GST INDIA

An amnesty scheme has been notified for taxpayers who could not file an appeal against orders passed before 31 March 2023, or whose appeals were rejected as time barred.

Prerequisites for filling an appeal under the amnesty scheme:-

1. Taxpayers can file an appeal before 31 January 2024 subject to payment of full amount of amount of tax, interest, fine, fee and penalty as admitted and pre-deposit of 12.50% of tax (up to ₹25 crores) with atleast 20% of such payment in cash.

Restriction on refund:-
1. No refund of the amount paid or deposited before issuance of this notification shall be granted till the disposal of the appeal.

Major changes notified in July'23 & Aug'23

MOST AWAITED CLARIFICATION & RELIEF TO MULTI-LOCATIONAL COMPANIES/FIRMS:-
Taxability on internally generated services in between HO & BO or BO & BO or vice-versa ->
(i) Where full input tax credit is available to the Recipient-The value of such services may be deemed to be declared as Nil by HO to BO, and may be deemed as open market value in terms of second proviso to Rule 28 of CGST Rules'17 [WHERE NO INVOICE HAS BEEN ISSUED TILL DATE. THIS IS A BIG RELAXATION]

(ii) Where full input tax credit is not available to the concerned BO/Recipient-Taxability is there and Invoice is required to be issued but, the cost of salary of employees of the HO/BO is not mandatorily required to be included in the taxable value. [Ref. Circular No. 199/11/2023-GST, dated 17.07.23]

Starting from January 1, 2023, businesses, with an annual turnover of more than Rs 5 crore, will have to move to e-invoicing system.
It is also targeting to bring all businesses with turnover above Rs 1 crore under this framework by the next FY.
Be ready with required technology.

ATTENTION:-
It is informed that those registered persons, who had successfully filed TRAN-1/TRAN-2 earlier, and who do not require to make any revision in the same, are not required to file/ revise TRAN-1/TRAN-2 again during this period from 01.10.2022 to 30.11.2022.
The option of filing or revising TRAN-1/TRAN-2 on the common portal during the period from 01.10.2022 to 30.11.2022 is an one-time opportunity based on the Hon’ble Supreme Court of India vide order dated 22.07.2022 in the matter of Union of India vs. M/s. Filco Trade Centre Pvt. Ltd., SLP(C) No. 32709-32710/2018 for the applicant, who are aggrieved, to either file the said forms, if not filed earlier, or to revise the forms filed earlier.

(1). GSTN is going to open the common portal for filing transitional credit through TRAN-1 and TRAN-2 w.e.f. 01/10/2022;
(2). Registered Person having turnover of more than Rs.10 crores during any of the F.Y. from 2017-18 onwards requires to issue e-invoice w.e.f. 01.10.2022;
(3). ITC on an Invoice/Debit Note issued during a F.Y. can be taken within 30th November following the F.Y. to which such Invoice/Debit Note is related to [w.e.f. 01.10.2022];
(4). Credit Note against an Invoice issued during a F.Y. can be issued by 30th November following the relevant F.Y. [w.e.f. 01.10.2022];
(5). Amendment to an Invoice issued during a F.Y. can be made within 30th November of the following F.Y. [w.e.f. 01.10.2022] and
(6). If ITC is shown as restricted or ineligible as per GSTR-2B, then it can not be availed of [w.e.f. 01.10.2022]

Registered person whose aggregate turnover in a financial year exceeds ten crore rupees shall prepare e-invoice in respect of supply of goods or services or both to a registered recipient w.e.f. 01.10.2022.

Hon'ble Supreme Court directs to Open GST portal for claiming Transitional Credit, for 60 days from 01.09.2022 to 30.10.2022.

The GST e-invoicing will likely be mandatory for firms with a turnover of over Rs 5 crore from January 1, 2023, down from the current threshold of Rs 20 crore. So, please be prepared yourselves and make ready your IT Systems.

E-invoice portal for generating e-invoice in online mode:-
gepp.einvoice1.gst.gov.in

As per Instruction No. 02/2022-GST, dated 22.03.22 Para-7, Annexure-B, issued by Govt. of India, GST Policy Wing and various hon'ble High Courts' including of hon'ble Apex Court's judgments ITC based on a invoice(s) issued by a supplier whose registration was cancelled retrospectively (ab-initio), can be taken if the invoice(s) was issued before the effective date of cancellation of his registration.