GST WEEKLY UPDATE : 22/2023-24 (27.08.2023) By CA Vipul Khandhar

-By CA Vipul Khandhar,

1. ADVISORY: MERA BILL MERA ADHIKAAR SCHEME:

Starting from September 1, the government is set to launch the ‘Mera Bill Mera Adhikar’ invoice incentive scheme, aimed at encouraging customers to request invoices for their purchases. Under this scheme, consumers stand a chance to win cash prizes ranging from Rs 10,000 to Rs.1 crore. These prizes will be awarded through monthly and quarterly draws.

1. As per the direction from the Government, the GSTN has developed and launched a mobile application (available on iOS and Android platforms) and also a web portal for the “Mera Bill Mera Adhikaar” scheme.
2. This scheme will be implemented from 1st September, 2023 initially in the States of Gujarat, Assam, Haryana and UTs of Puducherry and Daman & Diu and Dadra & Nagar Haveli, as per the policy decision of the Government.
3. Mobile Application and Web Portal:

• The mobile application is available for download on both iOS and Android platforms and links are given below.

1. Android Link: https://play.google.com/store/apps/details?id=com.gstn.msma
2. iOS Link: https://apps.apple.com/in/app/mera-bill -mera-adhikaar/id6450875616
3. The web portal can be accessed at: https://web.merabill.gst.gov.in
4. User Manual:For ease of use and to guide taxpayers through the process of participating in the scheme via the mobile application or web portal, a detailed user manual is available at the link below for your reference:

• User Manual Download Link:

https://tutorial.gst.gov.in/ downloads/news/mbma_user_manual_18_august_2023_final.pdf

5. Please ensure that you download the mobile application only from the Google Play store and Apple App store and access the web portal through the official link provided above to avoid any spurious application of a fraudulent entity.
6. Please refer to the Policy Document for MBMA related policy matters with reference to broad guidelines for its implementation.
   

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2. GST Amnesty scheme end on August 31:

·       Extension of Amnesty Scheme for Non-Filers of GSTR-4

The deadline for non-filers of GSTR-4 has been extended from 30th June to 31st August, 2023 under the amnesty scheme, vide Central Tax Notification 22/2023. This extension provides taxpayers with more time to fulfill their filing obligations under the amnesty scheme. It is crucial for those who have not yet submitted their GSTR-4 returns to take advantage of this extended deadline and comply with the requirements.

• Time Limit Extension for Revocation of Cancellation of Registration under Amnesty Scheme

The time limit for applying for the revocation of cancelled registration under the amnesty scheme has also been extended from 30th June to 31st August, 2023, vide Central Tax Notification 23/2023. This extension allows businesses that had their registrations cancelled to regularize their status by applying for revocation within the extended timeframe. It is important for affected businesses to utilize this opportunity to rectify their registration status and ensure compliance.

·       Extension of Amnesty Scheme for Deemed Withdrawal of Assessment Orders 

The amnesty scheme provides relief for taxpayers who have received assessment orders u/s 62 of the CGST Act, by allowing them to have their orders deemed withdrawn. The deadline for availing this benefit has now been extended from 30th June to 31st August 2023, vide Central Tax Notification 24/2023. It is essential for those who fall under this category to take advantage of the extended deadline and take the necessary steps to rectify their assessment orders.

·       Extension of Deadline under Amnesty Scheme for Non-Filers of GSTR-9/9C

For taxpayers who have not filed their GSTR-9/9C returns, this extension in deadline of amnesty scheme provides an opportunity to rectify this non-compliance. The deadline for availing the benefits of the amnesty scheme for non-filers of GSTR-9 has been extended from June 30 to August 31, 2023, vide Central Tax Notification 25/2023. It is crucial for non-filers of GST annual return to utilize this extension and fulfill their filing obligations to avoid any penalties or legal consequences.

·       Extension of Deadline under Amnesty Scheme for Non-Filers of GSTR-10

This amnesty scheme caters to taxpayers who have not filed their GSTR-10 final return. The deadline for non-filers of GSTR-10 has been extended from 30th June to 31st August, 2023 vide Central Tax Notification 26/2023, providing them with additional time to rectify their non-compliance. It is imperative for those who have not yet submitted their GSTR-10 returns to make use of this extended deadline and fulfill their filing requirements.

