Category: CA Chandrasekhar Kutty. B.Com, F.C.A.

(Based on GSTN Advisory dated May 16, 2025)Key Highlights: Earlier Communication (April 11, 2025): GSTN had proposed to make Table 3.2 of GSTR-3B non-editable from the April 2025 return period (due in May 2025). Stakeholder Concerns: Numerous representations were received from taxpayers raising concerns about this change. These are currently under review. Interim Decision – Table 3.2 Remains Editable: GSTN has decided to keep Table 3.2 editable for now. Taxpayers are advised to: o Review the auto-populated values carefully, o Make necessary amendments, and o File returns with accurate and verified information. Next Steps:GSTN will issue a separate notification when the proposed non-editable feature is implemented.

In the case of Mukesh Kumar Garg In yet another writ petition pertaining to fraudulent availment of Input Tax Credit (ITC) to the tune of more than Rs. 115 crores, Delhi HC rules on misuse of ITC facility which “if permitted to continue, would create an enormous dent in the GST regime itself”; On nature of fraud, HC noticing serious allegations and  ‘complex maze of transactions’ carried out between various non-existent firms for the sake of fraudulent transactions, harps on how a large number of writ petitions have been filed on availment of fake ITC without supply of goods; Further holds that “Input Tax Credit… is meant as an incentive for businesses who need not pay taxes on the inputs, which have already been taxed at the source itself. The said facility, which was introduced…

As per the latest advisory from GSTN, the following critical points must be noted for refund applications under the categories of:  Export of Services with payment of tax  Supplies made to SEZ Unit/SEZ Developer with payment of tax  Refund by Supplier in case of Deemed Exports  ✅ Advisory Highlights:  Invoice-Based Filing:  The refund process has shifted from tax period-based to invoice-based filing. Taxpayers must upload eligible invoices as per the applicable statement:  Statement 2 – Export of Services with payment of tax  Statement 4 – SEZ Supplies with payment of tax  Statement 5B – Supplier of Deemed Exports  Locking of Invoices:  Invoices once uploaded with a refund application will be locked.  Amendments or reuse of these invoices in other refund claims is not allowed.  Invoices will be unlocked only if: …

GSTN advisory states that due to technical challenges in system development and testing, the implementation of invoice-wise reporting in Form GSTR-7 is slightly delayed from the original April 2025 timeline; However, assures that the enhanced functionality will be deployed soon and confirms that users will be notified once the changes go live on the portal: GSTN Advisory.

Subject: Grievance Redressal Mechanism for GST Registration Applications Background:This instruction supplements the earlier Instruction No. 03/2025 dated 17.04.2025, which provided guidelines for processing GST registration applications. Applicants often face issues such as arbitrary queries or unjustified rejection of registration applications, especially under Central jurisdiction. Key Highlights of the New Grievance Redressal Mechanism: 1. Applicability:• Applies to applicants whose Application Reference Number (ARN) is assigned to the Central jurisdiction.• Covers grievances regarding queries raised, grounds for rejection, or non-compliance with earlier instructions. 2. Grievance Redressal Procedure:• Designated Email ID:• Each CGST Zone (Principal Chief Commissioner/Chief Commissioner) will publicize a dedicated email ID for grievance submissions.• Applicants must send their grievance to this ID with the following details:• ARN• Jurisdiction (Centre/State)• Brief description of the issue• State Jurisdiction Cases:• If the grievance…

The key highlights are: 1. Break-up of Gross Collections: ComponentApr 2024 (₹ Cr)Apr 2025 (₹ Cr)GrowthCGST43,84648,634–SGST53,53859,372–IGST99,6231,15,259–Cess13,26013,451–Total2,10,2672,36,71612.6% 2. Net GST Revenue (after refunds): TypeApr 2024 (₹ Cr)Apr 2025 (₹ Cr)GrowthDomestic1,60,4961,76,4189.9%Imports31,33732,9585.2%Net Total1,91,8332,09,3769.1% 3. Refund Trends: Total refunds jumped by 48.3% YoY to ₹27,341 crore. Export-related refunds through ICEGATE increased by 86.1%. 4. State-wise Revenue Growth (YoY): High Performers: Arunachal Pradesh (66%), Meghalaya (50%), Nagaland (42%) Major Contributors: Maharashtra (₹41,645 Cr), Gujarat (₹14,970 Cr), Karnataka (₹17,815 Cr), Tamil Nadu (₹13,831 Cr) Decline in Revenue: Mizoram (-28%), Andhra Pradesh (-3%), Tripura (-7%)

