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Major relief for GST payers: CBIC revises arrest and bail rules under GST.

Now a Goods and Service Tax (GST) proper officer can’t arbitrarily arrest a GST registered person due to a recent amendment in GST arrest instructions. Moreover, now GST proper officers have to explain to the taxpayers about the ‘grounds of arrest’ and also obtain a written acknowledgement from them about their understanding of the explanation.

The Goods and Services Tax Investigation wing has amended para 4.2.1 of its instruction dated August 17, 2022. Amended para 4.2.1 now reads as follows: “The grounds of arrest must be explained to the arrested person and also furnished to him in writing as an Annexure to the Arrest Memo. Acknowledgement of the same should be taken from the arrested person at the time of service of the Arrest Memo.” A notification intimating this amendment in guidelines for arrest and bail in relation to offences punishable under CGST Act, 2017 was published on January 13, 2025 by Central Board of Indirect Taxes and Customs (CBIC).

Click Here to read the instruction

Read below to find out how this new amendment can help you.

Effective implementation of these guidelines will need awareness among businessmen

According to Experts, “This Instruction is expected to reduce arbitrary detentions, which was used as a coercive tool against taxpayers to admit liabilities. These guidelines will not only promote procedural fairness but also provide a sense of security to businessmen. However, effective implementation of the guidelines would require taxpayers knowing about their rights in the first place.”

Experts say sometimes field officers of GST do not follow these instructions and work arbitrarily.

Expert says, “These instructions are good and need to be abided by the field officers. But the irony is that sometimes these instructions about arrest guidelines are not followed at the ground level.”

Expert says that these amended instructions emphasise that there is a significant difference in the phrase ‘reasons for arrest’ and ‘grounds of arrest’. “The ‘reasons for arrest’ as indicated in the arrest memo are purely formal parameters, whereas the ‘grounds of arrest’ would be required to contain all such details in hand of the Investigating Officer which necessitated the arrest of the accused.”

New arrest and bail rule will allow better defense by GST taxpayers

He highlights how the taxpayer who got arrested can now expect a better defence strategy from his/her lawyer since the reason for arrest has to be explained and a copy of it needs to be given at the time of arrest. “This instruction gives clarity to the taxpayer about why he is being arrested and also gives a chance to his lawyer to prepare a defence strategy before the hearing starts in the court. As per this instruction now the grounds of arrest must be explained to the arrested person and also furnished to him in writing as an Annexure to the Arrest Memo,” he says.

Expert says: “The CBIC had issued guidelines outlining the conditions and procedure relating to arrest and bail for offences under the GST legislations. The procedure provided to inform grounds for arrest to the accused. Now, in furtherance of a recent decision by the Hon’ble Delhi Court, the CBIC has amended the guidelines to mandate that an accused must be informed in writing about the facts and circumstances leading to his arrest. This amendment would allow an accused an opportunity to defend himself against custodial remand and also to seek bail. This reinforces the principles of natural justice, ensuring transparency and safeguarding the rights of individuals against arbitrary actions of the tax department.”

Experts explains the above amended Instruction draws a clear distinction between ‘grounds of arrest’ and ‘reasons for arrest’.

He says while the ‘reasons for arrest’ are general, formal justifications like preventing further offenses, the ‘grounds of arrest’ now refer to specific facts known to the Investigating Officer that directly justify the arrest of an individual. “This shift ensures that taxpayers are protected from arbitrary arrests and are given a fair opportunity to defend themselves, as the grounds must be detailed and not merely a formality. This change enhances transparency and fairness in the arrest process,” he says.

Expert says: “The amendment to the earlier instruction mandates that the ‘grounds of arrest’ must be not only explained to the arrested individual but also furnished in writing as an annexure to the Arrest Memo. This ensures that the accused is aware of the precise allegations and evidence prompting their detention. Moreover, an acknowledgment of receipt from the arrested person must be obtained to confirm that they have been adequately informed.”

Expert adds: “This update to the arrest and bail guidelines seeks to enhance transparency and uphold the legal rights of individuals under the CGST Act, 2017. It reflects a broader commitment to procedural fairness and the protection of individual liberties, aligning administrative practices with judicial expectations. By mandating detailed communication of the grounds for arrest, the instruction aims to prevent arbitrary detentions and reinforce the principles of justice and accountability in law enforcement practices.”

