In May 2024, significant advancements were observed in The Goods and Service Tax landscape, indicating a strong economic performance alongside intentional initiatives aimed at improving the efficiency and user-friendliness of the GST system. Key highlights include:
- Record High GST Revenue Collections: The gross Goods and Services Tax (GST) revenue for the month of May 2024 stood at ₹1.73 lakh crore. This represents a 10% year-on-year growth, driven by a strong increase in domestic transactions (up 15.3%) and a slowing of imports (down 4.3%). After accounting for refunds, the net GST revenue for May 2024 stands at ₹1.44 lakh crore, reflecting a growth of 6.9% compared to the same period last year.
Breakdown of May 2024 Collections:
- Central Goods and Services Tax (CGST): ₹32,409 crore;
- State Goods and Services Tax (SGST): ₹40,265 crore;
- Integrated Goods and Services Tax (IGST): ₹87,781 crore, including ₹39,879 crore collected on imported goods;
- Cess: ₹12,284 crore, including ₹1,076 crore collected on imported goods.
- Enhancements to the GST Portal: On May 03, 2024, the GSTN launched an upgraded version of the GST portal on. With the new portal, navigation has been improved, a news and updates section has been added, and the user interface has been revamped to enhance the user experience.
- New Banking option added for GST Payments: DhanLaxmi Bank has been added as a new option for making GST payments on the GST portal. As part of ongoing efforts to improve the efficiency and accessibility of the GST payment system, this extension provides taxpayers with greater flexibility and convenience.
- Upgraded E-Way Bill Mobile Application: The e-Way Bill App for Android and iOS has been upgraded to streamline the process of generating e-way bills. Improved functionalities, user-friendly interface, and advanced features make the updated app easier and more efficient to use, which aids in smoother logistics operations and promotes transparency in goods transportation.
- Digital Payment Integration in Jammu & Kashmir: The GST payment facility in Jammu & Kashmir has been upgraded to include UPI and credit/debit card options, giving businesses and taxpayers more flexibility and convenience. With this move, tax payments will be simplified and financial inclusion and transparency will be promoted, in line with the broader trend toward digitalization.
- Updated Compliance Requirements for Pan Masala and Tobacco Manufacturers: The government has mandated manufacturers of Pan Masala and Tobacco products to provide specific information via two designated forms, GST SRM-I and GST SRM-II. GST SRM-I focuses on machine registration and disposal, while GST SRM-II collects’ data on monthly inputs and outputs. Through GST SRM-I, machines can now be registered and information submitted, and GST SRM-II will be available very soon. This initiative aims to streamline tax compliance and data collection in these sectors.
- Key Judicial Pronouncements/Highlights: The Gujarat High Court has ruled that the amendment to Rule 108(3) of the Central Goods and Services Tax Rules, 2017 (CGST Rules) will have a retrospective effect, as it is clarificatory in nature.
(Otsuka Pharmaceutical India Pvt Ltd vs Union of India)
https://drive.google.com/file/d/1hlIfVkRRjiPh8wJRC6p7lhVnTiOpEmAt/view?usp=drive_link
- The Telangana High Court has determined that a show cause notice and/or Assessment Order that is unsigned, whether electronically or physically, does not constitute a valid document under Rule 26 of the CGST Rules.
(Silver Oak Villas LLP vs Assistant Commissioner ST – Telangana High Court)
https://drive.google.com/file/d/19kFhuHlkYYKgsX5jOWun-eBYEZvzKIss/view?usp=drive_link
- The Kerala High Court has ruled that Notifications No. 13/2022-Central Tax and No. 09/2023-Central Tax, which extend the time limit for issuing orders under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act), are not ultra vires the powers conferred by Section 168A of the CGST Act.
(Faizal Traders Pvt Ltd Vs Deputy Commissioner Kerala High Court)
https://drive.google.com/file/d/1F_aRGaMhOL7SnisAdqzUvFyqfF9RZvr-/view?usp=drive_link
- The Bombay High Court has ruled that recovery proceedings cannot be initiated against a former director.
(Prasanna Karunakar Shetty vs State of Maharashtra)
https://drive.google.com/file/d/1F1Xvc_r7SOTcYUdSZ_x1NHG1tYYGmWf8/view?usp=drive_link
- The Allahabad High Court has ruled that recovery proceedings can be initiated against a taxpayer who has wrongly availed input tax credit on purchases from a non-existent and bogus supplier.
(Rajshi Processors Raebareli Vs. State of U.P.)
https://drive.google.com/file/d/1lLDvElOMlsFE-wHDxxvE2oWt9v2e783D/view?usp=drive_link
- The Telangana High Court has ruled that, according to Rule 86A of the Central Goods and Services Tax Rules, 2017, the balance in the Electronic Credit Ledger cannot be made negative.
(Laxmi Fine Chem Vs Assistant Commissioner Telangana High Court)
https://drive.google.com/file/d/1mbpvncGza1VMrvhOefNAikO03N-Y64j5/view?usp=sharing
- Key GST Compliance Dates for June 2024:
- June 10: Filing of GSTR-7 and GSTR-8 for Tax Deducted at Source (TDS) and Tax Collected at Source (TCS), respectively.
- June 11: Filing of GSTR-1 for outward supplies.
- June 13: Filing of B2B Outward Supplies (IFF) for QRMP scheme, GSTR-5 for non-resident taxpayers, and GSTR-6 for Input Service Distributors.
- June 20: Filing of GSTR-3B summary returns and GSTR-5A for OIDAR service providers.
- June 25: Filing of PMT-06 for QRMP taxpayers.
- June 28: Filing of GSTR-11 for UIN holders.