GST

ITC Reversal on Account of Rule 37(A) 1.  Vide Rule 37A of CGST Rules, 2017 the taxpayers have to reverse the Input Tax Credit (ITC) availed on such invoice or debit note, the details of which have been furnished by their supplier in their GSTR-1/IFF but the return in FORM GSTR-3B for the said period has not been furnished by their supplier till the 30th day of September following the end of financial year in which the Input Tax Credit in respect of such invoice or debit note had been availed. 2. The said amount of ITC is required to be reversed by such taxpayers, while furnishing a return in FORM GSTR-3B on or before the 30th day of November following the end of such financial year, as part of this legal obligation. 3. To facilitate the taxpayers, such amount of ITC required to be reversed on account of Rule 37A of CGST Rules for the financial year 2022-23 has been computed from system and has been communicated to the concerned recipient. The email communication to this effect has been sent on the registered email id of the taxpayer. 4. The taxpayers are advised to take note of it and to ensure that such ITC, if availed by them, is reversed as per rule 37A of CGST Rules before 30th of November, 2023 in Table 4(B)(2) of GSTR-3B while filing the concerned GSTR-3B. Source [gst.gov.in]

Advisory for the procedures and provisions related to the amnesty for taxpayers who missed the appeal filing deadline for the orders passed on or before March 31, 2023  Amnesty for Taxpayers: The GST Council, in its 52nd meeting, recommended granting amnesty to taxpayers who couldn’t file an appeal under section 107 of the CGST (Central Goods and Services Tax) Act, 2017, against the demand order under section 73 or 74 of the CGST Act, 2017, passed on or before March 31, 2023, or whose appeal against the said order was rejected due to not being filed within the specified time frame in sub-section (1) of section 107.    In compliance with the above GST Council’s recommendation, the government has issued Notification No. 53/2023 on November 2, 2023.    Taxpayers can now file appeal in FORM GST APL-01 on the GST portal on or before January 31, 2024 for the order passed by proper officer on or before March 31, 2023. It is further advised that the taxpayers should make payments for entertaining the appeal by the Appellate officer as per the provisions of Notification No. 53/2023. The GST Portal allows taxpayers to choose the mode of payment (electronic Credit/Cash ledger), and it’s the responsibility of the taxpayer to select the appropriate ledgers and make the correct payments. Further, the office of the Appellate Authority shall check the correctness of the payment before entertaining the appeal and any appeal filed without proper payment may be dealt with as per the legal provisions.   If a taxpayer has already filed an appeal and wants it to be covered by the benefit of the amnesty scheme would need to make differential payments to comply with Notification No. 53/2023. The payment should be made against the demand order using the ‘Payment towards demand’ facility available on the GST portal. Source [gst.gov.in]

In October, India’s Gross Goods and Services Tax (GST) collections rebounded to ₹1.72 lakh crore, a 13.4% YoY increase and the highest in 10 months. In October, India witnessed a significant rebound in its Gross Goods and Services Tax (GST) collections, reaching a 10-month high of ₹1.72 lakh crore. This growth of 13.4% year-on-year is the sharpest uptick since December 2022, reversing a three-month trend of deceleration. Several factors contributed to this impressive recovery, including increased domestic transactions, higher services imports, and robust GST levies on goods imports. Monthly Uptick and Comparison: October’s GST collections surged by 13.4% to reach ₹1.72 lakh crore. This marked a 5.7% increase compared to September, which saw a slowdown in indirect tax growth. The 13.4% revenue growth was the most substantial year-on-year increase since December 2022, breaking a three-month trend of deceleration. Factors Behind the Rebound: Domestic Transactions and Services Imports: The uptick in October’s revenues was driven by a 13% increase in domestic transactions and services imports. Goods Imports: While the Finance Ministry did not disclose the revenue growth from goods imports, it’s estimated that GST levies on goods imports increased by 13.9% in October, outpacing growth from domestic transactions. GST Compensation Cess Collections: Collections from GST Compensation Cess, which includes levies on goods imports, reached a record high of ₹12,456 crore in October, surpassing the previous highest collection received in April. State GST Revenue Trends: The average monthly GST collection for FY 2023-24 stands at ₹1.66 lakh crore, representing an 11% increase over the previous financial year. Deadline Effect: Experts attribute the strong October GST collections to factors such as the time-barred period for financial year 2017-18, compliance deadlines, and measures to curb evasion. Festive spending and efforts to settle disputes for 2017-18 also contributed to the boost in collections. Revenue Breakdown: October’s GST revenues included Central GST (CGST) of ₹30,062 crore, State GST of ₹38,171 crore, and Integrated GST (IGST) of ₹91,315 crore. The government settled ₹42,873 crore to CGST and ₹36,614 crore to SGST from IGST, resulting in a total revenue of ₹72,934 crore for CGST and ₹74,785 crore for SGST in October 2023 after regular settlements. Source [gst.gov.in]