 

When can a GST registered person be arrested?

According to Expert, arrest under the GST legislations is only permissible where there is clear evidence of the intent to evade tax or commit acts leading to availment or utilisation of wrongful Input Tax Credit (ITC) or fraudulent claim or refund of tax.

“The decision to arrest also depends on various factors such as the possibility of tampering with evidence or intimidating or influencing witnesses, to ensure proper investigation. Honest mistakes, or cases of difference of opinion with the tax department cannot lead to arrests,” says Expert

Expert says, “A person can be arrested under CGST law for committing serious offenses such as tax evasion, issuing fake invoices, fraudulently claiming ITC, in contravention of GST law, especially if the amount of tax involved is more than Rs 2 crore.”

Why GST department issued such an amendment in arrest guidelines

Expert explains that prior to this new amendment in GST arrest guidelines the commissioner was recording reasons of arrest but the arrested person was only provided with formal reasons which did not detail out the allegations against him.

One such arrest prepared the ground for this amendment.Expert says, “One such arrest was challenged before the Delhi High Court in Kshitij Galdiyal case wherein the High Court replying of Supreme Court judgment in Pankaj Bansal’s case held that an arrested person must be provided with the grounds of arrest which must be cursory or casual but crystallised.

Expert adds, “In furtherance of the judgment of Delhi High Court in Kshitij Galdiyal case, CBIC has issued the instruction no. 1/2025 directing its field formation that the officers exercising arrest powers under the CGST Act must explain the grounds of arrest to the individual being detained and provide a copy of the same to such person at the time of arrest.”

Expert says, “The recent update to the 2022 guidelines on arrest and bail for GST offences is a positive move towards ensuring transparency in the legal process before any individual is arrested. It reduces the risk of anyone bypassing necessary procedures. The update clarifies the difference between the ‘reasons for arrest’ i.e., where the commissioner believes the person has committed a specified offence and is likely to continue doing so and the ‘grounds for arrest’ which refers to the actions that show the person’s involvement in the offence. It also requires that the ‘grounds of arrest’ be communicated in writing to the accused, replacing the previous requirement for oral communication, and mandates that an acknowledgement of receipt is obtained to prevent disputes about whether the communication was made.”

Expert says the Supreme Court of India in its landmark judgement D.K Basu also stressed on this aspect.

He says: “We live in a society where the revenue officer perceives a person guilty even before he/she is proven guilty by the courts. Merely just by arresting a person he/she is not guilty. The Supreme Court has held multiple times, “Innocent until proven guilty.” So, if a GST registered person is arrested from his home or place of business, etc then his reputation, goodwill, everything will be destroyed despite him being pronounced innocent by the court later on. He/she will face a social stigma. Hence arrest should be the last resort in civil cases like GST law violation. The Honourable Supreme Court in the landmark judgement ‘D.K Basu’ said, arrest should be the last step and for economic offences arrest should not be taken in a casual manner. The Apex Court said, “Bail is a rule, jail is an exception.”

He says: “The amendment is grounded in the judgment delivered by the Delhi High Court in the case of Kshitij Ghildiyal vs. Director General of GST Intelligence, Delhi [W.P. (CRL) No. 3770/2024], dated December 16, 2024. The court underscored that the grounds for an individual’s arrest must be explicitly communicated in writing.

This directive aligns with principles established by the Hon’ble Supreme Court in previous cases, notably Pankaj Bansal vs. Union of India & Ors. and Prabir Purkayastha vs. State (NCT of Delhi).

The Supreme Court’s judgment in the case of Prabir Purkayastha provided a nuanced distinction between the ‘reasons for arrest’ and the ‘grounds of arrest’. ‘Reasons for arrest’ are general justifications, often outlined in the arrest memo, which pertain to preventing the commission of further offenses, ensuring proper investigation, and safeguarding evidence. These reasons are generic and applicable to any person accused of a crime. In contrast, ‘grounds of arrest’ are specific to the individual and must detail the factual basis necessitating the arrest. This distinction is crucial for ensuring the accused is fully informed of the basis of their arrest, thereby enabling them to mount an effective defense and seek bail.”

