1. GST DEADLINES
1.1. Deadlines | October 24
● GST Compliance Calendar – October 2024
Due Date | Return/ Compliance | Remarks |
11 Oct 24 | GSTR1 (Sep 24) | Return of Outward Supplies- Monthly Return |
13 Oct 24 | GSTR1 (Jul- Sept 24) | Return of Outward Supplies- QRMP |
14 Oct 24 | GSTR2B (Sep 24) | Auto Drafted ITC Statement available for download |
20 Oct 24 | GSTR3B (Sep 24) | Last Date for Payment of Tax and Return for Normal Taxpayers (Monthly GTSR3B) |
22 Oct 24 | GSTR-3B (Jul 24- Sept 24) | Last Date for Payment of Tax and Return QRMP Taxpayers with Turnover Less Than 5 Crore having Principal Place of Business in Chhattisgarh, MP, Gujarat, Daman & Diu, Dadra & Nagar Haveli, Maharashtra, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu, Puducherry, Andaman & Nicobar Islands, Telangana, Andhra Pradesh
|
24 Oct 24 | GSTR3B(Jul- Sept 24 )
| Last Date for Payment of Tax and return for QRMP Taxpayers with Turnover Less Than 5 Crore having Principal Place of Business in J&K, Laddakh, HP, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi, Rajasthan, UP, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, WB, Jharkhand and Odhisha
|
25 Oct 24 | ITC-04 (Apr 24- Sept 24) | Details of job workers (half yearly) |
31 Oct 24 | TDS Return (IT)
| TDS Return for the Quarter ending June 24 (Income Tax Act) |
· GST Annual Return and Reconciliation Statement (GSTR 9 and GSTR 9C)
Due Date is 31st December 2024 for F.Y. 2023-24.
Taxpayer
| Description | Aggregate Turnover | Form | Compliance |
Normal Taxpayer | Annual Return | More than 5cr. | GSTR 9 & 9C | Compulsory |
Annual Return | Between 2cr. to 5cr. | GSTR 9 | Compulsory | |
Annual Return | Less than 2cr. | GSTR 9 | Optional | |
Composition Taxpayer | Annual Return | NA | GSTR 9A | Compulsory |
E-Commerce operator | Annual Return | NA | GSTR 9B | Compulsory |
2. GST PORTAL UPDATES
2.1 Advisory for Re-opening of Reporting ITC Reversal Opening Balance
(Advisory dated 17/09/2024)
1. Vide Notification No. 14/2022 – Central Tax dated 05th July, 2022 (read with circular 170/02/2022-GST, Dated 6th July,2022), the Government introduced certain changes in Table 4 of Form GSTR-3B regarding availment & reversal of ITC along-with reporting of re-claimed and ineligible ITC. Accordingly, the re-claimable ITC earlier reversed in Table 4(B)2 may be subsequently claimed in Table 4(A)5 on fulfilment of necessary conditions and such reclaimed ITC also needs to be reported in Table 4D(1).
2. 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 Reversal and Re-claimed Statement was introduced on the GST portal from August 2023 return period for monthly taxpayers and from July-September 2023 quarter for quarterly taxpayers. The taxpayers were also given an opportunity to report their cumulative ITC reversal as an opening balance in the newly introduced Electronic Credit Reversal and Re-claimed Statement
3. Now, the Taxpayers are being provided with one final opportunity to report their cumulative ITC reversal (ITC that has been reversed earlier and has not yet been reclaimed) as opening balance for "Electronic Credit Reversal and Re-claimed Statement", if any, before hard locking the reversal and reclaim ledger. Please note the important dates to report opening balance are mentioned below.
i. The functionality to reporting the opening balance will be available from 15th September 2024 to 31st October 2024.
ii. The amendments in declared opening balance will be available till 30th November, 2024.
iii. Taxpayers having monthly filing frequency are required to report their opening balance considering the ITC reversal done till the return period of July 2023 only. As after this period balance is already available in ledger.
iv. Quarterly taxpayers shall report their opening balance up to Q1 of the financial year 2023-24, considering the ITC reversal made till the April-June 2023 return period only. As after this period balance is already available in ledger
4. It may be noted that soon system would not allow to re-claim of ITC in excess of the amount reversed earlier and the taxpayers will not be able to reclaim excess ITC compared to the balance available in their Electronic Credit Reversal and Re-claimed Statement. Therefore, it is advised to make use of this extended period to ensure that all relevant information is reported accurately.
