Know More About Recent Amendments in GST Law

Know More About Recent Amendments in GST Law. The Goods and Services Tax (GST) system, implemented in India in 2017, has simplified the tax process for businesses of all sizes, including small enterprises. However, small businesses should be aware of some important new GST regulations. One key change is the mandatory use of e-invoices for businesses with an annual turnover of Rs.5 crore or more. E-invoices are digital invoices that are generated and stored electronically, offering several benefits, including improved efficiency, better traceability, and a reduction in fraud. Another significant update is the introduction of the composition scheme, a simplified GST option for small businesses with a turnover of up to Rs.1.5 crore. Under this scheme, businesses pay a fixed GST rate of either 1% or 5%, depending on the nature of the goods or services sold.
The GST Council has also made modifications to the GST refund process, making it easier for businesses to claim refunds for GST paid on input taxes.
Major GST Updates Effective from April 1, 2025
The Goods and Services Tax Network (GSTN) has announced an update to the e-invoicing requirements for businesses, effective from April 1, 2025. Under the new rule, taxpayers with an annual aggregate turnover (AATO) of Rs 10 crore or more will be required to upload their e-invoices to the Invoice Registration Portal (IRP) within 30 days of issuing the invoice. Previously, this 30-day deadline applied only to businesses with an AATO of Rs 100 crore and above. This change will now apply to a wider group of taxpayers, including those running smaller businesses, significantly expanding the pool of affected GST taxpayers.
According to GSTN, any e-invoice that is not uploaded within the 30-day window will be automatically rejected by the IRP. For example, an invoice dated April 1, 2025, must be uploaded by April 30, 2025. Submissions made after this deadline will not be accepted by the system.
GSTN’s advisory stated, "If an invoice is dated 1st April 2025, it cannot be reported after 30th April 2025. The validation built into the invoice registration portals (IRP) would disallow the user from reporting (i.e., uploading) the e-invoice after the 30-day window." Taxpayers must ensure timely reporting of e-invoices within this 30-day period to avoid issues.
Delayed submissions could cause complications for sellers, such as issues with timely tax payments. Buyers may also face challenges in claiming input tax credits, which could impact their refund eligibility. Even in cases where GST exemptions apply and no tax or credit is involved, prompt uploads are important for proper record-keeping and account reconciliation.
Major GST Updates Effective from 1st November 2024: Key Highlights for Taxpayers
India's GST framework is set to undergo substantial revisions starting November 1, 2024. These changes aim to improve tax compliance, simplify processes, and provide relief to taxpayers. Here’s a summary of the critical updates:
1. Authority to Waive Unlevied or Short-Levied GST
The government now holds the power to waive GST that was either not levied or under-levied due to common practices. This initiative allows taxpayers to rectify earlier mistakes without incurring penalties, contributing to a more efficient compliance mechanism.
2. Interest and Penalty Waiver Under Section 128A
A new provision, Section 128A, has been introduced under the CGST Act, offering relief by waiving interest and penalties for demands raised under Section 73 for the financial years 2017-18, 2018-19, and 2019-20. To qualify, taxpayers must clear the full tax liability by March 31, 2025. Rule 164 has been added to guide taxpayers on availing this benefit.
3. Simplified Compliance with Form GST DRC-03A
Form GST DRC-03A, introduced via GST Notification No. 12/2024 on July 10, 2024, enhances the ease of managing tax liabilities. This form supplements Form GST DRC-03, allowing taxpayers to adjust payments more efficiently.
4. Revised RCM Rules and Self-Invoicing Timeline
Updates to the Reverse Charge Mechanism (RCM) have streamlined tax accounting for such transactions. Effective November 1, 2024, recipients must issue self-invoices within 30 days of receiving supplies, ensuring timely tax payments and accurate ITC claims.
5. ITC Restrictions on Section 74 Demands
Restrictions on Input Tax Credit (ITC) for demands under Section 74 are now capped up to FY 2023-24, providing some relief to businesses that previously faced ITC limitations.
6. Refund Limitations for Export-Related ITC and IGST
New restrictions apply to refunds for unutilized ITC and IGST paid on zero-rated supplies, particularly when these goods are subject to export duties. This measure aims to curb misuse of the refund system.
7. New Forms SPL-01 and SPL-02
From January 2025, taxpayers can use Forms SPL-01 and SPL-02 to claim exemptions from interest and penalties under Section 128A, streamlining the process for availing such waivers.
8. Mandatory E-Invoice Upload Timelines
From April 2025, businesses must upload e-invoices within 30 days of issuance. Non-compliance will result in the automatic rejection of such invoices.
9. Anti-Profiteering Cases Transition to GSTAT
Anti-profiteering cases under Section 171 will now be handled by the Goods and Services Tax Appellate Tribunal (GSTAT), expediting dispute resolution and improving adjudication efficiency.
Key GST Updates In 2023
7th October 2023: 52nd GST Council Meeting
The 52nd GST Council meeting, held at Sushma Swaraj Bhawan in New Delhi, was chaired by Union Finance Minister Nirmala Sitharaman. Key decisions and highlights from the meeting were discussed and approved, marking a significant step in GST developments.
2nd August 2023: 51st GST Council Meeting