The Ministry of Finance has firmly debunked recent misinformation suggesting that the Government is considering levying Goods and Services Tax (GST) on Unified Payments Interface (UPI) transactions above ₹2,000. In an official press release dated April 18, 2025, the Government stated that such claims are entirely false, misleading, and baseless. Currently, there is no proposal under consideration to impose GST on UPI transactions. GST is applicable only on specific service charges, such as the Merchant Discount Rate (MDR), but since January 2020, the MDR on Person-to-Merchant (P2M) UPI transactions has been completely removed via Gazette Notification dated December 30, 2019. As a result, no GST applies to these transactions either. To further promote the adoption of UPI and digital payments, the Government has introduced an Incentive Scheme targeting low-value P2M…

As per Instruction No. 03/2025-GST dated April 17, 2025 Introduction The Central Board of Indirect Taxes and Customs (CBIC) has issued comprehensive instructions to ensure standardized and efficient processing of GST registration applications. These guidelines are meant to prevent fraudulent registrations while ensuring ease of compliance for genuine taxpayers. They supersede Instruction No. 03/2023-GST and are to be followed strictly by all officers involved in registration processing. 1. Objective Standardize document verification procedures. Avoid undue harassment of genuine applicants. Prevent delays and speculative queries. Ensure timely processing of registration requests. 2. General Guidelines Officers must only seek documents as listed in FORM GST REG-01. Any additional document (outside prescribed list) must be sought only with prior approval from a Deputy/Assistant Commissioner. Presumptive or irrelevant queries are strictly prohibited. 3. Documentation…

The Bombay High Court at Goa, in its judgment dated 15th April 2025 in Writ Petition No. 723/2024, ruled in favor of Goa University and quashed a GST demand of ₹4.83 crore on affiliation fees collected from colleges. Key Points: Goa University had challenged:A show cause notice issued under Section 74 of the CGST Act.Two circulars issued by CBIC (dated 17.06.2021 and 11.10.2024). A press note based on recommendations of the 54th GST Council meeting. The University argued that:Affiliation fees are collected as part of its statutory duties under the Goa University Act, 1984.The activity is regulatory in nature and not commercial. Such services are exempt under GST Notification No. 12/2017. The GST department claimed:Affiliation fees are taxable services under GST. The exemptions apply only to services provided directly to…

Bombay High Court Judgment in Writ Petition No. 7135 of 2024 Case Title: M/s Shrinivasa Realcon Private Ltd. vs. Deputy Commissioner, Anti-Evasion Branch, CGST & Central Excise, Nagpur & Others Date of Judgment: 8th April 2025 The Bombay High Court at Nagpur allowed a writ petition filed by M/s Shrinivasa Realcon Pvt. Ltd., challenging a GST demand arising from a development agreement dated 07.04.2022. Key Points: The petitioner was appointed as a developer for constructing a multi-storied complex on land owned by a third party. The department issued a notice claiming GST under Entry 5B of the Notification dated 28.06.2017 (as amended by Notification dated 29.03.2019), treating the transaction as a “transfer of development rights (TDR).” The Court observed that the agreement did not involve any transfer or purchase of…

The GSTN has announced the rollout of Phase-III changes to Table-12 of GSTR-1 and GSTR-1A effective from the April 2025 tax period. The table will now be split into B2B and B2C sections, requiring separate HSN-wise reporting for each. Manual HSN entry will be discontinued, and taxpayers must select the appropriate HSN code from a system-generated dropdown. Advisory on Table-12 of GSTR-1 or GSTR-1A It to inform that GSTN has implemented phase wise changes in Table-12 of GSTR-1 or GSTR-1A. For the same various advisories have been issued time to time, which are available on GST Portal. GSTN is going to implement Phase-III of Table 12 of GSTR 1 & 1A from April, 2025 tax period onwards. Which implies: Table-12 has been bifurcated into two tables namely B2B and B2C,…