2.2 Advisory for Draft Manual on Invoice Management System
(Advisory dated 17/09/2024)
In a significant leap forward in the Goods and Services Tax (GST) ecosystem, the GST Common Portal has unveiled a ground breaking new facility, the Invoice Management System (IMS), revolutionizing the way recipient taxpayers interact with invoices. This innovative feature empowers taxpayers to seamlessly accept, reject, or keep invoices pending in the system to avail later as and when required, streamlining the reconciliation process, and ensuring greater accuracy and efficiency in GST compliance. The new system shall facilitate taxpayers in matching their records/invoices vis a vis issued by their suppliers for availing the correct Input Tax Credit (ITC). This facility is set to transform the way businesses manage their GST obligations, reducing errors, and saving time and resources.
2.3 Advisory for Archival of GST Returns data on GST Portal
(Advisory dated 24/09/2024)
1. Section 39 (11) of the CGST Act, 2017 , implemented w.e.f 01-10-2023 vide Notification No. 28/2023 – Central Tax dated 31th July, 2023, provides that 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.
2. Accordingly, on 01st August 2024 return filed for July 2017 has been archived and on 01st September 2024, data for August 2017 has been archived. Further, this data archival is going to be a monthly activity hence on 01st October, 2024 data of September 2017 shall be taken down from the GST portal and so on so forth.
3. Hence, hereby the taxpayers are advised to download their relevant data from the GST portal for any future reference, if required.
2.4 Advisory on issuance of Notices/Orders without digital signatures of the issuing authorities
(Advisory dated 26/09/2024)
Doubts have been created regarding the validity of documents issued by the tax officers on the common portal viz. SCN/Orders without the Digital signatures on the pdf, document downloaded from the common portal. In this context, it is to be mentioned that such documents are generated on the common portal from the login of the officer, who logs in through Digital Signatures.
2.5 Advisory on Restoration of GST Returns data on Portal
(Advisory dated 29/09/2024)
Advisory issued on 24th September, 2024 regarding the archival of return data from the Common Portal after seven years. This data was archived in line with data archival policy. Data archival process was implemented on a monthly basis. Consequently, the return data for July, 2017 and August, 2017 was archived on 01st August and on 01st September respectively.
However, in view of the requests received from the trade due to the difficulties faced, data has been restored back on the portal. We recommend you to download and save the data if needed, as the archival policy shall be implemented again after giving advance information.
3. Judicial Pronouncements
3.1Where assessee had availed ITC from suppliers whose registration was cancelled retrospectively, since impugned order confirming demand did not specify if such suppliers of assessee had not paid taxes or had not filed returns at material time and impugned order was passed mechanically, same was to be set aside and matter was to be remanded: High Court of Delhi
(Hanuman Industrial Corporation vs. Government of NCT of Delhi; 31/07/2024)
Show cause notice was issued to assessee alleging that assessee had availed ITC from suppliers who had not paid tax on their outward supplies. Assessee responded to said notice stating that assessee had received supplies from suppliers in question and had paid entire amount due to them. It was asserted that said suppliers were duly registered with GST authorities at material time and GST portal reflected that they had paid taxes on supplies. Impugned order was passed confirming demand.
It was held that “Contentions of assessee was considered and impugned order was passed mechanically confirming liability without specifying if dealers had not paid taxes or had not filed returns at material time. There was no finding that suppliers from whom assessee had availed supplies during material time had not discharged their tax liability by depositing tax with government either in cash or by availing ITCs, as set out in section 16(2)(c). Impugned order was to be set aside and matter was to be remanded.”
3.2 Clauses (c) and (d) of section 17(5) are constitutionally valid; plain interpretation of said clauses does not lead to any ambiguity and, hence, question of reading down these provisions does not arise; question as to whether construction of immovable property carried out by an assessee amounts to plant is to be decided on its merit by applying functionality test: Supreme Court of India
(Chief Commissioner of CGST vs. Safari Retreats (P) Ltd.;03/10/2024)
Right of ITC is a creation of a statute, Legislature can always carve out exceptions to entitlement of ITC - No one can claim ITC as a matter of right unless it is expressly provided in statute. Immovable property and immovable goods for purpose of GST constitute a class by themselves. Clauses (c) and (d)of section 17(5) apply only to this class of cases. Clauses (c) and (d) of section 17(5) are constitutionally valid. Plain interpretation of these clauses does not lead to any ambiguity; hence, question of reading down these provisions does not aris. Question whether a mall, warehouse or any building other than a hotel or a cinema theatre can be classified as a plant within meaning of expression ‘plant or machinery’ used in section 17(5)(d) is a factual question which has to be determined keeping in mind business of registered person and role that building plays in said business. If construction of a building was essential for carrying out activity of supplying services, building could be held to be a plant and then, it is taken out of exception carved out by clause (d) of section 17(5) to sub-section (1) of section 16. To decide whether a building is a ‘plant’ for purposes of clause (d) of section 17(5) functionality test will have to be applied in each case, on facts.
