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Latest GST News, Information, Notifications & Announcements [Period 02/07/24 to 08/07/24]

GST WEEKLY UPDATE :14/2024-25 (07.07.2024)

1. Enhancements to Address-Related Fields in GST Registration Functionalities (Jul 4th, 2024):

The Following enhancements have been made to address-related fields in the registration functionalities: New Registration, Amendment Application (Core & Non-Core), and Geocoding Business Addresses. These enhancements are based on the analysis of tickets and user feedback. The details are as follows:

1.  Update in Validations applicable while entering the address in address-related fields.

a.   Address is in India:

•    The fields PIN Code, State, District, and City/Town/Village are interlinked and must be selected from the autosuggestions.

•    For other fields, taxpayer in addition to alphanumeric values can add limited special characters such as Hyphen (-), Forward Slash (/), Ampersand (&), Comma (,), Apostrophes (‘), Hash(#), Period(.), Small Brackets (), Inverted Commas (“”), Colon (:), Semi Colon (;), Underscore (_) and Space. Other Special Characters are not allowed.

•    Additionally, special characters are not allowed at the beginning of the entry.

•    Example: When entering an address, you can input “123 Main St. #4, Apt (5A)” but not “#123 Main St.” as special characters like the hash(#) are not permitted at the beginning.

b.   Address is outside India:

•    Zip Code, State, District: Taxpayer would be able to enter all values other than special characters ` {}.

•    For other fields: Taxpayer can enter alphanumeric values and limited special characters such as Hyphen (-), Forward Slash (/), Ampersand (&), Comma (,), Apostrophes (‘), Hash(#), Period(.), Small Brackets (), Inverted Commas (“”), Colon (:), Semi Colon (;), Underscore (_) and Space. Other Special Characters are not allowed.

•    Additionally, special characters are not allowed at the beginning of the entry for fields other than zip code, district and State.

2.  Proper instructions have been added to address fields regarding input values that are allowed or not allowed for the specific field. When hovering over the icon, taxpayers would be able to view these instructions.

3.  The above changes would not impact data already saved in the system, even if it contains special characters that are no longer allowed. However, if a taxpayer is filing an amendment application and is editing the tab containing address details, the system would validate the address based on the above logic.

4.  The said changes have been made based on the tickets raised, wherein users were not aware of the characters allowed and not allowed in address fields or which fields are editable and which fields are to be selected from a drop-down menu only. One such specific case was when taxpayers were inserting a hash (#) at the beginning of the Building Number field. In such cases, the help desk or support team informed the taxpayer to remove the hash (#) character and submit the application again.

5.  The above changes are applicable to Normal Taxpayers – Regular, SEZ Unit, SEZ Developer, Composition, Input Service Distributer and Casual Taxpayers.

6.  In addition, the field of locality/sub locality is not mandatory

i.   If the Locality/Sub-locality field is left blank or is mapped to another Pin Code, the system displays the following warning messages: “Locality/Sub-locality does not match the Pin Code. Do you want to save the details?” or “You have not filled in Locality/Sub-locality. Do you want to save the details and proceed further?”

ii.   Example: If you enter Pin Code 123456 but leave the Locality/Sub-locality field blank, you will see the message: “You have not filled in Locality/Sub-locality. Do you want to save the details and proceed further?”

iii.   In such cases, to continue with the registration, click “YES” to proceed, and the system will allow you to move forward.

2. GSTN enabled new functionality on the GST portal to track the return filing status of registered persons on a financial year-wise:

New functionality has been enabled on the GST portal to track the return filing status of registered persons on a financial year-wise basis. Now, you can check the GST return filing status of taxpayers for the previous years as well, from 2017-18 to the present.

3. GSTN enabled option for Search Taxpayer through mobile number

The GSTN has enabled an option for Search Taxpayers through mobile numbers. 

To access this feature, follow these steps:

1.     Visit the official GST website at gst.gov.in.

2.     Navigate to the “Search Taxpayer” section.

3.     Select “Search Temporary ID.”

4.     Choose your state from the dropdown menu.

5.     Enter the mobile number associated with the taxpayer.

6.     Complete the CAPTCHA by typing the characters displayed in the image.

This streamlined process makes it easier than ever to find taxpayer information quickly and accurately!

4. Clarification on the Implementation of ICEGATE at non IT/ITES SEZs with effect from July 01, 2024

(i) ICEGATE shall be rolled out across all non-IT/ITES SEZs w.e.f. July 01, 2024. Accordingly, all stakeholders should be encouraged to use ICEGATE portal and discouraged to use SEZ-Online portal.

(ii) SEZ Units which migrate to ICEGATE w.e.f. July 01, 2024 shall be eligible to avail benefits under the RODTEP Scheme. Units filing the documents on SEZ-Online shall not be eligible to claim the said benefits.

(iii) On the requests received from various stakeholders, filing of documents by the units will also be allowed on SEZ-Online till July 15, 2024. However, it is clarified that no RODTEP benefits shall be available to such Units during the said period unless they migrate to ICEGATE.

(iv) It must be ensured that the Units which have once migrated to ICEGATE are not allowed to file documents on SEZ-Online portal again. However, the Development Commissioner may allow filing of documents/details to continue on SEZ-Online in respect of such modules which are not yet available on ICEGATE till the availability of the corresponding module(s) on ICEGATE.

(v) Bills of Entry (B/E) for clearance of goods imported prior to roll-out of ICEGATE for SEZs may continue to be filed on SEZ-Online, such imported goods having no footprint on ICEGATE. The “T” type B/E in ICEGATE meant for DTA clearance from trading/warehousing unit cannot be filed unless there is a corresponding “Z” type B/E, such details being mandatory.

(vi) Documents for clearance filed till June 30, 2024 [Bills of Entry (Import/DTA Sale), Shipping Bills, TR/PR, Zone to Zone Transfer) will be processed on SEZ-Online, as no record or footprint of goods imported would be available on ICEGATE.

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.

Big Tax Fraud: Rs 1,000 Crore Scam with Fake GST Bills

An extensive tax fraud scheme has been exposed in Kerala, as revealed by an investigation conducted by the GST Department. The probe, focusing on the scrap sector, brought to light fraudulent activities amounting to an estimated Rs 1,000 crore in business conducted through counterfeit GST (Goods and Services Tax) bills.

The state government is believed to have suffered losses of up to Rs 180 crore due to this deceitful operation, which was found to be prevalent in seven districts. Approximately 300 officials from the GST Department conducted inspections, uncovering the use of GST registrations under names unrelated to the sector.

During the inspections, officials discovered falsified bills and identified individuals who acquired deceptive registrations to engage in business using these fraudulent documents. The full extent of the fraud can only be determined once the perpetrators are thoroughly interrogated. There are indications that this may be one of the most significant GST scams in the state.