The GSTN has issued an advisory stating that, effective from the April 2025 tax period, Table 3.2 of GSTR-3B will be non-editable and auto-populated based on inter-state supplies reported in GSTR-1, GSTR-1A, or IFF. These values relate to supplies made to unregistered persons, composition taxpayers, and UIN holders. Any corrections must be made through amendments in the respective GST returns. Advisory on reporting values in Table 3.2 of GSTR-3B Table 3.2 of Form GSTR-3B captures the inter-state supplies made to unregistered persons, composition taxpayers, and UIN holders out of the supplies declared in Table 3.1  &  3.1.1  of  GSTR-3B.  The  values  in  Table  3.2  of  GSTR-3B  auto-populates  from corresponding inter-state supplies declared in GSTR-1, GSTR-1A, and IFF in requisite tables. It  is  to  inform  you  that  fromApril-2025  tax  period,inter-state  supplies …

Indian Medical Association v. Union of India & Ors. W.A. Nos. 1659, 1487 & 468 of 2024 | Judgment dated 11 April 2025 The Kerala High Court has allowed the writ appeal filed by the Indian Medical Association (IMA), Kerala State Branch, setting aside the judgment of the Single Judge that had upheld GST levy on services provided by associations to their own members. Key Highlights: The Court struck down the retrospective amendment introduced through Section 7(1)(aa) of the CGST Act, inserted by the Finance Act, 2021, which had sought to nullify the principle of mutuality. The amendment had deemed services rendered by a club or association to its members to be a taxable “supply”, retroactively from 01.07.2017. The Division Bench held that such deeming fiction violates the constitutional understanding…

GSTN informs that from June 01, 2025, Invoice Reporting Portal (IRP) will treat invoice/document numbers as case-insensitive for the purpose of Invoice Reference Number (IRN) Generation; Invoice numbers reported in any format (abc, ABC or Abc) will automatically be converted to uppercase before IRN generation; This development has been made to ensure consistency and to avoid duplication; GSTN further mentions “this change aligns with the treatment of invoice numbers in GSTR-1, which already treats them as case-insensitive”: GSTN Advisory http://mohansekhar.in/wp-content/uploads/Advisory_on_Case_Sensitivity_in_IRN_Generation.pdf

The CBIC has issued clarifications and FAQs regarding the revised GST treatment for restaurant services offered at “specified premises”, bringing a major shift in how hotel premises are classified and taxed. Here are the key takeaways every hotelier and restaurateur should know: 🍽️ What’s Changing? 🔹 ‘Declared Tariff’ Out, ‘Value of Supply’ In Starting FY 2025-26, a hotel will be classified as a “specified premises” based on actual transaction value (> ₹7,500/unit/day), not the published tariff. 🔹 GST Rate Difference • 18% GST with ITC at specified premises • 5% GST without ITC at other premises 🔹 Flexible Opt-In/Out Mechanism Hotels can voluntarily declare their premises as specified using Annexure VII/VIII. Once declared, it applies until an opt-out is filed. 🔹 Multiple Premises? Each premise must be evaluated individually. One…

CBIC notifies amendment in Rule 164 of the CGST Rules, 2017 to provide the amnesty benefit relating to waiver of interest and penalty u/s 128A of the CGST Act, 2017; Vide the amendment in sub-rule (4) of section 164, specifies that where the notice or statement or order specified in section 128A, includes a tax demand partly for the period from July 1, 2017, to March 31, 2020, and partly for a later period, an application for closure of proceedings (FORM GST SPL-01) can be filed only after full tax payment  “related to period mentioned in the said sub-section” as mentioned in the notice or statement or order, before the notified date; Further, specifies that refund will not be granted for any tax, interest, or penalty paid before the instant…

