TaxTMI 
TaxTMI 
TaxTMI 
GST @ 8 YEARS (Still a work-in-Progress)
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....ST @ 8 YEARS (Still a work-in-Progress)<br>By: - Dr. Sanjiv Agarwal <br>Goods and Services Tax - GST<br>Dated:- 5-7-2025<br>GST enters ninth year of its existence in India on 1st July, 2025 as it completed eight years. If one has to sum-up status of GST today, it can be easily said that GST has certainly helped businesses / economy / revenue but it still remains a work-in-progress on many counts. Input tax credit, refund processing, no appellate functioning in absence of Tribunals, parallel tax administration, multiple that rates etc are some major bottlenecks which is blocking it to become a matured tax law. GST after 8 years is all set for next level of reforms. Rate rationalization is one of the prime reform on the radar which may inclu....
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....de merging of at least two slabs of 18% and 12% to one, may be 15%. Withdrawal of compensation cess and reworking on state revenues are yet another fixation issue post March, 2026. Few items which are out of GST net also need a relook to bring them under GST ambit. GST net of refund now fetch about Rs. 20 trillion to the exchequer which is three times of pre-GST collection. Eight years after its launch, the Goods and Services Tax has firmly established itself as one of India's most important economic reforms. It replaced a complex web of indirect taxes with a unified system that is simpler, fairer and more efficient. GST has helped create a common national market, reduced the cost of doing business and brought greater transparency to the t....
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....ax system. Indirect Taxation in India Then Now Multiple taxation - levies and cesses GST - one nation, one tax Cascading of taxes Seamless input tax credit for all taxes Fragmented VAT principles Holistic application under GST Regional imbalances Equitable distribution of revenue Barrier to inter-state trade Seamless flow of goods No e-way bills E-way bills Less revenue collection More revenue collection Manual compliances Online compliances 8 Gains * Integration of indirect taxes * Online compliances * Tax cascading reduced substantially * Reduced physical interface with tax department * Increased transparency in tax implementations * Reduced transaction costs and unnecessary wastages * Reduced corruption....
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.... * Systematic registration process 8 Pains * Distorted input tax credit * Too much and too frequent compliances * Old mindset of officers * Lack of trust between tax collectors and tax payers, important pillars of economy * No appellate tribunal yet * Multiple tax slabs * Lack of coordination between various limbs of GST Administration * Parallel jurisdiction 8 Challenges * Interpretational issues * Increased litigation and setting up independent appellate forum * Alternative for compensation to states * Fake invoices menace and rampant tax evasion * Corruption * Divergent advance rulings * Levy of GST on petroleum products / electricity * Technical glitches 8 Opportunities * Further comprehen....
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....sive tax reforms * Integration of economy and contribution to GDP * Ease of doing business * Buoyant tax collection * Transparent, accountable and fair & just tax administration * Expansion of tax base * Increased direct & indirect employment * Change in accounting practices 8 Suggestions * Change in attitude, mindset to be more taxpayer friendly * Practical approach to handle taxpayers / non-compliances * Make input tax credit smooth and seamless * Offer fair tax grievance redressal mechanism * Faster and unbiased adjudication * Reduction in number of tax slabs / rates * Prioritize reforms in GST rates and procedures * Extensive Training to Tax Administration Staff Notifications and Circulars issued in 2024....
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.... / 2025 (Till 30.06.2025) Particulars 2024 2025 Central Tax 31 11 Central Tax (Rate) 9 8 Integrated Tax 1 - Integrated Tax (Rate) 9 8 Union Territory 1 - Union Territory (Rate) 9 8 Compensation Cess - - Compensation Cess (Rate) 1 1 Circulars 37 (207 to 243) 7 (244 to 250) 8 most litigated issues in GST in last seven years * Fake invoices / frauds * Detention and seizure of goods and conveyances * Mis-match in GSTR-3B and GSTR-2A (Input tax credit) * Investigation and search * Arrests and Bail * Transitional credit issues * Cancellation & restoration of registratio....
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....n * Interpretational issue : tax @12% or 18% Milestones in GST in Retrospect w.e.f. 01.07.2024 Date Milestone since July, 2024 to June, 2025 22.07.2024 Finance (No. 2) Bill, 2024 and Union Budget 2024-2025 after general elections announced in Parliament. 26.07.2024 GSTN issued an advisory for Form GSTR-1A notified vide Notification No. 12/2024-CT dated 10.07.2024 to add or amend particulars of a supply of the current tax period, which was missed out or was wrongly reported in FORM GSTR-1 of the said tax period, before filing of the GSTR-3B return of the said tax period. 16.08.2024 Finance (No. 2) Bill, 2024 notified after President's assent on 16.08.2024. It will be called Finance (No. 2) Act, 2024, Act No. 15 of 2024. 09.09.202....
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....4 54th GST Council meeting held at New Delhi - approval on rates cut for cancer drugs and snacks; introduced B2C e-invoicing pilot; approved amnesty scheme for FY 2017-18 to 2019-20 and provided clarification on ITC and RCM rules. 01.10.2024 New Invoice Management System (IMS) introduced 03.10.2024 Supreme Court on ITC on Construction related activities -Commercial building constructed for supplying services such on renting / leasing can be treated as plant and input tax credit under GST allowable subject to passing of functionality test 27.10.2024 The effective date of the amendments made through the Finance (No. 2) Act, 2024 have been notified. [Amendments in Section 16, 109 and 171] 01.11.2024 The effective date of the a....