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Extension Announced for Implementation of HSN Reporting in GSTR-1 Table 12.

In a significant update for taxpayers, the GST portal has issued a new advisory on the mandatory mentioning of HSN (Harmonized System of Nomenclature) codes in GSTR-1 and GSTR-1A. Initially announced on January 9, 2025, with an implementation date from the January 2025 tax period, this advisory has now been revised. The updated advisory, issued on January 22, 2025, states that the implementation will commence from the February 2025 tax period.

Key Highlights of the New Advisory

Phase-III of HSN Code Implementation:
After the successful roll-out of Phase-I and Phase-II, Phase-III is being introduced for Table 12 of GSTR-1 and GSTR-1A. This phase brings critical changes aimed at enhancing the accuracy and ease of reporting HSN details in GST returns.

Mandatory Selection of HSN from Drop-Down Menu:

  • Manual entry of HSN codes has been replaced.
  • Taxpayers are now required to select the appropriate HSN code from a drop-down menu.
  • This change ensures standardized and error-free reporting of HSN codes.

Bifurcation of Table-12 into Two Tabs:

  • Table-12 of GSTR-1 and GSTR-1A has been divided into two tabs:
    • B2B (Business-to-Business) Supplies
    • B2C (Business-to-Consumer) Supplies
  • This bifurcation is designed to streamline the reporting process by clearly segregating B2B and B2C supplies.

Validation Mechanism Introduced:

  • A validation mechanism has been incorporated for the values of supplies and tax amounts reported in Table-12.
  • Initially, these validations will operate in warning mode
  • Failing validation checks will not block the filing of GSTR-1 and GSTR-1A, offering taxpayers some flexibility during the initial implementation period.
Aspect Old Advisory (9 Jan 2025) New Advisory (22 Jan 2025)
Implementation Date January 2025 tax period February 2025 tax period
Manual HSN Entry Replaced by drop-down menu selection Replaced by drop-down menu selection
Table-12 Bifurcation Divided into B2B and B2C tabs Divided into B2B and B2C tabs
Validation Mechanism Introduced in warning mode Introduced in warning mode

Key Differences Between the Old and New Advisory

 

Read GSTN AdvisoryImplementation of mandatory mentioning of HSN codes in GSTR-1 & GSTR 1A

Jan 22nd, 2025

After successful implementation of Phase-I Phase-II now Phase-III regarding Table 12 of GSTR-1 & 1A is being implemented, from return period February 2025. In this phase manual entry of HSN has been replaced by choosing correct HSN from given Drop down. Also, Table-12 has been bifurcated into two tabs namely B2B and B2C, to report these supplies separately. Further, validation regarding values of the supplies and tax amounts involved in the same, have also been introduced for both the tabs of Table-12. However in initial period these validations have been kept in warning mode only, which means failing the validation will not be a blocker for filling of GSTR-1& 1A. To view the detailed advisory please click hereThanking You,
Team GSTN

“Sponsorship services are exempt from GST under Reverse Charge Mechanism as per Notification No. 07/2025-Central Tax (Rate).”

In alignment with the recommendations of the 55th GST Council Meeting held on December 21, 2024, the CBIC has issued Notification No. 07/2025-Central Tax (Rate) to amend the applicability of the Reverse Charge Mechanism (RCM) for sponsorship services. This amendment alters the tax liability for body corporates by shifting their sponsorship services under the Forward Charge Mechanism (FCM).

Amendment to Serial Number 4 of Notification No. 13/2017

4 Services provided by way of sponsorship to anybody corporate or partnership firm. Any person other than a body corporate Anybody corporate or partnership firm located in the taxable territory.

 (A) against serial number 4, in column (3), i.e.  after the words “Any person”, the words “other than a body corporate” shall be inserted.

Explanation of the Changes:

  • Original Provision:
    Earlier, any sponsorship services provided to body corporates or partnership firms were taxed under the RCM.
  • Revised Provision:
    Sponsorship services supplied by body corporatesare now subject to tax under the Forward Charge Mechanism (FCM).

