Extension of Threshold for e-invoice| Automation of GST returns| Time limit of GST Scrutiny and other GST updates

The GST Department and CBIC keeps on issuing various notifications, circulars and instructions on small and big matters for ease of industries. Similarly, various updates are also made on GST portal to make the GST portal more automated and integrated with other portals.

Here is a gist of certain notifications, circulars, instructions or advisories issued by CBIC and GST Department in last sometime:

1. Reduction in threshold limit of e-invoice upto INR 5 Crores

• So far, e-invoice is required to be generated by any person whose aggregate turnover exceeds INR 10 Crores during any preceding Financial year from 2017-18.
• With an objective to expand base of e-invoice, GST Authority has reduced the threshold limit for e-invoice upto INR 5 Crores with effect from 1st August, 2023 vide notification No. 10/2023 dated 10th May, 2023.
• With effect from 1st August, 2023, every registered person who is having aggregate turnover exceeding INR 5 Crores during any preceding year from 2017-18 onwards, is required to generate e-invoice against following transactions:
  • Tax Invoice, Debit Note and Credit Note issued to registered person
  • Export Invoice

• However, e-invoice is not applicable on following type of registered person:
  • Insurance Company
  • Banking Company or a financial Institutions 
  • SEZ Units 
  • Government Department and Local Authorities 
  • Goods Transport Agency.

2. Time barring of Scrutiny of GST Returns of Delhi taxpayers for the FY 2017-18, 2018-19 & 2019-20.

• Section 73 of CGST Act, 2017 provides for scrutiny of GST returns in following cases:
  • Tax has not been paid; or 
  • Tax has been short-paid; or
  • ITC has been wrongly availed or utilized; or
  • Erroneous refund has been claimed

For reasons other than fraud or any wilful mis-statement or suppression of facts to evade taxes.

• As per Section 73(10) of CGST Act, proper officer is required to issue order under section 73(9) of CGST act within 3 years from due date of filing of annual return of relevant financial year.

• CBIC has extended the time limit for issuance of order under section 73(9) of CGST Act vide notification No. notification No. 9/2023 Central Tax dated 31.03.2023 in following manner:

• In compliance with the above-mentioned notification, Department of Trades and Taxes, Delhi has issued a circular No. F.3/432/GST/Policy/2022/582-89 dated 8th May, 2023 to specify that entire process of scrutiny takes around 5 to 6 months. 

• Therefore, instructions has been issued to all jurisdictional officers to issue the notice in such a manner that order u/s 73(9) of CGST Act can be issued upto date notified by CBIC.

3. Automated Return Scrutiny Module for GST returns

• CBIC has given directions to roll out an Automated Return Scrutiny Module for GST returns at the earliest.
• In order to implement this non-intrusive means of compliance verification, CBIC has rolled out the Automated Return Scrutiny Module for GST returns in the ACES-GST backend application for Central Tax Officers.  
• This module will enable the officers to carry out scrutiny of GST returns of Centre Administered Taxpayers.
• Such taxpayers shall be selected on the basis of data analytics and risks identified by the System.
• In the module, discrepancies on account of risks associated with a return are displayed to the tax officers. Tax officers shall follow the following process for communication with taxpayers:
  • Discrepancies shall be communicated in Form GST ASMT-10
  • Taxpayer shall file the reply in FORM GST ASMT-11;
  • Tax officer shall either the order of acceptance of reply in FORM ASMT-12 or shall issue the show cause notice or shall initiate the audit/investigation.
• Implementation of this Module has commenced with the scrutiny of GST returns for FY 2019-20 and the requisite data for the purpose has already been made available on the officers’ dashboard.

4. Validation of Bank Account Validation

• For the purpose of GST registration, taxpayers are required to provide details of bank account.
• So far, many taxpayers, specially fake firms, were providing incorrect Bank account details and uploading fake cheque copies on the GST portal. 
• In order to put an end to this practise, GST portal has integrated the functionality of validation of Bank account with GST portal. 
• This integration aims to verify and validate the accuracy of bank account details for all types of GST taxpayers.
• The bank account validation status can be seen under:
  • “Dashboard > My Profile > Bank Account Status tab”
• Tax Payers will also receive the bank account status details on registered email and mobile number immediately after the validation is performed for his declared bank account. Here are the types of bank account validation status:

• Success
• Failure
• Success with remark
• Pending for verification 

5. New facility to verify document Reference Number (RFN) mentioned on offline communications issued by State GST authorities

• The GST portal (“System”) generates various documents, such as notices/ orders, etc which are communicated to the taxpayer. Most such documents have a system-generated unique identifier DIN (Document Identification Number)/ RFN (Reference Number). 
• All portal-generated documents are traceable on the taxpayer’s dashboard within the portal.
• However, a new feature allowing taxpayers to verify such documents using the auto-generated RFN is currently under development and will be provided shortly.
• Further, there are many notices or orders which are issued by the department in offline mode and no information is available about such document on GST portal.
• in order to enable the taxpayers to ascertain that an offline communication (i.e. one which is not system-generated) was indeed sent by the State GST tax officer or not, a new facility for Reference Number (RFN) generation by State tax officer and verification by taxpayer has been provided
• As per the latest GSTN advisory, state tax offices can generate a unique RFN for each physical correspondence sent to taxpayers. Taxpayers can verify this RFN on the GST portal, (both pre-login and post-login). The facility to verify RFN of System-generated documents, once deployed, shall also be available in a seamless manner using the same link.
• Taxpayer can verify the RFN on following path on portal:

“Services > User Services > Verify RFN 

• If the RFN belongs to an offline communication generated by a state GST officer, the details associated with the valid RFN will be displayed. The limited details will be provided pre-login also for verification, while greater details will be provided when the taxpayer logs in and verifies RFN mentioned on an offline communication issued to him/ her.
• This facility is for offline correspondence issued by State GST authorities. For documents issued by Central GST officers, CBIC DIN facility may be used.

6. Deferment of time limit of 7 days to report old e-invoice

• The GST department has deferred the time limit of 7 days to report the old e-invoices on the e-invoice IRP portals by three months. Further, the department is yet to announce the new implementation date.

7. Extension of due date of exercising option by GTA

• As per Entry No. 9(iii)((b) of notification No.11/2017-CGST (Rates) dated 28th June, 2017, a GTA has option to pay GST itself under forward charge. However, GTA is required to exercise this option by filing a declaration in Annexure V on or before 15th March of the preceding Financial year.
• Accordingly, due date of exercising this option for FY 2023-24 is 15th March, 2023.
• CBIC has extended such due date to 31st May, 2023 for FY 2023-24 wide notification No. 05/2023- Central Tax (Rate) dated 9th May, 2023.
• The notification also provides that a GTA who commences new business or crosses the threshold for registration during any Financial Year, may exercise this option by filing a declaration in Annexure V later of following dates:
  • 45 days from the date of applying for GST registration; or 
  • 1 month from the date of obtaining registration.