TaxTMI 
TaxTMI 
RECENT DEVELOPMENTS IN GST
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....ECENT DEVELOPMENTS IN GST<br>By: - Dr. Sanjiv Agarwal <br>Goods and Services Tax - GST<br>Dated:- 5-12-2024<br><br>It has been reported that India's economic growth in Q2 of current fiscal has slowed down to 5.4% owing to slowing manufacturing sector and stable service sector. The growth was 6.7% in Q1 where as it was 8.1% in Q2 of 2023-24. This is discouraging but not alarming as there is no slow down in service sector which is still over 55% of GDP and growing agricultural sector. The slow growth can be attributed to week consumption and investment. This is also lower than RBI's prediction of 7%. CBIC has notified power to issue orders for notices issued by DGGI. Also, GSTN has issued few advisories on e-invoicing verification app, gloss....
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....ary on e-invoicing, steps for e-invoice reporting etc. On GST Appellate Tribunal front, benches and their jurisdiction has now been notified. In all, there will be 31 benches and state wise districts having jurisdiction under respective benches is notified. It is expected that GSTAT may start functioning towards the end of current financial year, once the infrastructural and selection related issues are sorted out. The next GST Council meeting is to be held on 21-22 December, 2024 at Jaisalmer (Rajasthan). This may also consider recommendations for forthcoming budget, GST on natural gas, taxation of insurance sector, amongst other rate changes / exemptions etc. Once the GST rates on insurance premium is reduced by the GST Council, it will....
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.... lower the overall premium cost and will benefit the policy holders directly. GoM's recommendation on levy of GST on life insurance and health insurance including benefit for senior citizens health insurance cover upto Rs. 5 lakh may be taken up by the 55th Council meeting later this month. Presently, GST is applicable @ 18% on premium which fetched Rs. 16,398 crore in FY 2023-24. GoM on rate rationalization is likely to recommend hike in GST rates on some goods now in 28% slab which means that a new tax slab of 35% is expected to be brought in. These goods could be like cigarettes, aerated beverages, tobacco etc. If new rate of 35% is approved, it will create a new tax slab which are already more viz, four - 5%, 12%, 18% and 28% besides C....
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....ompensation Cess. The panel's recommendations may include rate review on garments and other over 140 items. However, total impact may be positive for tax revenue. GST collection in November, 2024 has risen by 8.5% to Rs. 1,82,269 crore which is the 4th highest since inception. This is attributed to 9.4% growth in domestic consumption. Commutatively, gross tax collection has grown 9.3% to Rs. 14.6 lakh crore in FY 2024-25. While IGST grew around 6.5%, cess on imported sin and luxury goods declined by 17%. Despite the festive month, GST collection has been low compared to October, 2024 (Rs. 1.87 lakh crore). However, refunds were also lower in November, 2024 with net collection rising by 11.1% to Rs. 1.63 lakh crore as against Rs. 1.47 lakh ....
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....crore in November, 2023. Power to issue orders for notices issued by DGGI * CBIC has amended Notification No. 2/2017-CT dated 19.06.2017 for notifying the powers of Additional Commissioner or Joint Commissioner of Central Tax for passing an order or decision in respect of notices issued by the officers of Directorate General of Goods and Services Tax Intelligence. * Such powers are exercisable throughout the territory of India for passing an order or decision in respect of notices issued by the officers of Directorate General of Goods and Services Tax Intelligence under sections 67, 73, 74, 76, 122, 125, 127, 129 and 130 of Central Goods and Services Tax Act 2017. * Principal Commissioner - Ahmedabad South, Bengaluru East, Bhopal, Bh....
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....ubaneswar, Chandigarh, Delhi North, Guwahati, Jaipur, Kolkata North, Lucknow, Meerut, Ranchi, Visakhapatnam * Commissioner -Chennai South, Delhi West, Faridabad, Nagpur-II, Palghar, Pune-II, Rangareddy, Surat, Thane, Thiruvantathapuram. * This will come into force w.e.f. 01.12.2024. (Source: Notification No. 27/2024-Central Tax dated 25.11.2024) Jurisdiction of State Benches of GSTAT * Ministry of Finance (Department of Revenue) has notified the districts forming the Jurisdiction of State Benches of Goods and Service Tax Appellate Tribunal (GSTAT) for the locations of the benches and for the sitting or circuit. * This list covers the State wise location of benches of GSTAT and districts covered in the jurisdiction of such benches.....