    • The supplier, if a body corporate, will now be responsible for collecting and depositing GST.
    • Sponsorship services provided by non-body corporateswill continue under RCM.

Implications of the Amendment

For Body Corporates (Suppliers):

  • New Tax Responsibility:
    Body corporates supplying sponsorship services must now register under GST (if not already registered) and comply with FCM requirements.
  • Invoice Management:
    Body corporates will need to issue GST-compliant invoices and remit tax directly to the government.

For Partnership Firms and Body Corporates (Recipients):

  • Reduced Compliance Burden:
    Recipients no longer need to calculate and pay GST under RCM for sponsorship services received from body corporates.

For Non-Body Corporate Suppliers:

  • Status Quo Maintained:
    Sponsorship services provided by non-body corporates will continue to be taxed under RCM, where the recipient bears the tax liability.

Regularization Under IGST and UTGST Acts

Similar amendments have been issued under the Integrated Goods and Services Tax Act, 2017 (IGST Act) and the Union Territory Goods and Services Tax Act, 2017 (UTGST Act). These changes ensure uniformity across different GST frameworks and eliminate potential ambiguities in tax liability for sponsorship services.

Update in GST Reverse Charge Mechanism (RCM) on Rent – Notification No. 07/2025-CT(R)

The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 07/2025-Central Tax (Rate) to implement recommendations from the 55th GST Council Meeting held on December 21, 2024. This notification amends Notification No. 13/2017-Central Tax (Rate) by modifying the applicability of the Reverse Charge Mechanism (RCM) for services involving the renting of immovable property, with specific exclusions for composition taxpayers.


Amendment to Serial No. 5AB

The amendment modifies the provisions related to services by way of renting of immovable property (other than residential dwellings) under the RCM.

(B) against serial number 5AB, in column (4), after the words “Any registered person”, the words “other than a person who has opted to pay tax under composition levy” shall be inserted.

5AB Service by way of renting of any immovable property other than residential dwelling. Any unregistered person Any registered person other than a person who has opted to pay tax under composition levy

 

Explanation:

  • The earlier provision applied to any registered person receiving such services from an unregistered person under RCM.
  • The amended provision excludes composition taxpayers from the scope of RCM for these services.

Regularization of Transactions (October 10, 2024 – January 15, 2025)

To address transactions that occurred from October 10, 2024 (the effective date of Notification No. 09/2024-Central Tax (Rate)) to the issuance of the current notification, the government has opted for an “as is where is” basis. This ensures compliance without reopening past transactions for taxpayers who fall under the excluded category.


For Composition Taxpayers

  • Exclusion from RCM:
    • Composition taxpayers are no longer liable to pay GST under RCM for renting of immovable property services.
    • This reduces compliance burdens and simplifies tax obligations for small businesses and service providers opting for composition schemes.

For Registered Recipients (Non-Composition Taxpayers):

  • Registered taxpayers (not under composition) remain liable to pay GST under RCM for such transactions with unregistered suppliers.

For Past Transactions:

  • Transactions between October 10, 2024, and January 15, 2025, are regularized without additional compliance or penalties for composition taxpayers.

Conclusion

Notification No. 07/2025-Central Tax (Rate) simplifies compliance by excluding composition taxpayers from the ambit of RCM for renting of immovable property services. This amendment aligns with the government’s commitment to easing GST compliance and promoting small businesses. Taxpayers should assess their transactions to ensure proper adherence to the updated provisions.

For detailed instructions and applicability, refer to the official notification issued by the CBIC.

Significant Notice: GSTR-2B for January 2025 Will Be Released Late Owing to Changes in GSTR-1 Filing Deadlines — Check the New Date.

Due to the extension in the due dates for filing GSTR-1 for the tax period of December 2024, the generation of GSTR-2B for January 2025 has been rescheduled. While GSTR-2B is typically generated on the 14th of every month, it will now be generated on 16th January 2025 for this specific period.

