GST WEEKLY UPDATE :18/2024-25 (04.08.2024) By CA Vipul Khandhar

-By CA Vipul Khandhar

1. Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Jammu & Kashmir and West Bengal:

This is to inform taxpayers about recent developments concerning the application process for GST registration. It is advised to keep the following key points in mind during the registration process.

1.    Rule 8 of the CGST Rules, 2017 has been amended to provide that an applicant can be identified on the common portal, based on data analysis and risk parameters for Biometric-based Aadhaar Authentication and taking a photograph of the applicant along with the verification of the original copy of the documents uploaded with the application.
2.    The above-said functionality has been developed by GSTN. It has been rolled out in Jammu & Kashmir and West Bengal on 02nd August 2024.
3.    The said functionality also provides for the document verification and appointment booking process. After the submission of the application in Form GST REG-01, the applicant will receive either of the following links in the e-mail,

(a)   A Link for OTP-based Aadhaar Authentication OR

(b)   A link for booking an appointment with a message to visit a GST Suvidha Kendra (GSK) along with the details of the GSK and jurisdiction, for Biometric-based Aadhaar Authentication and document verification (the intimation e-mail) .

4.    If the applicant receives the link for OTP-based Aadhaar Authentication as mentioned in point 3(a), she/he can proceed with the application as per the existing process.
5.    However, if the applicant receives the link as mentioned in point 3(b), she/he will be required to book the appointment to visit the designated GSK, using the link provided in the e-mail. Once the applicant gets the confirmation of appointment through e-mail (the appointment confirmation e-mail), she/he will be able to visit the designated GSK as per the chosen schedule.
6.    At the time of the visit of GSK, the applicant is required to carry the following details.

(a)   a copy (hard/soft) of the appointment confirmation e-mail

(b)   the details of jurisdiction as mentioned in the intimation e-mail

(c)   Aadhaar Card and PAN Card (Original Copies)

(d)   the original documents that were uploaded with the application, as communicated by the intimation e-mail.

7.    The biometric authentication and document verification will be done at the GSK, for all the required individuals as per the GST application Form REG-01.
8.    The applicant is required to choose an appointment for the biometric verification during the maximum permissible period for the application as indicated in the intimation e-mail. In such cases, ARNs will be generated once the Biometric-based Aadhaar Authentication process and document verification are completed.
9.    The feature of booking an appointment to visit a designated GSK is now available for the applicants of Jammu & Kashmir and West Bengal.
10.    The operation days and hours of GSKs will be as per the guidelines provided by the administration in your respective state.

2. Advisory in respect of Changes in GSTR 8:

Please refer to the GST Council decision to the effect that TCS rate has been reduced from the current 1% (0.5% CGST + 0.5% SGST/UTGST, or 1% IGST) to 0.5% (0.25% CGST + 0.25% SGST/UTGST, or 0.5% IGST) effective from 10/07/2024 vide Notification No. 15/2024 dated 10.07.2024.

Thus, the following important aspects regarding the TCS rates effective from 10.07.2024 are to be noticed:

1.   Period from 1st July to 9th July 2024:

• During this period, the old TCS rate of 1% will continue to apply. Taxpayers are required to collect & report TCS at this rate for all transactions happened between these dates.

2.   From 10th July 2024 onwards:

•   A revised TCS rate of 0.5% will come into effect from 10th July 2024. Taxpayers must ensure their systems and processes are updated to reflect this new rate for all transactions happened from 10th July forward.

Further, as few taxpayers have reported validation error while filing GSTR-8 for the month of July 2024, it is to inform that GSTN team is working on the changes announced by GST Council in respect of GSTR 8, is expected to be complete in next couple of days, and users would be able to file returns from 06th August 2024 midnight onwards. Any inconvenience caused in this regard is regretted.

3. Detailed Manual and FAQs on filing of GSTR-1A:

As per the directions of the Government vide notification no. 12/2024 dt 10th July 2024, Form GSTR-1A has been made available to the taxpayers form July 2024’ tax period. GSTR-1A is an optional facility to add, amend or rectify any particulars of a supply reported/missed in the current Tax period’s GSTR-1 before filing of GSTR-3B return of the same tax period.

GSTR-1A shall be open for the taxpayer after filing of GSTR-1 of a tax period or after the due date of GSTR-1 whichever is later. A Detailed manual for filing of GSTR-1A and related FAQs can be seen below –

1. What is Form GSTR-1A?

Form GSTR-1A is an optional facility for taxpayers to correct or add any supply records reported in GSTR-1 for the same tax period before submitting the GSTR-3B return. For example, if a taxpayer files GSTR-1 for August 2024 on 10th September 2024 and realizes errors or omissions, they can use GSTR-1A to make corrections or additions starting from the due date of GSTR-1 (11th September) until GSTR-3B is filed.

2. Availability of GSTR-1A

GSTR-1A is available from the later of the due date of GSTR-1 or the actual filing date of GSTR-1, up until the filing of GSTR-3B for the same tax period. For monthly filers, this is from the 11th of the following month, and for quarterly filers, from the 13th of the month following the quarter.

3. Filing Deadlines and Conditions

There is no specific due date for GSTR-1A; it must be filed before GSTR-3B for the same tax period. Once GSTR-3B is filed, GSTR-1A cannot be submitted. Instead, amendments can be made in subsequent GSTR-1 filings.

4. Is Filing GSTR-1A Mandatory?

Filing GSTR-1A is not compulsory. It is only necessary if a taxpayer needs to add or amend supply records that were missed or inaccurately reported in GSTR-1. Play

5. Modes of Filing GSTR-1A

It can be filed online or through a GST Suvidha Provider (GSP).

6. Amendments and Errors

Taxpayers cannot file a Nil GSTR-1A. If errors or omissions are discovered, they must be corrected before filing GSTR-3B, as the system will not allow GSTR-3B submission with unfiled records in GSTR-1A. If any record is saved but not filed in GSTR-1A, it must be either deleted or filed before GSTR-3B can be submitted.

7. Adding Debit/Credit Notes and GSTIN Amendments

Debit and credit notes can be added in the respective sections of GSTR-1A. However, the recipient’s GSTIN cannot be amended through GSTR-1A and must be corrected in subsequent GSTR-1 filings.

8. Quarterly Filing and IFF

For taxpayers opting for quarterly filing, records furnished through the Invoice Furnishing Facility (IFF) for the first two months of the quarter can be amended in GSTR-1A for the same tax period. 9

9. Limitations on Amendments

Once filed, GSTR-1A cannot be amended again, even if GSTR-3B for the same period is not yet filed. 

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 a well known Chartered Accountant practicing on GST and Income Tax at Ahmedabad)