GST WEEKLY UPDATE : 26/2023-24 (DATED : 24.09.2023) By CA Vipul Khandhar

By Vipul Khandhar , CA

1. Advisory: Gecoding Functionality For The Additional Place Of Business:

• GSTN is pleased to inform that the geocoding functionality for the “Additional Place of Business” address is now active across all States and Union Territories. This builds upon the geocoding functionality earlier implemented for the principal place of business, operational since February 2023.
• To date, over 2.05 crore addresses have been geocoded for both principal and additional places of business by GSTN. Moreover, since March 2022, all new addresses are geocoded at the point of registration, ensuring consistent accuracy and standardisation from the beginning.
• Here is a brief guide on how to utilize this feature:

1. Access : Navigate to Services>>Registration>>Geocoding Business Addresses tab on the FO portal to find this functionality.
2.  Usage : The system will display a system-generated geocoded address. You have the option to accept this or modify it as needed. If a system-generated address is not available, you can input the geocoded address directly.
3. Viewing :  Saved geocoded address details can be found under the “Geocoded Places of Business” tab. After logging in, go to My Profile >> Geocoded Places of Business.

1. One-time Submission:This is a one-time activity, and post-submission, address revisions are not permitted. Taxpayers who have already geocoded their addresses through new registration or core amendment would not be required to do this as on the GST portal their address will be shown as geocoded. Remember, changes to the address on your registration certificate can only be made through the core amendment process. This geocoding feature will not affect previously saved addresses.

1. Eligibility:This feature is accessible to normal, composition, SEZ units, SEZ developers, ISD and casual taxpayers whether they are active, canceled, or suspended.

2. GSTN Introduces “Track Application Status” Tab In GST Registration Process:

The Goods and Services Tax Network (“GSTN”) has now added a new ‘Track Application Status’ tab to the GST registration process. When a person needs to file further clarifications, they can log in with their Temporary Reference Number (“TRN”) and access this tab. In the past, tracking the application status had to be done separately from the Registration Dashboard on the GST Portal.

3. Clarification On E-invoicing For Government Supplies:

• GST Policy Wing has issued the clarification on the applicability of the e-invoicing to the supplies made to the Government departments or agencies, through Circular No. 198/10/2023-GST dated: 17.07.2023.
• Government departments or establishments / Government agencies / local authorities / PSUs, which are required to deduct tax at source as per provisions of section 51 of the CGST/SGST Act, are liable for compulsory registration in accordance with section 24(vi) of the CGST Act. Therefore, Government departments or establishments / Government agencies / local authorities / PSUs, registered solely for the purpose of deduction of tax at source as per provisions of section 51 of the CGST Act, are to be treated as registered persons under the GST law as per provisions of clause (94) of section 2 of CGST Act. Accordingly, the registered person, whose turnover exceeds the prescribed threshold for generation of e-invoicing, is required to issue e-invoices for the supplies made to such Government departments or establishments / government agencies / local authorities / PSUs, etc under rule 48(4) of CGST Rules.
• It is advised hereby that the tax payers, notified for generation of e-invoices and supplying goods or services to government departments / agencies, need to generate B2B e-Invoices with the GSTIN of the Government department / agency.

4. 30-Day E-Invoice Deadline for GST: New Rule from November 1:

5. 30-Day E-Invoice Deadline: For the first time, a strict deadline of 30 days for issuing e-invoices under GST will be enforced. This deadline applies specifically to taxpayers with an annual turnover exceeding Rs. 100 crore. After the 30-day window, taxpayers falling into this category will no longer be able to generate e-invoices. Failure to issue the e-invoice within this timeframe will render the transaction invalid, and recipients of goods and services will not be eligible for input tax credit.

6. Mandatory Compliance: Previously, there was an advisory suggesting that invoices be registered within a certain time frame, but it was not obligatory. Now, compliance with the 30-day deadline has become mandatory on the GST e-invoice portal. This change is aimed at ensuring that businesses promptly issue e-invoices and comply with the GST regulations.

iii. Two-Factor Authentication: Another significant update is the implementation of two-factor authentication for taxpayers. To access the portal and conduct transactions, users will need to provide additional verification beyond their ID and password. Specifically, an OTP (One-Time Password) will be required along with the standard login credentials. This extra layer of security is intended to safeguard taxpayer information and protect against unauthorized access.

iv. Applicability of Two-Factor Authentication: The two-factor authentication requirement will come into effect from November 1, but it will apply to taxpayers with a turnover exceeding Rs. 20 crore. This authentication process is primarily utilized in the e-invoice and e-way bill systems, which are crucial components of the GST framework.

5. AAR & Important Decisions:

(i) AAR On Classification of Film Distribution Rights:

(Applicant – Sri Nagaraju Jayanna)

Sri Nagaraju Jayanna, a partner of M/s J B Exhibitors, filed an application for Advance Ruling under Section 97 of the CGST Act, 2017, and KGST Act, 2017. The application aimed to determine the proper classification of licensing services for the right to exhibit original films, sound recordings, radio, and television programs.

The applicant, who is primarily involved in the exhibition of movies in theaters, sought to expand into the film distribution business. The key question for this Advance Ruling was whether these licensing services should be classified under SAC 997332 or SAC 999614.

SAC 997332: This classification pertains to licensing services for the right to broadcast and show original films, sound recordings, radio, and television programs. It includes rights to reproduce, distribute, or incorporate entertainment, such as broadcasting and showing original films.

SAC 999614: This classification covers motion picture, videotape, and television program distribution services. It includes distribution of audiovisual works, granting permission to exhibit, broadcast, and rent audiovisual works that are protected by copyright.

The applicant argued that their service should be classified under SAC 997332, emphasizing that the distribution of film rights is widespread in India under this category. However, the ruling authorities examined the relevant SACs and their explanatory notes.

The ruling authorities concluded that the applicant’s licensing services, which grant exhibitors permission to show films in theaters, align more closely with SAC 999614. This classification includes distribution of audiovisual works and explicitly addresses the transaction between distributors and exhibitors. Therefore, the ruling upheld the classification under SAC 999614.

The recent ruling by the Authority for Advance Ruling in Karnataka has clarified the GST classification of licensing services for film distribution rights intended for exhibition in theaters. According to the ruling, such services fall under SAC 999614, which is specific to motion picture, videotape, and television program distribution services.

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.

THANKING YOU.

( The author is a well known chartered accountant practicing at Ahmedabad )