The extension in GSTR-1 filing dates was necessitated due to technical issues on the GST portal, ensuring smooth compliance for taxpayers. Below is a table summarizing the old and new extended due dates for various GST returns:

Form Type Tax Period Old Due Date New Extended Due Date
GSTR-1 December 2024 11th January 2025 13th January 2025
GSTR-1 (Quarterly) October to December 2024 13th January 2025 15th January 2025
GSTR-3B December 2024 20th January 2025 22nd (Monthly)
24th, or 26th January 2025 (based on state) for quarterly taxpayers
GSTR-5 December 2024 13th January 2025 15th January 2025
GSTR-6 December 2024 13th January 2025 15th January 2025
GSTR-7 December 2024 10th January 2025 12th January 2025
GSTR-8 December 2024 10th January 2025 12th January 2025

 

“Step-by-step guide for eligible taxpayers to apply for the GST Amnesty Scheme for waiver of interest and penalties using Form GST SPL-02.”

Good news for GST registered taxpayers who wish to avail the GST Amnesty Scheme waiver of interest and penalty under section 128A announced in Budget 2024. GST SPL 02 form, using which a GST registered person can apply for this Amnesty Scheme, has now been enabled on the GST portal. The other form-GST SPL 01, will soon be made available, said GSTN.

Taxpayers who have only been issued a notice under section 73 but no final order has been passed need to apply for the Amnesty Scheme using GST SPL 01 form. Form GST SPL 02 applies to situations where an order has been passed by the authorities at the first level tax authorities or by the appellate authorities.

“Presently, Form GST SPL 02 is made available in the GST portal. Form GST SPL 01 will be available soon in the GST portal,” said GSTN in an advisory dated December 29, 2024.

Who can apply for GST Amnesty Scheme 2024 under section 128A

Experts says the Amnesty scheme under section 128A grants waiver of interest and penalty liabilities relating to the period July 1, 2017 to March 31, 2020, in cases that do not involve fraud or wilful misstatement or suppression of facts.

“The scheme covers notices or statements issued under Section 73, and the proceedings following thereafter till the order of the first appellate authority, against which no appeal has been filed before the appellate tribunal. It also covers situations where the proceedings that were initiated under Section 74 as involving fraud, wilful misstatement or suppression of facts, but were ordered to not be involving these ingredients subsequently pursuant to Section 75(2). For context, Section 75(2) provides that where any appellate authority, appellate tribunal, court concludes that a case, which was initiated under Section 74 as involving fraud, wilful misstatement or suppression, did not involve such elements, the liabilities in such a case will be determined by deeming it be proceedings under Section 73. Notably, the situations where any interest or penalty liabilities on account of late fee, redemption fine etc. are not covered under the scheme,” says Expert

How to apply for GST Amnesty Scheme 2024 under section 128A

GSTN in the advisory said the process to file GST SPL 02 is fully online and it can be filed from the GST portal only. However before filing the application for GST Amnesty Scheme under section 128A you need to pay the disputed GST liability.

Here’s a step by step guide on how to file the application for GST Amnesty Scheme under section 128A:

Step 1: Login into the GST portal and then navigate to ‘Services’ and then click on ‘User Services’ and then select ‘My Applications’. On Navigating to ‘My Applications’ page,you have to select ‘Apply for Waiver Scheme under Section 128A’ option under ‘Application type’ dropdown. If you want to file a new application for availing waiver on Interest and Penalty, then click on ‘New Application’ button.

GST Amnesty Scheme 2024 Step 1

Source: GSTN

Step 2: On click of ‘New Application’, you will be able to see two forms:

  • SPL-01: Application for waiver of interest or penalty or both under Section 128(1)(a) in case of notice or statement (This form will be made available soon).
  • SPL-02: Application for waiver of interest or penalty or both under Section 128(1)(b) & Section 128(1)(c) in case of demand order. On selection of SPL-02, the ‘CREATE APPLICATION’ button will be enabled.

On clicking the ‘CREATE APPLICATION’ button , a questionnaire will appear on the dashboard. After answering all the mandatory questions you have to click the ‘NEXT’ button to proceed further. The SPL-02 form will be displayed on the dashboard.