Latest GST News, Information, Notifications & Announcements [Period 16/01/24 to 22/01/24]

GST WEEKLY UPDATE : 43/2023-24 (21.01.2024)

  1. Advisory on introduction of new Tables 14 & 15 in GSTR-1:

As per Notification No. 26/2022 – Central Tax dated 26th December 2022 two new tables Table 14 and Table 15 were added in GSTR-1 to capture the details of the supplies made through e-commerce operators (ECO) on which e-commerce operators are liable to collect tax under section 52 of the Act or liable to pay tax u/s 9(5). These tables have now been made live on the GST common portal. These two new tables will be available in GSTR-1/IFF from January-2024 tax periods onwards.

These tables have now been made live on the GST common portal.

  1. Taxable value along with tax liabilities from all the above four sections i.e., B2B, B2C, URP2B and URP2C of table 15 will be auto-populated to table 1.1(i) of GSTR-3B.
  2.  There will be no auto-population of e-invoice in Table -15. E-invoices reported for 9(5) supplies will be populated in FORM GSTR-1 as per existing functionality. E-commerce operator are advised to examine and add such records in table 15 related to 9(5)

Step to report details in Table 14/15:

  1.  To view Table 14/15, taxpayer can navigate to Returns Dashboard > Selection of Period > Details of outward supplies of goods or services GSTR-1 > Prepare Online
  2. Taxpayers can access the Table 14(a) & 14(b) by clicking the Liable to collect tax u/s 52 (TCS) and Liable to pay tax u/s 9(5) respectively available at the top of table 14.
  3. Similarly, the different section of Table 15 can be accessed using the respective tab available at top of the table 15 page.

After adding the records taxpayers can file their GSTR-1 as per the existing process.

2.     Introduction of new table ECO-Documents in  GSTR-2B:

  1. The taxpayers are also being provided a facility to pass input tax credit (ITC) to the registered taxpayers who are receiving the supplies u/s 9(5) through Such ITC will be available to the registered recipient in newly introduce section in GSTR-2B. A new table “ECO – Documents” is being added under all other ITC section in GSTR-2B. In this table, the registered recipient can view the document details of the supplies received through e-commerce operator on which e-commerce operator is liable to pay tax under section 9(5) of the Act.
  2. The values will be auto populated from Registered Supplier and Registered Recipient (B2B) and Unregistered Supplier and Registered Recipient (URP2B) section of table 15 to this new ECO – Documents table of GSTR- 2B.
  3. To view the ECO-Documents 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 table, taxpayer can navigate to Returns Dashboard > Selection of Period > Auto- drafted ITC Statement for the month GSTR 2B > View > ECO Documents.

3.     Advisory on Payment through Credit Card (CC)/Debit Card (DC) and Unified Payments Interface (UPI)(19/01/2024)

To facilitate the taxpayer registered under GST with more methods of payment, two new facilities of payment have now been provided under e-payment in addition to net-banking. The two new methods are Cards and Unified Payments Interface (UPI). Cards facility includes Credit Card (CC) and Debit Card (DC) namely Mastercard, Visa, RuPay, Diners(CC only) issued by any Indian bank.

Advisory on Payment through Credit Card (CC)/Debit Card (DC) and Unified Payments Interface (UPI) To facilitate the taxpayer registered under GST with more methods of payment, two new facilities of payment have now been provided under e-payment in addition to net-banking. The two new methods are Cards and Unified Payments Interface (UPI). Cards facility includes Credit Card (CC) and Debit Card (DC) namely Mastercard, Visa, RuPay, Diners(CC only) issued by any Indian bank. Payment through CC/DC/UPI can be made through Kotak Mahindra Bank irrespective of CC/DC issued by any Indian bank. Other banks are in the process of integration. At present the facility is available in 10 states and remaining states are expected to join soon.

Quick Steps are as follows:

4.     CBIC announces exclusive Customs Duty Payments on New ICEGATE Portal from January 14, 2024

As of January 14, 2024, the CBIC has implemented changes on the official ICEGATE website. Customs Duty and other payments can now be processed exclusively on https://www.icegate.gov.in/, with the discontinuation of these services on the older platform, https://old.icegate.gov.in/. Notably, modifications have been made solely to the E-payment User Interface, prompting the issuance of a new advisory. This update aims to provide users with clear step-by-step guidance for duty payments and other functionalities on the redesigned e-payment portal at the specified new website.

5.     GSTN enabled functionality to furnish Letter of Undertaking (LUT) for Financial Year 2024-25:

The Goods and Services Tax Network (GSTN) has enabled the functionality to furnish a Letter of Undertaking (LUT) for the Financial Year 2024-2025 on the GST Portal.

The completion of this task is mandatory by March 31, 2024, or before the supply for Exports and Special Economic Zones (SEZ). The previous Letter of Undertaking (LUT) remains valid until March 31, 2024.

6.     Kerala GST Department issued clarification and guidelines for filing appeals in absence of the GST Appellate Tribunal Circular No. 01/2024 dated January 11, 2024.

Sub-section (1) of Section 112 of CGST/SGST Act provides that any person aggrieved by an order passed against him under section 107 or 108 of the Act may file an appeal to the Appellate Tribunal against such order within three months from the date on which the order sought to be appealed against is communicated to him. As the constitution of the said GST Appellate Tribunals is not finalized yet, the appeal or application cannot be filed within the time limit specified in the said Section. In order to remove difficulties in filing the appeal under the said section, the Government, vide Notification S.R.O. No. 1024/2019 dated 31.12.2019 [Kerala State Goods and Services Tax (Eleventh Removal of Difficulties) Order 2019] clarified that for the purpose of calculating the “three months from the date on which the order sought to be appealed against is communicated to the person preferring the appeal” in sub-section (1) of section 112, the start of the three months period shall be considered to be the later of the following dates:-

(i) date of communication of order; or

(ii) the date on which the President of the Appellate Tribunal after its constitution under section 109, enters office;

Thus, as of now, the time limit specified to make application to the appellate tribunal is counted from the date on which the President or the State President enters office.

In the meantime, various complaints have been received from taxpayers that in cases where the decision in the appeal filed before the first appellate authority is against the taxpayers, the Department has initiated the recovery process, even though the taxpayer intends to file an appeal against the order of the first appellate authority before the Appellate Tribunal. It has also come to the notice of the undersigned that the appellate process is being kept pending by several Appellate Authorities as the Appellate Tribunal has not been constituted as if no remedy is available against their Appellate Orders.

This matter has been examined in detail. In order to clarify the issue and to ensure uniformity in the implementation of the provisions of the law across field formations, in exercise of the powers conferred u/s 168 of the KSGST Act, the following clarifications and guidelines are issued;

The appeal against the order passed by the first Appellate Authority under Section 107 of the Kerala SGST Act lies with the Appellate Tribunal. Relevant provisions for the same are mentioned in Section 112 (1) of the Kerala SGST Act which reads as follows:-

“Any person aggrieved by an order passed against him under section 107 or section 108 of this Act or the Central Goods and Services Tax Act may appeal to the Appellate Tribunal against such order within three months from the date on which the order sought to be appealed against is communicated to the person preferring the appeal.”