The 51st GST Council meeting was conducted via video conferencing, where the Council approved the implementation of a 28% GST on casinos, race courses, and online gaming platforms.
11th July 2023: 50th GST Council Meeting
During the 50th GST Council meeting, a key decision was made to issue notifications regarding excess Input Tax Credit (ITC) claims via GSTR-3B, compared to GSTR-2B. A new procedure was introduced to notify taxpayers and seek responses. Additionally, a 28% GST was applied to online gaming.
12th June 2023: Mandatory Two-Factor Authentication
The NIC announced that taxpayers with a turnover exceeding Rs. 100 Crore must use two-factor authentication for logging into both the e-invoicing and e-way bill systems, starting from 15th July 2023.
26th May 2023: Online Scrutiny for FY 2019-20 Onwards
The Central Board of Indirect Taxes and Customs (CBIC) issued instructions for online scrutiny, continuing the earlier SOP guidelines for fiscal years 2017-18 and 2018-19.
16th May 2023: GSTR-9 and GSTR-9C Filing for FY 2022-23
The government portal made provisions available for filing GSTR-9 and GSTR-9C for the fiscal year 2022-23, marking an important step in compliance for businesses.
11th May 2023: Launch of Automated Return Scrutiny
The GST department introduced an automated return scrutiny module for fiscal year 2019-20 and beyond. The initiative is aimed at improving communication and efficiency between taxpayers and GST officers.
10th May 2023: Notification of 6th Phase of E-Invoicing
CBIC announced the 6th phase of e-invoicing, requiring taxpayers with a turnover of Rs. 5 Crore or more in any year since 2017-18 to begin issuing e-invoices from 1st August 2023.
6th May 2023: Extension of E-Invoice Reporting Deadline
The GST department extended the deadline for reporting old e-invoices on the e-invoice IRP portals by three months, with a new implementation date still to be announced.
13th April 2023: Mandatory E-Invoice Reporting for Taxpayers with Turnover Over Rs.100 Crore
The GST Network issued advisories that taxpayers with an annual turnover of Rs. 100 Crore or more must report tax invoices and credit-debit notes to the Invoice Registration Portal (IRP) within seven days from the invoice date, starting from 1st May 2023.
31st March 2023: CGST Notifications and Key Amendments
Several CGST notifications were issued, including the introduction of amnesty schemes for late filers and defaulters, valid up to 30th June 2023. Additional biometric Aadhaar authentication requirements were also implemented in Gujarat, and the limitation period for certain GST proceedings was extended.
1st February 2023: Budget 2023 Updates
The Budget 2023 proposed the decriminalization of certain offences and extended the composition scheme to e-tailers, marking significant changes to the GST structure.
12th January 2023: Automated Drop Proceedings for Revoked GSTINs
An automated drop proceedings facility was introduced on the GST portal for taxpayers whose GSTINs were revoked, enabling them to file pending returns and restore their status.
4th January 2023: CGST Notification 01/2023
A new notification (CGST Notification 01/2023) was issued, delegating additional powers previously held by a Superintendent of central tax to the Additional Assistant Directors in DGGI, DGGST, and DG Audit.
Conclusion
In conclusion, to ensure compliance with the new GST rules, small businesses should promptly register for GST, use e-invoices for all B2B transactions, and consider opting for the composition scheme if they qualify. It's essential to maintain accurate records of all GST-related transactions and file GST returns on time. By following these steps, businesses can avoid penalties and remain compliant with the updated regulations. For additional guidance, small businesses can consult the GST website or seek advice from a GST expert.
FAQs
1. What are the latest updates in GST?
Ans. Recent updates in GST include the introduction of a new format for GSTR-3B, which is now available for taxpayers to use. Additionally, Section 110 of the Finance Act 2022 has been notified, allowing taxpayers to transfer CGST in cash between different GSTINs as CGST or IGST using Form PMT-09. Furthermore, the due date for filing GSTR-4 for FY 2021-22 has been extended with a late fee waiver until July 28, 2022.
2. What is the latest amended GST Act?
Ans. The Central Goods and Services Tax (Amendment) Bill, 2023, was introduced in the Lok Sabha on August 11, 2023. This amendment updates the Central Goods and Services Tax (CGST) Act of 2017, specifically focusing on the levy and collection of CGST for intra-state supply of goods and services.
3. What is the new GST Amnesty Scheme in 2024?
Ans. The new GST Amnesty Scheme, introduced under Section 128A, came into effect on November 1, 2024. This scheme allows taxpayers who have received notices under Section 73 of the CGST Act for the fiscal years 2017-18, 2018-19, and 2019-20 to apply for a waiver of interest and penalties.
4. What is Reverse Charge Mechanism (RCM) under GST?
Ans. The Reverse Charge Mechanism (RCM) under GST refers to a process where the recipient of goods or services is responsible for paying and depositing GST with the government, rather than the supplier. Under the normal GST mechanism, the supplier collects the tax from the recipient and deposits it with the government.
5. What are the new rules for e-way bills under GST?
Ans. Under the updated e-way bill rules, from March 1, 2024, businesses that generate e-invoices and e-way bills must ensure that both are created simultaneously, or the e-way bill can only be generated after the e-invoice is created. ERP systems and compliance solutions should be updated to prevent direct e-way bill generation for B2B and export sales without first generating the corresponding e-invoice.

