GST WEEKLY UPDATE : 51/2023-24 (17.03.2024)

1. GST Year End Check List for the year 2023-24:

1. Compliances for Annual Closure of Books of Accounts.

2.  File LUT for zero-rated supplies for F.Y .2024-25- Taxpayers are required to be submit Letter of Undertaking for undertaking zero-rated supplies i.e., EXPORT of goods or services or supply to SEZ Unit/Developers without payment of IGST every Financial Year. For F.Y. 2024-25, LUT is due to be filed latest by 31st March 2024 if you are engaged in zero-rated supplies or planning to do it.

3. Opt-in for GST Composition Scheme for F.Y. 2024-25 – If you wish to opt for Composition Scheme subject to the fulfillment of criteria and conditions for F.Y. 2024-25, last date to file CMP-02 is 31st March 2024.

4. Opt-in or out of QRMP for F.Y. 2024-25 Quarterly Return Monthly Payment or QRMP scheme under GST is a scheme introduced by the Government in its initiative to simplify compliance for taxpayers. In this scheme, registered persons having aggregate turnover up to Rs 5 Cr. are allowed to furnish their GST returns on a quarterly basis along with monthly payment of tax under QRMP Scheme. Last date to opt in or opt-out from the QRMP Scheme is 30th April 2023 for the financial year 2024-25.

5.  Declarations to be taken from Goods Transport Agency (GTA) for opting to pay GST under Forward Charge.

6. Reset Invoice Number Series

7.  Re-calculation of Aggregate Turnover of F.Y. 2023-24 for various compliances related to F.Y. 2024-25

8. Year-end reconciliation of Outward Supplies and Inward Supplies Following reconciliation at the year end are must:

 a. Turnover as per books of accounts vs turnover as per GST returns.

 b. Physical stock vs stock as per books of accounts – to identify shortages/ excess stock, if

 c. Closing balance of ITC as per books of accounts vs closing balance as per GST portal.

 d. Pending ITC not matched with GSTR-2B to be reconciled and then to be transferred in a separate ledger.

9. Yearly calculation of reversal of ITC as per Rule 42

2. GSTN: Now GST payments through UPI & Debit/Credit Cards are available in 15 states/UTs: The GSTN issued an Update dated March 11, 2024, stating that now you can make GST Payments through UPI & Debit/Credit Cards applicable in 15 States/UTs.

Here is the List of UTs:

Assam	Delhi	Goa
Gujarat	Haryana	Himachal Pradesh
Jharkhand	Karnataka	Kerala
Madhya Pradesh	Maharashtra	Odisha
Rajasthan	Tripura	Uttar Pradesh

This is applicable for all UPIs, Credit/Debit cards powered by Rupay, MasterCard, Visa and Diners via Kotak Mahindra Bank.

3.     The GSTN issued Advisory No. 627 dated March 12, 2024 on GSTR-1/IFF regarding the Introduction of New 14A and 15A tables.

It is informed to all taxpayers that as per Notification No. 26/2022 – Central Tax dated 26th December 2022 two new Table 14A and Table 15A have been introduced in GSTR-1 to capture the amendment details of the supplies made through e-commerce operators (ECO) on which e-commerce operators are liable to collect tax under section 52 or liable to pay tax u/s 9(5) of the CGST Act, 2017. These tables have now been made live on the GST common portal and will be available in GSTR-1/IFF from February 2024 tax period onwards. These amendment tables are relevant for those taxpayers who have reported the supplies in Table 14 or Table 15 in earlier tax periods.

Table 14A – Amended Supplies made through e-commerce operator (ECO) in GSTR-1

In this table, the supplier can amend the detail of original supplies that he has already reported in original table 14 under below two sections in earlier return periods.

1. 14(a) Liable to collect tax u/s 52(TCS)

2. 14(b) Liable to pay tax u/s 9(5)

Table 15A – Amended Supplies u/s 9(5) in GSTR-1/IFF

In this table, the e-commerce operator can amend the detail of original supplies that he has already reported in table 15 originally under following four sections in earlier return periods.

1. Registered Supplier and Registered Recipient (B2B)

2. Registered Supplier and Unregistered Recipient (B2C)

3. Unregistered Supplier and Registered Recipient (URP2B)

4. Unregistered Supplier and Unregistered Recipient (URP2C)

To view the table 14A/15A, taxpayer can navigate to Returns Dashboard > Selection of Period > Details of outward supplies of goods or services GSTR-1 > Prepare Online

Other Salient features: –

1. Amended taxable values will be auto-populated from table 14A(b) to Table 3.1.1(ii) of GSTR-3B.

2. Amended taxable value along with tax liabilities from all the four sections of table 15A i.e., B2B, B2C, URP2B and URP2C will be auto-populated to table 3.1.1(i) of GSTR-3B.

