We have entered a brand new monetary 12 months 2023-24. This has a lot significance for GST-registered companies as they already needed to adjust to some key GST provisions earlier than the 12 months began, resembling readying new invoicing collection, computing combination turnover for deciding whether or not or to not decide into the composition scheme for FY 2023-24 or quarterly return and month-to-month fee scheme, submitting of LUT for FY 2023-24, seeing if e-invoicing applies, and so forth.
Amid these compliances, the products and companies tax (GST) regulation shall endure varied modifications that have been carried out from April 1, 2023. Businesses of all taxpayer sorts should be cautious of the modifications and adjust to the newest GST guidelines and rules to keep away from any not-so-friendly confrontations with the taxman.
Mandatory 6-digit HSN reporting in e-Invoice
The e-Invoicing system is not going to settle for 4-digit HSN codes beginning very quickly. The NIC launched an advisory on ninth March 2023 for customers of the e-invoicing portal einvoice1.gst.gov.in. The system will block all such e-invoices with an HSN code of 4 as a substitute of 6 digits obligatory reporting.
This replace shall be carried out on the portal shortly by one other intimation. The CGST Notification No.78/2020 issued on fifteenth October 2020 made it obligatory for taxpayers to cite a 6-digit HSN code for all their gross sales wherever their Aggregate Annual Turnover (AATO) exceeds Rs.5 crores. If you don’t discover the 6-digit HSN code for any merchandise whereas producing an e-invoice, increase a ticket on the NIC’s helpdesk to incorporate the related code within the system.
Hence, companies complying with the e-invoicing guidelines should guarantee their ERPs and billing programs are modified or up to date for the brand new validation or norm, ideally earlier than getting into into the brand new monetary 12 months, in order that invoicing takes place easily.
Option for voluntary e-invoicing enabled on e-invoice portal
The authorities has been planning to increase the e-invoicing system to decrease the turnover class of taxpayers with an AATO beneath Rs.10 crore. While the GSTN is but to announce the timelines, the e-invoice portal has allowed voluntary enablement for taxpayers who don’t fall underneath the purview of the e-invoice mandate.
The transfer permits such taxpayers with AATO beneath Rs.10 crore to register, check their programs and put together properly for e-invoicing implementation earlier than the federal government mandates it in future. The replace got here on seventeenth March 2023 and was launched by an advisory on the NIC’s e-invoice portal. The voluntary e-invoicing replace shall convey increasingly MSME companies onto the e-invoice portal in 2023-24 and, in flip, permits them to benefit from the perks of e-invoicing, resembling bill discounting and far more.
Private IRPs launched for e-invoicing
The taxpayers topic to e-invoicing have many portal choices in 2023-24 to generate e-invoices for his or her companies because the GST Network launches 4 new Invoice Registration Portals (IRPs). The new e-invoicing portals will probably be out there on einvoice4.gst.gov.in, einvoice3.gst.gov.in, einvoice5.gst.gov.in and einvoice6.gst.gov.in. Taxpayers can leverage personal IRPs to make sure a seamless e-invoicing expertise whereas having fun with excessive scalability and reliability with the bottom downtime. Furthermore, they’ll get value-added companies resembling integrations with ERPs, MIS dashboards and devoted help.
The goal of this transfer is to enhance the general person compliance journey because the e-invoicing system extends to extra taxpayer teams in FY 2023-24.
Late price for GSTR-9 submitting reduces in 2023
Suppose a enterprise delays the submitting of GSTR-9 of FY 2022-23 within the upcoming monetary 12 months. Then, the late price shall apply primarily based on the turnover class wherein it falls. Suppose a enterprise’s turnover is lower than or equal to Rs.5 crore. In that case, a late price of Rs.50 per day of delay applies, topic to a most of 0.04% of the turnover within the state/Union Territory.
Suppose the turnover falls between Rs.5-20 crores. In that case, a late price of Rs.100 per day of delay applies, topic to the identical 0.04% of the turnover within the state/Union Territory.
Alternatively, the turnover exceeds Rs.20 crores. In that case, the late price shall be the identical as earlier, i.e., Rs.200 per day of delay with an earlier most cap of 0.05% of the turnover within the state/Union Territory. Although the change is but to be notified, each enterprise that recordsdata annual returns ought to concentrate on it and keep away from any late charges by planning its filings forward of the due date.
Goods Transport Agencies (GTA) should file Annexure-V to decide to pay 12% GST with ITC claims
Despite the passing of the fifteenth March 2023 deadline for this annual declaration, GTA taxpayers who couldn’t submit the Annexure-V by way of the newly launched on-line facility on the GST portal by the due date should accomplish that manually or in writing to the jurisdictional officer by justifying with causes for such delay. The Annexure-V declaration permits GTA to pay GST on a ahead cost foundation at 12% to say the enter tax credit score all through FY 2023-24.
GST is getting dynamic with each passing month, particularly in enter tax credit score claims and reconciliations. The taxpayers ought to meet up with altering norms in actual time to plan related modifications of their invoicing and compliance programs.
For occasion, the Finance Bill 2023, containing key GST amendments, was lately handed primarily based on suggestions of the GST Council at its forty eighth and forty ninth GST Council conferences. These are but to come back into drive however are anticipated to be notified in just a few months. Meanwhile, taxpayers should maintain abreast of the newest GST norms relevant to their enterprise primarily based on notifications handed in a selected monetary 12 months and accordingly take related and well timed actions to remain compliant with the regulation.
(The writer is founder and CEO of Clear)
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