As mentioned in para 1 above, in the circumstances wherein the Appellate Tribunal has not been made functional, in order to remove difficulty arising in giving effect to the above provision of the Act, it has been clarified that the appeal to Appellate Tribunal can be made within three months (six months in case of appeals by the Government) from the date of communication of order or date on which the President of the Appellate Tribunal after its constitution under section 109, enters office, whichever is later.

Hence, as of now, the time limit specified to make an application to the Appellate Tribunal will be counted from the date on which the President of the Appellate Tribunal enters office. The Appellate Authority while passing an order may mention in the preamble that appeal may be made to the Appellate Tribunal within three months from the President of the Appellate Tribunal entering office. Accordingly, it is advised that the Appellate Authorities may dispose of all pending appeals expeditiously without waiting for the constitution and functioning of the Appellate Tribunal.

Regarding the recovery of arrears, after the disposal of appeal u/s 107, if any demand exists as a result of the Appellate Authority’s order, then in such cases taxpayer shall submit a declaration in Annexure-I before the DC/AC/STO of the arrear recovery wing of the district stating that he is proposing to file an appeal u/s 112(1) of the Kerala SGST Act against the order of Appellate Authority.

The Joint Commissioners of Taxpayer Services vertical are instructed to take necessary steps to inform the above guidelines to taxpayers under the respective districts at the earliest.

Difficulty, if any, in the implementation of this Circular may be brought to the notice of the office of the Commissioner of State Tax, Kerala.

This circular shall cease to have effect on the date when the President of the Appellate Tribunal enters office.

7.     AAR & Important Judgements:

(i) AAR On Lessor has to pay GST on rent if property is used for commercial purposes:

(Applicant – Deepak Jain] 

The Rajasthan bench of the Authority for Advance Rulings has held that GST (Goods and Services Tax) is applicable on the rent if a residential property is used for commercial purpose by a lessee (who is registered for GST purposes).

In the case of Deepak Jain (the applicant) who had leased out his property to a private limited company, which was engaged in back-office operations, the AAR observed that, up to July 17, 2022, renting of residential dwellings for use as a residence was exempt from GST, while renting for commercial use was taxable at 18%.

However, from July 18, 2022, the taxability of renting residential property underwent certain changes and services by way of renting of residential dwelling used as a residence is taxable under the reverse charge mechanism, if rented to a registered person.

In this case, the lease deed issued by the Jaipur Development Authority stipulated that the land use of the property is residential. However, the lease agreement entered into by Jain and the private company stipulated that the property would be used solely for commercial use. According to the AAR despite potential classification as residential by local authorities, the predominant commercial use becomes the determining factor for GST levy.

Renting for commercial use is taxable at 18% and the applicant will have to pay GST on forward charge basis.

Responding to the specific questions on which the advance ruling was sought the AAR held that the premises will not be covered in the definition of a residential dwelling, under the notification dated July 13, 2022, due to its commercial use. Further, the use and length of stay by the users determine the nature of the property.

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.

BMC’s Controversial Credit Note Policy: Under Scrutiny for Non-Payment of GST

The BMC’s controversial credit note policy, where payments to builders were made through credit notes worth Rs 450 crore for construction of 35,000 project-affected persons’ (PAP) tenements, is under the scanner for non-payment of GST.

Central GST sources said the BMC issued credit notes to builders. The builders sold these to others, including prominent city developers, who used them to settle their civic dues. Officials said they learnt that no GST was paid on these transactions. “They were commercial transactions involving negotiable instruments (credit note), which attract GST of up to 18%. They are being investigated,” said a GST source.

A BMC officer said he wasn’t aware of the GST issue, and that the onus of making such payments was on the builders. “There was some departmental issue, after which it was decided that the finance department will issue the credit note in digital form. The PAP scheme is good for the city, where we are constructing houses to settle people close to their areas, which help us clear the hurdles created by their structures for infrastructure projects.”

Unwilling to break its fixed deposits to pay for the PAP projects, the BMC had introduced the credit note policy during the pandemic. It asked developers to purchase land, build houses and hand them over to it. In lieu of the payments, the BMC issued credit notes to the developers along with the transfer of development rights. The developers could sell these credit notes to other builders to recover their expenses for a profit. The credit notes could be used only to settle the BMC’s tax and FSI premium payments. But, no construction was initiated after the credit notes were issued.

The policy was controversial from the get-go. An internal BMC note shows that the chief accountant (finance) had said that credit notes be printed in Government of India Press to avoid legal issues. The BMC, while rejecting the CA’s objection, said, “The condition of printing the credit notes from Indian Security Press, Government of India, was neither included in the basic e-tender nor included during the scrutiny by CA (finance) at the time of obtaining approval of the improvement committee/corporation.” Later, the BMC decided to digitise the credit notes.

There was a legal hurdle, too, as there was no provision for such a policy in Maharashtra Regional and Town Planning Act. But, the state urban development department allowed it, citing MMRDA’s precedent to settle PAP.

Latest GST News, Information, Notifications & Announcements [Period 21/11/23 to 27/11/23]

GST WEEKLY UPDATE : 35/2023-24 (26.11.2023)

  1. E-Waybill System: Advisory on verification of transporter Id (TRANSIN) in e-Waybills Date: 10-11-2023:

There are 3 categories of transporters in the e-Waybill System. They are:

  1. GST registered Transporters: In this category, the transporter gets registered in the GST Common portal and obtains a GSTIN number.
  1. Enrolled transporters: In this category, there are small transporters who want to do transport business but are not registered in GST Common portal and do not have the GST number. So, the transporter enrols himself in the e-waybill portal based on the PAN and obtains a TRANSIN that looks similar to a GSTIN number. They are called as Enrolled transporters.
  1. Common enrolled transporters: This is the third category of transporters. They are normal GST registered transporters having multiple GSTINs across different states. Such transporters move consignments with e-waybills which passes through multiple states. This involves transhipments and updating of transporter Id of the respective state for the e-waybills.

To ease the process of updating transporter Id, a common enrolment facility is provided in the e-waybill system as per Notification No. 28/2018 Dated 19th June 2018– Central Tax. In this, the GST registered transporters can club all their GSTINs and enrol for common enrolment so that they obtain an enrolment number that is similar to GSTIN but starting with 88 followed by the same PAN. For example, a GST Registered transporter may have GSTIN like 29ABCDE1234FX12, 27ABCDE1234FX13 etc. When they get common enrolled, they get a number 88ABCDE1234FX13. Transporters can use this number to update the transporter Id. This facility is provided so that as the goods move from one state to other state the transporter Id can be kept same instead of updating with GSTIN of transporters of their respective states.

