GST News: What You Need to Know in September 2023

The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. It has been in effect since July 1, 2017, and has undergone several changes and amendments since then. In this blog post, we will cover some of the latest GST news and updates that you should be aware of in September 2023.

Nitin Gadkari proposes 10% extra GST on diesel vehicles

One of the most controversial GST news in recent times is the proposal by Union Minister Nitin Gadkari to impose an additional 10% GST on diesel vehicles. He said that diesel vehicles create a lot of pollution and should be discouraged. He also said that he has a letter ready to submit to Finance Minister Nirmala Sitharaman on this matter.

However, he later clarified that there is no such proposal under active consideration by the government and that it was his personal opinion. He also said that he supports the automobile industry and wants to boost its growth.

The proposal has met with strong opposition from the automobile industry, which is already struggling with low sales and high taxes. Diesel vehicles account for about 30% of the total passenger vehicle sales in India. The industry fears that an additional 10% GST would further dampen the demand and hurt the sector.

GST Council fixes 28% tax on online gaming and casinos

Another important GST news is the decision by the GST Council to fix a 28% tax rate on online gaming and casinos. The Council also decided to levy GST on the full face value of bets or stakes placed by players, instead of the margin retained by operators.

The decision was taken at the 50th GST Council meeting held on July 11, 2023. The Council said that online gaming and casinos are akin to gambling and should be taxed at the highest rate. The Council also said that this would bring uniformity and clarity in the taxation of these activities across states.

The move is expected to generate more revenue for the government and curb tax evasion by operators. However, it may also have a negative impact on the online gaming industry, which is growing rapidly in India. The industry argues that online gaming is not gambling but a skill-based activity that requires talent and strategy.

GST amnesty schemes extended till June 30, 2023

The GST Council also announced several amnesty schemes for taxpayers who have not filed or furnished their GST returns or paid their dues for various periods. The schemes are aimed at reducing the compliance burden and encouraging voluntary disclosure by taxpayers. The schemes are valid till June 30, 2023, and offer various benefits such as reduced late fees, interest waivers, penalty reliefs, etc.

Some of the amnesty schemes are:

• For non-filers of GSTR-4 (composition scheme dealers) for the period from July 2017 to March 2022
• For non-filers of GSTR-9 (annual return) for FY 2019-20
• For non-filers of GSTR-10 (final return) for cancelled registrations
• For defaulters attracting Section 62 (best judgement assessment) for FY 2017-18 and FY 2018-19
• For revocation of cancelled registrations in REG-21

Taxpayers who wish to avail of these schemes should file or furnish their returns or pay their dues before June 30, 2023. They should also ensure that they comply with all other GST provisions and rules.

GSTR-9 and GSTR-9C filing facility for FY 2022-23 goes live

The GST portal has enabled the filing facility for GSTR-9 (annual return) and GSTR-9C (reconciliation statement) for FY 2022-23. Taxpayers who are required to file these forms can do so online using their login credentials.

GSTR-9 is a consolidated summary of all the monthly or quarterly returns filed by a taxpayer during a financial year. It contains details such as turnover, input tax credit, tax liability, etc. GSTR-9C is a statement of reconciliation between the audited annual financial statements and the GSTR-9 filed by a taxpayer. It also contains a certification by a chartered accountant or a cost accountant.

The due date for filing GSTR-9 and GSTR-9C for FY 2022-23 is December 31, 2023. However, taxpayers who have an aggregate turnover of up to Rs.5 crore in FY 2022-23 are exempted from filing GSTR-9C. They only need to file GSTR-9.

Automated return scrutiny module launched for FY 2019-20 onwards

The GST department has launched an automated return scrutiny module for FY 2019-20 onwards. The module aims to streamline the communication between GST officers and taxpayers regarding any discrepancies or errors in their GST returns.

The module will generate and send notices to taxpayers through the GST portal or email, asking them to explain or rectify the discrepancies or errors within 30 days. The notices will be issued in Form ASMT-10. The taxpayers can reply to the notices online using Form ASMT-11. The GST officers can then accept or reject the replies using Form ASMT-12.

The module will also generate and send summary reports to taxpayers through the GST portal or email, informing them about the outcome of the scrutiny. The reports will be issued in Form ASMT-13.

The module will cover various aspects of return scrutiny, such as mismatch between GSTR-1 and GSTR-3B, mismatch between GSTR-3B and GSTR-2A/2B, excess input tax credit claims, etc.

E-invoicing mandatory for taxpayers with Rs.5 crore+ turnover from August 1, 2023

The CBIC has notified the 6th phase of e-invoicing, making it mandatory for taxpayers with an aggregate turnover of more than Rs.5 crore in any financial year from 2017-18 onwards to issue e-invoices for their B2B supplies from August 1, 2023.

E-invoicing is a system of generating and reporting invoices electronically to a central portal called the Invoice Registration Portal (IRP). The IRP validates and registers the invoices and assigns them a unique Invoice Reference Number (IRN) and a QR code. The IRP also shares the e-invoice data with the GST portal and the e-way bill portal.

E-invoicing aims to standardize and digitize the invoicing process, reduce errors and frauds, improve compliance and transparency, and facilitate data exchange among various stakeholders.

Taxpayers who are required to issue e-invoices should ensure that they have the necessary software and systems in place to generate and report e-invoices to the IRP. They should also comply with all the e-invoicing rules and guidelines issued by the CBIC.

Time limit of 7 days to report old e-invoices deferred by three months

The GST department has deferred the time limit of 7 days to report old e-invoices on the IRP by three months. The new implementation date is yet to be announced.

Earlier, the department had issued an advisory on April 13, 2023, stating that taxpayers who are required to issue e-invoices should report them to the IRP within 7 days of invoice date from May 1, 2023. This was applicable for both current and old invoices.

However, due to technical issues and feedback from taxpayers, the department has decided to postpone this time limit for old invoices. Old invoices are those that were issued before the date of mandatory e-invoicing for a taxpayer but were not reported to the IRP within the prescribed time limit.

Taxpayers who have old invoices pending for reporting should wait for further instructions from the department on how and when to report them. They should also ensure that they report their current invoices within 7 days of invoice date as per the advisory.

Conclusion

These are some of the latest GST news and updates that you should know in September 2023. We hope that this blog post has helped you understand some of the important changes and developments in GST. If you have any questions or feedback, please feel free to leave a comment below.

Remember to regularly check for updates and consult with tax experts to ensure you're making the most of the latest GST developments. Your financial future depends on it!