RECENT DEVELOPMENTS IN GST

India’s economic growth forecast for financial year 2023 has been retained at 6.7% by Moody’s followed by 6.1% in financial year 2024 and 6.3% in financial year 2025. There is a rider that inflation is still a concern.

CBIC Chairman has suggested that industry should not seek tax exemptions as tax waiver affects the input tax credit chain. Industry should introspect if it wants a simpler GST structure. CBIC has also decided to send advisories to business entities who are non-compliant on e-invoices norms as the compliance level is short of expectations. In October, 2023, e-way bill generation stood at all time high of 10.03 crore.

As recommended by GST Council in its 52nd meeting on 7th October, 2023, Government has notified an amnesty scheme for appeals which will be in force till 31st January, 2024. Notification No. 53/2023-CT dated 02.11.2023 has been issued to notify the scheme. GSTN has also issued advisory for procedures and provisions relating to amnesty scheme. This scheme is likely to benefit all those who could not file the appeals in past within stipulated time or whose appeal got rejected due to time bar. However, this benefit could be extended for adjudication orders issued between 01.04.2023 and 30.09.2023 to benefit all taxpayers also.

On tax collections, it is expected that monthly GST collection in next fiscal may be in range of Rs. 1.7 to 1.8 trillion. India’s total GST tax collection may also surpass 2023-24 budget estimates. The average monthly tax collection is around Rs. 1.6 trillion at present. Both, direct and indirect tax collection may grow by 10.45% in current year.

Government is also focusing on bringing all business establishments under GST ambit and on increasing GST  revenue. The logic is that all businesses must come under formal economy and contribute so that economic activity and its strength is truly captured.

Few advisories have been issued by GSTN for smooth compliances which find place insider this issue.

GSTN Advisory on Voluntary Payment in Form GST DRC- 03

• Payment on Voluntary Basis is a facility given to tax payers to make payment u/s 73 or 74 of the CGST Act, 2017 within 30 days of issuance of Show Cause Notice (SCN). Payment could also be made by taxpayers before SCN is issued.
• One can make voluntary payment before issue of notice u/s 73 or 74 of the CGST Act, 2017 or within 30 days of issue of show cause notice (SCN) under the said sections. You cannot make voluntary payment after 30 days of issue of SCN.
• The pre-conditions to make voluntary payment are:

• In case, voluntary payment is made before issue of SCN Show Cause Notice under determination of tax should not have been issued.
• In case, voluntary payment is made after issue of SCN or statement 30 days’ time has not lapsed since SCN is issued.

• GST Portal does not allow for making partial payments against a liability declared voluntarily. The payment has to be made with reference to the amount being demanded or already demanded in SCN.
• Application for intimation of voluntary payment can be saved at any stage of completion for a maximum time period of 15 days. If the same is not filed within 15 days, the saved draft will be purged from the GST database.

(Source: GSTN Portal dated 04.11.2023)

GSTN advisory on Aadhar based Authentication for Gujarat and Puducherry

• GSTN has issued an Advisory for Pilot Project of Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Gujarat and Puducherry
• This functionality has been developed by GSTN. It was launched in Puducherry on 30th August, 2023 and in Gujarat on 7th November, 2023.
• It provides for 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,

1. A Link for OTP-based Aadhaar Authentication OR
2. 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, she/he can proceed with the application as per the existing process.
•  If the applicant receives the link as mentioned in point 3(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.
• 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.
• Rule 8 of the CGST Rules, 2017 was amended to provide that an applicant can be identified on the common portal, based on data analysis and risk parameters for Biometric-based Aadhaar Authentication and taking photograph of the applicant along with the verification of the original copy of the documents uploaded with the application.
• This is applicable only for the state of Gujarat and Puducherry.

(Source: GSTN Advisory dated 04.11.2023)

2 Factor Authentication for E-way Bill System

• GST E-Way Bill System has issued an update which mandates 2-factor authentication for Taxpayers with AATO Rs 20 Crore and above from Nov 20, 2023.
• Users are requested to register for 2FA and also create sub-users so that EWB activities are managed without any problem.
• To enhance the security of e-Way Bill/e-Invoice System, NIC has introduced 2 Factor Authentication for logging in to e-Way Bill/e-Invoice system. In addition to username and password, OTP will also be authenticated for login.
• There are 3 different ways of receiving the OTP. One may enter any of the OTP and login to system. The various modes of generating OTP are -  SMS, On ‘Sandes’ app  and Using ‘NIC-GST-Shield’ app.
• On logging to E-waybill System, one has to go to main menu 2 Factor Authentication and confirm the registration. Once confirmed, the system will ask OTP alongwith username and password. The OTP authentication is based on individual user accounts.
• One can de-register this facility anytime using the link ‘2 Factor Authentication Registration / Deregistration’. This facility is presently being introduced on optional basis; however, in future it will be made mandatory.

(Source: GST E-way Bill System update dated 06.11.2023)

GSTN Advisory on Appeal Amnesty Scheme

• GSTN has issued an 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.
• Amnesty scheme for belated appeals has been notified vide Notification No. 53/2023-CT dated 02.11.2023 based on recommendations of 52^nd GST Council’s meeting held on 07.10.2023.
• GSTN has advised / clarified as follows:

• Taxpayers can now file appeal in FORM GST APL-01 on the GST portal on or before January 31, 2024 for the order passed by proper officer on or before March 31, 2023.
• 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's the responsibility of the taxpayer to select the appropriate ledgers and make the correct payments.
• 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
• Payment 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.

• The Amnesty Scheme is in operation till 31^st January, 2024 any.

(Source: GSTN Advisory dated 10.11.2023)