After analysis it is observed that some of the ERP, GSP, ASP, SAP and other automated systems are not verifying the transporter Id of all the given types. This is affecting the business of some of the transporters. Some of the ERP/GSP/ASP/SAP systems are verifying only the ‘GST registered Transporters’ using the ‘Get GSTIN details’ API to verify the authenticity of the transporter ID. This API will return the status only for the GST registered transporters. For the enrolled and common enrolled transporters, the API will return as Invalid status. There is another API ‘Get TRANSIN details’ to verify the transporter id under the categories of ‘enrolled and common enrolled transporters.

Hence, it is requested to use the API ‘Get TRANSIN Details’ also, in addition to ‘Get GSTIN details’ API. As ERP system cannot distinguish between registered and enrolled transporter IDs, hence the ERP may be modified to first call the ‘Get GSTIN Details’ to verify the transporter Id and in case the status is invalid then call ‘Get TRANSIN details’ API before finally concluding the status of the transporter Id.

Details of APIs are given below:

PurposeAPIDescription
Verification of Tax PayersGet GSTIN DetailsURL : <url>/Master/Get GSTIN DetailsThis API is used to verify the GST Registered Taxpayers. For verifying the tax payer, the GSTIN may be passed to the API. The API will return the complete details of the GSTIN. If the GSTIN is not available, then an invalid status isreturned.
Verification of TransportersGet GSTIN DetailsURL : <url>/Master/Get GSTIN Details
Get TRANSIN DetailsURL : <url>/Master/Get Transporter Details		This API is used to verify the GST Registered Taxpayers, if he is Transporters. The API will return the complete details of the GSTIN. If the GSTIN is not available, then an invalid status is returned. Hence, the below given API may be called to check if the Id is valid.
This API is used to verify the Enrolled Transporters and Common Enrolled Transporters. This API accepts TRANSIN as input and returns the details of the transporters that are enrolled or common enrolled (having TRANSIN starting with 88). If the TRANSIN details are not returned by this API, then it may be confirmed that trans-id isnot available

Similarly, in e-Waybill Portal, two options to verify the GST taxpayers and transporters are provided under the Search option in the main menu.

1. Taxpayers: This option returns the details of the taxpayers registered under GST. The status of the enrolled and common enrolled transporters cannot be verified using this option.

2. Transporters: This options returns the details of the taxpayers registered under GST as well as the status of the enrolled and common enrolled transporters. So, for verifying the transporters, this option may be used instead of the previous one.

2. Notification pertain to biometric-based Aadhaar authentication, taking photograph of the applicant and verification of original copy of documents uploaded with the application of registration: biometric office addresses:

TABLE

SrNoJurisdictionAreaJurisdiction OfficesAddress of Facilitation Centre
(1)(2)(3)(4)
1Ahmedabad(Division 1 &Division 2)Unit 1 to Unit 11 (Ahmedabad)Unit 12 (Viramgam)Unit 13 to Unit 23 (Ahmedabad)Office of the ChiefCommissioner of State Tax, Ground Floor, Rajya Kar Bhavan, Ashram Road, Ahmedabad, PIN-380009
2Gandhinagar(Division 3)Unit 24, GandhinagarUnit 25, KalolUnit 26, HimmatnagarUnit 27 (Modasa)Unit 28 (Idar)Unit 29 (Prantij)Office of the Collector ofElectricity Duty, 7th Floor, Block No.18,Udyog Bhavan, Sector-11, Gandhinagar, PIN-382010
3Mehasana(Division 4)Unit 30 (Mehsana)Unit 31(Visnagar) Unit 32 (Vijapur)Unit 33 (Kadi)Unit 36 (Unjha)Shop no-1,2,3,4, First floor, JillaPanchayat Shopping Center, Toran vali mata chowk, Station Road,Mehsana, PIN-384001
Unit 34 (Palanpur)Unit 35 (Deesa)Unit 37 (Sidhhpur)Unit 38 (Patan)Topkhana Quarters No. 7 & 8,Besides Moti Bazar police station,Palanpur, PIN-385001
4Vadodara(Division 5 &Division 6)Unit 39 to Unit 45 (Vadodara)
Unit 48 & Unit 49 (Nadiad)Unit 50 & Unit 51 (Anand)		I Block, 2nd floor,Kuber Bhavan, Kothi Compound, Raopura,Vadorara, PIN- 390001
Unit 52 (Kapadwanj)
Unit 53 (Petlad)
Unit 54 (Khambhat)
Unit 55 (Bharuch)
Unit 56 (Ankleshwar)
Unit 46 (Godhara)Unit 47 (Dahod)Office of the AssistantCommissioner of State Tax- Unit-46,Opp. DSP Office, Civil Lines Road, Godhara, PIN-389001
5Surat(Division 7 &Division 8)Unit 57 to Unit 68 (Surat)Unit 69 (Vyara)Unit 72 (Navsari)Surat Urban DevelopmentAuthority,SUDA Bhavan, Vesu-Abhwa Road, Vesu,Surat, PIN-395007
Unit 70 (Valsad)Unit 71 (Bilimora)Unit 73 & Unit 74 (Vapi)2nd Floor, Taluka Seva Sadan, Opp. Bombay Restaurant, Balitha, NH-48,Vapi, PIN-396191
6Bhavnagar(Division 9)Unit 75 & Unit 76 (Bhavnagar)Unit 77 (Botad)Unit 78 (Mahuva)Unit 82 (Amreli)Unit 83 (Savarkundla)Office        of         the         JointCommissioner of State Tax, SRU, F-16, First Floor, Multi Storey Building, Near-Nilam baug Circle,Bhavnagar, PIN-364001
10Rajkot(Division 10)Unit 79 & Unit 80(Surendranagar) Unit 81 (Dhangdhra)Unit 88 to Unit 90 (Rajkot)Unit 92 & Unit 93 (Rajkot)Unit 94 (Gondal)Unit 95 (Jetpur)Unit 96 (Dhoraji)Unit 97 (Upleta)Industrial Training Institute (ITI-Disable),Behind B.T. Savani Kidney Hospital,Near Mahila I.T.I., University Road,Rajkot, PIN- 360005
11Junagadh(Division 11)Unit 84 & Unit 85 (Junagadh)Unit 86 (Porbandar)Unit 87 (Veraval)Unit 98 to Unit 100 (Jamnagar)Unit 101 (Jam-khambhalia)Office of CGST,Fourth Floor, Central Plaza, Madhuram bypass cross road, Junagadh, PIN-362015
12Gandhidham(Division 12)Unit 91 (Morbi)Unit 102 (Bhuj)Unit 103 (Gandhidham)Plot No-1,2,3, Sector-9C, Beside Nimaya Hotel, Opp. Gandhidham Bus Station, Gandhidham, PIN- 370207

3.     AAR & Important Judgements:

(i) AAAR On ITC ELIGIBILITY FOR CONSTRUCTION PROJECT, CENTRAL AIR CONDITIONING PLANT, LIFT ETC:

     (Applicant – Varachha Co-op. Bank Ltd)

Whether the appellant, having undertaken the construction of their new administrative office, will be eligible for the ITC of following:

  1. Central Air Conditioning Plant (Classified & Grouped under ‘Plant & Machinery’ )
  1. New Locker Cabinet (Classified & Grouped under ‘Locker Cabinets)
  1.  Lift (Classified & Grouped under ‘Plant & Machinery’)
  1.  Electrical Fittings, such as Cables, Switches, NCB and other Electrical Consumables Materials (Classified & Grouped under Separate Block namely ‘Electrical Fittings)
  1. Roof Solar (Classified & Grouped under ‘Plant & Machinery)
  1. Generator (Classified & Grouped under ‘Plant & Machinery’)
  1. Fire Safety Extinguishers (Classified & Grouped under Plant & Machinery’)
  1. Architect Service Fees (Charged to Profit & Loss Account)
  1. Interior Designing Fees (Charged to Profit & Loss Account)

Where AAAR held that, ITC is admissible on roof solar plant, except that ITC has not been eligible ITC of GST in view of the provisions of section 17(5)(c) & 17(5)(d) of the CGST Act, 2017.

