Notifications / Circulars

The GSTN has issued an advisory note on the availability of a new functionality in the e-invoicing portal that allows taxpayers who are by default enabled for e-invoicing but are exempted from implementing it under the CGST (Central Goods and Services Tax) Rules to declare their exemption. The advisory note can be accessed through the link

A new functionality has been introduced by the GSTN for issuance of intimation in Form GST DRC-01B in cases where the liability declared in Form GSTR-1 exceeds the liability discharged through Form GSTR-3B, by a pre-defined limit or the percentage of such difference exceeds a threshold as recommended by the GST Council. Taxpayers are required to respond to such intimation in Part B of Form GST DRC-01B within 7 days from the issuance of notice, either by (a) discharging such differential tax liability through Form GST DRC-03 or (b) provide a suitable explanation for such difference. In case the differential tax liability is not paid or the explanation or reasons provided by the taxpayer are not accepted by the Proper Officer, recovery proceedings can be initiated. Detailed manual containing step-by-step guidelines on how to navigate this functionality can be accessed here.

With effect from 01.08.2023, CBIC has lowered the threshold of Aggregate Annual Turnover (AATO) from 10 crores to 5 crores, for applicability of e-Invoicing for B2B transactions. To facilitate the same, GSTN has now enabled e-invoice reporting by eligible taxpayers on all the six IRPs. Taxpayers can check their status of enablement of e-Invoicing through this link. The enablement status indicated on the e-Invoice portal does not indicate a legal obligation on taxpayers to use e-Invoicing and the onus is placed on the taxpayers to check the applicability and compliance of the e-invoicing provisions. 

GSTN has launched a mobile application (“EInvoice QR Code Verifier” App) to facilitate the verification of accuracy and authenticity of the value / information embedded in the QR code in the e-invoices. The app operates on a non-login basis and is currently available on Google Play Store (iOS version to be available soon)

Services provided by ‘Courts’ and ‘Tribunals’ will now be covered under the provisions of Reverse Charge Mechanism and the reference to Central / State Government in the RCM provisions would include a reference to ‘Courts’ and ‘Tribunals’. For instance, renting services in the nature of renting of premises to telecommunication companies for installation of towers, renting of chamber to lawyers etc.

For the returns filed upto December 2022 (return period), details of Credit Notes (CN) issued by vendors was being auto-populated separately in Table 4B(2) of the autopopulated Form GSTR-3B i.e. Other Reversals and taxpayers were advised to file the same accordingly. Now, as per the latest advisory, for the returns filed from January 2023 (return period), taxpayers are advised to declare the details of Credit Notes (CN) issued by vendors on a net basis itself in Table 4(A) i.e. ITC available of Form GSTR-3B, instead of declaring the ITC for the period in full in Table 4(A) and credit notes separately in Table 4(B)(2).
Based on the above changes, if the ITC available is lesser than the credit notes uploaded, value in Table 4(A) will be auto populated as a negative amount and such negative amounts can be entered in Table 4(A) i.e. ITC available of Form GSTR-3B. Hitherto, only positive amounts could be entered in such table.

GSTN has launched a new user-friendly E-invoicing portal (www.einvoice.gst.gov.in) which is a reference site for master data, news, updates and latest releases. However, for registering e-invoices and generation of IRN, taxpayers should continue using the current portal i.e. . 3 new Invoice Reporting Portals (IRPs) for reporting e-invoices are in the works and are expected to be active shortly.

Goods Transport Agencies (GTA) have an option to pay tax under forward charge by submitting ‘Annexure V’ on the GST portal every year before the commencement of a financial year. The cut-off date for exercising the said option is 15th March of the preceding financial year and once exercised the same cannot be withdrawn during the year. For FY 2023-24, facility of submission of ‘Annexure V’ has been enabled on the portal for GTA’s to exercise their option by 15th March, 2023 by navigating to: Services > User Services > Opting Forward Charge Payment by GTA (Annexure V) on the GST portal.

The CBIC has introduced the functionality for geocoding the principal place of business address (i.e. the process of converting an address or description of a location into geographic coordinates) on the GST Portal. This feature is introduced to ensure the accuracy of address furnished in the GSTN records and streamline the address location and verification process. Currently, this functionality is being made available for taxpayers registered in Delhi and Haryana only and can be accessed under Services>>Registration>>Geocoding Principal Place of Business after logging in to the GSTN portal.

The CBIC has notified the provisions of Finance Act, 2022 related to GST which shall be effective from October 1st, 2022. The key changes include extension in time limit of availment of ITC till 30th November of next financial year, amendment to GSTR 1 return till 30th November of next financial year, credit notes can be issued till 30th November of next financial year, Form GSTR-2 has been done away with, extension in time-limit to rectify errors or omission in Form GSTR -1 or GSTR-3B, omission of sections 42, 43 and 43A etc.

