also accompany the departmental officers to the briefing meetings, if needed. The interns will be deployed in different sections of legal establishment in CBIC.
• Maximum ten law students and ten law graduates (total twenty) will be taken at a time for internship. The internship is likely to commence from 01.07.2023.
• The internship will neither be a job nor assurance of a job in the Department.

(Source: CBIC Notice dated 02.05.2023) 

Advisory on Timely Filing of GSTN Returns

• GSTN has issued an Advisory for timely filing of GST returns so as to avoid last day rush in filing of returns, which was observed on 20.04.2023.
• Such rush for filing returns on last day results in a waiting queue on GST System causing inconvenience
• GSTN has suggested that taxpayers may use SMS filing option to file NIL returns as it would be quicker and a more convenient way to file NIL returns and will also help to reduce queue on the GST system.
• Also, taxpayers are have been advised to file their Form GSTR- 3B well in advance to avoid last day rush.
• To avoid uploading large number of invoices of the past period in one GSTR-1 on the due date of filing, taxpayers have been advised to inculcate a month-wise return filing discipline for all the B2B invoices for the month and avoid reporting invoices of the past period in one go, as such behaviour can adversely impact the queue (waiting time) on the GST system.
• With better planning of return filing, the difficulty faced by the taxpayers due to last minute rush can be avoided and it would be of help to fellow taxpayers as well. 

(Source: GSTN Advisory dated 04.05.2023) 

CBIC drive to Detect Fake Registration

CBIC has decided to carry out a two month special drive to detect fake GST registrations to check fake input tax credit related frauds from 16 May, 2023 to 15 July, 2023.

• CBIC has issued guidelines for special drive against fake registrations under GST
• Based on data analytics and risk parameters, GSTN will identify fraudulent GSTN’s for Central / State Tax authorities and share the same for initiating verification, further action etc.
• Various tax authorities may also undertake the same by using different data analytics tools such as BIFA, ADVAIT, NIC Prime as well as through human intelligence, aadhar data base etc.
• Information sharing mechanism will be through designated nodal officers as per modus operandi
• Time bound verification shall be conducted by field formations which may even include examining the case for blocking of ITC. Action will also be taken for recovery of dues and to identify the master-minds or beneficiaries.
• There will be a National Coordination Committee headed by member (GST), CBIC to monitor the drive.
• The unique modus operandi found during this special drive will be compiled by GST Council Secretariat and presented before National Coordination Committee, which will be subsequently shared with Central and State Tax administrations across the country.

(Source: CBIC (GST Policy Wing) Instruction No. 01/2023-GST dated 04.05.2023)

E-invoice timeline deferred

• GSTN has issued an Advisory / Update on deferment of implementation of time limit on reporting old e-invoices till further notice.
• The competent authority has decided defer the imposition of time limit of 7 days on reporting old e-invoices on the e-invoice IRP portals for taxpayers with aggregate turnover greater than or equal to 100 crores by three months.
• The next date of implementation will be shared with you in due course of time.
• The link to the previously issued advisory dated 13th April, 2023 may be referred at:

https://www.gst.gov.in/newsandupdates/read/578

(Source: GSTN Advisory dated 06.05.2023) 

Time barring of Scrutiny of GST returns – UT of Delhi

• Government of NCR of Delhi has issued an Advisory on time barring of scrutiny of GST returns of Delhi taxpayers for financial years 2017-18, 2018-19 and 2019-20
• It may be noted that the whole process of scrutiny of return u/s 61 and rule 99 of DGST Act / Rules, 2017 takes around 5 to 6 months. Hence, all field formations / proper officers have been advised to ensure timely issuance of order u/s 73(9) for the scrutiny of returns for periods as mentioned in the CBIC vide Notification No. 9/2023 Central Tax dated 31.03.2023.
• As per Notification No. 9/2023 Central Tax dated 31.03.2023, time limit specified u/s 73(10) for issuance of order u/s 73(9) of CGST Act, 2017 for recovery of tax not paid or short paid or input tax credit wrongly availed or utilized for any reason other than reason of fraud or any willful misstatement or suppression of facts to evade tax relating to the period has been extended as specified below:

Financial Year	Time limit for issuance of order under Section 73(9) of the Act
2017-18	Up to 31st  day of December, 2023
2018-19	Up to 31st day of March, 2024
2019-20	Up to 30th day of June, 2024

 (Source: Circular No. F.3 /432/GST/Policy/2022/582-89 dated 08.05.2023)