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.

Attention, Composition Taxpayers under GST!

Composition Taxpayers under GST!

Composition Scheme is a simple and easy scheme under GST for taxpayers. Small taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of turnover. This scheme can be opted by any taxpayer whose turnover is less than Rs. 1.5 crore*. 

You can know whether a taxpayer opted for a composition scheme or not using the GST search tool. Enter any GSTIN and check the ‘Taxpayer Type’ column in the results to know whether the taxpayer is a regular taxpayer or opted for the composition scheme.

*CBIC has notified the increase to the threshold limit from Rs 1.0 Crore to Rs. 1.5 Crores.

Latest Updates

6th February 2023
Composition taxable persons and those interested to opt into the scheme for FY 2023-24 can do so by submitting a declaration on the GST portal in Form CMP-02 by 31st March 2023.

1st February 2023
Budget 2023 Update
Section 10 of the CGST Act has been amended*. Hence, businesses that supply goods through an e-commerce operator can opt for the composition scheme.

*Yet to be notified by CBIC.

5th July 2022
(a) The due date of GSTR-4 for FY 2021-22 is further extended by a late fee waiver up to 28th July 2022 vide Notification 12/2022 dated 5th July 2022. 
(b) The due date of CMP-08 for April-June 2022 is extended up to 31st July 2022 vide Notification 12/2022 dated 5th July 2022. 

26th May 2022
As per the CGST Notification no.7/2022 dated 26th May 2022, the late fee has been waived for the delay in filing GSTR-4 for FY 2021-22, if it is filed between 1st May and 30th June 2022. 

24th February 2022
Composition taxable persons and those interested to opt into the scheme for FY 2022-23 must submit a declaration on the GST portal in Form CMP-02 by 31st March 2022. 

28th May 2021
As per the outcome of the 43rd GST Council meeting and CBIC notification, 
(1) Interest relief has been provided for filing of CMP-08 for Jan-March 2021 quarter as per which, for any delay, interest is not charged until 3rd May, whereas 9% of reduced interest will be charged if filing is done thereafter until 17th June, and 18% later on.
(2) The due date to file GSTR-4 for FY 2020-21 is extended up to 31st July 2021.
(3) The maximum late fee for GSTR-4 that can be charged will be restricted to Rs.500 per return for nil filing and Rs. 2000 for other than nil filing.

1st May 2021
(1) The due date to file GSTR-4 for FY 2020-21 was extended from 30th April 2021 to 31st May 2021.
(2) Form CMP-08 that was due by 18th April 2021 for January-March 2021 has been given a relaxation in the interest charges. No interest for filing on or before 8th May, interest reduced to 9% between 9th May and 23rd May, but charged at 18% thereafter.
(3) The time limit to file ITC-03 by newly opted composition taxable persons for FY 2021-22 is extended up to 31st May 2021.

Who can opt for Composition Scheme

A taxpayer whose turnover is below Rs 1.5 crore* can opt for Composition Scheme. In case of North-Eastern states and Himachal Pradesh, the limit is now Rs 75* lakh. As per the CGST (Amendment) Act, 2018, a composition dealer can also supply services to an extent of ten percent of turnover, or Rs.5 lakhs, whichever is higher. This amendment will be applicable from the 1st of Feb, 2019. Further, GST Council in its 32nd meeting proposed an increase to this limit for service providers on 10th Jan 2019*. Turnover of all businesses registered with the same PAN should be taken into consideration to calculate turnover.

*CBIC has notified the increase to the threshold limit from Rs 1.0 Crore to Rs. 1.5 Crores.  

Who cannot opt for Composition Scheme

The following people cannot opt for the scheme-

  • Manufacturer of ice cream, pan masala, or tobacco
  • A person making inter-state supplies
  • A casual taxable person or a non-resident taxable person

What are the conditions for availing Composition Scheme?

The following conditions must be satisfied in order to opt for composition scheme:

  • No Input Tax Credit can be claimed by a dealer opting for composition scheme
  • The dealer cannot supply goods not taxable under GST such as alcohol.
  • The taxpayer has to pay tax at normal rates for transactions under the Reverse Charge Mechanism
  • If a taxable person has different segments of businesses (such as textile, electronic accessories, groceries, etc.) under the same PAN, they must register all such businesses under the scheme collectively or opt out of the scheme.
  • The taxpayer has to mention the words ‘composition taxable person’ on every notice or signboard displayed prominently at their place of business.
  • The taxpayer has to mention the words ‘composition taxable person’ on every bill of supply issued by him.
  • As per the CGST (Amendment) Act, 2018, a manufacturer or trader can now also supply services to an extent of ten percent of turnover, or Rs.5 lakhs, whichever is higher. This amendment will be applicable from the 1st of Feb, 2019.

How can a taxpayer opt for composition scheme?
To opt for composition scheme a taxpayer has to file GST CMP-02 with the government. This can be done online by logging into the GST Portal. This intimation should be given at the beginning of every Financial Year by a dealer wanting to opt for Composition Scheme. Here is a step by step Guide to File CMP-02 on GST Portal.

How Should a Composition Dealer raise bill?
A composition dealer cannot issue a tax invoice. This is because a composition dealer cannot charge tax from their customers. They need to pay tax out of their own pocket. Hence, the dealer has to issue a Bill of Supply. The dealer should also mention “composition taxable person, not eligible to collect tax on supplies”  at the top of the Bill of Supply.

What are the GST rates for a composition dealer?

Following chart explains the rate of tax on turnover applicable for composition dealers :

As per notification dated 01.01.2018, turnover in case of traders has been defined as ‘ Turnover of taxable supplies of goods’.

How should GST payment be made by a composition dealer?
GST Payment has to be made out of pocket for the supplies made. The GST payment to be made by a composition dealer comprises of the following:

GST on supplies made.
Tax on reverse charge
Tax on purchase from an unregistered dealer*
*Only on the specified categories of goods and services and well as the notified class of registered persons with effect from 1st Feb 2019 but is yet to be notified. Hence, not applicable until then.

