GST IMPORTANT UPDATES/ANNOUNCEMENTS FOR THE MONTH OF APRIL 2024
The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme
The Government’s RoDTEP scheme, aimed at reimbursing various embedded taxes and duties on exported products. Effective 11 March 2024, the scheme has been extended to Exports facilitated by Advance Authorization holders (excluding deemed exports) and EOUs. Key sectors such as Engineering, Textiles, Chemicals, Pharmaceuticals & Food Processing and many others stand to benefit from the measure. Additionally, there’s a commitment to extend this benefit to SEZ units, pending to the IT integration of SEZ with ICEGATE for seamless implementation.
Self-Activation for E-Invoicing
Taxpayers whose turnovers exceeded INR 5 crores in FY 2023-2024 are required to initiate e-Invoicing from April 1, 2024, or upon surpassing the threshold in subsequent years. Those who meet the criteria but are not yet registered can activate e-Invoicing themselves using the designated portals: e-Invoice IRP 3 to 6 or NIC IRP 1 & 2. Support is accessible through the GST Helpdesk at 1800-103-4786 or the Grievance Redressal Portal for problem resolution.
Reinitialization and Re-submission of GSTR-3B for certain taxpayers
Taxpayers have been notified about the opportunity to amend GSTR-3B returns due to disparities between saved and filed data in the GST system, particularly concerning Input Tax Credit (ITC) utilization and tax obligations. The Grievance Redressal Committee of the GST Council has opted to reset the affected returns for rectification. Only those taxpayers impacted received email alerts, urging them to complete the re-filing within a 15-day window. Support is available through jurisdictional tax officers or the GST grievance redressal portal for any challenges encountered during the re-filing process.
Auto-populate the HSN-wise Summary from E-Invoices into Table 12 of GSTR-1
GSTN has introduced a new functionality facilitating the automatic transfer of HSN-wise summaries from e-Invoices to Table 12 of GSTR-1 on the portal. This simplifies the process of incorporating HSN data directly from e-Invoices. Users are encouraged to cross-check the auto-populated data with their records before final submission. Any discrepancies or inaccuracies should be corrected manually or added to Table 12 prior to submission.
Other GST Updates
Extension of Due date of GSTR-1 for the period March 24: The government has extended the deadline for filing GSTR-1 for the month of March 2024 to April 12, 2024, for monthly taxpayers. This extension is in accordance with notification no. 09/2024 – central tax.
- Key Judicial Pronouncements/Highlights:
- The Madras High Court – The claim of Input Tax Credit (ITC) cannot be denied only because it was not claimed in the GSTR-3B returns. The High Court underscored the need for a thorough examination of all pertinent documents to ascertain ITC eligibility, rather than outright dismissal based on procedural shortcomings.
- Bombay High Court – SCN issued to the Taxation Manager under Section 73 of the CGST Act for the employers wrong availment of an input tax credit is bad and illegal in as much as it seeks to impose a penalty under Section 122(1A) read with Section 137 of the CGST Act.
- Madras High Court – GST is not leviable on hostel accommodation provided to college students and working women.
https://www.livelaw.in/pdf_upload/thai-mookambikaa-ladies-hostel-v-uoi-530545.pdf
- Bombay High Court – IGST is not leviable under the reverse charge mechanism on the importer in respect of services provided by a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India to the customs station of clearance in India.
- AAAR West Bengal – GST is leviable on corpus/ sinking fund and electricity charges recovered by a Residents Welfare Association from its members.
Notifications
- 07/2024 – Central Tax: The liability to pay interest on delayed payment of GST in Form GSTR-3B has been exempted for 4 specified GSTINs for the respective specified tax period/s.
- 08/2024 – Central Tax: Notification No. 04/2024-Central Tax had prescribed a special procedure to be followed by registered persons engaged in the manufacture of specified goods (such as pan masala and certain tobacco products). This procedure will now come into effect from 15 May 2024 as against 1 April 2024.
- 09/2024 – Central Tax & GSTN Advisory: For taxpayers filing monthly GST returns, the due date of filing Form GSTR-1 for March 2024 has been extended to 12 April 2024 (earlier 11 April 2024).
The Gross GST collections
- The Gross Goods and Services Tax (GST) collections hit a record high in April 2024 at Rs 2.10 lakh crore. This represents a significant 12.4% year-on-year growth, driven by a strong increase in domestic transactions (up 13.4%) and imports (up 8.3%).
- After accounting for refunds, the net GST revenue for April 2024 stands at Rs 1.92 lakh crore, reflecting an impressive 15.5% growth compared to the same period of 2023.
- Finance Minister attributed this surge to the strong momentum in the economy and efficient tax collections, with no dues pending on account of IGST (Integrated GST) settlement to the States.
- GST compensation cess collections also hit an all-time high of Rs 13,260 crore.
Introduced for five years to compensate States for revenue losses due to the 2017 switch to the GST regime, the cess is now being used to repay loans taken during the pandemic to compensate States amid a lockdown-triggered collapse in revenues. - Mizoram reported the highest growth at 52%, followed by Assam at 25%, and Delhi, Bihar, and Goa at 23% rise in revenues.