The Supreme Court of India, in the matter of Union of India vs Brij Systems Ltd., dismissed the Special Leave Petition filed by the Union Government, citing its prior dismissal of a similar case (Central Board of Indirect Taxes and Customs v. M/s Aberdare Technologies Private Limited and Ors.). However, recognizing the broader implications regarding the rectification of clerical or arithmetic errors in Input Tax Credit (ITC) claims, the Court took cognizance of the prevalent practice of denying rectifications beyond the statutory timelines defined under Sections 37(3) and 39(9) of the Central Goods and Services Tax Act, 2017. The Court acknowledged the administrative rigidity, which has resulted in genuine errors going unrectified, adversely impacting purchasers due to denial of ITC. To address this systemic issue, the Supreme Court issued a…

Central Board of Indirect Taxes and Customs vs. M/s Aberdare Technologies Pvt. Ltd. & Ors. Date of Judgment: 21 March 2025 The Supreme Court dismissed the Special Leave Petition filed by the Central Board of Indirect Taxes and Customs, upholding the Bombay High Court’s judgment. The Court found the High Court's judgment fair, noting no loss of revenue. The Supreme Court emphasized the need for realistic timelines and provisions to correct genuine clerical or arithmetic errors, stating such corrections stem from the fundamental right to do business. Denying correction based solely on software limitations was deemed inadequate, as software should be configured to facilitate compliance, not hinder it. The judgment highlighted the unnecessary hardship caused to purchasers denied input tax credit despite having already paid the taxes due, effectively causing…

Mar 21st, 20251. Grievances are raised by taxpayers regarding difficulties faced while filing the waiver applications. Following grievances faced by taxpayers have come to the notice of GSTN and team is working to resolve the issues at the earliest.i. Order number is not available in dropdown for selection in SPL 02.ii. Order details are not getting auto populated after selection of a particular order in SPL 02.iii. Payment details are not getting auto populated in Table 4 of SPL 02.iv. After filing the SPL 02 for a demand order, the taxpayer is not able to make payment using “Payment towards Demand” for that order. Also, taxpayer is not able to adjust the amount paid through DRC 03, against the same demand order, using DRC 03A.v. Not able to withdraw the…

Kerala SGST directs all the adjudicating and appellate authorities to conduct personal hearings only through video conferencing mode except in the exceptional circumstances involving technical or other constraints; The Circular includes some guidelines which the authorities must adhere to ensure a smooth and transparent process; The guidelines include informing the date and time of the video conference with its meeting id and password in advance, serving the personal hearing notice on email, authorizing the consultant/authorized representative/Advocate of the Assessee to attend the personal hearing etc. Detailed guidelines can be referred in the Circular: Kerala SGST Circular Circular_07_2025 :- http://mohansekhar.in/wp-content/uploads/Circular_07_2025.pdf

Kerala SGST authorizes territorial jurisdiction over the whole State of Kerala to the officers in Centralised Refund Processing Formation for processing of refunds; This development comes as an amendment to Notification No. 01/2023-State Tax; A proviso to Para 12 has been inserted to the said Notification in this regard, which shall be effective from March 15, 2025: Kerala SGST Notification

Submission of Letter of Undertaking (LUT): Registered Person supplying zero-rated supplies to SpecialEconomic Zones (SEZs) or exports, without paying Integrated GST (IGST), must submit a Letter of Undertaking (LUT) in Form RFD -11for the upcoming FY by March 31, 2025. Opting for the Composition Scheme: Eligible businesses to avail the Composition Scheme for FY 2025-26shall electronically file an intimation in FORM GST CMP-02, duly signed or verified through electronic verification code, on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, prior to the commencement of the financial year for which the option to pay tax under the aforesaid section is exercised and shall furnish the statement in FORM GST ITC-03 in accordance with the provisions of sub-rule (4) of Rule 44 of the CGST…

GSTN informs that unregistered dealers engaged in the movement or transportation of goods can now generate an E-Way Bill (EWB) by enrolling themselves on the EWB portal; A unique Enrolment ID will be generated for such users which will be an alternative to the Supplier/Recipient GSTIN; The advisory also includes the user guide for ENR-03 enrolment specifying the processes (i) Accessing ENR-03, (ii) Filling Out the ENR-03 Form, (iii) Creating Login Credentials and (iv) Generating the e-Way Bill; Users can access the Detailed User Guide for further assistance: GSTN Advisory Subject: Advisory on Introduction of Form ENR-03 for Enrolment of Unregistered Dealers/Persons in e-Way Bill Portal for generating e-way Bill.Feb 15th, 2025Dear Stakeholders,A new feature has been introduced in the E-Way Bill (EWB) system to facilitate the enrolment of unregistered dealers…