What are the returns to be filed by a composition dealer?

A dealer is required to pay tax in a quarterly statement CMP-08 by 18th of the month after the end of the quarter. Also, a return in form GSTR-4 has to be filed annually by 30th April of next financial year from FY 2019-20 onwards. GSTR-9A is an annual return to be filed by 31st December of the next financial year. It was waived off for FY 2017-18 and FY 2019-20. Also, note that a dealer registered under composition scheme is not required to maintain detailed records.

What are the advantages of Composition Scheme?

The following are the advantages of registering under composition scheme:

  • Lesser compliance (returns, maintaining books of record, issuance of invoices)
  • Limited tax liability
  • High liquidity as taxes are at a lower rate

What are the disadvantages of Composition Scheme?

Let us now see the disadvantages of registering under GST composition scheme:

Here is a video to understand about composition scheme under GST

GST Updates: Geocoding for Additional Places of Business, Application Status Tracking, E-Invoicing Clarifications, and Important AAR Decisions

1. Advisory: Gecoding Functionality For The Additional Place Of Business:

  • GSTN is pleased to inform that the geocoding functionality for the “Additional Place of Business” address is now active across all States and Union Territories. This builds upon the geocoding functionality earlier implemented for the principal place of business, operational since February 2023.
  • To date, over 2.05 crore addresses have been geocoded for both principal and additional places of business by GSTN. Moreover, since March 2022, all new addresses are geocoded at the point of registration, ensuring consistent accuracy and standardisation from the beginning.
  • Here is a brief guide on how to utilize this feature:
  1. Access: Navigate to Services>>Registration>>Geocoding Business Addresses tab on the FO portal to find this functionality.
  2. Usage: The system will display a system-generated geocoded address. You have the option to accept this or modify it as needed. If a system-generated address is not available, you can input the geocoded address directly.
  3. Viewing: Saved geocoded address details can be found under the “Geocoded Places of Business” tab. After logging in, go to My Profile >> Geocoded Places of Business.
  4. One-time Submission: This is a one-time activity, and post-submission, address revisions are not permitted. Taxpayers who have already geocoded their addresses through new registration or core amendment would not be required to do this as on the GST portal their address will be shown as geocoded. Remember, changes to the address on your registration certificate can only be made through the core amendment process. This geocoding feature will not affect previously saved addresses.
  5. Eligibility: This feature is accessible to normal, composition, SEZ units, SEZ developers, ISD and casual taxpayers whether they are active, canceled, or suspended.

2. GSTN introduces “Track Application Status” tab in GST registration process:

The Goods and Services Tax Network (“GSTN”) has now added a new ‘Track Application Status’ tab to the GST registration process. When a person needs to file further clarifications, they can log in with their Temporary Reference Number (“TRN”) and access this tab. In the past, tracking the application status had to be done separately from the Registration Dashboard on the GST Portal.

 3. Clarification on E-invoicing for Government supplies:

  • GST Policy Wing has issued the clarification on the applicability of the e-invoicing to the supplies made to the Government departments or agencies, through Circular No. 198/10/2023-GST dated: 17.07.2023.
  • Government departments or establishments / Government agencies / local authorities / PSUs, which are required to deduct tax at source as per provisions of section 51 of the CGST/SGST Act, are liable for compulsory registration in accordance with section 24(vi) of the CGST Act. Therefore, Government departments or establishments / Government agencies / local authorities / PSUs, registered solely for the purpose of deduction of tax at source as per provisions of section 51 of the CGST Act, are to be treated as registered persons under the GST law as per provisions of clause (94) of section 2 of CGST Act. Accordingly, the registered person, whose turnover exceeds the prescribed threshold for generation of e-invoicing, is required to issue e-invoices for the supplies made to such Government departments or establishments / government agencies / local authorities / PSUs, etc under rule 48(4) of CGST Rules.
  • It is advised hereby that the tax payers, notified for generation of e-invoices and supplying goods or services to government departments / agencies, need to generate B2B e-Invoices with the GSTIN of the Government department / agency.

4. 30-Day E-Invoice Deadline for GST: New Rule from November 1:

  1. 30-Day E-Invoice Deadline: For the first time, a strict deadline of 30 days for issuing e-invoices under GST will be enforced. This deadline applies specifically to taxpayers with an annual turnover exceeding Rs. 100 crore. After the 30-day window, taxpayers falling into this category will no longer be able to generate e-invoices. Failure to issue the e-invoice within this timeframe will render the transaction invalid, and recipients of goods and services will not be eligible for input tax credit.
  2. Mandatory Compliance: Previously, there was an advisory suggesting that invoices be registered within a certain time frame, but it was not obligatory. Now, compliance with the 30-day deadline has become mandatory on the GST e-invoice portal. This change is aimed at ensuring that businesses promptly issue e-invoices and comply with the GST regulations.
  3. Two-Factor Authentication: Another significant update is the implementation of two-factor authentication for taxpayers. To access the portal and conduct transactions, users will need to provide additional verification beyond their ID and password. Specifically, an OTP (One-Time Password) will be required along with the standard login credentials. This extra layer of security is intended to safeguard taxpayer information and protect against unauthorized access.
  4. Applicability of Two-Factor Authentication: The two-factor authentication requirement will come into effect from November 1, but it will apply to taxpayers with a turnover exceeding Rs. 20 crore. This authentication process is primarily utilized in the e-invoice and e-way bill systems, which are crucial components of the GST framework.

5. AAR & Important Decisions:

(i) AAR On Classification of Film Distribution Rights:

(Applicant – Sri Nagaraju Jayanna)

Sri NagarajuJayanna, a partner of M/s J B Exhibitors, filed an application for Advance Ruling under Section 97 of the CGST Act, 2017, and KGST Act, 2017. The application aimed to determine the proper classification of licensing services for the right to exhibit original films, sound recordings, radio, and television programs.

The applicant, who is primarily involved in the exhibition of movies in theaters, sought to expand into the film distribution business. The key question for this Advance Ruling was whether these licensing services should be classified under SAC 997332 or SAC 999614.

SAC 997332: This classification pertains to licensing services for the right to broadcast and show original films, sound recordings, radio, and television programs. It includes rights to reproduce, distribute, or incorporate entertainment, such as broadcasting and showing original films.

SAC 999614: This classification covers motion picture, videotape, and television program distribution services. It includes distribution of audiovisual works, granting permission to exhibit, broadcast, and rent audiovisual works that are protected by copyright.

The applicant argued that their service should be classified under SAC 997332, emphasizing that the distribution of film rights is widespread in India under this category. However, the ruling authorities examined the relevant SACs and their explanatory notes.

The ruling authorities concluded that the applicant’s licensing services, which grant exhibitors permission to show films in theaters, align more closely with SAC 999614. This classification includes distribution of audiovisual works and explicitly addresses the transaction between distributors and exhibitors. Therefore, the ruling upheld the classification under SAC 999614.

