GST News and Updates – June 2023

Online Compliance Pertaining to Liability / Difference Appearing in R1 – R3B (DRC-01B)

 

  • GSTN has developed a functionality to enable the taxpayer to explain the difference in GSTR-1 & 3B return online. This feature is now live on the GST portal.
  • 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.

GST collection for May rise by 12% to ₹1.57 lakh crore

 

  • The gross Good & Services Tax (GST) revenue collected in the month of May, 2023 is ₹1,57,090 crore of which Central GST is ₹28,411 crore, State GST is ₹35,828 crore, Integrated GST is ₹81,363 crore (including ₹41,772 crore collected on import of goods) and cess is ₹11,489 crore (including ₹1,057 crore collected on import of goods).
  • During the month, revenue from import of goods was 12 per cent higher and the revenues from domestic transactions (including import of services) were 11 per cent higher than the revenues from these sources during the same month last year.

GST Council May Clear Operational Framework Of GST Appellate Tribunal

 

  • The GST Council, which is likely to meet on 11th July, is set to clear the operational framework of the GST appellate tribunal. The 49th GST Council meeting in February accepted the report of a panel of state ministers to set up GST Appellate Tribunals with some modifications. The tribunal will deal with tax disputes and streamline resolution.

  • A 4-member appellate tribunal is proposed to be set up in each state to streamline and expedite the dispute resolution process with regard to goods and services tax (GST). Each state appellate tribunal would have two technical members (one officer each from the Centre and States) and two judicial members.

  • There will also be a national appellate tribunal, which would be set up in Delhi, and comprise one judicial member and one technical member.

2- Factor Authentication for e-Way Bill and e-Invoice System for Taxpayers with turnover above 100 Cr

 

  • Applicable from 15th July 2023
  • To enhance the security of e-Way Bill/e-Invoice System, NIC is introducing 2-Factor Authentication for logging in to e-Way Bill/e-Invoice system. In addition to username and password, OTP will also be authenticated for login.
  • There are 3 different ways of receiving the OTP. You may enter any of the OTP and login to system. The various modes of generating OTP are explained below:

    1. SMS: OTP will be sent to your registered mobile number as SMS.
    2. On ‘Sandes’ app: Sandes is a messaging app provided by government so that you can send and receive messages.
    3. Using ‘NIC-GST-Shield’ app: ‘NIC-GST-Shield’ is a mobile app provided by e-Way Bill /e-Invoice System, so that OTP can be generated by using the app.

GST Registration Cancellation With Retrospective Effect Can’t Be A Ground To Deny GST ITC To The Buyer: Calcutta High Court

  • The Calcutta High Court noted that at the time of the transaction, the name of the supplier as a registered taxable person was already available with the government record, and the buyer/petitioner had paid the amount of the purchased articles as well as tax through the bank and not in cash. Thus, matter was remanded back to the department.
  • The bench has observed that in the absence of proper verification, it cannot be said that there was any failure on the part of the petitioner to comply with any obligation required under the statute before entering into the transactions in question. The respondent authorities only relied on the cancellation of registration of the supplier with retrospective effect to reject the claim of the petitioner without considering the documents relied on by the petitioner.

Target-based incentives to attract 18% GST

 

  • The Maharashtra bench of the GST-Appellate Authority for Advance Rulings (AAAR) has held that the incentive earned by the reseller, from a US entity, is not in the nature of a ‘trade discount’. In other words, the reseller will have to bear a goods and services tax (GST) of 18% on such an incentive, which was based on attaining quarterly targets on eligible Intel products.
  • The appellant also submitted that if it was not treated as a trade discount but a supply of services, it should qualify as an export of services. This was not upheld, as in view of the AAAR the place of supply — of the marketing services as a reseller — was in India.

Amnesty Scheme for Revocation of Cancellation of Registration

 

  • Applicable to registered persons whose registrations were cancelled on or before 31 December 2022
  • Taxpayers may apply for revocation of cancellation of their registrations if it was cancelled due to non-filing of returns
  • Taxpayers can apply for revocation under the scheme until 30 June 2023,
  • A registered person can apply for revocation only if all pending returns up to the effective date of cancellation of registration are filed and any due tax, interest, penalty, and late fee are paid.
  • Notified vide Central Tax  Notification 3/2023.