3.3 Where GST Competent Authority had issued a show cause notice on assesse demanding certain amount on account of discrepancies in returns filed by assesse for financial years 2017-18 to 2022-23 and thereafter passed an order confirming demand raised in show cause notice, since impugned assessment order was passed even before period of 30 days mentioned in show cause notice had elapsed, there was violation of principles of natural justice and impugned order was to be set aside: High Court of Andhra Pradesh
(Avexa Corporation (P.) Ltd. vs. State of Andhra Pradesh; 19/08/2024)
Show cause notice was issued to petitioner after restoration of cancelled registration, pointing out discrepancy in returns filed and demanding tax amount. Order was passed after restoration of registration by Appellate Authority. Petitioner was not given adequate opportunity to file objections to show cause notice. Order was passed without giving 30 days time as stipulated in show cause notice. Order was passed on basis of letter seeking time for restoration of registration and not on objections to show cause notice. Order was passed without giving personal hearing.
It was held that, “Impugned order was to be set aside and Assessing Authority was directed to pass fresh order after giving 2 week’s time to petitioner to file objections and personal hearing.”
3.4 Notification issued by CBIC extending time limit for passing of order under section 73(9) without recommendation of GST Council was not in consonance with provisions of section 168A: High Court of Gauhati
(Jawahar Singh vs. Union of India; 13/09/2024)
Petitioner assailed action on part of CBIC in issuance of Notification No. 56/2023-CT, dated 28-12-2023 which extended time limit for passing of order under section 73(9) for financial year 2018-19 up to 30-4-2024 and for financial year 2019-20 up to 31-8-2024. Petitioner contended that said notification was issued without recommendation of GST Council which is mandatory requirement under section 168A.
It was held that, “Notification No. 56/2023 was not in consonance with provisions of section 168A. If said notification could not stand scrutiny of law, all consequential actions taken on basis of such notification would also fail.”
3.5 Where excess stock was found in inspection/search conducted at business premises of assessee and proceedings under section 130 of CGST Act was initiated, proceedings under section 73/74 of CGST Act should be pressed in service and not under section 130 of CGST Act; impugned orders were to be set aside: High Court of Allahabad
(Vijay Trading Company vs. Additional Commissioner; 20/08/2024)
An inspection/search under section 67 of CGST Act was conducted at business premises of assessee by SIB in which excess stock was found. Thereafter, proceedings under section130 of CGST Act had been initiated against assesse. Assessee submitted that stock was assessed on basis of eye measurement, actual weighment of stock was not done.
It was held that, “If excess stock is found, then proceedings under section 73/74 of CGST Act should be pressed in service and not proceedings under section 130 of CGST Act, read with rule 120 of GST Rules. Accordingly, impugned orders were to be set aside.”
3.6 Where Central authorities had already initiated proceeding in which assesse had duly participated, proceedings and order passed by State authorities subsequently in respect of same tax period and subject matter were to be set aside: High Court of Calcutta
(Baazar Style Retail Ltd. vs. Deputy Commissioner of State Tax)
Impugned show cause notice was issued for tax period April, 2018 to March,2019 under section 73 by State authorities and adjudication order passed under section 73(9)of WBGST Act. Demand order was also issued. Ground of assessee was that Central authorities had previously, in respect of same tax period and subject matter, initiated a proceeding by issuing a show cause-cum-demand notice and assessee had duly participated in said proceeding.
It was held that, “Taking note of provisions of section 6(2(b) of WBGST Act impugned show cause notice and order were to be set aside”
Disclaimer: “This material is intended to provide general information on particular subject(s) and is not an exhaustive treatment of such subject(s) or a substitute to obtaining professional service or advice. It is strongly recommended to seek professional advice before implementation of any of the aspects covered in the presentation.”)
Author can be reached at ca.hsinghal@gmail.com; +91 99172 11511
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