GST Amnesty Scheme 2024 Step 2

Source: GSTN

Step 3: A new webpage will open and here you need to upload the supporting documents. You are required to upload the mandatory as well as other relevant supporting documents. A maximum of five documents, each with a size limit of 5 MB, can be uploaded. Once the form is saved and previewed, you may click the “File” button to submit the SPL-02 form.

Step 4: Upon clicking the ‘File’ button, a warning message will be displayed: “Do you wish to proceed with filing the application?”Select ‘Ok’ to continue or ‘Cancel’ to make modifications to the form. Upon selecting ‘Ok’, the application can be filed using either a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC). ARN will be generated upon the successful submission of the form.

Which taxpayers can use GST SPL 02 form to apply for Amnesty Scheme under section 128A

Experts explains the following categories of taxpayers are eligible to apply for the waiver scheme under Section 128A using GST SPL 02 form

  • “A person to whom a final order under Section 73 has been issued and who has filed an appeal, but no order on the first appeal has been passed under Section 107 of the CGST Act [Section 128A(1)(b)].
  • A person to whom the order on first appeal under Section 107 has been issued and who has filed the second appeal, but no order on the second appeal has been passed under Section 113 of the CGST Act [Section 128A(1)(c)].
  • A person who was initially issued a notice under Section 74 of the CGST Act (which pertains to suppression or misstatement or intentional evasion of tax), but the said proceeding was subsequently re-classified as a Section 73 proceeding can also take the benefit under Section 128A [First Proviso to Section 128A(1)].”

What is the deadline to apply for GST Amnesty Scheme under section 128A

There are two deadlines to be remembered- GST tax demand payment deadline and application form (GST SPL-01/GST SPL-02) submission deadline. If only you fulfil both the deadlines then your Amnesty scheme application would be considered by the GST department.

GST tax demand payment deadline
“To avail of this waiver under section 128A, the full tax liability must be paid by March 31, 2025. However, if the tax is redetermined by the proper officer in pursuance of an order under section 75, the tax must be paid within six months from the date of such order. Do note, if interest or penalty has already been paid, no refund of these amounts can be claimed,” says Experts

GST Amnesty Scheme application submission deadline
Bhattacharjee says: “The payment of tax is required to be made on or before 31 March 2025. As per Section 128A(1) read with Rule 164(6), to avail the benefit of waiver, the procedural forms need to be filed within a period of 3 months from 31 March 2025. Accordingly, the cut-off date is June 30, 2025.

In cases of application pertaining to a proceeding under Section 74 of the CGST Act which was reclassified under Section 73, the time limit is 6 months from the date of communication of the order by the proper officer re-determining the tax. Six months will therefore need to be accordingly calculated.”

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GST Return Deadlines Extended: Check the Revised Filing Dates

The Central Board of Indirect Taxes and Customs (CBIC) has announced an extension of due dates for various GST filings for the tax period of December 2024. These changes, notified via Notifications No. 01/2025 and 02/2025 – Central Tax (dated January 10, 2025), come in light of technical challenges faced by taxpayers on the GST portal.

The extensions cover returns such as GSTR-1, GSTR-3B, GSTR-5, GSTR-6, GSTR-7, and GSTR-8, providing taxpayers additional time to comply with their filing obligations without penalties.

Form Type Tax Period Old Due Date New Extended Due Date
GSTR-1 (Monthly) December 2024 11th January 2025 13th January 2025
GSTR-1 (Quarterly) October to December 2024 13th January 2025 15th January 2025
GSTR 2B 16th January 2025
GSTR-3B (M) December 2024 20th January 2025 22nd January 2025
GSTR-5 December 2024 13th January 2025 15th January 2025
GSTR-6 December 2024 13th January 2025 15th January 2025
GSTR-7 December 2024 10th January 2025 12th January 2025
GSTR-8 December 2024 10th January 2025 12th January 2025

 

GSTR-1 Filing Extension (Notification No. 01/2025 – Central Tax)

The deadline for furnishing the details of outward supplies in Form GSTR-1 has been extended as follows:

  • Monthly filers:Extended from January 10, 2025, to January 13, 2025.
  • Quarterly filers (under proviso to Section 39(1)):Extended to January 15, 2025.

