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TMI BlogRECENT DEVELOPMENTS IN GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... RECENT DEVELOPMENTS IN GST X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to get MSMEs to businesses at a ease and raise productivity. Presently, Supreme Court is in the process of hearing the writ in relation to levy of GST on gaming industry. The issues for consideration include rate of tax, i.e. 28% or less and retrospective or prospective levy of tax. Government has argued that betting can never be a game of skill and shall be considered as gambling only. On the other hand, industry is looking for a tax which is prospective. CBIC has issued instructions on Grievance Redressal Mechanism for GST Registration applicants and for timely production of records / information for audit under GST. GSTN also issued advisories on biometric authentication of Aadhaar on all India basis, on refund filing proces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for select categories of tax payers, Appeal withdrawal under GST Waiver Scheme and reporting values in Table 3.2 of GSTR-3B. Grievance Redressal Mechanism for processing of GST Registration Application * CBIC has issued an instruction for establishing a structured grievance redressal mechanism to address issues arising during the processing of GST registration applications. * Any Applicant whose Application Reference Number (ARN) has been allocated to the Central jurisdiction, who encounter grievances such as queries raised in contravention of Instruction No. 03/2025, dated 17.04.2025 regarding grounds of rejection of application etc., may now escalate such matters to the jurisdictional Zonal Principal Chief Commissioner / Chief Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Central Tax. * These authorities are directed to issue following instructions: * Principal Chief Commissioner/Chief Commissioner of CGST Zones may publicize an email address on which the applicants can raise their grievances which will be publicized. * The applicants may send grievances containing ARN details, jurisdiction details (Centre/State) and issue in brief on that email address. * In case where grievance received pertains to State Jurisdiction, the office of Principal Chief Commissioner/Chief Commissioner shall forward the same to the concerned State jurisdiction and a copy endorsed to the GST Council Secretariat. * Principal Chief Commissioner/Chief Commissioner may ensure timely resolution of grievances recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved by them and intimate the applicants regarding the same. In case where queries raised by the officer are found to be proper, the applicants may be suitably advised. * Principal Chief Commissioner/Chief Commissioner will submit a monthly report on the status of grievance redressal to DGGST who would compile the same and put up for perusal of the Board. * States / Union Territories are encouraged to adopt a similar CBIC redressal framework. (Source: CBIC Instruction No. 04/2025-GST dated 02.05.2025) Instructions on timely production of records/information for audit * The CBIC has issued instructions in relation to the issue of non production of records/information by the field formations to C&AG Audit teams on GST related matters. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... * The C&AG under Article 149 of the Constitution of India conducts audit of government accounts, public sector undertakings, and other entities funded or controlled by the Central or State governments. Therefore, it becomes sine qua non for the field formations to provide the records/ information available with them and/ or required to be maintained by the field formations. * Taxpayers should ensure that the officers under their jurisdiction are suitably sensitized/ instructed to expeditiously provide the records/ information available with them/ required to be maintained by them, to the C&AG audit team, as and when required. * The jurisdictional officers have also been directed that in cases where the documents sought by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udit team are available with the taxpayer, a letter may be sent to the concerned taxpayer requesting that they provide the documents expeditiously. (Source: CBIC Instruction No. 05/2025-GST dated 02.05.2025) Biometric Aadhaar Verification Goes LIVE Pan-India * The Goods and Services Tax Network (GSTN) has officially launched its Biometric-Based Aadhaar Authentication facility on pan-India basis across all states and Union Territories of India. The process involves: * Booking a biometric verification slot via the GST portal * Visiting designated GST Seva Kendras or facilitation centres * Capturing fingerprints and facial data linked to Aadhaar for final authentication * The key highlights of the new feature are: * Slot b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ooking is now open on the official GST portal: https://www.gst.gov.in * The system applies to new GST applicants selected based on risk parameters * Designed to curb fake or fraudulent GST registrations using Aadhaar spoofing * Verification process typically takes 15-30 minutes * Integrated with real-time UIDAI authentication mechanisms. Invoice-wise Reporting Functionality in Form GSTR-7 * The Goods and Services Tax Network (GSTN) has issued an update in relation to invoice wise reporting in form GSTR-7. * GSTIN had earlier amended Form GSTR-7 vide Notification No. 09/2025 - Central Tax dated 22.02.2025 to mandate invoice-wise reporting of tax deducted at source under Section 51 of the CGST Act, 2017 which was effec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive from 01.01.2025. * As per the advisory, the rollout has been postponed until further notice, and deductors may continue filing Form GSTR-7 as per the existing system. (Source: GSTN Advisory dated 06.05.2025) Advisory on refund filing process for recipients of deemed exports The GSTN has issued an update in relation to changes in refund filing process under the category "on account of refund by recipient of deemed export". * Refund applications under this category no longer needs to be filed in chronological order of Tax Period which means taxpayers are not required to select "From Period" and "To Period" while filing refund application. * However, taxpayers must ensure that all the returns (GSTR-1, GSTR-3B etc) due till the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate of refund application, are filed. * Under this category, the table "Amount Eligible for Refund" has been modified. The columns of