The recent ruling by the Authority for Advance Ruling in Karnataka has clarified the GST classification of licensing services for film distribution rights intended for exhibition in theaters. According to the ruling, such services fall under SAC 999614, which is specific to motion picture, videotape, and television program distribution services.

Sections 13(8)(B) And 8(2) Of The IGST Act Reviewed By The Bombay High Court

Facts 

The petitioners in both the petitions primarily challenge the constitutional validity of the provisions of Section 13(8)(b) of the Integrated Goods and Services Tax Act, 2017.

In Writ Petition, there is an additional prayer assailing the constitutional validity of Section 8(2) of the IGST Act. The petitioners have commonly contended that the impugned provisions are violative of Articles 14, 19, 245, 246, 246A, 248, 265, 269A, and 286 of the Constitution. 

Submission 

Advocate Bharat Raichandani and Advocate Abhishek Rastogi, appearing for the petitioners contended that Section 13(8)(b) of the IGST Act read with Section 2(13) and 2(6) to the extent, these provisions seek to levy GST on services provided by the petitioners to its overseas customers, which are consumed by such customers/ recipients outside India, by fiction of law as created by these provisions are treated as intra-state supply making GST leviable on such export of service, under the CGST Act and MGST Act. 

They submitted that these provisions are violative of the provisions of Article 246A read with Articles 269A and 286 of the Constitution this more particularly when the nature of the transaction entered by the petitioner with overseas customers is not in dispute and in fact, is accepted by the respondent in the reply affidavit.

Additional solicitor General, submitted that the case of the petitioners is premised on the plea that service rendered by them amounts to “export of services”, and that “export of services”, is not taxable and hence the levy on the petitioners as supplier of intermediary services is invalid.

He submitted that such contention is not tenable, as on a plain reading of the averments as made in the petition and the supporting agreements produced therewith would show that the respondents’ case that the services being rendered by the petitioner take place entirely in India, hence, there is no export of service.

AGP, Jyoti Chavan, appearing for the State Government contended that the principal foreign company had entered into an Agency Agreement with the petitioner, as such foreign party was desirous of selling the goods in India. 

She submitted that the commission payable to the petitioner is for a particular item, contract, or buyer, and it may change from time to time by mutual consent, which is also clear from the facts that the invoices raised by the petitioner would show that the petitioner is entitled to commission as per the orders placed by the Indian customers and therefore, the petitioner’s commission depends upon the orders placed by the Indian Customers and thus the services rendered by the petitioner are of the peculiar nature and, therefore, under Section 2(13) of the IGST Act, the petitioner has been classified as “Intermediary”.

Decision 

The single judge bench of Justice G. S. Kulkarni said that the contention as urged on behalf of the State Government that because the foreign exporter sells its goods to the Indian importer and which is as a consequence of the services provided by the exporter of service, it needs to be accepted that the transaction of export of service changes its character as a intra-State transaction, is untenable.

The court added that such contention cannot be accepted on the interpretation of the provisions of the Constitution or on the interpretation of the provisions of IGST Act as discussed in detail in the foregoing paragraphs.

The court opined that the provisions of Section 13(8)(b) and Section 8(2) are confined in their operation to the provisions of IGST Act only and the same cannot be made applicable for levy of tax on services under the CGST Act and MGST Act, on such interpretation, the provisions are intra vires the Constitution, the IGST, the CGST and the MGST Acts. 

It was held by the court that the provisions of Section 13(8)(b) and Section 8(2) of the IGST Act are legal, valid and constitutional, provided that the provisions of Section 13(8)(b) and Section 8(2) are confined in their operation to the provisions of IGST Act only and the same cannot be made applicable for levy of tax on services under the CGST and MGST Acts.  

Case title: Dharmendra M. Jani v/s The Union of India and Ors. 

Citation: Writ Petition No.2031 Of 2018

Click here to read the Order/Judgment 

GST E-invoice Big update

For all B2B transactions, Selection of PoS State Code as ‘96- Other Country’ is enabled for HSN related to the Services by way of transportation of goods

The list of items should have only the items with HSNs belonging to 9965 and 9968

  1. With reference to the circular https://cbic-gst.gov.in/pdf/circular-
    184.pdf a new validation has been incorporated.
    For all B2B transactions, selection of PoS State Code as ‘96- Other
    Country’ is enabled for HSN related to the Services by way of
    transportation of goods, including by mail or courier .
    The list of items should have only the items with HSNs belonging to 9965
    and 9968
  1. For all transactions, the document date 01/10/2021 onwards only will
    be accepted.
  1. With reference to integration of GST Look Up System, a new Error code
    2295 is added for Duplicate requests apart from 2150. If an IRN is already
    generated with other IRP and the same request is again sent to NIC-IRP,
    error code 2295 will be responded with description as “IRN is already
    generated and registered with GSTN Lookup Portal by other IRP”.
    Click on this link for more details: https://einv-apisandbox.nic.in/release-notes.html
UpdatesDownload

Latest GST News, Information, Notifications & Announcements [Period 24/01/23 to 30/01/23]

1. Advisory on facility of ‘Initiating Drop Proceedings’ of Suspended GSTINs due to Non-filing of Returns (24/01/2023):

Recently, a functionality of “Automated Drop Proceedings” of GSTINs suspended due to non-filing of returns has been implemented on the GST Portal. This functionality is available for the taxpayers who have filed their pending returns i.e. 6 monthly or 2 Quarterly returns.

  1. If such taxpayers have filed all their pending returns, the system will automatically drop the proceedings and revoke suspension.
  2. If the status of the GSTIN does not automatically turn ‘ACTIVE’, then taxpayers are advised to revoke the suspension once the due returns have been filed, by clicking on ‘Initiate Drop Proceeding’ for which navigation is as follows: “Log on to GST Portal > Services > User Services > View Notices and Orders > Initiate Drop Proceeding”
  3. In case the system does not automatically drop the proceedings or taxpayer is unable to revoke the suspension by clicking on ‘Initiate Drop Proceeding’, then taxpayer is advised to contact Jurisdictional Officer.

Note: This functionality is applicable to the taxpayers whose GSTINs have been suspended after 1st December, 2022.