GSTN issued new advisory for GST Registration process The GSTN has issued an update to inform that if taxpayers choose not to authenticate via Aadhaar, they must visit the designated GST Suvidha Kendra (GSK) for photo capturing and document verification. It is also informed that applicants must adhere to the steps as per Rule 8 of the CGST Rules, 2017. If taxpayers are opting for Aadhaar authentication, they should first visit the GSK for biometric authentication and photo capturing, followed by the Primary Authorized Signatory (PAS). Advisory for GST Registration Process (Rule 8 of CGST Rules, 2017) Feb 12th, 2025 Dear Taxpayer, In line with recent developments in the GST registration process, applicants must adhere to the following steps as per Rule 8 of the CGST Rules, 2017: 1.    Applicants…

1. Background and Purpose The Central Board of Indirect Taxes and Customs (CBIC) issued this circular to clarify the applicability of late fees under Section 47 of the CGST Act, 2017 for the delay in furnishing FORM GSTR-9 (Annual Return) and FORM GSTR-9C (Reconciliation Statement). This clarification was issued in response to representations seeking confirmation on whether a separate late fee is applicable when GSTR-9C is filed late but after GSTR-9. 2. Key Clarifications on Late Fees Legal Provisions (Before and After 01.08.2021) Before 01.08.2021: Section 44(2) of the CGST Act required registered persons to submit audited annual accounts and a reconciliation statement (GSTR-9C) along with their annual return (GSTR-9). After 01.08.2021: The mandatory audit requirement was removed, and taxpayers with an aggregate turnover exceeding ₹5 crore must submit a self-certified GSTR-9C along with GSTR-9.…

Sl NoSectionPre-Budget 2025Post-Budget 2025Remarks1Amendment of Section 261) “Input Service Distributor” means an office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25, and liable to distribute the input tax credit in respect of such invoices in the manner provided in section 20;](61) “Input Service Distributor” means an office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, of this Act or under subsection (3)…

(Circular No. 245/02/2025-GST dated 28th January 2025) The Government of India, based on the recommendations of the 55th GST Council meeting held on 21st December 2024, issued this circular to provide clarifications on various GST-related issues. It also regularizes past GST payments for specific services, ensuring compliance and reducing ambiguity. Below is an elaborate summary of the key points covered: 1. GST on Penal Charges Levied by Banks and NBFC: The Reserve Bank of India (RBI) issued instructions (effective 01.01.2024) mandating regulated entities like banks and NBFCs to replace "penal interest" with "penal charges" for non-compliance with loan terms. Clarification: Penal charges are deemed to be for breach of contract, not a consideration for tolerating an act. As such, no GST is payable on penal charges levied in compliance with…

(Circular No. 244/01/2025-GST dated 28th Jan 2025) The GST Council, in its 53rd meeting on 22nd June 2024, made important recommendations regarding certain transactions under the GST Act. Here's what the circular explains: New Transactions in Schedule III (Effective from 01.11.2024, vide Notification No. 17/2024-Central Tax dated 27.09.2024): The following activities are now categorized as "neither supply of goods nor supply of services" under the CGST Act, 2017: Co-Insurance Premium Sharing: When a lead insurer shares the co-insurance premium with co-insurers, it is not treated as a supply, provided the lead insurer pays all applicable GST on the full premium amount. Reinsurance Transactions: Services by insurer to the reinsurer for which ceding commission or the reinsurance commission is deducted from reinsurance premium paid by the insurer to the reinsurer, subject…

The CBIC has issued a press release to caution taxpayers against fraudsters issuing fake and fraudulent Summons for GST violations. Now, the taxpayers can verify online any communication from DGGI or any office of CGST by using the ‘VERIFY CBIC-DIN’ window on CBIC website.