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....mendments made through the Finance (No. 2) Act, 2024 have been notified.[ Amendments in Section 114 to 157] 08.11.2024 GSTN issued an advisory for waiver scheme under Section 128A for reducing the tax disputes and to provide a relief to the taxpayers for waiver of interest and penalties in the demand notices or orders issued under Section 73 of the CGST Act, 2017 (i.e. the cases not involving fraud, suppression or wilful misstatement, etc.) for the Financial years 2017-18, 2018-19 and 2019-20. 17.12.2024 CBIC announced following four citizen-centric initiatives to enhance taxpayers services. These are a testament to CBIC's unwavering commitment to simplifying tax processes and fostering a culture of transparency and trust. By empowering....
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.... taxpayers and incorporating their suggestions, CBIC is creating a system that is not only efficient but also reflective of citizens needs and aspirations 21.12.2024 55th GST Council Meeting held at Jaisalmer proposed to exempt gene therapy, reduced rate on fortified rice, clarified hotel restaurant rates, GST on vouchers, bank charges and increased GST rate on sale of old / used vehicle (incl. EVs) to 18%. 29.12.2024 Advisory on Waiver Scheme under Section 128A issued informing availability of Form SPL-02 and explaining the process of filing the form electronically 01.01.2025 Advisory on extension of E-way Bills 07.01.2025 Advisory on Rectification Application for wrong availment of ITC u/s 16(4) but now available as per re....
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....cently inserted Section 16(5) and 16(6) 09.01.2025 Advisory on Phase-III regarding mandatory mentioning of HSN codes in Table 12 of GSTR-1 and GSTR-1A from the return period January 2025 10.01.2025 Supreme Court on GST levy on Online Gaming Companies -Temporary relief granted by suspending all pending Show Cause Notices till next hearing date in March 2025 01.02.2025 Union Budget, 2025 introduced key changes to the GST law inter alia including amendments in CGST Act, 2017 and IGST Act, 2017. Few major budget proposals - * Amendment in the Definition of Input Service Distributor (ISD) [Section 2(61) of the CGST Act] -to explicitly provide for distribution of input tax credit by the Input Service Distributor in respect of inter-state ....
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....supplies on which tax has to be paid on reverse charge basis, by inserting reference to Section 5(3)/5(4) of IGST Act. * Amendment in the Definition ofthe terms Local Fund and Municipal Fund used in the definition of 'local authority' [Section 2(69)(c) to clarify the scope of the said terms * Amendment in Section 17(5)(d) to substitute the words "plant or machinery" with the words "plant and machinery" with effect from 01.07.2017. * Amendment in Section 20(1) and 20(2) to explicitly provide for distribution of ITC by the ISD in respect of inter-state supplies, on which tax has to be paid on RCM basis, by inserting reference of Section 5(3)/5(4) of IGST Act in section 20(1). 12.02.2025 Advisory on registration process as per amended ....
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....Rule 8 of CGST Rules, 2017 providing steps of verification of Aadhaar 15.02.2025 Advisory on enrolment of unregistered person 03.03.2025 Advisory providing enhancements in biometric authentication for Directors 21.03.2025 Advisory in relation to issue in filing applications (SPL 01/ SPL 02) under waiver scheme 11.04.2025 Advisory on Table 12 of GSTR-1 / 1A for reporting of HSN wise details for B2B and B2C separately 11.04.2025 Advisory on reporting values in Table 3.2 of Form GSTR-3B 24.04.2025 GSTAT Procedure Rules notified 01.05.2025 Advisory on Table 12 and 13 of Form GSTR-1/1A regarding new validation, enhancements and mandatory reporting of HSN codes 01.05.2025 Highest ever Gross GST collection was recorded in April, 20....
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....25 month at Rs. 2.37 lakh crores 06.05.2025 Advisory on invoice wise reporting functionality in Form GSTR-7 08.05.2025 Advisory on refund filing process for recipients of deemed exports 14.05.2025 Advisory on Appeal withdrawal with respect to Waiver scheme under Section 128A 07.06.2025 GSTN issued advisory read with an old advisory dated 29.10.2024 regarding barring the filing of GST returns on expiry of three years 07.06.2025 GSTN issued advisory read with old advisories dated 17.10.2024 and 27.01.2025 regarding non-editability of auto-populated liability in GSTR-3B 10.06.2025 Advisory on refund applications for QRMP Taxpayers 11.06.2025 GSTN issued advisory on filing of Amnesty applications under Section 128A of the CGST Act....
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...., 2017 for taxpayers facing difficulties in filing applications on the GST common portal 12.06.2025 Advisory for filing of SPL-01 / SPL-02 where payment made through GSTR 3B / other cases where payments details not getting accurately auto-populated in Table 4 of the forms 16.06.2025 Advisory on introduction of enhanced Inter-operable Services between E-Way Bill Portals 18.06.2025 Advisory on filing of pending returns before expiry of 3 years 19.06.2025 Clarifications issued by way of FAQ's on issues being faced by taxpayers in Invoice Management System (IMS) 01.07.2025 1st hearing in GSTAT <br> Scholarly articles for knowledge sharing by authors, experts, professionals ....