GST WEEKLY UPDATE : 40/2023-24 (DATED : 31.12.2023) By CA Vipul Khandhar

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By CA Vipul Khandhar

  1. Date extension for reporting opening balance for ITC reversal:
  • In order to facilitate the taxpayers in correct and accurate reporting of ITC reversal and reclaim thereof and to avoid clerical mistakes, a new ledger namely Electronic Credit and Re-claimed Statement was introduced on the GST portal. This statement was made available to help the taxpayers in tracking their ITC that has been reversed in Table 4B(2) and thereafter re-claimed in Table 4D(1) and 4A(5). Kindly click here for the detailed advisory provided earlier.
  • Now to facilitate taxpayers further, opportunity to declare opening balance for ITC reversal in the statement has been extended till 31st January, 2024.
  • Kindly note that after declaring the opening balance for ITC reversal, only threeamendment opportunities post the declaration will be provided to correct declared opening balance in case of any mistakes or inaccuracies in reporting.
  • Facility to amend declared opening balance for ITC reversal will be available till 29th February, 2024.

2. Time limit extended for issuance of SCN and passing of order in non-fraud cases for FY 2018-19 and 2019-20:

The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 56/2023–Central Tax on December 28, 2023, to extend the time limit specified under Section 73(10) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”). This extension pertains to the issuance of orders under Section 73(9) of the CGST Act, which involves the recovery of tax not paid, short paid, or input tax credit wrongly availed or utilized for the financial years 2018-19 and 2019-20.

In exercising the powers conferred by relevant sections of the CGST Act, the CBIC has partially modified previous notifications (No. 35/2020, No. 14/2021, No. 13/2022, and No. 09/2023) and extended the time limit for passing orders under Section 73. The extension is granted based on the recommendations of the Council and is applicable as follows:

(i) For the financial year 2018-19, the time limit for issuing orders is extended up to the 30th day of April 2024.

(ii) For the financial year 2019-20, the time limit for issuing orders is extended up to the 31st day of August 2024.

This extension provides additional time for the authorities to take necessary actions for the recovery of taxes or input tax credit related to the specified tax periods.

3. GSTN enables Much-Awaited Feature for Online Filing of Annexure-V by Newly Registered GTAs Opting for Forward Charge:

The GSTN has introduced the much-awaited feature to file Annexure-V online on the GST Portal. This option is specifically designed for newly registered Goods Transport Agencies (GTAs) opting for Forward Charge.

The new facility allows users to upload manual Annexure-V, which might have been submitted to the jurisdictional office before the commencement of the online filing option. If you are a GTA providing services and wish to pay tax under Forward Charge for the current financial year and beyond, filing your declaration Annexure V Form by January 28, 2024, is essential. By selecting “YES,” you will be directed to the Annexure V Form. If you are not involved in providing GTA services or prefer to pay tax under Reverse Charge, you can choose “NO.” It’s important to note that the Annexure V Form can also be accessed through Dashboard > Services > User Services > GTA > Opting Forward Charge payment by GTA (Annexure V).

4. Software for Automated Notice Generation: Assam GST Department Issues Instructions on IIT Big Data Software:

The Assam GST Department has issued Instruction No. 13/2023-GST dated December 26, 2023 regarding notice issued based on IIT Big Data Software.

No. CT/GST-40/2020/108.-

In those cases, where audit proceedings have been completed, the notices again given using IIT Big data software needs to be dropped.

The cases where return scrutiny proceedings have been completed and notices again issued using IIT Big data software, needs to be dropped to the extent of para which are already covered in previous notice.

The cases where advisory/summons proceedings have been completed and notices again issued using IIT Big data software, needs to be dropped to the extent of para which are already covered in advisory/summons proceeding.

The cases where the proceedings are initiated or going on u/s. 74, then notice issued using IIT Big Data Software needs to be dropped subject to information given to concern officials for inclusion of such para in their proceedings.

The cases where voluntary payment have been made in DRC-03 or where DRC-07 had been issued, on such grounds then notices issued using IIT Big Data needs to be dropped after due verification.

The cases where, only invoices were issued without movement of goods, in those cases proceedings are to be done u/s 122 and notice issued using IIT Big data needs to be dropped.

In cases of blocked credit u/s 17(5) where system generated HSN / SAC Code were used to issue notices it may be possible that credit may be eligible to such taxpayer involved in the business of same goods / services. (For example, taxpayer involved in the business of trading of vehicle, then such taxpayer is eligible for credit on purchase of vehicle). In such cases, Proper Officers shall examine relevant facts along with supporting records and take decision on case to case basis, in accordance with law.

In those cases, where ITC reversals under Rule 42/43 in respect to non-business transactions or exempt supply is applicable, then due verification needs to be verified as per notice issued. Further, on purchase and sale of exempted supplies, ITC reduction under rule 42/43 to be carried out based on actual turnover as per return filed and due process of verification to be followed. In no case, any clarification shall be obtained from the taxpayer, unless it is under exceptional circumstances.

With respect to above mentioned criteria, where notices are not required to be dropped then in those cases, notice shall be served in appropriate manner. An opportunity of being heard is to be given to the taxpayer and proceeding to be concluded in time bound manner.

The above instructions shall be followed strictly. The cases where the notices are required to be dropped then, neither any written submissions is to be called for nor a taxpayer is required to be called for any personal hearing. In such cases, the Proper officer after recording reasons shall drop the proceedings on the basis of facts and contents of each cases. A taxpayer must be informed about dropping of proceeding without fail, wherever applicable.

All Proper Officer must strictly adhere to the legal provisions and relevant guidelines/circulars in this regard. Strict action will be taken for non-compliance. Moreover, it should be ensured that no harassment is caused to any taxpayer and due tax is received by the department.

5. GSTN Unveils New Features to GST Portal:

The GST portal was amended with the new features.  The portal Introduces the new feature for addressing Grievances against Payment (GST PMT-07) system, giving users the power to swiftly address payment-related concerns.

6. AAR & Important Judgements:

(i) Gujarat High Court to examine the validity of Notification extending period for issuance of SCN u/s 73 of the CGST Act:

(Applicant – Rajkot Nagarik Sahakari Bank Ltd)

The Hon’ble Gujarat High Court heard the case of SRSS Agro Pvt. Ltd. v. Union of India [R/Special Civil Application No. 19720 of 2023] on November 10, 2023.

M/s. SRSS Agro Pvt. Ltd. (“the Petitioner”) filed a writ petition contending that, Notification No. 09/2023- Central Tax dated March 31, 2023, wherein the time limit specified under Section 73 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) has been extended is unjustified as the extension of time limit can be made under special circumstances only. Also, once the period has been extended vide Notification No. 13/2022-Central Tax dated July 5, 2022, no subsequent extension can be made.

The Court directed that the Petitioner shall be granted time if the Petitioner asks time for filing a reply to the Show Cause Notice.

The Court issued a Notice to the Respondent which is returnable on November 30, 2023. Further, the next date granted by the Court in the aforementioned matter is January 12, 2024.


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.


( Author is a well known Chartered Accountant practicing at Ahmedabad )

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