As per the directions of Hon‘ble Supreme Court, the facility for filingTRAN-1/ TRAN-2 or revising the earlier filed TRAN-1/TRAN-2 on the common portal by an aggrieved registered assessee will be made available by GSTN during the period from 01.10.2022 to 30.11.2022. In order to ensure uniformity in implementation of the directions of Hon‘ble Supreme Court, the CBIC has issued guidelines for the applicants for filing TRAN-1/TRAN-2 or revising earlier filed TRAN-1/TRAN-2.

The CBIC issued Notification No. 17/2022–Central Tax dated August 01, 2022 to amend Notification No. 13/2020 – Central Tax, dated March 21, 2020 to decrease the e-Invoicing aggregate turnover limit from 20 crore to 10 crore w.e.f. October 01, 2022. Hence, w.e.f. 01-10-2022 onwards Einvoice is applicable if aggregate turnover of taxpayer is exceeding Rs.10 crores in any one of the years from FY 2017-18 onwards.

Increase in Tax Rates

1. GST Rate on LED lamps, lights and fixtures proposed to be increased to 18% from 12%
2. GST Rate on Works Contract for construction of Road, Bridges etc proposed to be increased to 18% from 12%
3. GST Rate on Sale of E Waste proposed to be increased from 5% to 18%

Withdrawal of Exemption

1. Renting of residential dwelling to business entities
2. Hotel Accommodation priced at less than Rs 1000 to be taxed at 12%
3. Training or Coaching in Recreation Activity relating to Arts, Culture and Sports – To be exempt if provided by an Individual
4. Room rent (excluding ICU) exceeding Rs5000 per day per patient charged by a hospital shall be taxed to the extent of amount charged for the room at 5% without ITC.

Clarifications

1. Electric Vehicle with or without battery to attract GST at the rate of 5%
2. Ice Cream Parlours paying GST at 5% during July 1, 2017 to October 5, 2021 – To be regularized to avoid litigation
3. Preferential Location Charges charged alongwith the lease rentals for land – To be treated as composite supply of lease rentals for land
4. Honorarium paid to Guest Actors on TV Channels to be liable to GST
5. Higher Toll for vehicles without FasTAG not to be treated as service but toll charges only
6. Sale of Land after levelling, laying down of drainage pipe etc to be treated as sale of land and hence not liable to GST
7. Services in form of Assisted Reproductive Technology (ART) /In vitro fertilization (IVF) are covered under the definition of health care services for the purpose of exemption under GST

Other Changes

1. Proposal for comprehensive changes in FORM GSTR-3B to be placed in public domain for seeking inputs/suggestions of the stakeholders.
2. Waiver from compulsory registration for supplies made through E Commerce Operators subject to certain conditions
3. Tax Payers under Composition Scheme to be allowed to make intra state supplies through E Commerce Operators
4. Amendment to the formula prescribed for computation of refund under inverted duty structure
5. Waiver of late fee for delay in filing FORM GSTR-4 for FY2021-22 and extension of due date for filing FORM GST CMP-08 for Q1 of FY2022-23:
6. Present exemption of IGST on import of goods under AA/EPCG/EOU scheme to be continued and E-wallet scheme not to be pursued further.
7. Exemption from filing annual return in FORM GSTR-9/9A for FY2021-22 to be provided to taxpayers having AATO upto Rs.2crores
8. Explanation 1 after rule 43 of CGST Rules to be amended to provide that there is no requirement of reversal of input tax credit for exempted supply of Duty Credit Scrips by  the exporters.
9. All taxable service of Department of Posts would be subject to forward charge. Hitherto certain taxable services of Department of post were taxed on reverse charge basis
10. Goods transport agency (GTA) is being given option to pay GST at 5% or 12% under forward charge; option to be exercised at  the beginning of Financial Year. RCM option to continue

