GST WEEKLY UPDATE : 5/2023-24 (30.04.2023) By CA Vipul Khandhar

 By CA Vipul Khandhar

1. State GST department communication reference no verifiable on GST portal:

New facility to verify document Reference Number (RFN) mentioned on offline communications issued by State GST authorities

• The GST portal (“System”) generates various documents, such as notices/ orders, etc which are communicated to the taxpayer. Most such documents have a system-generated unique identifier DIN (Document Identification Number)/ RFN (Reference Number). These documents, by virtue of being generated by the System, are already traceable in the portal, mostly on the taxpayer’s dashboard. Still, a facility for taxpayers to verify such documents through such auto-generated RFN is under development and will be provided shortly.

• In addition, in order to enable the taxpayers to ascertain that an offline communication (i.e. one which is not system-generated) was indeed sent by the State GST tax officer or not, a new facility for Reference Number (RFN) generation by State tax officer and verification by taxpayer has been provided. Under this feature, the State Tax office can generate a RFN for the physically generated correspondence sent to the taxpayer, which can be validated by the taxpayer (both pre-login and post-login). The facility to verify RFN of System-generated documents, once deployed, shall also be available in a seamless manner using the same link.

• To verify a Reference Number mentioned on the offline communications sent by State GST officers that are being sent to you, navigate toServices > User Services > Verify RFN option and provide the RFN to be verified.

• In case the RFN is of an offline communication generated by the State GST officer, the details with the valid RFN will be displayed. The limited details will be provided pre-login also for verification, while greater details will be provided when the taxpayer logs in and verifies RFN mentioned on an offline communication issued to him/ her.

• This facility is for offline correspondence issued by State GST authorities. For documents issued by Central GST officers, CBIC DIN facility may be used.

2. New functionality on GST portal:

• Change made in Composition restriction table

The message table containing HSN wise list of items restricted for availing compositing scheme has been updated in the registration application on the portal.

• Enhancements made in Registration module

The following enhancements have been made in the registration module on the portal. Generation of Colored Registration certificate GST REG-06(Applicable for all Type of Taxpayers except GSTP) Mentioning Jurisdiction details in track application status(Applicable for all Type of Taxpayers except GSTP) Generation of Colored Registration certificate GST REG-06 for Amended RC.(Applicable for all Type of Taxpayers except GSTP) Downloading of latest registration certificate on clicking of link “My Registration Certificates” under Profile and under Taxpayer Profile 360 (Registration>Profile). (Applicable for all Normal Taxpayers except ISD) Now a standard template has been implemented to display address in Registration certificate for all Normal Taxpayers.

• Making addition of minimum two promoters / partners / Directors for some constitution of business mandatory for registration.

While filing an application for new registration, it is now mandatory to add at least 2 (two) partners / Promoters/Directors wherever the “Constitution of Business” is Partnership, Company, LLP, FLLP, Foreign company, PSU, Society, Trust, Association of Person. The system will now not allow users to submit application in cases where they have provided only one partner/ promoter/Director for above types of constitution of business.

• Applying for Temp. Id for refund by unregistered persons.

Earlier the system was restricting the unregistered persons who had obtained Temp. Id. for Advance Ruling from applying for Temp Id. again for the purpose of applying for refund. This restriction has now been removed GST Refunds / Payments.

• PMT 09 Cash Transfer between different GSTINs registered on common PAN

A functionality has been provided on the Portal for the taxpayer to transfer their amount lying in cash ledger across GSTINs registered on the same PAN, using Form GST PMT-09. Only two major heads i.e., IGST and CGST are available in Form GST PMT-09 to transfer amount to different GSTINs registered on common PAN. This is in addition to the existing functionality wherein taxpayers can transfer the amounts from one head to another head for the same GSTIN.