The Goods and Services Tax (GST) system, implemented in India in 2017, has simplified the tax process for businesses of all sizes, including small enterprises. However, small businesses should be aware of some important new GST regulations. One key change is the mandatory use of e-invoices for businesses with an annual turnover of Rs.5 crore or more. E-invoices are digital invoices that are generated and stored electronically, offering several benefits, including improved efficiency, better traceability, and a reduction in fraud. Another significant update is the introduction of the composition scheme, a simplified GST option for small businesses with a turnover of up to Rs.1.5 crore. Under this scheme, businesses pay a fixed GST rate of either 1% or 5%, depending on the nature of the goods or services sold.

The GST Council has also made modifications to the GST refund process, making it easier for businesses to claim refunds for GST paid on input taxes.

Major GST Updates Effective from April 1, 2025

The Goods and Services Tax Network (GSTN) has announced an update to the e-invoicing requirements for businesses, effective from April 1, 2025. Under the new rule, taxpayers with an annual aggregate turnover (AATO) of Rs 10 crore or more will be required to upload their e-invoices to the Invoice Registration Portal (IRP) within 30 days of issuing the invoice. Previously, this 30-day deadline applied only to businesses with an AATO of Rs 100 crore and above. This change will now apply to a wider group of taxpayers, including those running smaller businesses, significantly expanding the pool of affected GST taxpayers.

According to GSTN, any e-invoice that is not uploaded within the 30-day window will be automatically rejected by the IRP. For example, an invoice dated April 1, 2025, must be uploaded by April 30, 2025. Submissions made after this deadline will not be accepted by the system.

GSTN’s advisory stated, "If an invoice is dated 1st April 2025, it cannot be reported after 30th April 2025. The validation built into the invoice registration portals (IRP) would disallow the user from reporting (i.e., uploading) the e-invoice after the 30-day window." Taxpayers must ensure timely reporting of e-invoices within this 30-day period to avoid issues.

