GST WEEKLY UPDATE :31/2024-25 (03.11.2024) By CA Vipul Khandhar

-CA Vipul Khandhar

1. Barring of GST Return on expiry of three years:

As per the Finance Act,2023 (8 of 2023), dt. 31-03-2023, implemented w.e.f 01-10-2023 vide Notification No. 28/2023 – Central Tax dated 31th July, 2023, the taxpayers shall not be allowed file their GST returns after the expiry of a period of three years from the due date of furnishing the said return under Section 37 (Outward Supply), Section 39 (payment of liability), Section 44 (Annual Return) and Section 52 (Tax Collected at Source). These Sections cover GSTR-1, GSTR 3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR 7, GSTR 8 and GSTR 9. The said changes are going to be implemented in the GST portal from early next year (2025). Hence, the taxpayers are advised to reconcile their records and file their GST Returns as soon as possible if not filed till now.

2. Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Ladakh:

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 por1tal, 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 Ladakh on 30th October 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.

6.   The feature of booking an appointment to visit a designated GSK is now available for the applicants of Ladakh.

7.   After booking the appointment, 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.

8.   At the time of the visit of GSK, the applicant is required to carry the following details/documents

(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.

9.   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.

10.   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.
11.   The operation days and hours of GSKs will be as per the guidelines provided by the administration of Union Territory of Ladakh.

3. Customs wants Additional Declarations on Pressure, Temperature and Vapour Deposition on Lab Diamonds from 1 Dec 2024:

It has been decided to enable the additional qualifiers/identifiers as mentioned in the Annexure mandatory to be declared at the time of filing of import/export declarations with effect from 01.12.2024. Declaration of additional qualifiers would improve quality of assessment and intervention and increase facilitation.[Circular No. 21/2024-Customs dated 30^th October 2024]

Subject: Mandatory additional qualifiers in import/export declarations in respect of Synthetic or Reconstructed Diamonds w.e.f 01.12.2024.

Reference is invited to the Circular No.55/2020-Customs dated 17.12.2020 wherein, importers were advised to voluntarily declare the complete description of imported goods and certain additional qualifiers for imported items such as scientific names, IUPAC names, brand name, etc. as applicable to reduce queries and improve the efficiency of assessment.

On reviewing the matter, it is noted that the information in import/export declarations can be improved by providing the method used for producing these products, thereby offering effective avoidance of queries, enhancing efficiency in assessment and facilitation.

Accordingly, in terms of the Bill of Entry (Electronic Integrated Declaration and Paperless Processing) Regulations, 2018 and Shipping Bill (Electronic Integrated Declaration and Paperless Processing) Regulations, 2019, it has been decided to enable the additional qualifiers/identifiers as mentioned in the Annexure mandatory to be declared at the time of filing of import/export declarations with effect from 01.12.2024. Declaration of additional qualifiers would improve quality of assessment and intervention and increase facilitation. F.No. 524/17/2024-STO(TU) 

4. Amendments made effective from 1 November 2024:

• Amnesty scheme to provide waiver of interest and penalty for pending demands in non-fraud cases for FY 2017-18 till 2019-20, if entire tax demand is paid up to the date 31 March 2025 as the date on or before which the payment of tax would be required to be made to avail the benefit of Section 128A. Rule 164 will be inserted in the CGST Rules along with certain Forms for providing procedure and conditions for taking benefit of amnesty scheme.

• Government to be empowered regarding non-recovery of duties not levied or short-levied as a result of general prevalent trade practice.

• Common timeline to apply for issuance of SCNs and orders in both fraud and non-fraud cases from FY 2024-25 onwards.

• Council had also recommended issuance of special procedure for rectification of orders under Section 148. This is for taxpayers who received orders under Section 73, 74, 107 or 108 for wrongful availment of ITC beyond the time limit prescribed under Section 16(4), but now permissible as per Section 16(5) and 16(6).

• Exclusion of un-denatured ENA from GST is prospective and hence, the dispute remains unsettled for the past cases where many taxpayers have not paid tax on sale of ENA. Further, businesses may have to evaluate its taxability under the State Excise and VAT laws.

• Pre deposit of pending to be appeal to GSTAT to be made & declaration to be file for the stay recovery: Vide Circular No. 224/18/2024 – GST, CBIC clarified that till the time GSTAT commences operations, recovery of amount of confirmed demand as per the Appellate Authority’s order will be stayed on payment of an amount equal to pre-deposit and filing of an undertaking. Post 1 November 2024, taxpayers may compute the above amount as per the revised pre-deposit requirements.

• Currently, Rule 47 of CGST Rules provides that the invoice referred to in Rule 46 shall be issued within a period of thirty days from the date of supply of service. Self-invoice is also covered within the ambit of Rule 46. the timelines to be prescribed by the Government for issuance of self-invoice would be thirty days from the date of receipt of supply of service.

• Additional confirmation on GSTN portal while filling GSTR-3B from October-24 & onwards:

1. Any records of IMS dashboard where no action taken, shall be considered as ‘deemed accepted’.

2. Only such records flow from IMS to gstr2 B which are saved and filed also by supplier, i.e. if there is any accepted records which is only saved by supplier but not yet filed or filed after GSTR-2B cut off date will not flow to GSTR 2 B of current return period.

3.If any change made by supplier in saved records (in respective return) where recipient already took some action, will disappear from IMS dash board also.

5. AAR & Important Decisions:

(i) Decision of Hon’ble Kerala High Court as 𝐑𝐮𝐥𝐞 96(10) 𝐝𝐞𝐜𝐥𝐚𝐫𝐞𝐝 𝐮𝐥𝐭𝐫𝐚 𝐯𝐢𝐫𝐞𝐬! 𝐌𝐚𝐣𝐨𝐫 𝐫𝐞𝐥𝐢𝐞𝐟 𝐟𝐨𝐫 𝐄𝐱𝐩𝐨𝐫𝐭𝐞𝐫𝐬.

(Applicant – M/s. Sance laboratories Pvt Ltd)

Rule 96(10) of the CGST Rules, as inserted by notification No.53/2018-CT dated 09-10-2018 w.e.f. 23-10-2017 is declared ultra vires the provisions of Section 16 of the IGST Act and unenforceable on account of being manifestly arbitrary;”

 “Kerala HC declares Rule 96(10) of CGST Rules to be unconstitutional superseding its parent provision in S. 16(3) of the IGST Act; Holds conditions imposed in Rule 96(10) for obtaining refund to be ‘manifestly arbitrary”; declares the rule to be unconstitutional until its omission; quashes demand arising out of the invocation of such rule for the prior period and further restricts any recovery of IGST refund already granted

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.

(The Author is a well known Chartered Accountant practicing in the field of direct and Indirect Tax)