1. Recommendations relating to GST law and procedure
   1. Requirement of filing FORM GST ITC-04 under rule 45 (3) of the CGST Rules has been relaxed as under:
      • Taxpayers whose annual aggregate turnover in preceding financial year is above Rs. 5 crores shall furnish ITC-04 once in six months;
      • Taxpayers whose annual aggregate turnover in preceding financial year is upto Rs. 5 crores shall furnish ITC-04 annually.
   2. There was no clarity on whether to pay interest for ineligible credit at the time of availment or after both availment and utilization for payment of tax.  Council decided that interest in such cases should be charged on ineligible ITC availed and utilized at 18% w.e.f. 01.07.2017.
   3. Unutilized balance in CGST and IGST cash ledger may be allowed to be transferred between distinct persons (entities having same PAN but registered in different states), without going through the refund procedure, subject to certain safeguards
   4. Issuance of the following circulars in order to remove ambiguity and legal disputes on various issues, thus benefiting taxpayers at large  (Circulars awaited)
      • Clarification on scope of “intermediary services”
      • Clarification relating to interpretation of the term “merely establishment of distinct person” in condition (v) of the Section 2 (6) of the IGST Act 2017 for export of services.  This was applicable for transaction between Head office and foreign branch of Head office.
      • W.e.f. 01.01.2021, the date of issuance of debit note (and not the date of underlying invoice) shall determine the relevant financial year for the purpose of section 16(4) of CGST Act, 2017;.  As per section 16(4), there is a time limit upto September or filing of annual return whichever is earlier to avail the Input Tax Credit for a FY.  Now, it is clarified that date of Debit Note to be considered for time limit.
      • There is no need to carry the physical copy of tax invoice in cases where invoice has been generated by the supplier in the manner prescribed under rule 48(4) of the CGST Rules, 2017 i.e. under e-invoicing provisions.
2. Measures for streamlining compliances in GST:
   • Aadhaar authentication of registration to be made mandatory for being eligible for filing refund claim and application for revocation of cancellation of registration
   • Late fee for delayed filing of FORM GSTR-1 to be auto-populated and collected in next open return in FORM GSTR-3B.
   • Refund to be disbursed in the bank account, which is linked with same PAN on which registration has been obtained under GST.
   • Rule 59(6) of the CGST Rules to be amended with effect from 01.01.2022 to provide that a registered person shall not be allowed to furnish FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for the preceding month.
   • Rule 36(4) (Limit of additional credit on unmatched credit upto 5%) of CGST Rules, 2017 to be amended, once the proposed clause (aa) of section 16(2) of CGST Act, 2017 is notified, to restrict availment of ITC in respect of invoices/ debit notes, to the extent the details of such invoices/ debit notes are furnished by the supplier in FORM GSTR-1/ IFF and are communicated to the registered person in FORM GSTR-2B.  As per clause (aa) of section 16(2) of CGST Act, 2017, condition to avail ITC is supplier files GSTR 1 return and available to the receiver in his 2B.  Hence, after implementation of this provision, it looks like the intention of the government is to remove additional 5% provided under rule 36(4) of CGST Rules.
   • GST Council has also recommended amendments in certain provisions of the Act and Rules which will be notified soon.
3. Changes pertaining to rate of Goods:
   • COVID-19 relief measure in form of GST rate concessions:  Extension / further reduction of concessional GST rates on certain drugs for Covid 19 treatment.  This is applicable upto 31st Dec 2021.
   • Reduced / Increased rates on some goods like Retro fitment kits for vehicles used by the disabled, Fortified Rice Kernels etc.
   • Supply of mentha oil from unregistered person has been brought under reverse charge.
   • Brick kilns would be brought under special composition scheme with threshold limit of Rs. 20 lakhs, with effect from 1.4.2022. Bricks would attract GST at the rate of 6% without ITC under the scheme. GST rate of 12% with ITC would otherwise apply to bricks.
   • Correction in Inverted Duty structure in Footwear and Textiles sector
   • In terms of the recent directions of the Hon’ble High Court of Kerala, the issue of whether specified petroleum products should be brought within the ambit of GST was placed for consideration before the Council. After due deliberation, the Council was of the view that it is not appropriate to do so at this stage.
4. Changes pertaining to rate of Service:
   • Validity of GST exemption on transport of goods by vessel and air from India to outside India is extended upto 30.9.2022.
   • Exempted Services by way of grant of National Permit to goods carriages on payment of fee
   • Exempts Skill Training for which Government bears 75% or more of the expenditure [ presently exemption applies only if Govt funds 100%].
   • Licensing services/ the right to broadcast and show original films, sound recordings, Radio and Television programmes [ to bring parity between distribution and licencing services].  Rate increased from 12% to 18%.
   • Printing and reproduction services of recorded media where content is supplied by the publisher (to bring it on parity with Colour printing of images from film or digital media). Rate increased from 12% to 18%.
   • E Commerce Operators are being made liable to pay tax on following services provided through them
     • transport of passengers, by any type of motor vehicles through it [w.e.f. 1st January, 2022]
     • restaurant services provided through it with some exceptions [w.e.f. 1st January, 2022]
5. Certain clarifications provided in relation to rate on Goods to remove the ambiguity in the law.  Please refer attached press release for list of such clarifications provided.
6. Certain clarifications provided in relation to rate on Service to remove the ambiguity in the law.   Please refer attached press release for list of such clarifications provided.
7. The Council decided to set up a GoM to examine the issue of correction of inverted duty structure for major sectors; rationalize the rates and review exemptions from the point of view of revenue augmentation, from GST. It was also decided to set up a GoM to discuss ways and means of using technology to further improve compliance including monitoring through improved e-way bill systems, e-invoices, FASTag data and strengthening the institutional mechanism for sharing of intelligence and coordinated enforcement actions by the Centre and the States.