This provides relief to businesses struggling to upload outward supply details due to technical glitches on the portal.

GSTR-3B Filing Extension (Notification No. 02/2025 – Central Tax)

The filing timeline for Form GSTR-3B has been revised as follows:

  • Monthly filers for December 2024:Deadline extended to January 22, 2025.
  • Quarterly filers (October-December 2024):
    • Taxpayers in certain states/Union Territories (e.g., Maharashtra, Gujarat, Tamil Nadu, etc.) must file by January 24, 2025.
    • Taxpayers in other regions (e.g., Bihar, Haryana, Punjab, etc.) must file by January 26, 2025.

This regional bifurcation ensures a staggered compliance schedule, reducing the load on the GST portal.

GSTR-5 and GSTR-6 Filing Extension

  • GSTR-5: Applicable to non-resident taxable persons.
  • GSTR-6: Applicable to input service distributors (ISDs).

The deadlines for these forms have been extended from January 13, 2025, to January 15, 2025, giving additional time for compliance.

GSTR-7 and GSTR-8 Filing Extension

  • GSTR-7: Filed by persons required to deduct TDS under GST.
  • GSTR-8: Filed by e-commerce operators for TCS under GST.

The deadlines for these forms have been extended from January 10, 2025,                                      to    January 12, 2025.

This extension benefits businesses that struggled to meet the original deadlines due to the portal’s technical issues.

Region-Wise Deadlines for GSTR-3B (Quarterly Filers)

The revised due dates for quarterly filers under the proviso to Section 39(1) of the CGST Act are outlined in the table below:

Having Trouble Filing GSTR-1? Deadline Extended!

Technical Issues on GST Portal

The GST portal is currently undergoing technical maintenance, causing disruptions in the filing process for GSTR-1 returns. These issues have been reported widely, and the authorities are actively addressing them to restore full functionality.


 

Expected Resolution Timeline

The portal is expected to be operational by 3:00 PM. Taxpayers are advised to remain patient while the technical teams resolve the ongoing challenges.


Incident Report Submitted

An incident report has been sent to the Central Board of Indirect Taxes and Customs (CBIC). Based on this report, the CBIC is considering an extension of the filing deadline for GSTR-1 returns. Taxpayers will be notified promptly of any official announcements regarding the extended deadline.


Key Points for Taxpayers

  1. Stay Updated: Keep an eye on official announcements from CBIC and GSTN regarding the extended filing deadline.
  2. Avoid Last-Minute Filing: Once the portal is operational, try to file your returns at the earliest to avoid any potential delays.
  3. Use Available Resources: Refer to the GST portal’s help section or contact the GSTN helpdesk for immediate assistance if needed.

 

“2024 GST update: From amnesty offers to e-invoicing moves, it’s all about making business easier and more transparent.

India’s Goods and Services Tax (GST) framework has continued to evolve since its introduction in July 2017, with 2024 marking a year of reforms aimed at enhancing compliance, transparency, and ease of doing business.

From resolving legacy issues through amnesty schemes to leveraging technology for efficient tax administration, these reforms reflect a maturing tax regime adapting to the needs of a dynamic economy.

The 55th GST Council meeting, held in Jaisalmer, Rajasthan, brought about decisions including, deferring the 28 per cent GST on online gaming, horse racing, and casinos to March 2025, allowing states more time to address revenue and compliance concerns. The Council also reduced GST on fortified rice kernels from 18 per cent to 5 per cent. However, aviation turbine fuel (ATF) continues to remain outside the GST ambit.

GST Amnesty Scheme under Section 128A

The Ministry of Finance in early October notified about the GST Amnesty Scheme under Section 128A to give a total waiver of interest and penalty for specified non-fraudulent GST demand notices under section 73 relating to FY 2017-19 to 2019-20.

This initiative encouraged businesses to settle past tax disputes with reduced penalties, effectively reducing litigation and providing relief to MSMEs and small businesses.

Parag Mehta, Partner – Indirect Tax, N A Shah Associates LLP, said, “The amnesty scheme has been a game changer in addressing legacy disputes. By clearing the backlog, the government has taken a bold step towards reducing litigation and fostering trust between taxpayers and authorities.”