The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme
The Government’s RoDTEP scheme, aimed at reimbursing various embedded taxes and duties on exported products. Effective 11 March 2024, the scheme has been extended to Exports facilitated by Advance Authorization holders (excluding deemed exports) and EOUs. Key sectors such as Engineering, Textiles, Chemicals, Pharmaceuticals & Food Processing and many others stand to benefit from the measure. Additionally, there’s a commitment to extend this benefit to SEZ units, pending to the IT integration of SEZ with ICEGATE for seamless implementation.
Self-Activation for E-Invoicing
Taxpayers whose turnovers exceeded INR 5 crores in FY 2023-2024 are required to initiate e-Invoicing from April 1, 2024, or upon surpassing the threshold in subsequent years. Those who meet the criteria but are not yet registered can activate e-Invoicing themselves using the designated portals: e-Invoice IRP 3 to 6 or NIC IRP 1 & 2. Support is accessible through the GST Helpdesk at 1800-103-4786 or the Grievance Redressal Portal for problem resolution.
Reinitialization and Re-submission of GSTR-3B for certain taxpayers
Taxpayers have been notified about the opportunity to amend GSTR-3B returns due to disparities between saved and filed data in the GST system, particularly concerning Input Tax Credit (ITC) utilization and tax obligations. The Grievance Redressal Committee of the GST Council has opted to reset the affected returns for rectification. Only those taxpayers impacted received email alerts, urging them to complete the re-filing within a 15-day window. Support is available through jurisdictional tax officers or the GST grievance redressal portal for any challenges encountered during the re-filing process.
Auto-populate the HSN-wise Summary from E-Invoices into Table 12 of GSTR-1
GSTN has introduced a new functionality facilitating the automatic transfer of HSN-wise summaries from e-Invoices to Table 12 of GSTR-1 on the portal. This simplifies the process of incorporating HSN data directly from e-Invoices. Users are encouraged to cross-check the auto-populated data with their records before final submission. Any discrepancies or inaccuracies should be corrected manually or added to Table 12 prior to submission.
Other GST Updates
Extension of Due date of GSTR-1 for the period March 24: The government has extended the deadline for filing GSTR-1 for the month of March 2024 to April 12, 2024, for monthly taxpayers. This extension is in accordance with notification no. 09/2024 – central tax.
- Key Judicial Pronouncements/Highlights:
- The Madras High Court – The claim of Input Tax Credit (ITC) cannot be denied only because it was not claimed in the GSTR-3B returns. The High Court underscored the need for a thorough examination of all pertinent documents to ascertain ITC eligibility, rather than outright dismissal based on procedural shortcomings.
- Bombay High Court – SCN issued to the Taxation Manager under Section 73 of the CGST Act for the employers wrong availment of an input tax credit is bad and illegal in as much as it seeks to impose a penalty under Section 122(1A) read with Section 137 of the CGST Act.
- Madras High Court – GST is not leviable on hostel accommodation provided to college students and working women.
https://www.livelaw.in/pdf_upload/thai-mookambikaa-ladies-hostel-v-uoi-530545.pdf
- Bombay High Court – IGST is not leviable under the reverse charge mechanism on the importer in respect of services provided by a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India to the customs station of clearance in India.
- AAAR West Bengal – GST is leviable on corpus/ sinking fund and electricity charges recovered by a Residents Welfare Association from its members.
Notifications
- 07/2024 – Central Tax: The liability to pay interest on delayed payment of GST in Form GSTR-3B has been exempted for 4 specified GSTINs for the respective specified tax period/s.
- 08/2024 – Central Tax: Notification No. 04/2024-Central Tax had prescribed a special procedure to be followed by registered persons engaged in the manufacture of specified goods (such as pan masala and certain tobacco products). This procedure will now come into effect from 15 May 2024 as against 1 April 2024.
- 09/2024 – Central Tax & GSTN Advisory: For taxpayers filing monthly GST returns, the due date of filing Form GSTR-1 for March 2024 has been extended to 12 April 2024 (earlier 11 April 2024).
The Gross GST collections
- The Gross Goods and Services Tax (GST) collections hit a record high in April 2024 at Rs 2.10 lakh crore. This represents a significant 12.4% year-on-year growth, driven by a strong increase in domestic transactions (up 13.4%) and imports (up 8.3%).
- After accounting for refunds, the net GST revenue for April 2024 stands at Rs 1.92 lakh crore, reflecting an impressive 15.5% growth compared to the same period of 2023.
- Finance Minister attributed this surge to the strong momentum in the economy and efficient tax collections, with no dues pending on account of IGST (Integrated GST) settlement to the States.
- GST compensation cess collections also hit an all-time high of Rs 13,260 crore.
Introduced for five years to compensate States for revenue losses due to the 2017 switch to the GST regime, the cess is now being used to repay loans taken during the pandemic to compensate States amid a lockdown-triggered collapse in revenues. - Mizoram reported the highest growth at 52%, followed by Assam at 25%, and Delhi, Bihar, and Goa at 23% rise in revenues.
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