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.... * This supersedes Notification dated 31.07.2024. * This shall come into effect w.e.f. 26.11.2024. (Source: Notification No. S.O.5063(E) dated 26.11.2024 read with corrigendum dated 29.11.2024) GSTN Advisory for Reporting TDS reporting for Scrap Dealers * GSTN has issued an advisory for reporting TDS deducted by Scrap Dealers in October 2024. * As per Notification No. 25/2024-Central Tax, w.e.f. 10.10.2024, any registered person receiving supplies of metal scrap classified under Chapters 72 to 81 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), from another registered person, is required to deduct TDS under Section 51 of the CGST Act, 2017. * Many taxpayers were not able to file return for October, 2024 bec....
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....ause while the taxpayers applied for GST registration in October 2024 pursuant to the above notification, their GST registrations were approved only in November 2024. Hence, in the return dropdown the month October 2024 is not visible to such taxpayers. This is as per the existing GSTN system design where returns for tax period prior to registration month is not enabled for taxpayers. * For taxpayers who were granted registration in November 2024, but deducted TDS in October 2024, GSTN has advised to report the consolidated amount of TDS deducted for the period from 10.10.2024 to 30.11.2024 in the GSTR-7 return to be filed for the month November 2024. (Source: GSTN Advisory dated 27.11.2024) GSTN Advisory on Authorised e-Invoice Verifi....
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....cation Apps * GSTN has issued an advisory for authorised e-invoice verification apps. * GSTN has prepared a consolidated document on authorized B2B e-Invoice verification apps available for download. The said document would serve as a reference to ensure that taxpayers have the most up-to-date information regarding approved B2B e-Invoice verification apps. * Taxpayers can access and download the PDF document by clicking on the link below: https://tutorial.gst.gov.in/downloads/news/authosied_e_invoice_verification_apps.pdf * Authorised e-invoice verification apps are GSTN, IRP-1&2 (NIC), IRP-3(Cygnet), IRP-5(EY) and IRP-6 (iRIS) * In case of further verification, taxpayers can use search IRN functionality at https://einvoice.gst.g....
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....ov.in (Source: GSTN Advisory dated 27.11.2024) E-invoice Glossary * GSTN has issued a detailed glossary in relation to E-invoices. It includes meaning of various terms / phrases used in e-invoicing under GST law. * E-invoicing means reporting details of specified GST documents to a Government -notified portal i.e., Invoice Registration Portal (IRP) and obtaining an Invoice Reference Number (IRN). It doesn't mean the generation of invoices by a Government portal. * Signed e-Invoice refers to an e-Invoice that has been digitally signed by the Invoice Registration Portal (IRP) after validation. The signed e-invoice is provided with a unique IRN and QR code. * It contains the meaning or explanation of E-invoicing, Invoice Registratio....
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....n Portal (IRP), Invoice Reference Number (IRN), Annual Aggregate Turnover (AATO), Enablement, Goods and Service Tax Identification Number (GSTIN), GSTR-1, Debit Note, Credit Note, E-invoice QR Code, GSTN E-Services App, E-invoice FO (Front Office) Portal, JSON Format, API for E-invoice Reporting, B2B Invoices, ERP System, OTP, Auto-population, E-invoice schema, Master codes and Signed e-invoice. * For details, refer to - https://tutorial.gst.gov.in/downloads/news/glossary_on_e_invoicing_v1_1.pdf (Source: GSTN Advisory dated 29.11.2024) Steps for E-invoicing * GSTN has issued an advisory on steps to be undertaken for e-invoice / reporting under GST law. It also contain process of e-invoicing. * The steps for e-invoice reporting in....
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....ter alia, include: * Enablement for e-invoicing * Register on any of the six Invoice Registration Portals * Reporting and Auto-population of e-invoice * E-invoice Verification - https://einvoice.gst.in/einvoice/search-irn * For details, refer to - https://tutorial.gst.gov.in/downloads/news/e_invoice_overview.pdf (Source: GSTN Advisory dated 29.11.2024) GST Collection in November, 2024 * Gross GST collection stood at Rs. 18 trillion which grew by 8.5% on YoY basis. (Rs. 182269 crore) * This is the fourth highest collection since July, 2017 * Of the total gross GST revenue, CGST is Rs. 34,141 crore, SGST Rs. 43,047 crore, IGST Rs. 91,828 crore and Cess Rs. 13,253 crore. * Net GST collection stood at Rs. 1.63 trillion, a....
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.... 11% rise on YoY basis (Rs. 1,63,010 crore) * The refunds were lower in November which contracted by 8.9% (Rs. 19,259 crore) * Growth in States like Maharashtra, Karnataka, Bihar, Uttarakhand and Jharkhand is in double digit. However, growth is in single digit in states like MP, UP, Haryana, Punjab, Telangana etc. Rajasthan, Andhra Pradesh and Chhattisgarh have reported a negative growth. (Source: https://www.gst.gov.in/newsandupdates/read/554 dated 01.12.2024)<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....