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.
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).
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 31st May, 2023. E-invoices shall be made mandatory for e-invoices of Rs. 5 crore and more w.e.f. 1 August, 2023.
GST scrutiny and issuance of notices has gathered pace now resulting in taxpayers getting busy in responding to this exercise. The GST system need to cut short on time lag and such scrutiny must be within a reasonable time after the closure of relevant tax period.
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 31st May, 2023 instead of 15th March, 2023. The required declaration (in prescribed format) can now be filed upto 31st 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. 1st 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. 1st August, 2023.
(Source: Notification No. 10/2023-CT dated 10.05.2023)
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 prescribed.
- 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:
(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-CT 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:
Time limit for issuance of order under Section 73(9) of the Act
Up to 31st day of December, 2023
Up to 31st day of March, 2024
Up to 30th day of June, 2024
(Source: Circular No. F.3 /432/GST/Policy/2022/582-89 dated 08.05.2023)