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:- 17-12-2024<br><br>The Reserve Bank of India has reduced the GDP growth projection for FY 2025 to 6.6%, down from 7.2% projected earlier. According to Finance Minister, the growth slowdown in Q2 of current fiscal can not be said to be a systemic slowdown and exuded confidence that Q3 can make up for the lost momentum. The growth numbers are not something that is going to be badly affected and that India will remain to be the world's fastest growing major economy over next two years as there are very good chances and opportunities for India to remain as the fastest growing economy. MoF has started pre-budget talks for Union Budget 2025-26 and d....
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....iscussions were held with the economists recently where in need was stressed for manufacturing policy and raising investments. Mr. Sanjay Malhotra, Revenue Secretary has been appointed as Governor of Reserve Bank of India w.e.f. 11.12.2024. His charge has been given to Mr. Ajay Seth, Economic Affairs Secretary as additional charge w.e.f. 11.12.2024. He will also act as an ex-officio Secretary to GST council, whose 55th meeting is already scheduled for 21-22 December, 2024 is Rajasthan. 55th GST Council meeting is scheduled for 21-22 December, 2024 at Jaisalmer (Rajasthan). GoM on GST rates is expected to submit its report containing recommendations on GST rates / slabs on various products in the said meeting. It may be noted that presentl....
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....y 18% tax rate slab contributes to about 75% of GST followed by 28% slab contributing about 13-15%, 5% slab with 6-8% contribution and 12% slab just 5-6 of tax collection. Average rate of GST is 11.64% only. Supreme Court has allowed the review petition of Department holding that DRI officers can be entrusted with functions of proper officer under Customs Act, 1962, thus reversing its own judgment in Canon case of 2021. CBIC has issued a Circular whereby Additional / Joint Commissioners as proper officer have been designated for adjudication in various Commissionerates. GSTN has issued advisories on GSTR-7 and annual return (GSTR 9). Compensation Cess collection has shown a growth trend of 6.5% during April - November, 2024 which is high....
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....er than Budget estimate of 4.1% but lower than last three financial years. Post March, 2026, future of 'Cess' is still not clear. Proper Officers for Adjudication * CBIC has further amended Circular No. 31/05/2018-GST dated 09.02.2018 after last amendment by Circular No. 169/01/2022-GST dated 12.03.2022 relating to proper officer u/s 73 and 74 of CGST Act, 2017 / IGST Act, 2017. * This is outcome of Notification No. 27/2024-Central Tax dated 25.11.2024 which empowers more number of Additional Commissioners of Central Tax/ Joint Commissioners of Central Tax of specified Central Tax Commissionerates, with All India Jurisdiction for the purpose of adjudication of the show cause notices issued by the officers of DGGI. * Accordingly, Add....
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....itional Commissioners and Joint Commissioners of Central Tax in specified Commissionerates have been empowered with All India Jurisdiction for adjudicating SCNs issued by officers of the Directorate General of GST Intelligence (DGGI) vide Notification No. 27/2024-Central Tax, effective from 1st December 2024. * If any SCN involves multiple noticees (either with the same or different PANs) and the noticees' principal places of business fall under multiple Central Tax Commissionerates, the adjudication shall be done based on the location of the principal place of business of the noticee with the highest tax demand in the SCN as per allocation of adjudication specified in a table to Circular mapping zones/commissionerates to respective adjud....
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....icating officers. * For adjudication of subsequent SCNs, if a subsequent SCN on the same issue is issued to other noticees, the adjudicating authority shall be determined based on the jurisdictional authority if only one noticee is involved and the highest tax demand if multiple noticees with different PANs are involved. * All India jurisdiction empowers Additional Commissioners and Joint Commissioners of specific Central Tax Commissionerates to adjudicate SCNs across the country. These officers can handle SCNs involving multiple noticees from different jurisdictions and high-demand cases that require central oversight for consistent decision-making. * All India Jurisdiction can be applied for: * Multiple noticees across jurisdictio....
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....ns- SCNs issued to multiple entities (with the same or different PANs) located in different Commissionerates. * High demand cases- SCNs with significant tax demands that require central adjudication for uniformity. * Subsequent SCNs - For additional SCNs issued on the same issue to new parties, adjudication is centralized under the same framework. (Source: Circular No. 239/33/2024-GST dated 04.12.2024 read with Notification No. 27/2024-Central Tax dated 25.11.2024 ) GST Revenue * Form the data collected from the tax payers through the returns, the amount of GST collected at different tax rate cannot be calculated. * It is estimated that the proportion of GST collected (excluding Compensation Cess and other payments) under vari....