  2.  GST tweets updated on cbic:

Read more at: NO LATE FEES IF THE GST REGISTRATION IS CANCELLED INCORRECTLY

4.   No Late fees to be charged if returns not filed due to cancellation of GST registration, which was restored subsequently in the case of M/s. Modicum Enterprise (OPC) Private Limited v. Deputy Commissioner of State Tax/Assistant Commissioner of State Tax Calcutta High Court:

  • Analysed Section 47 of the CGST Act and noted that, the provision deals with a person, who fails to furnish the returns either under Section 39 or Section 45 or Section 44.
  • Observed that, the Respondent did not state that the Appellant had failed to furnish its return within due date however, the reason for non-furnishing of returns was the cancellation of GST Registration on the ground that the Appellant is a non-existing dealer.
  • Noted that, the cancellation of Appellant’s GST Registration was restored by the Appellate Authority on the grounds that order was passed on a factually incorrect premise. Hence, the Appellant cannot be penalised by demanding late fee and Section 47 of the CGST Act cannot be attracted.
  • Held that, the demand of late fee of INR 5,000/- per return from the Appellant is without jurisdiction and not tenable in the eye of law.
  • Restrained the Respondent from demanding any late fee from the Appellant in respect of the returns, which the Appellant intend to file.
  • Directed the Respondent to render necessary assistance to the Appellant to facilitate the process of filing of return, so that the Appellant will be able to file the return without the payment of late fee within the period of three weeks.
  • Further directed the Respondent not to initiate any fresh proceeding for cancellation of the GST Registration on the ground of non-filing of the return.

Read more at: GSTN Issues Advisory on facility of ‘Initiating Drop Proceedings’ of Suspended GSTINs due to Non-filing of Returns

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.

How to register DSC with the GST Portal

How to register DSC with the GST Portal

In order to register DSC at the GST Portal, emSigner utility needs to be installed.

The utility can be downloaded from the Register DSC page. DSC registration is PAN based and only Class 2 and Class 3 DSC are accepted at the GST Portal. The DSC is mandatory in case Taxpayer is a Public Limited Company, Private Limited Company, Unlimited Company, Foreign Company, Limited Liability Partnership (LLP), Foreign Limited Liability Partnership and Public Sector Undertaking.

In order to register for DSC with the GST Portal, in case of New Registration Click on the REGISTER NOW link, then select the Temporary Reference Number (TRN) option, in the Temporary Reference Number (TRN) field, enter the TRN received, and Click on the proceed button. In the Mobile / Email OTP field, enter the OTP you received on your mobile number and email address. OTP is valid only for 10 minutes.

It is noteworthy that OTP sent to mobile numbers and e-mail addresses are the same. In case OTP is invalid, try again by clicking the Click here to resend the OTP link. The OTP will be received on the registered mobile number or e-mail ID again.

Enter the newly received OTP again. Then Click the Services, User Services, and Register / Update DSC command. In case of Existing Registration, Login to the GST Portal with valid credentials and go to the My Profile link. Click the Register/ Update DSC link.

The Register Digital Signature Certificate page is displayed. In the PAN of Authorized Signatory drop-down list, select the PAN of the authorized Signatory that you want to register. Select the I have downloaded and installed the signer checkbox, click on the Proceed button and Select the certificate. Click the Sign button.

A successful message that “Your DSC has been successfully registered” is displayed.

Thanks for reading my article “How to register DSC with the GST Portal“

Read more at : Is Transporter required to maintain any Records of Services of Transportation under GST?

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NEW GST RETURNS: (QRMP) Quarterly Return Monthly Payment Scheme

  • Introduction:

GST Council in its 42nd meeting held on 05.10.2020, had recommended that registered person having aggregate turnover up to five (5) crore rupees may be allowed to furnish return on quarterly basis along with monthly payment of tax, with effect from 01.01.2021.

  • Eligibility for the QRMP Scheme:

In terms of notification No. 84/2020- Central Tax, dated 10.11.2020, a registered person who is required to furnish a return in FORM GSTR-3B, and who has an aggregate turnover of up to 5 crore rupees in the preceding financial year, is eligible for the QRMP Scheme.

  • Non Eligibility for the QRMP Scheme:

In case the aggregate turnover exceeds 5 crore rupees during any quarter in the current financial year, the registered person shall not be eligible for the Scheme from the next quarter.

  • Exercising option for QRMP Scheme
  • a registered person can opt in for any quarter from first day of second month of preceding quarter to the last day of the first month of the quarter. Facility to avail the Scheme on the common portal would be available throughout the year.
  • Kindly note that: In order to exercise this option, the registered person must have furnished the last return, as due on the date of exercising such option.
  • Registered persons are not required to exercise the option every quarter.
  • Salient features of Quarterly Return filing & Monthly Payment of Taxes (QRMP) Scheme
  • Who can opt for the scheme:

Following registered person (hereinafter RP) can file quarterly returns and pay tax on monthly basis w.e.f. 01.01.2021 :


  • An RP who is required to file Form GSTR 3B with AATO of up to Rs 5 Cr. in the previous financial year is eligible. If AATO crosses Rs 5 Cr. during a qtr., RP will become in-eligible for the Scheme from next quarter.
  • Any person obtaining a new registration or opting out of Composition Scheme can also opt for this Scheme.
  • The option to avail this Scheme can be availed GSTIN wise. Therefore, few GSTINs for that PAN can opt for the Scheme and remaining GSTINs can remain out of the Scheme.
  • Changes on the GST Portal due to QRMP: 

For qtr. Jan., 2021 to March, 2021, all RPs whose AATO for the FY 2019-20 is up to Rs 5 Cr. and have furnished the return in Form GSTR-3B for the month of October, 2020 by 30th 2020, will be migrated by default in the GST system as follows:

Sl. No.Class of RPs with AATO ofDefault Return Option
1Up to Rs 1.5 Cr., who have furnished Form GSTR-1 on quarterly basis in current FYQuarterly
2Up to Rs 1.5 Cr., who have furnished Form GSTR-1 on monthly basis in current FYMonthly
3More than Rs 1.5 Cr. and up to Rs 5 Cr. in preceding FYQuarterly
  • When can a person opt for the scheme:
  • Facility can be availed throughout the year, in any quarter.
  • Option for QRMP Scheme, once exercised, will continue till RP revises the option or his AATO exceeds Rs 5 Cr.
  • RPs migrated by default can choose to remain out of the scheme by exercising their option from 5th, 2020 till 31st Jan., 2021.
  • Kindly note: The RPs opting for the scheme can avail the facility of Invoice Furnishing Facility (IFF), so that the outward supplies to registered person is reflected in their Form GSTR 2A & 2B.
  • Payment of tax under the scheme:
  • RPs (Registered Persons) need to pay tax due in each of first two months (by 25th of next month) in the Qtr, by selecting “Monthly payment for quarterly taxpayer” as reason for generating Challan.
  • RPs can either use Fixed Sum Method (pre-filled challan) or Self-Assessment Method (actual tax due), for monthly payment of tax for first two months, after adjusting ITC.
  • No deposit is required for the month, if there is nil tax liability.
  • Tax deposited for first 02 months can be used for adjusting liability for the qtr. in Form GSTR-3B and can’t be used for any other purpose till the filing of return for the qtr.
  • Applicability of Late Fee

Late fee is applicable for delay in furnishing of return / details of outward supply as per the provision of Section 47 of the CGST Act. Late fee would be the applicable for delay in furnishing of the said quarterly return / details of outward supply. It is clarified that no late fee is applicable for delay in payment of tax in first two months of the quarter.

also read Auto-population of E-invoice Details into GSTR-1

Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.