the revised table are explained hereunder: * Col. 1 'Balance in ECL at the time of filing of refund application'. This column will reflect the balance available under various Head in Electronic Credit Ledger at the time of filing of application. It will be auto populated. * Col. 2 'Net Input Tax Credit (ITC) of Deemed Exports (as per uploaded invoices)', in this column the amount of claimed ITC, under respective major Heads will be auto populated based on invoices furnished in Statement 5B. * Col. 3 'Refund amount as per the uploaded invoices' reflects the sum of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of ITC claimed under all major Heads (IGST/CGST/SGST/UT) as per the invoices uploaded by the taxpayer in Statement 5B and shall be downward editable. * Col. 4 'Eligible Refund Amount'. In this column, maximum amount of ITC which is available for refund claim will be auto populated. It will be auto-calculated based on the order of debit specified in Circular No. 125/44/2019-GST dated 18.11.2019. * Col. 5 "Refund amount not eligible as insufficient balance in the ECL (5)". This column reflects the difference between the total amount of claimed ITC and the total amount of ITC available in Electronic credit Ledger under various major heads. * This functionality has been improved to maximize the amount of refund a ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpayer can claim in terms of uploaded invoices, irrespective of the fact that sufficient balance is available in the respective Head of electronic credit ledger or not. Here, the total amount of claim under various Heads (IGST, CGST,SGST) will be compared with total amount of ITC available under various heads in electronic credit ledger, simplifying the refund process. (Source: GSTN Update / Advisory dated 08.05.2025) Updates in Refund Filing Process for various refund categories * The Goods and Services Tax Network (GSTN) has issued an advisory updating relation refund filing process for following three specific categories: * Export of services with payment of tax * Supplies made to SEZ Unit/SEZ Developer with payment of tax, * ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Refund by supplier of deemed exports * The requirement to select a specific tax period while filing refund applications under these categories has been removed, and the process has been shifted from tax period-based filing to invoice-based filing. The taxpayers can now directly proceed with selecting the refund category as above and clicking on "Create Refund Application" * Further, the taxpayers can now upload eligible invoices and claim refund in the following statements: * Export of Services with payment of Tax (Statement 2) * SEZ Supplies with payment of Tax (Statement 4) * In case of Deemed Exports, the application by Supplier (Statement 5B) * Taxpayers should ensure that all the returns (GSTR-1, GSTR-3B etc.) due til ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l the date of refund application, are filed. * Invoices uploaded with a refund application will be locked and cannot be amended or reused for subsequent claims. They will only be unlocked if the refund application is withdrawn or a deficiency memo is issued. (Source: GSTN Update dated 08.05.2025) Guidelines for Grievance Redressal Mechanism - Registration * Bengaluru Commissionerate of Central tax has issued guidelines with reference to documents to be uploaded by the applicant for processing of GST registration applications. It inter alia includes. * Documents in respect of Principal Place of Business * Constitution of Business * The applicant may send the complaint/grievance on email, to cgst-b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [email protected], with the following details: 1. Name of Entity 2. ARN 3. ARN Date 4. Jurisdiction (Centre / State) 5. Issue in brief * The office will ensure timely resolution of the grievances received. * This applies to state of Karnataka. (Source: Public Notice No. 01/2025 dated 09.05.2025 issued by Ministry of Finance, Department of Revenue, Bengaluru) Appeal withdrawal under GST Waiver Scheme * GSTN has issued an advisory on Appeal withdrawal with respect to Waiver scheme under section 128A of CGST Act, 2017 * Waiver scheme under section 128A mandates that any appeal against the requisite demand order should not remain pending with Appellate authority. * In the GST system, when Appeal Withdrawal Application (APL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 01W) for appeal is filed before issuance of final acknowledgment (APL 02) by the Appellate authority, then the system automatically withdraws the Appeal Application (APL 01). In such cases, the status of the appeal application will automatically change from "Appeal submitted" to "Appeal withdrawn". * However, if withdrawal application is filed after issuance of final acknowledgment, then the withdrawal of such appeal is subjected to the approval of the Appellate authority. Once the Appellate authority approves the withdrawal application, the status of the Appeal application changes from "Appeal submitted" to "Appeal withdrawn". * In both the above-mentioned cases, the status of the Appeal application is changed to "Appeal Withdrawn" whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch essentially fulfilled the requirement. * It is advised by GSTN that while filing waiver application or in the already filed waiver application, taxpayers need to upload the screenshot of the appeal case folder showing status as "Appeal withdrawn". (Source: GSTN Advisory dated 14.05.2025) Advisory on reporting values in Table 3.2 of GSTR-3B GSTN has issued an advisory on reporting values in Table 3.2 of GSTR-3B * Vide Advisory dated April 11, 2025, it was informed that the auto-populated values in Table 3.2 of Form GSTR-3B would be made non-editable starting from the April 2025 tax period (i.e., for the return to be filed in May 2025). * Based on the experience and in the interest of taxpay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er convenience and to facilitate smooth filing, it has now been decided that Table 3.2 shall remain editable for the time being.
* Taxpayers are advised to report or amend the auto populated entries, if required and furnish their returns accurately, ensuring the correctness of the disclosed information.
* Further, taxpayers will be duly informed through a separate communication once the proposed changes are implemented on the GST Portal.
(Source: GSTN Advisory dated 16.05.2025) X X X X Extracts X X X X X X X X Extracts X X X X
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