GSTN issues updated advisory on reporting of HSN codes in Table 12 of GSTR-1/1A; After successful implementation of Phase I and Phase II, mandatory mentioning of HSN code in GSTR-1 and GSTR-1A from February 2025 return filing period i.e 11th March / 13th March 2025 has now been floated: GSTN Advisory

After Gujarat HC, Bombay HC quashes the GST demand on assignment by sale and transfer of leasehold rights of the plot of land and building by original lessor to third party assignee; However, HC directs the Adjudicating Authority to issue a fresh order in the matter after considering the Gujarat HC judgment; In this case, the lessor had obtained leasehold land from MIDC and subsequently transferred the land and building to a third party.

GSTN advises taxpayers to file applications under waiver scheme as both Forms GST SPL 01 and GST SPL 02 are available on the portal; On eligibility regarding such cases where appeal applications (APL 01) is filed before March 21, 2023 (and not disposed of) as “withdrawal option is not available in GST portal” GSTN informs such taxpayers to submit their request for withdrawal of appeal applications to the concerned Appellate Authority; The Appellate authority will forward such requests to GSTN through State Nodal officer for withdrawal of such appeal applications from backend; Earlier GSTN had released step-by-step process to apply for GST Amnesty Scheme waiver of interest and penalty: GSTN Advisory 

DATENOTIFICATION NO.SUBJECT10/01/202501/2025Extension of date for filling of outward supplies in GSTR -1 for the month of December -2024 to 13th of January,2025. Extension of date for filling of outward supplies for the period October- December 2024 to 15th of January 2025 (Quarterly filers).10/01/202502/2025Extension of filling details in GSTR-3B for the month of December-2024 to 22nd January, 2025 and quarterly filling for the period October-December 2024 to 24th for Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union Territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep & 26 January 2025 for Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Vagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, Wes 3engal, Jharkhand or Odisha, the Union…

Jan 7th, 2025 The Central Government, on the recommendations of the 54th GST Council, had issued Notification No. 22/2024 – CT dated 08.10.2024 and notified that any registered person against whom any order confirming demand for wrong availment of ITC, on account of contravention of provisions of sub-section (4) of section 16 of the said Act had been issued, but where such ITC is now available as per the recently inserted sub-sections (5) and/or (6) of section 16 of the Act, would now be able to file an application for rectification of such demand orders. A functionality has now been made available on the Portal for taxpayers to file an application for rectification of such orders issued under section 73/74. They can file it, post login, by navigating Services > User Services >…

Circular No. 240/34/2024-GST dated 31.12.2024 Context This circular builds on Circular No. 167/23/2021-GST dated December 17, 2021. It addresses clarifications for ITC reversals related to services other than restaurant services supplied through ECOs under Section 9(5) of the CGST Act. Key Clarifications Applicability of Section 9(5): ECOs must pay tax under Section 9(5) of the CGST Act for specified services as if they are the suppliers. For other services, such as platform fees or commissions, they charge their users directly. ITC Utilization Rules: ITC can be availed for inputs and input services used for providing their own platform-related services. ITC cannot be utilized for paying tax liabilities under Section 9(5); such liabilities must be paid entirely in cash. ITC Reversal: ECOs are not required to reverse ITC proportionally for supplies…

Circular No. 243/37/2024-GST dated 31.12.2024 Key Issues Addressed: Classification of Transactions in Vouchers Vouchers may function as payment instruments creating obligations for suppliers to accept them as consideration for goods or services. Legal definitions of “goods,” “services,” and “vouchers” under the CGST Act are explained, establishing that: If recognized by RBI as pre-paid instruments, vouchers are categorized as “money,” excluded from goods or services. If not RBI-recognized, vouchers may be treated as actionable claims but still excluded from taxable supplies under Schedule III of the CGST Act. GST Treatment for Voucher Transactions by Distributors/Agents: Principal-to-Principal Basis: Pure trading of vouchers is not taxable as it is neither a supply of goods nor services. Agency Basis: Distributors or agents earning commission/fees for services provided (e.g., marketing or distribution) are liable to…