Delayed submissions could cause complications for sellers, such as issues with timely tax payments. Buyers may also face challenges in claiming input tax credits, which could impact their refund eligibility. Even in cases where GST exemptions apply and no tax or credit is involved, prompt uploads are important for proper record-keeping and account reconciliation.

Major GST Updates Effective from 1st November 2024: Key Highlights for Taxpayers

India's GST framework is set to undergo substantial revisions starting November 1, 2024. These changes aim to improve tax compliance, simplify processes, and provide relief to taxpayers. Here’s a summary of the critical updates:

1. Authority to Waive Unlevied or Short-Levied GST

The government now holds the power to waive GST that was either not levied or under-levied due to common practices. This initiative allows taxpayers to rectify earlier mistakes without incurring penalties, contributing to a more efficient compliance mechanism.

2. Interest and Penalty Waiver Under Section 128A

A new provision, Section 128A, has been introduced under the CGST Act, offering relief by waiving interest and penalties for demands raised under Section 73 for the financial years 2017-18, 2018-19, and 2019-20. To qualify, taxpayers must clear the full tax liability by March 31, 2025. Rule 164 has been added to guide taxpayers on availing this benefit.

3. Simplified Compliance with Form GST DRC-03A

Form GST DRC-03A, introduced via GST Notification No. 12/2024 on July 10, 2024, enhances the ease of managing tax liabilities. This form supplements Form GST DRC-03, allowing taxpayers to adjust payments more efficiently.

4. Revised RCM Rules and Self-Invoicing Timeline

Updates to the Reverse Charge Mechanism (RCM) have streamlined tax accounting for such transactions. Effective November 1, 2024, recipients must issue self-invoices within 30 days of receiving supplies, ensuring timely tax payments and accurate ITC claims.

5. ITC Restrictions on Section 74 Demands

Restrictions on Input Tax Credit (ITC) for demands under Section 74 are now capped up to FY 2023-24, providing some relief to businesses that previously faced ITC limitations.

6. Refund Limitations for Export-Related ITC and IGST

New restrictions apply to refunds for unutilized ITC and IGST paid on zero-rated supplies, particularly when these goods are subject to export duties. This measure aims to curb misuse of the refund system.

7. New Forms SPL-01 and SPL-02

From January 2025, taxpayers can use Forms SPL-01 and SPL-02 to claim exemptions from interest and penalties under Section 128A, streamlining the process for availing such waivers.

8. Mandatory E-Invoice Upload Timelines

From April 2025, businesses must upload e-invoices within 30 days of issuance. Non-compliance will result in the automatic rejection of such invoices.

9. Anti-Profiteering Cases Transition to GSTAT

Anti-profiteering cases under Section 171 will now be handled by the Goods and Services Tax Appellate Tribunal (GSTAT), expediting dispute resolution and improving adjudication efficiency.

Key GST Updates In 2023

7th October 2023: 52nd GST Council Meeting

The 52nd GST Council meeting, held at Sushma Swaraj Bhawan in New Delhi, was chaired by Union Finance Minister Nirmala Sitharaman. Key decisions and highlights from the meeting were discussed and approved, marking a significant step in GST developments.

2nd August 2023: 51st GST Council Meeting

The 51st GST Council meeting was conducted via video conferencing, where the Council approved the implementation of a 28% GST on casinos, race courses, and online gaming platforms.

11th July 2023: 50th GST Council Meeting

During the 50th GST Council meeting, a key decision was made to issue notifications regarding excess Input Tax Credit (ITC) claims via GSTR-3B, compared to GSTR-2B. A new procedure was introduced to notify taxpayers and seek responses. Additionally, a 28% GST was applied to online gaming.

12th June 2023: Mandatory Two-Factor Authentication

The NIC announced that taxpayers with a turnover exceeding Rs. 100 Crore must use two-factor authentication for logging into both the e-invoicing and e-way bill systems, starting from 15th July 2023.

26th May 2023: Online Scrutiny for FY 2019-20 Onwards

The Central Board of Indirect Taxes and Customs (CBIC) issued instructions for online scrutiny, continuing the earlier SOP guidelines for fiscal years 2017-18 and 2018-19.

16th May 2023: GSTR-9 and GSTR-9C Filing for FY 2022-23

The government portal made provisions available for filing GSTR-9 and GSTR-9C for the fiscal year 2022-23, marking an important step in compliance for businesses.