3. There will be no auto-population of e-invoice in Table -15A. E-invoices reported for 9(5) supplies will be populated in FORM GSTR-1 as per existing functionality. E-commerce operators are advised to examine and add such records in table 15A related to 9(5) supplies.

4. E-commerce operator shall report amendment of debit or credit notes related to such services notified u/s 9(5) in existing table 9C of GSTR-1/IFF.

Impact of new tables of ECO-Documents in GSTR-2B

For the ease of registered recipient who are making supplies through e-commerce operator, a new table “ECO – Documents (Amendment)” is being added in GSTR-2B. In this table, the registered recipient can view the amended document details of the supplies made through e-commerce operator on which ecommerce operator is liable to pay tax under section 9(5) of the Act.

The values will be auto populated from Registered Supplier and Registered Recipient (B2B) and Unregistered Supplier and Registered Recipient (URP2B) section of table 15A to this new ECO – Documents table of GSTR-2B.

To view the ECO-Documents (Amendment) table, taxpayer can navigate to Returns Dashboard > Selection of Period > Auto- drafted ITC Statement for the month GSTR 2B > View.

To view the records in ECO-Documents (Amendment) table, taxpayer can navigate to Returns Dashboard > Selection of Period > Auto- drafted ITC Statement for the month GSTR 2B > View > ECO Documents (Amendment)

Read more at: GSTN Advisory on GSTR-1/IFF: Introduction of New 14A and 15A tables

4.     AAR & Important Judgements:

(i) AAAR Regarding ITC is not available in relation to construction of immovable property which is further let out for commercial purpose:

(Applicant – Bathula Mahesh Babu)

AAAR, in the case of  In Re. Bathula Mahesh Babu [Appeal No. 04/WBAAAR/Appeal/2023 dated January 24, 2024] allowed the appeal filed by the Revenue Department, thereby holding that no ITC is allowed on Input Goods or Services in relation to construction of immovable property which is further let out for commercial purposes.

The West Bengal AAAR, in the case of Appeal No. 04/WBAAAR/Appeal/2023 held as under:

Observed that, clauses (c) and (d) of sub-section (5) of Section 17 of the Central Goods and Services Act, 2017 (“the CGST Act”) that ITC is not available with respect to works contract services or goods or services or both received for the construction of immovable property and, therefore would fall within the purview of blocked credit.

Further observed that, the explanation stated in clause (d) of Section 17 of the CGST Act, the credit is also blocked with respect to reconstruction, renovation, addition, alterations or repairs which are capitalized in the books of accounts.

Noted that, the condition of capitalization in the books of accounts, is only applicable with respect to reconstruction, renovation, additions, alterations or repairs to the immovable property.

Opined that, the ITC is blocked with respect to construction in all situations.

Held that, no ITC is available in relation to the construction of the warehouse which is further let out by the Applicant.

(ii) AAAR Regarding SERVICES PROVIDED BY FAIR PRICE SHOP TO THE STATE GOVERNMENT BY WAY OF SELLING KEROSENE OIL TO RATION CARD HOLDERS, EXEMPTED UNDER GST

(Applicant – CHANAKYA SAHA & GIRIRAJ TELECOM)

In this case, The appellant is in the business as a holder of a licence issued by the West Bengal Government, authorising him to carry on trade in Super Kerosine Oil, which is issued by the Department of Food and Supplies, Government of West Bengal. The applicant sought an advance ruling on the issue of whether the applicant, being a fair price shop, is liable to charge GST from the state government against the supply made by them.

The AAR held that no supply is made by the applicant to the state government. In the absence of any supply being made to the state government, no tax would be leviable, and thus no tax should be charged to the state government. The Authority clarified that other charges, such as dealer commissions, transport charges, stationery charges, and H&E losses, will be subject to GST because they are considered a part of the value of the supply under Section 9(1).

The appellant contended that the AAR erred in ruling that the appellant is not making any supply to the state government and therefore, no tax is to be charged to the state government. The AAR, while interpreting Section 2(93) of the said Act, erroneously interpreted that the applicant is engaged in supplying S.K. oil to the ration card holders as the monetary consideration against the sale of S.K. oil is received from the ration card holders only, who are purchasing the S.K. oil from the appellant’s fair price shop, and that no other monetary or non-monetary consideration is received for these transactions. The AAR had decided the instant ruling on some extraneous grounds without considering the facts of the instant case or giving any consideration to the submissions made by the appellant during the course of the hearing.

The AAAR ruled that the appellant is a fair price shop and is providing service to the state government by way of distributing S. K. Oil as an agent. It decided that the tax liability of the appellant while providing service to the state government is ‘NIL’ and the question of charging GST from the state government becomes inapplicable.

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.

THANKING YOU.