RECENT DEVELOPMENTS IN GST

[Dr. Sanjiv Agarwal]

India Ratings & Research (Ind-Ra) has projected GDP growth @ 6.2% for financial year 2023-24, following many other agencies. Indian economy grew by 7.2% in financial year 2023. OECD and Fitch Ratings have estimated it at 6.3%. However, Asian Development Bank (ADB) has lowered the forecast to 6.3% from 6.4%.

CBIC Chairman has expressed that buoyancy in GST collection may continue for residual 2023-24 as collections have consistently crossed Rs. 1.6 Trillion on monthly basis. He stated that Government’s focus is on enhancing trade facilitation and ease of doing business. He also emphasized on GST audits which taxpayers are willing to undergo as it enables them to review internal controls and ensure compliances.

At present, professional are busy with Income Tax audit. ICAI has recently issued a guidance note on tax audits. Tax audit now also mandates reporting / disclosures on GST which professionals / assessees should be aware of.

CBIC has issued Notification No. 46/2023-CT dated 18.09.2023 appointing officer to adjudicate specified notice. GSTN has issued various advisories on geocoding, invoicing etc.

MoF has notified 31 benches to be constituted for GSTAT in the country which may be opened soon. The principal bench will be set up in Delhi and regional benches in different states / UTs as per the notification providing unified structure to Tribunals for GST disputes. In next few weeks, creation of infrastructure and appointment of members shall take place before these commence functioning.

As per GSTN data, E—way bill generation has touched an all time high of 9.34 crore in August, 2023 reflecting festive demand, more number of taxpayers, buoyant business activities and better compliance.

GST Tribunal Benches

• Central Government has notified the constitution of number of State Benches of GST Appellate Tribunal (GSTAT)
• These states / UTs will have two benches each – Gujarat / Dadra Nagar Haveli / Daman & Diu, Karnataka, Rajasthan, Tamil Nadu / Puducherry and Andaman & Nicobar Islands / Sikkim / West Bengal
• Goa and Maharashtra will have 3 benches each
• All other states / UTs will have one bench each
• There will be Circuit benches at Aizawal / Agartala / Kohima.
• This shall come into force w.e.f. 14.09.2023.

 

(Source: Notification No. 4073(E) dated 14.09.2023;

F.No. A-50050/150/2018-CESAT-DoR)

Advisory on Geocoding Functionality for the Additional Place of Business

• GSTN has issued an advisory on Geocoding Functionality for the Additional Place of Business which is now active across all states / UTs.
• Till date, over 2.05 crore addresses have been geocoded for both principal and additional places of business by GSTN.
• Following brief guide may be understood:
  • Access: Navigate to Services>>Registration>>Geocoding Business Addresses tab on the FO portal to find this functionality.
  • Usage: The system will display a system-generated geocoded address. You have the option to accept this or modify it as needed. If a system-generated address is not available, you can input the geocoded address directly.
  • Viewing: Saved geocoded address details can be found under the "Geocoded Places of Business" tab. After logging in, go to My Profile >> Geocoded Places of Business.
• One-time Submission: This is a one-time activity, and post-submission, address revisions are not permitted.
• This feature is accessible to normal, composition, SEZ units, SEZ developers, ISD and casual taxpayers whether they are active, canceled, or suspended.

(Source: GSTN Advisory dated 19.09.2023)

E-Invoicing for Government Supplies

• NIC has issued clarification on e-Invoicing for Government Supplies.
• GST Policy Wing had earlier issued the clarification on the applicability of the e-invoicing to the supplies made to the Government departments or agencies, through Circular No. 198/10/2023-GST dated: 17.07.2023.
• Government departments or establishments / Government agencies / local authorities / PSUs, registered solely for the purpose of deduction of tax at source as per provisions of section 51 of the CGST Act, are to be treated as registered persons under the GST law as per provisions of clause (94) of section 2 of CGST Act.
• The registered person, whose turnover exceeds the prescribed threshold for generation of e-invoicing, is required to issue e-invoices for the supplies made to such Government departments or establishments / government agencies / local authorities / PSUs, etc under rule 48(4) of CGST Rules.
• The tax payers, notified for generation of e-invoices and supplying goods or services to government departments / agencies, need to generate B2B e-Invoices with the GSTIN of the Government department / agency.

(Source: Clarification on E-invoicing dated 14.09.2023

issued by National Informatics Centre )