Invoice Management System (IMS)

The launch of the Invoice Management System (IMS) on October 1, 2024, introduced a significant technological advancement in GST compliance. This system allows recipients to address invoice discrepancies directly on the GST portal, streamlining the reconciliation of Input Tax Credit (ITC).

Gyanendra Tripathi, Partner & Leader (West), Indirect Tax, BDO India, highlighted, “IMS has transformed ITC matching by reducing manual errors and enhancing compliance accuracy. It’s a step forward in building a seamless GST ecosystem.”

Expansion of E-Invoicing

Notably, starting April 1, 2025, businesses with an aggregate annual turnover exceeding Rs 10 crore will be required to report e-invoices within 30 days of the invoice date. This measure aims to ensure timely tax payments and reduce reporting delays.

Additionally, multi-factor authentication (MFA) will become mandatory for accessing the E-Way Bill and E-Invoice systems. The rollout will occur in phases: from January 1, 2025, for taxpayers with a turnover exceeding Rs 20 crore; from February 1, 2025, for those exceeding Rs 5 crore; and by April 1, 2025, for all taxpayers. These initiatives are part of the government’s efforts to enhance the security and efficiency of the GST framework.

According to Sivakumar Ramjee, Executive Director- Indirect Tax, Nangia Andersen LLP, “The expansion of e-invoicing has not only enhanced transparency but also significantly boosted revenue collection. It’s a key step in making compliance more robust.”

Operationalization of GST Appellate Tribunal (GSTAT)

The establishment of the GST Appellate Tribunal (GSTAT) has addressed a significant gap in India’s GST framework. While not yet fully operational, its creation marks a key milestone in improving the resolution of tax disputes. In May 2024, Union Finance and Corporate Affairs Minister Nirmala Sitharaman administered the oath of integrity and secrecy to Justice (Retd.) Sanjaya Kumar Mishra, who was appointed as the President of the GSTAT in New Delhi. This appointment signifies the initial steps toward operationalising the Tribunal, which is expected to play a pivotal role in addressing GST-related disputes.

Created under the Central Goods and Services Tax Act, 2017, the GSTAT functions as an appellate authority for disputes under both central and state GST laws. The Tribunal consists of a Principal Bench in New Delhi and 31 State Benches across the country, as approved by the GST Council. The process of appointing Judicial and Technical Members to the Tribunal is ongoing.

Designed to deliver timely, fair, and effective dispute resolution, the GSTAT aims to reduce the burden on higher courts and strengthen the GST system.

Tax expert Sandeep Sehgal, Partner-Tax at AKM Global, said, “The GSTAT is a much-needed reform. Once operational, it will cut down litigation time and costs, offering businesses a dedicated mechanism for dispute resolution.”

Rationalization of GST Rates

The aviation sector benefitted from a uniform 5 per cent GST on all imports of aircraft components and engine parts, replacing the earlier rates ranging from 5 per cent to 28 per cent, a move aimed at boosting the domestic maintenance, repair, and overhaul (MRO) industry.

In the used vehicle market, the Council imposed an 18 per cent GST on sales by registered sellers while keeping private transactions exempt. Food product taxation also saw adjustments, with differentiated rates for popcorn, 5 per cent for non-branded salted popcorn, 12 per cent for pre-packaged and branded variants, and 18 per cent for caramel popcorn, also sparking public debate on the system’s complexity.

Additionally, discussions were initiated to lower GST on online food delivery charges from 18 per cent to 5 per cent.

Introduction of Biometric Authentication

To enhance compliance and curb tax evasion, the GST Council introduced biometric authentication for high-risk taxpayers in 2024.

Effective July 10, 2024, biometric Aadhaar authentication became mandatory for GST registration across India by the Ministry of Finance.

This initiative, introduced as part of the decisions made during the 53rd GST Council meeting, aims to strengthen verification procedures and improve the registration process.

This measure requires certain businesses to verify their identity through biometric data, such as fingerprints or facial recognition, during GST registration. The initiative targets entities flagged for suspicious activities, including fake invoicing and identity theft, which have historically caused revenue leakages.

 

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