Circular No. 242/36/2024-GST dated 31.12.2024 The circular addresses issues arising from the incorrect determination of the place of supply for taxable online services provided to unregistered recipients. It aims to ensure compliance with Section 12(2)(b) of the Integrated Goods and Services Tax (IGST) Act, 2017, and Rule 46 of the Central Goods and Services Tax (CGST) Rules, 2017. Key Points Background Some suppliers incorrectly identify the location of the supplier as the place of supply instead of the recipient’s state, causing misallocation of tax revenues to incorrect states. This misinterpretation mainly affects online services provided directly or through electronic commerce operators Clarifications Provided Online Services Definition (Section 2(17), IGST Act): Includes services like advertising, cloud services, e-books, digital content, data storage, and online gaming (excluding money gaming). Place of Supply…

Circular No. 241/35/2024-GST dated 31.12.2024 Key Points: Context and Issue: Scenario: Automobile sector contracts between dealers and Original Equipment Manufacturers (OEMs) are often Ex-Works (EXW) contracts. Goods are considered delivered when handed over to the transporter at the OEM’s factory gate. Issue: Field formations questioned the eligibility of dealers to claim ITC before physically receiving goods at their business premises. Show cause notices were issued for alleged wrongful ITC claims Legal Background: Section 16(2)(b), CGST Act, 2017: A registered person can claim ITC only if goods or services have been “received.” Explanation in the Act: Goods are deemed “received” if delivered to the recipient or their agent (e.g., transporter) before or during movement, either through transfer of documents of title or otherwise. Clarifications Provided: No Physical Receipt Requirement: The Act…

Advisory for Waiver Scheme under Section 128A Dec 29th, 2024 1.  Taxpayer’s attention is invited to the advisory on the above subject issued by GSTN on 08.11.2024. The link for the said advisory is given here:https://services.gst.gov.in/services/advisoryandreleases/read/546 2.  Under the waiver scheme, for a demand notice or statement or order which has been issued under Section 73 for the tax periods between July 2017 & March 2020, the taxpayers are required to file an application either in FORM GST SPL-01 or SPL02 in GST portal accordingly. Presently, Form GST SPL 02 is made available in the GST portal. Form GST SPL 01 will be available soon in the GST portal. 3.  The process of filing SPL-02 electronically is detailed in below document:https://tutorial.gst.gov.in/downloads/news/help_document_on_filing_of_spl_02.pdf 4.  Difficulty if any faced by the taxpayers may be reported to https://selfservice.gstsystem.in by raising a…

Advisory on Updates to E-Way Bill and E-Invoice Systems Dec 17th, 2024 GSTN is pleased to announce that NIC will be rolling out updated versions of the E-Way Bill and E-Invoice Systems effective from 1st January 2025. These updates are aimed at enhancing the security of the portals, in line with best practices and government guidelines. 2. Multi-Factor Authentication (MFA): One of the key changes involves the implementation of Multi-Factor Authentication (MFA). Currently, MFA, which requires login using a username, password, and OTP (sent to the registered mobile number, Sandes app, or similar platforms), is mandatory for taxpayers with an Annual Aggregate Turnover (AATO) exceeding Rs 100 Crores since 20th August 2023 and optional for those with AATO exceeding Rs 20 Crores since 11th September 2023. a) Starting 1st January 2025, MFA will become mandatory…

Key Recommendations and Decisions: Changes in GST Rates of Goods: Fortified Rice Kernel (FRK): GST rate reduced to 5%. Gene Therapy: GST fully exempted. LRSAM System: IGST exemption extended to systems, sub-systems, equipment, parts, sub-parts, tools, test equipment, software meant for assembly/manufacture. Merchant Exporters: Compensation Cess rate reduced to 0.1% on supplies. IAEA Inspection Team: IGST exemption on imports of all equipment and consumable samples. Food Preparations: Concessional 5% GST rate extended on food inputs supplied for free distribution to economically weaker sections under a government program. Changes in GST Rates of Services: Sponsorship Services: Brought under Forward Charge Mechanism. Motor Vehicle Accident Fund: GST exempted on contributions made by general insurance companies from third-party motor vehicle premiums. Hotel Services: Definition of declared tariff omitted and linked with actual value…