11th May 2023: Launch of Automated Return Scrutiny

The GST department introduced an automated return scrutiny module for fiscal year 2019-20 and beyond. The initiative is aimed at improving communication and efficiency between taxpayers and GST officers.

10th May 2023: Notification of 6th Phase of E-Invoicing

CBIC announced the 6th phase of e-invoicing, requiring taxpayers with a turnover of Rs. 5 Crore or more in any year since 2017-18 to begin issuing e-invoices from 1st August 2023.

6th May 2023: Extension of E-Invoice Reporting Deadline

The GST department extended the deadline for reporting old e-invoices on the e-invoice IRP portals by three months, with a new implementation date still to be announced.

13th April 2023: Mandatory E-Invoice Reporting for Taxpayers with Turnover Over Rs.100 Crore

The GST Network issued advisories that taxpayers with an annual turnover of Rs. 100 Crore or more must report tax invoices and credit-debit notes to the Invoice Registration Portal (IRP) within seven days from the invoice date, starting from 1st May 2023.

31st March 2023: CGST Notifications and Key Amendments

Several CGST notifications were issued, including the introduction of amnesty schemes for late filers and defaulters, valid up to 30th June 2023. Additional biometric Aadhaar authentication requirements were also implemented in Gujarat, and the limitation period for certain GST proceedings was extended.

1st February 2023: Budget 2023 Updates

The Budget 2023 proposed the decriminalization of certain offences and extended the composition scheme to e-tailers, marking significant changes to the GST structure.

12th January 2023: Automated Drop Proceedings for Revoked GSTINs

An automated drop proceedings facility was introduced on the GST portal for taxpayers whose GSTINs were revoked, enabling them to file pending returns and restore their status.

4th January 2023: CGST Notification 01/2023

A new notification (CGST Notification 01/2023) was issued, delegating additional powers previously held by a Superintendent of central tax to the Additional Assistant Directors in DGGI, DGGST, and DG Audit.

Conclusion

In conclusion, to ensure compliance with the new GST rules, small businesses should promptly register for GST, use e-invoices for all B2B transactions, and consider opting for the composition scheme if they qualify. It's essential to maintain accurate records of all GST-related transactions and file GST returns on time. By following these steps, businesses can avoid penalties and remain compliant with the updated regulations. For additional guidance, small businesses can consult the GST website or seek advice from a GST expert.

FAQs

1. What are the latest updates in GST?

Ans. Recent updates in GST include the introduction of a new format for GSTR-3B, which is now available for taxpayers to use. Additionally, Section 110 of the Finance Act 2022 has been notified, allowing taxpayers to transfer CGST in cash between different GSTINs as CGST or IGST using Form PMT-09. Furthermore, the due date for filing GSTR-4 for FY 2021-22 has been extended with a late fee waiver until July 28, 2022.

2. What is the latest amended GST Act?

Ans. The Central Goods and Services Tax (Amendment) Bill, 2023, was introduced in the Lok Sabha on August 11, 2023. This amendment updates the Central Goods and Services Tax (CGST) Act of 2017, specifically focusing on the levy and collection of CGST for intra-state supply of goods and services.

3. What is the new GST Amnesty Scheme in 2024?

Ans. The new GST Amnesty Scheme, introduced under Section 128A, came into effect on November 1, 2024. This scheme allows taxpayers who have received notices under Section 73 of the CGST Act for the fiscal years 2017-18, 2018-19, and 2019-20 to apply for a waiver of interest and penalties.

4. What is Reverse Charge Mechanism (RCM) under GST?

Ans. The Reverse Charge Mechanism (RCM) under GST refers to a process where the recipient of goods or services is responsible for paying and depositing GST with the government, rather than the supplier. Under the normal GST mechanism, the supplier collects the tax from the recipient and deposits it with the government.

5. What are the new rules for e-way bills under GST?

Ans. Under the updated e-way bill rules, from March 1, 2024, businesses that generate e-invoices and e-way bills must ensure that both are created simultaneously, or the e-way bill can only be generated after the e-invoice is created. ERP systems and compliance solutions should be updated to prevent direct e-way bill generation for B2B and export sales without first generating the corresponding e-invoice.