RECENT DEVELOPMENTS IN GST

[Dr. Sanjiv Agarwal]

RBI feels that Indian economy has achieved a solid recovery and is among the fastest growing large economies. RBI has also emphasized that financial stability is non-negotiable and all the stakeholders in the financial system must work to preserve the same.

On 1^st July, 2023, GST in India completed six years of its existence on statute book. The law, procedure and practices are getting evolved, refined and fine-tuned with time, giving a learning experience to one and all. While the law has stood the test of times, it still lacks a proper dispute resolution mechanism when it comes to appeals. We don’t have second layer of appellate forums even after six years and it does not seem to be likely in next few months too. Advance Ruling forums also lack in consistency and fail to address the desired purpose-both in terms of time and quality.

1^st July of every year is observed as GST day in India to commemorate launch of GST in India on midnight of 1^st July, 2017. GST was first implemented in India on July 1, 2017, marking a significant milestone in the country's economic history. The introduction of GST marked a significant milestone in the country’s economic reforms. It aimed to streamline the taxation system, promote ease of doing business, eliminate tax cascading, and create a unified market for goods and services across India though out fully successful as expected in terms of smooth transition and achievement of objectives. The theme of GST Day- 2023 is "Celebrating Simplification and Economic Growth.”

At this juncture, it may also be desirable to offer an one-time comprehensive amnesty scheme covering all non-compliances so as to clean up the system as well as also reduce the pending litigation & ongoing adjudications and then move forward with a cleaner state.

GSTN has issued advisory on DRC 01B differences. The last date of filing GSTR-3B got extended upto 30^th June, 2023 in few districts of Gujarat due to recent cyclone.

Rs.1,61,497 crore of gross GST revenue collected for June 2023 records 12% Year-on-Year growth.

The gross GST revenue collected in the month of June, 2023 is Rs.1,61,497 crore of which CGST is Rs.31,013 crore, SGST is Rs.38,292 crore, IGST is Rs.80,292 crore (including Rs. 39,035 crore collected on import of goods) and cess is Rs.11,900 crore (including Rs. 1,028 crore collected on import of goods). The government has settled Rs.36,224 crore to CGST and Rs.30269 crore to SGST from IGST.  It is for the fourth time, the gross GST collection has crossed Rs. 1.60 lakh crore mark. The average monthly gross GST collection for the first quarter of the FY 2021-22, FY 22-23 & FY 23-24 are Rs. 1.10 lakh crore, Rs. 1.51 lakh crore and Rs. 1.69 lakh crore respectively.

The much awaited 50^th GST Council meeting is to be held on 11 July, 2023. It is expected to inter-alia deal with taxation of online gaming and setting up of GST Appellate Tribunals (GSTAT). It will also be the first meeting after completion of 6 years of GST in India.

GSTR -3B filing date extended in parts of Gujarat

• CBIC has extended the last date for filing Form GSTR-3B under section 39 (1) of CGST Act, 2017 for the month of May, 2023 upto 30^th June, 2023 in some districts of Gujarat State.
• This will apply for registered persons whose principal place of business is in the districts of Kutch, Jamnagar, Morbi, Patan and Banaskantha of Gujarat State.
• This shall be deemed to have come into force w.e.f. 20.06.2023.

(Source:  Notification No. 17/2023- Central Tax dated 27.06.2023)

Advisory on online compliance for liability in DRC-01B

• GSTN has issued an Advisory for Online Compliance Pertaining to Liability / Difference Appearing in R1 – R3B (DRC-01B) in relation to new functionality to enable the taxpayer to explain the difference in GSTR-1 & 3B return online.
• The functionality compares the liability declared in GSTR-1/IFF with the liability paid in GSTR-3B/3BQ for each return period. If the declared liability exceeds the paid liability by a predefined limit or the percentage difference exceeds the configurable threshold, taxpayer will receive an intimation in the form of DRC-01B.
• Upon receiving an intimation, taxpayer must file a reply in Form DRC-01B Part B, providing clarification through reason in automated dropdown and details regarding the discrepancy, if not included in the dropdown.
• A detailed manual containing the navigation details is made available on the GST portal which offers step-by-step instructions and addresses various scenarios related to the functionality.

The link is -

https://tutorial.gst.gov.in/downloads/news/return_compliance_in_form_drc_01b.pdf

[Source: GSTN Advisory dated 29.06.2023 (www.gst.gov.in)]

Special Procedure for Revocation of Cancelled GST Registration – Delhi

• Delhi Government has notified special procedure for revocation of cancelled GST registration. Registered person may apply for revocation of the cancellation of such registration up to the 30th day of June, 2023.
• Application for revocation shall be filed only after furnishing the returns due up to the effective date of cancellation of registration and after payment of any amount due as tax, in terms of such returns, along with any amount payable towards interest, penalty and late fee in respect of such returns.
• No further extension of time period for filing application for revocation of cancellation of registration shall be allowed.
• It may be noted that the person who has failed to apply for revocation of cancellation of registration within the time period specified in section 30 of GST law includes a person whose appeal against the order of cancellation of registration or the order rejecting application for revocation of cancellation of registration under section 107 has been rejected on the ground of failure to adhere to the time limit specified under section 30(1).

(Source: Notification No. 03/2023- State Tax dated 21.06.2023

issued by Finance Department, Government of NCT of Delhi )

GST Collection for June, 2023

• Gross GST collection crosses Rs.1.6 lakh crore mark for 4th time since inception of GST; Rs.1.4 lakh crore for 16 months in a row; and Rs.1.5 lakh 7th times since inception.
• The gross GST revenue collected in the month of June, 2023 is Rs.1,61,497 crore of which CGST is Rs.31,013 crore, SGST is Rs.38,292 crore, IGST is Rs.80,292 crore (including Rs. 39,035 crore collected on import of goods) and cess is Rs.11,900 crore (including Rs. 1,028 crore collected on import of goods).
• The government has settled Rs.36,224 crore to CGST and Rs.30269 crore to SGST from IGST.
• The revenues for the month of June 2023 are 12% higher than the GST revenues in the same month last year. During the month, the revenues from domestic transactions (including import of services) are 18% higher than the revenues from these sources during the same month last year.

(Source: PIB Press Release dated 01.07.2023)