Recent Updates on GST Portal Functionalities: July-August 2024

The GST portal has undergone several significant updates recently, aiming to enhance user experience and streamline various functionalities. These updates, implemented from July to August 2024, address key areas such as GST registration, size of documents uploaded, refunds, e-invoicing, tax collection at source (TCS), and Aadhaar-based authentication. Below is a detailed overview of each update and its implications for taxpayers.

1. Enhancements to Address-Related Fields in GST Registration Functionalities

On July 4th, 2024, GSTN introduced enhancements to the address-related fields in various GST registration functionalities. These changes impact the New Registration process, Amendment Applications (both Core and Non-Core), and the geocoding of business addresses. The updates were made in response to user feedback and issues reported through support tickets, focusing on improving data accuracy and user compliance.

Key Enhancements:

• Address in India:

• The fields for PIN Code, State, District, and City/Town/Village are now interlinked, ensuring consistency and accuracy through autosuggestions.

• Taxpayers can now include certain special characters (e.g., Hyphen (-), Forward Slash (/), Ampersand (&), Comma (,), Apostrophes (`), Hash(#), Period(.), Small Brackets (), Inverted Commas (""), Colon (:), Semi Colon (;), Underscore (_) and Space) in address fields, though special characters cannot start the entry. Other Special Characters are not allowed.

• Address Outside India:

• Similar enhancements apply, with more flexibility for Zip Code, State, and District entries while still restricting certain special characters.

• Instructions and Validations:

• Clear instructions have been added to the address fields, guiding taxpayers on permissible input formats.

• The new rules do not affect previously saved data but will be enforced during any amendments to the address fields.

These changes are particularly relevant to taxpayers categorized as Normal Taxpayers, SEZ Units, SEZ Developers, Composition Taxpayers, Input Service Distributors, and Casual Taxpayers. Additionally, the Locality/Sub-locality field has been made optional, with a warning message prompting users if this field is left blank or mismatched with the PIN code.

2. Increase in Size of Documents Upload for GST Registration and Amendments

In response to feedback from the trade, GSTN increased the allowable size for document uploads related to the Principal Place of business and Additional Places of Business. Effective from July 9th, 2024, this change addresses the limitations previously faced by taxpayers in uploading necessary documents during New Registration and Amendment processes.

Document Size Enhancement:

• Document Types:

• Municipal Khata Copy

• Electricity Bill

• Consent Letter

• Property Tax Receipt

• Size Increase:

• The maximum file size for these documents has been increased from 100 KB to 500 KB, applicable to both JPEG and PDF formats.

This update simplifies the process for taxpayers by allowing them to submit higher-resolution documents, reducing the need for compression and the potential loss of detail in uploaded documents.

3. Refund of Additional IGST Paid Due to Price Revision – Exports

The GST Council approved a mechanism for exporters to claim refunds on additional IGST paid due to price revisions post-export. This development, formalized through Notification No. 12/2024-Central Tax dated July 10th, 2024, is a significant step towards addressing the concerns of exporters who had to pay additional IGST when export prices were revised upwards.

Refund Process:

• New Refund Category:

• GSTN is developing a specific category within FORM GST RFD-01 for such refund claims. Until its rollout, exporters can claim refunds under the "Any other" category, with specific remarks indicating the reason for the refund.

• Supporting Documents:

• Exporters must submit Statement 9A & 9B along with relevant documentation, as outlined in Circular 226/20/2024-GST dated July 11th, 2024.

• Processing:

• Tax officers will process these applications based on the submitted documents, ensuring that exporters receive refunds for the additional IGST paid.

This provision is expected to alleviate financial burdens on exporters, promoting smoother international trade transactions.

4. Integrated Services from NIC-IRP e-invoice-1 and e-invoice-2 Portals

GSTN introduced integrated services across NIC`s e-invoice-1 and e-invoice-2 portals on 18th July 2024 on sandbox portals and 1st Aug 2024 on the production portals. These portals, which operate in parallel, now offer seamless interoperability, enhancing the user experience.

Key Features:

• Unified Access:

• Taxpayers can use the same login credentials across both portals, facilitating easy access to e-invoicing services.

• API Integration:

• The same API token can be used for both e-invoicing and e-waybill services across the two portals.

• Criss-Cross Operations:

• Users can print, download, and cancel e-invoices across both portals, providing flexibility and reducing downtime during technical issues.

• Fallback Mechanism:

• In case of technical failures on one portal, taxpayers can switch to the other portal without interrupting their e-invoicing activities.

These integrated services are expected to enhance the reliability and efficiency of e-invoicing, a critical component of the GST framework.

5. GSTN Advisory on Tax Refund by Canteen Store Department (CSD)

On July 22nd, 2024, GSTN released an advisory detailing the new online process for Canteen Store Departments (CSD) to claim refunds on taxes paid on inward supplies. The advisory follows Circular No. 227/21/2024-GST, which outlines the procedure for filing refunds in FORM GST RFD-10A.

Filing Process:

• Sequential Filing:

• CSDs must file refund applications sequentially for each Tax period. If no refund is claimed for a specific period, a NIL refund claim must be filed to proceed.