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....ous tax slabs in the financial year 2023-24 is as follows: Rate Slab Percentage (2023-24) 5% 6-8% 12% 5-6% 18% 70-75% 28% 13-15% Others 1-2 % * Details of GST collection on product wise categories is not available as HSN code beyond 4 digits is not mandatory. * Also, data of revenue collected from services taxed at standard rate of 18% is not available. (Source: Answer to Parliament Question No. 1012 by Minister of State for Finance dated 02.12.2024) Mandatory Sequential Filing of GSTR-7 Returns * GSTN has issued an Advisory on mandatory Sequential Filing of GSTR-7 Returns as per Notification No. 17/2024 dated 27.09.2024. * As per Notification No. 17/2024-Central Tax dated 27th September 2024, effective from the 0....
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....1.11.2024, GSTR-7 filing has been made sequential from the October tax period. * Hence, GSTR-7 return is to be filed in chronological order, beginning with the return period of October, 2024. * GSTN has advised that for a month in which no deduction have been made, deductors need to file NIL return for the same month. (Source: GSTN Advisory dated 04.12.2024) GSTN Advisory on Annual Return for FY 2023-24 * GSTN has issued an Advisory on difference in value of Table 8A and 8C of Annual Returns (GSTR-9) for the FY 2023-24. * It is already notified and clear that for FY 2023-24 onwards, the total credit available for inwards supplies shall be auto-populated in the table 8A of Form GSTR-9 from GSTR-2B of the FY 23-24. Further, in ta....
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....ble 8C of Form GSTR-9, total value of ITC on inwards supplies received during the FY but availed in next FY up to specified period, need to be filled manually. * It may be noted that for FY 22-23 in table 8A of Form GSTR-9, values were getting auto populated from GSTR-2A however for FY 23-24 same are being auto populated from GSTR-2B. Therefore, to some extent, in Form GSTR-9 of FY 23-24, values in Table 8A will be inflated in respect of FY 22-23 at the same time values will be lower than expected in respect of FY 23-24, hence there will be a mismatch between the two tables i.e. 8A and 8C. * In certain situations relating to this issue, GSTN has advised that: * * Invoice having the date of FY 23-24 but the supplier has reported in....
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.... the GSTR 1 after the due date of March'24. As a result, this amount is not auto populated in the Table 8A of GSTR-9 for FY 2023-24 because it is the part of next years GSTR 2B - Taxpayer shall report such ITC in the Table 8C and in Table 13 as this is the ITC of FY 2023-24. This is in line with the instructions to the Table 8C and Table 13 of GSTR-9. * Invoice belongs to FY 23-24 and ITC has been claimed in FY 23-24. Due to payment not made to supplier within 180 days, ITC was reversed in 23-24 as per the second proviso to section 16(2) and this ITC is reclaimed in next Year FY 2024-25, after making the payment to supplier - This reclaimed ITC shall be reported in the table 6H of GSTR-9 for FY 24-25 hence not in the Table 8C and Table 13....
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.... of GSTR-9 of FY 2023-24. Similar reporting is applicable for the ITC reclaimed as per Rule 37A. * Invoice belongs to FY 2023-24 but goods not received in 23-24 therefore ITC is claimed in Table 4A5 of GSTR 3B and reversed in Table 4B2 as per Circular 170- Taxpayer shall report such reclaimed ITC in the Table 8C and Table 13 as this is the ITC of FY 2023-24 * Reporting where invoice belongs to FY 22-23 which is appearing in the Table 8A of GSTR-9 of FY 23-24 , as the supplier would have reported the same in GSTR 1 after the due date of filing of GSTR-1 for the tax period of March 23- This is the ITC of last year (2022-23) and was auto populated in table 8A of GSTR-9 of FY 22-23. Hence, aforesaid value need not to be reported in the tabl....
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....e 8C and Table 13 of GSTR-9 for FY 23-24. This is in line with the instruction no 2A given for the notified form GSTR-9 which states that Table 4,5,6 and Table 7 should have the details of current FY only. * Reporting of the reclaim of ITC for an Invoice which belongs to FY 2023-24, and which is claimed, reversed and reclaimed in the same year- Information declared in Table 6H is exclusive of Table 6B. Thus, information of such input tax credit is to be declared in one of the rows only. Further, as the claim and reclaim is reported only in one row therefore the same should not be reported in the reversal under table 7 of GSTR-9 of FY 23-24. (Source: GSTN Advisory dated 09.12.2024)<br> Scholarly articles for knowledge sharing by authors,....
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.... experts, professionals ....