• GST Portal Enables New Functionality of Bank Account Validation
  Advisory on Bank Account Validation:

GSTN is pleased to inform you that the functionality for bank account validation is now integrated with the GST System. This feature is introduced to ensure that the bank accounts provided by the Tax Payer is correct. The bank account validation status can be seen under the Dashboard→My Profile→Bank Account Status tab in the FO portal. Tax Payers will also receive the bank account status detail on registered email and mobile number immediately after the validation is performed for his declared bank account.

3. Maha State GST issue SOP for revocation of cancellation of GST registration:

The special procedure would be applicable in the following manner:

• There is no separate facility for application under this special procedure. The online applications would be received by proper officer as usual. Therefore, the revocation applications received on or after April 01, 2023 and covered under this special procedure shall be processed accordingly.
• As per the notification, such application for revocation shall be filed only after furnishing of all 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 the said returns. Hence, the proper officer, before effecting revocation, shall ensure that all the returns due up to the effective date of cancellation of registration are filed, and 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 the said returns is made.
• Needless to mention that the proper officer shall also ensure that all returns due are also filed as provided in second and third proviso of rule 23 of the MGST Rules, 2017.

4. AAR & Judicial Decisions:

(i) Decision of Hon’ble Supreme Court Regarding ‘pre-import’ condition under AA; Business ‘inconvenience’ can’t render law ‘arbitrary’ [TS-162-SC-2023-GST]:

SC rules in Union’s favour, overturns Gujarat HC judgment that had struck down as ‘unconstitutional’ the ‘pre-import’ condition under Advance Authorisation (AA); Apex Court, delving deep into the pre-GST FTP regime as also the post GST one, comes to a considered conclusion that just because the new dispensation required exporters to pay two duties and then claim refunds, thereby ‘inconveniencing’ them, could not be a ground to hold the ‘pre-import’ condition as ‘arbitrary’;  Bench of Justice quotes from an erstwhile SC judgment that had observed that ” … court is not concerned with the wisdom or unwisdom, the justice or injustice of the law as Parliament and State Legislatures and that “hardship is not relevant in pronouncing on the constitutional validity of a fiscal statute or economic law.” ; Apex Court outrightly rejects the charge of ‘discrimination’ levied by the petitioners vis-a-vis treatment of exporters who had been granted AA, terms the High Court judgment on this aspect as a misreading of the FTP; Court further notes that ” …  If one keeps in mind that there cannot be a blanket right to claim exemption, and that such a relief is dependent on the assessment of the State and tax administrators, as well as the state of the economy and above all, the mechanism for its administration, clearly the argument of discriminatory treatment of the two levies on the one hand, and the other taxes on the other, has to fail. ” ; Bench observes in great detail the ‘transformation’ brought about by the  ‘GST’ tax reform, that has ushered in a ‘unified’ market, and goes on to hold that not only can such a transformation not be painless, but also that such a process would inconvenience a section of the business, but that alone cannot lead the Court to declare such a change as ‘unreasonable’ or ‘arbitrary’; In important general remarks with ramifications, Court opines that what applies to refunds equally applies to exemptions, quotes from landmark SC judgment in Bannari Amman Sugars wherein the Court held that if there is any tax concession, it can be withdrawn at any time; Court further asserts that there is no constitutional compulsion while framing a new law, that ” concessions hitherto granted or given should necessarily be continued in the same fashion as they were in the past.” ; However, in marginal relief to exporters, Court directs Revenue to permit exporters (enjoying interim orders) to claim refund or input credit (with documentary evidence ) and to be examined on a case-by-case basis for which a circular will be brought out by CBIC in this regard.

Disclaimer:

This publication contains information for general guidance only. It is not intended to address the circumstances of any particular individual or entity. Although the best of endeavor has been made to provide the provisions in a simpler and accurate form, there is no substitute to detailed research with regard to the specific situation of a particular individual or entity. We do not accept any responsibility for loss incurred by any person for acting or refraining to act as a result of any matter in this publication.

(Author is a well known Chartered Accountant practicing at Ahmedabad)