3. Kerala GST has issued sop for the Ineligible IGST reversal by the dealer:

• The Government of Kerala, State Goods and Services Tax Department vide SOP -1/2023 dated August 21, 2023has issued Standard Operating Procedures (“SOP”) for monitoring ineligible IGST input tax credit reversal by taxpayers in return form GSTR 3B.

• Total eligible ITC as well as ineligible ITC of the taxpayer will be auto populated from statement in FORM GSTR 2B in different fields of Table 4A of FORM GSTR 3B, except ineligible input tax credit on account of limitation of time period as specified in section 16 (4) of the Act or where the recipient of an intra-State supply is located in a different State than that of place of supply.

• The taxpayer shall not deduct the amount of ineligible input tax credit directly by editing the total amount of input tax credit auto populated in Table 4A of FORM GSTR3B. If the taxpayer has to declare any amount of ineligible input tax credit under any of the provision, they should strictly adhere to the instructions in this regard.

• Out of the amount available in Table 4A of FORM GSTR 3B, if the taxpayer have any ineligible input tax credit which is to be reversed on account of Rule 38 towards reversal of credit by a banking company or a financial institution or of Rule 42 towards reversal of credit on inputs and input services if the same is used for non-business purpose or used for the outward supply of exempted goods or services or of Rule 43 towards reversal of credit on capital goods if the same is used for non-business purpose or used for the outward supply of exempted goods or services, as the case may be, the same shall be declared in Table 4 (B) (1) of FORM GSTR 3B. In addition to that, if the taxpayer has any input tax credit which is blocked as per Section 17(5) of the CGST and KSGST Act, 2017 the same shall also be declared in Table 4 (B) (1) of FORM GSTR 3B. Also if the taxpayer has to reverse any other ITC, than the above, then the same shall be entered in Table 4(B)(2) of GSTR 3B.
• The “Net ITC Available” in Table 4 (C) of FORM GSTR 3B will be as per the formula (4A – [4B (1) + 4B (2)]) and the same will be credited to the electronic credit ledger of the taxpayer and also in Table 6 of FORM GSTR 3B to set-off the output tax dues, if any.
  

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4. Small E-Commerce Gujarat Traders Under Rs.20 Lakh Turnover Exempted From GST Registration:

• Small traders in Gujarat selling goods through local e-commerce platforms have got relief through a recent state finance department notification, reported TOI.
• The Gujarat GST Act of 2017 exempts traders with an annual turnover under Rs.20 lakh from mandatory GST registration if they are registered as sellers on e-commerce platforms.
• The latest notification exempts such traders under certain conditions.

– The trader cannot engage in inter-state trade either physically or through e-commerce.

– The trader must be a PAN holder and obtain an enrolment number on the common portal where their PAN and other details are registered.

– The move addresses discrimination and streamlines online and offline trade regulations.

3. AAR & Important Judgements:

(i) AAR On Common Head Office for Multiple GST Registrants:

(Applicant – Uvee Glass Private Limited Rajasthan)

Uvee Glass Private Limited approached the AAR Rajasthan seeking clarity on several complex GST-related matters. The ruling acknowledges the fundamental similarity between the Central Goods and Services Tax (CGST) Act and the Rajasthan Goods and Services Tax (RGST) Act, highlighting that they share provisions except for certain specific points. The AAR meticulously examined the applicant’s statement of facts, supporting documents, and submissions during the hearing. The issues raised by the applicant were scrutinized in detail, allowing for a comprehensive understanding of the subject matter.

The ruling further elucidates each question posed by the applicant, offering insights based on the provisions of the CGST Act and RGST Act. The applicant’s queries encompassed diverse areas such as ITC eligibility on specific supplies, the permissibility of using a common head office for distinct GST registrants with separate factory addresses, and the interpretation of the timeframe for refund processing as per a specific notification.

Implications: The ruling provides clarity on the eligibility of ITC for the GST paid on the inward supply of structural support for plant and machinery used in the production of outward goods or services. It highlights that the admissibility of ITC is limited to the extent defined by the provisions of the law.

The ruling provides clarity on the eligibility of ITC for the GST paid on the inward supply of structural support for plant and machinery used in the production of outward goods or services. It highlights that the admissibility of ITC is limited to the extent defined by the provisions of the law.

The AAR clarifies that matters related to procedural aspects, such as using a common head office for multiple GST registrants, are beyond its purview. Such procedural aspects fall outside the scope of the issues on which the AAR can provide a ruling, as outlined in the CGST Act and RGST Act.

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 at Ahmedabad)