Recent GSTN Advisory Updates: Key
Highlights and Impact
By Yogesh Verma (CS/LLB) / 2 min read / GST Article
The Goods and Services Tax Network (GSTN) has recently
issued several important advisories to streamline compliance, improve accuracy
in tax filing, and introduce new features. These updates are crucial for
businesses, especially those managing complex transactions, to avoid penalties
and ensure smooth operations.
1. Hard-Locking of Auto-Populated
Liability in GSTR-3B (Effective January 2025)
Background:
To reduce human error in tax return filing, the GST portal now provides a
pre-filled GSTR-3B form where the liability for tax is auto-populated from
outward supply data in GSTR-1/1A/IFF, and the Input Tax Credit (ITC) is
pre-filled from GSTR-2B. From January 2025, taxpayers will no longer be allowed
to alter this auto-populated liability directly in GSTR-3B.
Key Advisory:
- Amendments
in GSTR-1A: Taxpayers can correct any
incorrectly declared supplies in GSTR-1/IFF via GSTR-1A before the filing
of GSTR-3B.
- Liability
Accuracy: The locking of the
auto-populated liability will ensure enhanced accuracy, reducing the risk
of under- or over-reporting liabilities.
Impact:
Businesses must ensure that all outward supplies are correctly declared in
GSTR-1/1A before filing GSTR-3B, as changes in liability will be restricted.
Accurate reporting will reduce manual interventions and improve return
accuracy.
2. Important Changes to GSTR-9/9C
(From FY 2023-24)
Auto-Population of ITC:
For the Financial Year 2023-24, GSTN will auto-populate eligible ITC (excluding
ITC under reverse charge and imports) in table 8A of GSTR-9 from domestic
supplies reported in GSTR-2B.
Advisory Highlights:
- Auto-population
will occur progressively, allowing taxpayers to validate their data.
- The
system will generate the complete GSTR-9 data based on GSTR-2B from April
2023 to March 2024.
Impact:
This auto-population will simplify the GSTR-9 filing process, minimizing errors
in reporting ITC claims and ensuring that businesses can focus on verifying the
pre-filled data rather than manually entering it.
3. Introduction of Invoice
Management System (IMS)
Launch Date:
October 14, 2024
The IMS provides a user-friendly platform for taxpayers to manage invoices and
reconcile the Input Tax Credit (ITC) with suppliers’ issued invoices.
Advisory Highlights:
- Action
on Invoices: Taxpayers can review and mark
their invoices as "accepted," "rejected," or
"pending" before they are reflected in GSTR-2B.
- ITC
Accuracy: IMS will improve the accuracy
of ITC claims by allowing taxpayers to proactively manage their invoice
records.
Impact:
With IMS, taxpayers have more control over their inward supplies, making it
easier to avoid errors in ITC claims. The first GSTR-2B reflecting IMS actions
will be generated on November 14, 2024.
4. Advisory on Metal Scrap
Transactions (Notification 25/2024)
Date: October
9, 2024
Businesses dealing in metal scrap are now required to comply with new
provisions under Section 51 of the CGST Act, 2017, as per Notification 25/2024.
Key Points:
- Registration
through FORM GST REG-07 will be mandatory for certain dealers
handling metal scrap transactions.
- The
GST portal will soon be updated to reflect these compliance requirements.
Impact:
Scrap dealers must ensure timely registration and compliance with the new rules
to avoid penalties. The upcoming GST portal updates will streamline this
process for businesses in the scrap industry.
5. Integration of E-Way Bill System
with Indian Railways' Parcel Management System (PMS)
Launch Date:
October 4, 2024
The E-Way Bill system is now integrated with Indian Railways' Parcel Management
System (PMS), improving the traceability and compliance for goods transported
via rail.
Advisory Highlights:
- RR
No./Parcel Way Bill (PWB) Entry:
Taxpayers must enter the RR No./PWB in the correct format while updating
Part-B of the e-way bill for rail transport.
- Validation: The EWB system will validate the entered RR No./PWB
against the PMS database to ensure accuracy.
Impact:
This integration enhances the accuracy of e-way bill entries for rail
transportation. Businesses transporting goods via rail must ensure the correct
entry of RR numbers to avoid discrepancies during validation.
6. New GSTN e-Services App
Advisory Date:
October 1, 2024
GSTN has launched a new e-Services app to replace the older e-Invoice QR Code
Verifier App. This app includes several new features, such as:
- Verification
of e-Invoices using QR codes.
- GSTIN
Search capabilities.
- Access
to return filing history and sharing of search results.
Impact:
The new app is designed to enhance taxpayer convenience by offering a
mobile-friendly platform for accessing and verifying e-invoice details,
simplifying compliance on the go.
Conclusion
These recent advisories indicate the government's ongoing
efforts to enhance compliance, reduce manual intervention, and improve the
accuracy of return filings under GST. Businesses should stay updated with these
changes and adapt their processes accordingly to avoid non-compliance and
penalties. Proactive use of the Invoice Management System (IMS) and adherence
to the new auto-population rules for GSTR-3B, GSTR-9, and metal scrap
transactions will streamline operations and ensure smooth GST compliance in the
upcoming months.
Disclaimer: All the Information is based on the notification, circular and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
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