GST WEEKLY UPDATE : 41/2024-25 (12.01.2025) By CA Vipul Khandhar

-By CA Vipul Khandhar

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

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 Rajasthan on 7th January 2025.
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 Rajasthan.
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 in your state. 

2. Implementation of mandatory mentioning of HSN codes in GSTR-1 & GSTR 1A:

After successful implementation of Phase-I & Phase-II now Phase-III regarding Table 12 of GSTR-1 & 1A is being implemented, from return period January 2025. In this phase manual entry of HSN has been replaced by choosing correct HSN from given Drop down. Also, Table-12 has been bifurcated into two tabs namely B2B and B2C, to report these supplies separately. Further, validation regarding values of the supplies and tax amounts involved in the same, have also been introduced for both the tabs of Table-12. However in initial period these validations have been kept in warning mode only, which means failing the validation will not be a blocker for filling of GSTR-1& 1A.

3. Enabling filing of Application for Rectification as per Notn. 22/2024-CT, dtd. 08/10/2024:

The Central Government, on the recommendations of the 54th GST Council, had issued Notification No. 22/2024 – CT dated 08.10.2024 and notified that any registered person against whom any order confirming demand for wrong ailment of ITC, on account of contravention of provisions of sub-section (4) of section 16 of the said Act had been issued, but where such ITC is now available as per the recently inserted sub-sections (5) and/or (6) of section 16 of the Act, would now be able to file an application for rectification of such demand orders.

A functionality has now been made available on the Portal for taxpayers to file an application for rectification of such orders issued under section 73/74. They can file it, post login, by navigating Services > User Services > My Applications, selecting “Application for rectification of order” in the Application Type field, and clicking on the NEW APPLICATION button. A hyperlink has also been provided on the Portal to download the proforma in Annexure A in word format, required to be uploaded after entering details of the demand order of the ITC wrongly availed on account of contravention of sub-section (4) of section 16 of the CGST Act, now eligible as per sub-section (5) and/or (6) of section 16 of the CGST Act, while filing the application for rectification.

4. Updates to E-Way Bill and E-Invoice Systems:

1. As suggested by GSTN, NIC will be rolling out updated versions of the E-Way Bill and E-Invoice Systems effective from 1st January 2025. These updates are aimed at enhancing the security of the portals, in line with best practices and government guidelines.

2. Multi-Factor Authentication (MFA):

One of the key changes involves the implementation of Multi-Factor Authentication (MFA). Currently, MFA, which requires login using a username, password, and OTP (sent to the registered mobile number, Sandes app, or similar platforms), is mandatory for taxpayers with an Annual Aggregate Turnover (AATO) exceeding ₹100 Crores since 20th August 2023 and optional for those with AATO exceeding ₹20 Crores since 11th September 2023.

1. Starting 1st January 2025, MFA will become mandatory for taxpayers with AATO exceeding ₹20 Crores, from 1st February 2025 for those with AATO exceeding ₹5 Crores, and from 1st April 2025 for all other taxpayers and users. Click here for more details on 2 Factor Authentication.
2. Taxpayers are encouraged to activate and start using MFA immediately, and detailed instructions are available on the E-Invoice and E-Way Bill It is advised to ensure that the registered mobile number is updated with your GSTIN.

3.   Restricting the period of EWB generation from the date of base document:

The generation of E-Way Bills will be restricted to documents dated within 180 days from the date of generation. For instance, documents dated earlier than 5th July 2024 will not be eligible for E-Way Bill generation starting 1st January 2025.

4.    Restricting the extension of EWB for specific time/period from the eWB generation date:

Furthermore, the extension of E-Way Bills will be limited to 360 days from their original date of generation. For example, an E-Way Bill generated on 1st January 2025 can only be extended up to 25th December 2025.

6. AAR & Important Judgements:

(i) Hon’ble Gujarat High court Decision Regarding Refund of voluntary GST deposit cannot be rejected due to limitation:

(Applicant – M/s. Aalidhra Texcraft Engineers)

Refund of voluntarily deposit of GST cannot be rejected on the ground of limitation but no interest eligible on such refund: Gujarat High Court.

It was held that when the petitioner has deposited voluntarily the amount of Rs. 40,00,000/-, the same would not be covered by the provisions of Section 54 of the GST Act and the same is required to be refunded by the respondent authorities as the same could not have been rejected on the ground of limitation under Section 54(1) of the GST Act. However, the petitioner will not be entitled to any interest on such amount as the same was deposited voluntarily by mistake and therefore, the respondents to refund the amount of Rs. 40,00,000/- deposited by the petitioner.

In view of the foregoing reasons impugned order dated 14.6.2024 passed by the respondent No.2 rejecting the refund application of the petitioner is hereby quashed and set aside and the respondent shall refund the amount of Rs. 40,00,000/- which was deposited by the petitioner by mistake on 20.11.2022 within a period of twelve weeks from the date of receipt of copy of this order.

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 Charted Accountant practising on Direct and Indirect Tax at Ahmedabad)