GST WEEKLY UPDATE :01/2024-25 (07.04.2024) By CA Vipul Khandhar

-By CA Vipul Khandhar,

1. Advisory: Self Enablement For e-Invoicing:
   1. If your turnover exceeds INR 5 crores in the financial year 2023-2024, you will be required to start e-Invoicing from the next financial year, i.e., from 1st April 2024 onwards. It may also be noted that same is applicable if the threshold is crossed in any of the proceeding financial years too.
   2. For those who meet the notification criteria but have not yet been enabled on the portal, you can self-enable for e-Invoicing by visiting https://einvoice.gst.gov.in and start reporting through any of the 4 new Invoice Registration Portals (IRPs) – from e-Invoice IRP 3 to e-Invoice IRP 6

         https://einvoice3.gst.gov.in     https://einvoice4.gst.gov.in

         https://einvoice5.gst.gov.in     https://einvoice6.gst.gov.in

1. 3. To report e-Invoices through NIC IRP 1 & 2, taxpayers can self-enable at

        https://einvoice1.gst.gov.in      https://einvoice2.gst.gov.in

For any assistance, please feel free to contact us at the GST Helpdesk number 1800-103-4786 or visit the Grievance Redressal Portal at https://selfservice.gstsystem.in/ to log a ticket.

2. Joint GST Audit by CGST and SGST officers (vide GADT/PndC/APLN/4/2021-PandC dated April 03, 2024:

It has been directed that each Audit Circle of CGST shall share the Audit Plan for the month with their counter parts in SGST and invite officers from SGST to be included in the Audit Teams. Similarly, officers from CGST may join the Audit Teams of SGST as and when possible. This exercise will strengthen the capacities of SGST officers in Audit and also enable officers to exchange critical compliance-related information with each other.

In this connection, Commissioner has directed that Circle AC/DCs shall co-ordinate with State GST and come up with/work out the necessary framework so that this joint audit work can be initiated with immediate effect as desired by the Chief Commissioner.

1. Kerala GST Dept. issued an Important circular No. 06/2024 dated April 06, 2024 regarding the Non-issuance of notices in case of voluntary compliance under Sections 73 and 74 of the KSGST Act, 2017.
   1. In case of own ascertainment, it is crucial for the person chargeable with tax to provide a detailed breakup of the amounts paid, including the tax, interest, and penalty. In the case of taxes that are not paid or short paid, the persons chargeable with tax may inform the manner of computation of such tax dues under the respective heads of IGST, CGST, KSGST and Compensation Cess and the tax period it is attributable to, as per their ascertainment.
   2. In case of wrong availment or wrong utilization of Input Tax Credit, the persons chargeable with tax may inform the details of such Input Tax Credit wrongly availed or utilized under the respective heads of IGST, CGST, KSGST and Compensation Cess, and the tax periods in which such wrong availment or utilization occurred, as per their ascertainment.

iii. Similarly, in case of an erroneous refund, the persons chargeable with tax may inform the details of such erroneous refund received including the tax period to which such refund pertains. iv. The above submissions can be made by the person chargeable with tax in the FORM GST DRC-03 itself through the common portal.

While the person chargeable with tax can provide the necessary information through the FORM GST DRC-03, if such details are not available in the FORM GST DRC-03, the proper officer can request the same from the persons chargeable with tax through a letter. This will enable the proper officer to accurately calculate and verify the correctness of the tax amount, interest and penalty payments towards such taxes that are not paid or short paid or Input Tax Credit wrongly availed or utilized or of erroneous refunds. Failure to provide this detailed breakup will result in the proper officer not being able to ascertain the nature and quantum of payment and may lead to discrepancies and issuance of Show Cause Notice.

Issue of Notice in cases of voluntary payment : The proper officer on receipt of the written communication/ information in FORM GST DRC-03 of payment as specified in Para 3 (supra), shall not issue any notice for the tax amount already paid with interest; or with interest and penalty as applicable in view of the provisions contained in sub-section (6) of Section 73, and sub-section (6) of Section 74 of the KSGST Act, 2017, respectively.

Issue of Notice in cases of shortfall in voluntary payment : In cases where it appears to the proper officer that the amount of tax paid with interest as per Section 73(5) of the KSGST Act,2017 or the amount of tax paid with interest and applicable penalty as per Section 74(5) of the KSGST Act, 2017 by the person chargeable with tax falls short of the amount actually payable, the proper officer shall issue notice only for the amount which falls short of the actual amount payable.

Further, in all cases falling under Section 73 of the KGST Act, 2017, the provisions of sub-section (11) shall be adhered to wherever applicable.

4. AAR & Important Judgements:

(i) GST shall be levied on payment of lump sum upfront premium astransfer charges of leasehold rights in the case of Remarkable Industries (P.) Ltd. [Advance Ruling No. UP/ADRG/41/2023 Dated December 07, 2023

The AAR are held that the activity of the Applicant is in the nature of agreeing to transfer one’s leasehold rights. It does not amount to further sub-leasing, as the Applicant’s right as per the Deed of sublease stands extinguished after the assignment. Neither does it create fresh benefits from the land. It is in the nature of compensation for agreeing to do the transfer of the Applicant’s rights in favour of the Assignee. It is a service classifiable under “Other miscellaneous service” i.e., SAC 999792 and taxable at the GST rate of 18% under SI No. 35 of Notification No. 11/2017- Central Tax (Rate) dated June 28, 2017. Further, the Applicant is not a State Government Industrial Development Corporation or Undertaking. Hence the benefit of Entry No. 41 of Notification No. 12/2017-Central Tax dated June 28, 2017 is not admissible to the Applicant as the condition of the said entry is not satisfied.

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 endeavour 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.

(The author is well known Chartered Accountant practicing at Ahmedabad)