GST WEEKLY UPDATE : 8/2023-24 (21.05.2023) By CA Vipul Khandhar

By Vipul Khandhar, Ahmedabad

1. Advisory on Bank Account Validation:

• GSTN is pleased to inform you that the functionality for bank account validation is now integrated with the GST System. This feature is introduced to ensure that the bank accounts provided by the Tax Payer is correct. The bank account validation status can be seen under the Dashboard→My Profile→Bank Account Status tab in the FO portal. Tax Payers will also receive the bank account status detail on registered email and mobile number immediately after the validation is performed for his declared bank account.
• For seeking detail, please click on below mentioned URL :-
  https://tutorial.gst.gov.in/downloads/news/advisory_on_bank_account_validation_17april2023.pdf

2. GST Portal Update:

       GSTN enables Functionality to view IRN using Document Number:

• The Goods and Services Tax Network, widely known as GSTN, has recently introduced a convenient feature that allows users to retrieve the Invoice Reference Number (IRN) even if it was not initially saved for an invoice, credit note, or debit note. In case you find yourself in a situation where you have forgotten to save IRN no.

• Accessing the IRN: To access the Invoice Reference Number (IRN), follow these steps on the E-invoice Portal Dashboard: Go to the E-invoice Portal Dashboard: Visit the E-invoice Portal and log in to your account. Navigate to the “Search/Enable” Dropdown Menu: Look for the dropdown menu labeled “Search/Enable” features and click on “Search IRNs.” Search IRNs Page: You will be directed to the Search IRNs page, where you can search for the IRN or its associated details using two methods:

1. Supplier GST, Financial Year, Document Type, and Document Number: Enter the relevant information to search for the specific IRN you are looking for.
2. Directly Enter Invoice Reference Number: If you have the IRN at hand, you can directly enter it to retrieve the associated invoice details.

• Use and Benefits: The IRN search feature on the GSTN E-invoice Portal offers several benefits to businesses and taxpayers. Here are two primary use cases:

Genuineness Verification: With this new feature, users can easily verify the authenticity and genuineness of the IRN associated with their invoices. By searching for the IRN and cross-referencing it with their records, businesses can ensure that their invoices are valid and compliant with GST regulations. IRN

Retrieval: The feature also enables users to retrieve the IRN generated for a specific invoice. This functionality proves useful in cases where businesses may have misplaced or need to reference an IRN for compliance or auditing purposes.

• By accessing the IRN through the portal, businesses can retrieve the necessary information efficiently. Background on E-Invoicing and IRN: In the context of the Goods and Services Tax (GST) system, E-invoicing plays a vital role in streamlining the invoicing process and enhancing transparency. E-invoicing involves generating invoices with a unique Invoice Reference Number (IRN) and a Quick Response (QR) code. The IRN is acquired by uploading invoice details to the Invoice Registration Portal (IRP) maintained by GSTN. The IRP validates the invoice data and generates the IRN along with a QR code containing essential invoice details. The IRN serves as a unique identification number assigned to an invoice, credit note, or debit note.

CBIC-ACES-GST Application:

GST Dept adds New functionality to view Aadhaar Authentication Status and View/Upload/Download e-KYC for GST Registration The Goods and Sevices Tax (GST) Department has issued a new functionality and released the advisory to view the Aadhaar Authentication Status, download e-KYC documents for new registration applications, and upload e-KYC documents in the PV Report of the CBIC ACES Goods and Services Tax Application.

GSTN enables option to File Final Annual Return and Reconciliation Statement for F.Y. 2022-23:

GSTN enabled the option to file Final Annual Returns (GSTR 9) and Reconciliation Statement (GSTR-9C) on the Goods and Services Tax Portal (GST portal). The due date for filing returns and statement for Financial Year 2022-23 is 31.12.2023 Regular taxpayers enrolled for the Goods and Services Tax (GST) in India. 

3. AAR & Judicial Decisions:

(i) AAAR On sale of parking right liable for the 18% GST:

(Applicant – Eden Real Estates)

The West Bengal bench of the Appellate Authority of Advance Rulings (AAAR) has upheld an earlier ruling and said that sale or right to use a car park is not naturally bundled with construction services.

Thus, it will not be treated as a composite supply and will attract GST at the higher rate of 18%. The AAAR’s ruling came in an appeal by Eden Real Estates, which is engaged in construction of residential apartments.

From April 1, 2019, GST is levied at 5% on non-affordable housing projects without input tax credit (ITC). For ongoing projects (as in this case), the builder has the option to pay GST at the old rate of 12% with ITC, which means taxes paid on inputs can be set off. Had the AAAR treated the transaction relating to the car park as a composite supply, the GST levy that would have been applicable would be that of primary supply of construction, which is lower.

In this case, the real estate developer submitted that the car parking space is only given to flat buyers and stamp duty is paid on the entire consideration. However, the AAAR bench observed that prospective flat buyers may or may not opt for a car parking space when booking their flat. Thus, the argument that the facility of the right to use open parking space is naturally bundled with construction services and is a composite supply fails.

(ii) CAAR ruling on Classification of Compounded Rubber:

(Applicant – MRF Limited)

5. Compounded rubber formulation 1 (with less than 5 parts of Carbon Black) mentioned in para 5.1 merits classification under CTH 4005 1000 Compounded rubber, unvulcanised, in primary forms or in plates, sheets or strip – compounded with carbon black or silica and is eligible for duty exemption benefit under serial number 503 of the notification 46/2011-Cus. dated 1.6.2011 amended from time to time subject to the fulfilment of conditions of the said notification as well as notification notification 189/2009-Cus. (N.T.) dated 31.12.2009 amended from time to time,
6. Compounded rubber formulation 2 (without Carbon Black but with less than 5 parts of SBR -Styrene butadiene rubber) mentioned in para 5.1 merits classification under CTH 4005 99 90 Compounded rubber, unvulcanised, in primary forms or in plates, sheets or strip —Other and is eligible for duty exemption benefit under serial number 504 of the notification 46/2011-Cus. dated 1.6.2011 amended from time to time subject to the fulfilment of conditions of the said notification as well as notification 189/2009-Cus. (N.T.) dated 31.12.2009  amended from time to time.
7. Compounded rubber formulation 3 (without Carbon Black but with less than 5 parts of clay) mentioned in para 5.1 merits classification under CTH 4005 99 90 Compounded rubber, unvulcanised, in primary forms or in plates, sheets or strip —Other and is eligible for duty exemption benefit under serial number 504 of the notification 46/2011-Cus. dated 1.6.2011 amended from time to time subject to the fulfilment of conditions of the said notification as well as notification 189/2009-Cus. (N.T.) dated 31.12.2009 amended from time to time.

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.

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