CBIC notifies jurisdiction of Central Tax Officers effective from December 01, 2024; Inserts ‘Table V’ enlisting Commissioner/Principal Commissioner for passing an order or decision in respect of notices issued by the officers of Directorate General of Goods and Services Tax Intelligence for enforcement provisions under the GST Act viz. sections 67 (Power of inspection, search and seizure), 73 and 74( Demand and Recovery for fraud, non-fraud cases), 76 (Tax collected but not paid to Government), 122 (Penalty for certain offences), 125 and 127(General Penalty), 129 and 130 (Detention, seizure and release of goods and conveyances in transit) of CGST Act, 2017

To cover cos that evaded EPFO enrolment to avoid fin responsibility or defaulted on depositing employee contributionsThe Employees’ Provident Fund Organisation (EPFO) is readying an amnesty scheme for companies which have evaded enrolment with the retirement fund body to avoid additional financial responsibility or defaulted on depositing the contributions of their employees with it. The scheme could be launched along with the employment-linked incentive (ELI) schemes by the end of 2024, said people familiar with the development.The move would help attract enrolments under the ELI schemes, enhance formalisation of the workforce and ensure social security benefits to more workers, they said. Currently, establishments with at least 20 workers have to register with the EPFO to contribute towards provident fund, pension and insurance benefits for employees under the Employees’ Provident Fund…

There are taxpayers who claim ITC on their motor vehicles (cars and bikes) thinking if they buy in their business name, credit is available.Please bear in mind as per section 17(5) clause (a) motor vehicles for the transportation of passengers (cars & bikes) less than 13 seater including driver ITC will not be available unless if(a) you are a dealer of such motor vehicles or(b) you are in the business of transportation of passengers(c) you are a driving schoolAny motor vehicles used for transportation of passengers more than 13 seater, there is no restriction on claiming ITC.Goods Motor vehicle also there is no restriction on availing ITC.Very important, if the credit of motor vehicle is blocked as per above provisions, then all ITC on related expenses like repairs & maintenance,…

GSTN issues advisory on the non-generation of GSTR-2B for October 2024 and informs that:1 GSTR-2B will not be generated for the first and second months of a quarter for taxpayers who opted for Quarterly Returns with Monthly Payments (QRMP) Scheme;2 If the taxpayer hasn’t filed GSTR-3B for previous period, GSTR-2B will not be generated. Pending GSTR-3B need to be filed to generate GSTR-2B

GSTN, through its official X (formerly Twitter) handle informs that the GSTN team has identified the issue of taxpayers getting the same invoices in GSTR-2B  for the months of September and October 2024 and is working to resolve it in an exigent manner; Advises taxpayers to raise tickets at https://selfservice.gstsystem.in to help with their queries and urges them to share the ticket number through Direct Message only; Further informs that the rate-wise details of invoice/records will not be available in GSTR-2B generated through Invoice Management System (IMS), for which GSTR-2A shall be referred: GSTN Tweet

ADVISORY FOR WAIVER SCHEME UNDER SECTION 128ANov 8th, 2024For reducing the tax disputes and to provide a big relief to the taxpayers, GST Council in its 53rd meeting held on 22nd June, 2024 had recommended for waiver of interest and penalties in the demand notices or orders issued under Section 73 of the CGST Act, 2017 (i.e. the cases not involving fraud, suppression or wilful misstatement, etc.) for the Financial years 2017-18, 2018-19 and 2019-20. To avail this waiver, the condition is that the full tax demanded is paid on or before 31.03.2025. In view of the above, Rule 164 of CGST rules, 2017 was notified through Notification No. 20/2024 dated. 8th October 2024, effective from 1st November 2024. This rule provides procedural guidelines for the said waiver scheme. As…

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Advisory for Form GST DRC-03A It has been observed that some taxpayers have paid the demanded amount vide DRC 07/DRC 08/MOV 09/MOV 11/APL 04 through DRC-03 instead of using payment facility ‘Payment towards demand’ available on GST portal. This led to a situation where demand has been paid by the taxpayer, however the demand is not closed in the electronic liability register. To address this issue, the government has notified a new form named GST DRC-03A which was notified vide Notification No. 12/2024 dated. 10th July 2024. Accordingly, GSTN has developed the new Form GST DRC-03A on GST portal which is available now to adjust the paid amount through DRC-03 against the corresponding demand order. Therefore, it is advised to the taxpayers to use the DRC-03A form to link the…