• Historical Claims:

• For periods where manual refunds were filed, CSDs need to file NIL refund claims for those periods to enable subsequent online refund claims.

• Invoice Upload:

• Refund claims require the upload of invoice details, with the system auto-populating the total tax paid on inward supplies.

This advisory simplifies the refund process for CSDs, ensuring compliance and streamlining the processing of refund applications.

6. New Form GSTR-1A to Amend GSTR-1

As per the Government`s directions through Notification No. 12/2024-Central Tax dated July 10th, 2024, Form GSTR-1A has been introduced as an optional facility for taxpayers, effective from the July 2024 Tax period. This form allows taxpayers to add, amend, or rectify any details of supplies reported or missed in the current tax period’s GSTR-1 before filing the GSTR-3B return for the same period.

Advisory for FORM GSTR-1A (Issued July 26th, 2024):

1. Purpose of FORM GSTR-1A:

• Form GSTR-1A enables taxpayers to correct or add details related to a supply in the current Tax period, which were either missed or incorrectly reported in Form GSTR-1, before the GSTR-3B return is filed for that period.

2. Availability:

• This form is available starting from August 2024, allowing amendments for the July 2024 Tax period.

3. Salient Features of FORM GSTR-1A:

• Optional Facility:

• Form GSTR-1A is optional and can be filed only once for a particular Tax period.

• Impact on Liability:

• Changes made through Form GSTR-1A will be reflected in Form GSTR-3B for the same Tax period.

• ITC for Recipients:

• At the recipient end, the ITC for the supplies declared or amended by the suppliers through FORM GSTR-1A will be available to the recipient in FORM GSTR-2B generated for the next Tax period.

4. Filing Process for Monthly Taxpayers:

• Form Availability:

• Form GSTR-1A will be available from the due date or actual date of filing GSTR-1, whichever is later, until the actual date of filing of Form GSTR-3B for the same Tax period.

• Liability Calculation: 

• The net impact of changes made through Form GSTR-1A will be auto-populated in Form GSTR-3B.

5. Filing Process for QRMP (Quarterly) Taxpayers:

• Form Availability:

• For QRMP taxpayers, Form GSTR-1A is available quarterly after filing GSTR-1 or the due date of filing GSTR-1, whichever is later, until the actual date of filing of Form GSTR-3B for the same Tax period.

• Impact on Supplies: 

• Supplies reported in the GSTR-1 of the current Tax period, including those declared in the Invoice Furnishing Facility (IFF) for the first two months (M1 and M2) of a quarter, can be amended through the corresponding Quarterly GSTR-1A.

• Liability Calculation: 

• The net impact of changes made in GSTR-1A, along with details in GSTR-1 (or IFF for M1 and M2, if filed), will be auto-populated in GSTR-3B for the same period.

• Restrictions: 

• No separate amendment facility is available for records furnished through IFF during M1 and M2.

6. GSTIN Correction:

• Any required changes in the GSTIN of a recipient for a supply reported in GSTR-1 of a Tax period can only be rectified through GSTR-1 of the subsequent Tax period.

This new form provides taxpayers with greater flexibility and accuracy in reporting their GST liabilities, ensuring that any discrepancies can be corrected before the finalization of the tax returns for the period.

7. Changes in GSTR-8 (TCS)

In line with the GST Council`s decision, the TCS rate has been reduced from 1% to 0.5% effective from July 10th, 2024, as per Notification No. 15/2024. This reduction applies to all transactions from July 10th onwards, with specific reporting requirements for transactions occurring between July 1st and 9th.

Important Aspects:

• Rate Change: 

• Transactions from July 10th, 2024, should reflect the reduced TCS rate of 0.5%.

• Validation Issues: 

• Some taxpayers reported errors while filing GSTR-8 for July 2024. GSTN is addressing these issues, and the portal is expected to be fully operational from August 6th, 2024.

This change is significant for e-commerce operators and other entities responsible for collecting TCS, ensuring compliance with the new rate structure.

8. Biometric-Based Aadhaar Authentication and Document Verification for GST Registration

GSTN has introduced biometric-based Aadhaar authentication and document verification for GST registration applicants in specific states. This new process, rolled out in Uttarakhand, Jammu & Kashmir, and West Bengal, is aimed at enhancing security and reducing fraudulent registrations.

Key Features:

• Biometric Authentication: 

• Applicants identified through data analysis and risk parameters may be required to undergo biometric-based Aadhaar authentication at designated GST Suvidha Kendras (GSKs).

• Document Verification: 

• The original documents uploaded with the GST registration application must be verified in person at the GSKs.

• Appointment Booking: 

• Applicants will receive an email to book an appointment for biometric authentication and document verification, ensuring a structured and efficient process.

• Implementation Dates: 

• This functionality was rolled out in Uttarakhand on July 28th, 2024, and in Jammu & Kashmir and West Bengal on August 2nd, 2024.

This development is part of GSTN`s efforts to enhance the integrity of the GST registration process, ensuring that only legitimate businesses are registered under the GST regime.

Conclusion

The updates implemented on the GST portal from July to August 2024 represent significant advancements in GST administration, enhancing compliance, and improving the user experience.