GSTN, which is the IT platform of GST, issues advisories for tax payers from time to time for better compliance of law and procedure. The following advisories have been recently issued for implementation.
- E-invoice Exemption Declaration
- New ITC tab for Rule 86B
- New tabs for registration
- New IRPs for E-invoice
GSTN Advisory on E-invoice Exemption Declaration
GSTN has enabled E-Invoice Exemption Declaration (EED) functionality on e-invoice portal
- This is specifically designed for taxpayers who are by default enabled for e-invoicing but are exempted from implementing it under the CGST (Central Goods and Services Tax) Rules.
- EED functionality is voluntary and can be accessed at the e-Invoice portal (www.einvoice.gst.gov.in ).
- It is applicable to taxpayers who are exempted from e-Invoicing as per the provisions of the CGST Rules.
- Any declaration made using this functionality will not change the e-Invoice enablement status of the taxpayer.
- The facility to report exemption declaration is purely for business facilitation purposes.
(Source: GSTN Portal dated 24.07.2023)
GSTN – New ITC tab for Rule 86B
- GSTN has introduced a new tab, i.e., Rule 86B which enables restriction on use of amount towards input tax credit available in the Electronic Credit Ledger (ECL)
- Under Rule 86B of CGST Rules, 2017, there is a restriction of 99% imposed on the Input Tax Credit (ITC) available in the Electronic Credit Ledger of a registered person.
- In other words, 1% of the output liability must be paid in cash.
- The limitation will be applicable when the value of taxable supply, excluding exempt and zero-rated supply, in a month exceeds Rs. fifty lakh rupees.
(Source: GSTN Portal)
GSTN : New tabs for registration
- GSTN has introduced new tabs in ‘state specific information’ sector
- These relate to Consumer Agreement (CA) number or Electricity Consumer (EC) number, as the case may be.
- It may be noted that it is now mandatory for all applicants to provide their CA/EC numbers while applying for GST registration.
- Taxpayers should ensure to provide such information while applying for registration.
(Source: GSTN Portal)
New IRPs for E-invoice
- GSTN has issued an advisory on services offered by four new IRPs for invoice reporting
- There are:
- Cygnet-IRP (https://einvoice3.gst.gov.in)
- Clear-IRP (https://einvoice4.gst.gov.in)
- EY-IRP (https://einvoice5.gst.gov.in)
- IRIS-IRP (https://einvoice6.gst.gov.in)
- E-Invoice reporting and IRN (Invoice Reference Number) generation services by all IRPs, including the 4 new IRPs, are provided free of charge. There are no fees associated with using these essential services for generating and reporting e-Invoices. The IRPs are mandated to offer e-Invoice reporting and IRN generation as part of their compliance process, ensuring that taxpayers can avail these services without incurring any additional cost.
- Any additional Value-Added Services (VAS) offered by IRPs are independent of the standard e-Invoice reporting and IRN generation and may have associated charges. GSTN has no role in the provision or pricing of such Value-Added Services.
- These include ERP plug in, data transfer through FTP / SFTP & reconciliation of GSTR-1 data, invoice storage for more than 48 hours etc.
- Tax payers should review the details of the services, data security and their associated costs as offered by the respective IRPs.
- In addition to the four new IRPs, e-Invoice reporting and IRN generation services are also provided by NIC-IRP. Users can access these services at https://einvoice1.gst.gov.in and https://einvoice2.gst.gov.in.
(Source: GSTN Portal dated 02.08.2023)
