GST data contains a large number of data; for human beings, after a point of time, it is difficult to analyze what Artificial intelligence can do very easily. Artificial intelligence is working as a helping hand in finding inconsistency between data,i.e., the input tax credit available and claimed in GSTR 3B

Use of AI in GST

As AI continues to evolve, its potential within the realm of GST will grow, empowering tax authorities to foster greater compliance, reduce revenue leakages, and establish a fair, transparent tax system that aligns with the demands of the modern world.

Artificial intelligence is making things easy and fast for professionals

Clause 139 of Finance Bill, 2023 •

S. 132 amended so as to decriminalize offences in clause (g), (j) and (k) of the said sub-section

(g) Obstructs or prevents any officer in the discharge of his duties under this Act

(j)Tampers with or destroys any material evidence o documents

(k) Fails to supply any information OR Supplies False information •

Increase the monetary threshold for launching prosecution for the offences under the said Act from Rs.100 Lakh to Rs.200 Lakh(except for the offences related to issuance of invoices without supply of goods o services or both)

(iii) in the case of any other offence an offence specified in clause(b) where the amount of tax evaded or the amount of input tax cred it wrongly availed or utilized or the amount of refund wrongly taken exceeds one hundred lakh rupees but does not exceed two hundred lakh rupees,with imprisonment for a term which may extend to 1 year and with fine.

Applicable wef 1.10.2023

Notifications Central Tax Notification No. 34/2023-Central Tax Dated 31st July 2023

The Central Government Seeks to waive the requirement of mandatory registration under section 24(ix) of CGST Act for person supplying goods through ECOs, subject to certain conditions.

G.S.R. ……(E).—In exercise of the powers conferred by sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter referred to as the said Act), the Central Government, on the recommendations of the Council, hereby specifies the persons making supplies of goods through an electronic commerce operator who is required to collect tax at source under section 52 of the said Act and having an aggregate turnover in the preceding financial year and in the current financial year not exceeding the amount of aggregate turnover above which a supplier is liable to be registered in the State or Union territory in accordance with the provisions of sub-section (1) of section 22 of the said Act, as the category of persons exempted from obtaining registration under the said Act, subject to the following conditions, namely:—

(i) such persons shall not make any inter State supply of goods;

(ii) such persons shall not make supply of goods through electronic commerce operator in more than one State or Union territory;

(iii) such persons shall be required to have a Permanent Account Number issued under the Income Tax Act, 1961 (43 of 1961);

(iv) such persons shall, before making any supply of goods through electronic commerce operator, declare on the common portal their Permanent Account Number issued under the Income Tax Act, 1961 (43 of 1961), address of their place of business and the State or Union territory in which such persons seek to make such supply, which shall be subjected to validation on the common portal;

(v) such persons have been granted an enrollment number on the common portal on successful validation of the Permanent Account Number declared as per clause (iv);

(vi) such persons shall not be granted more than one enrolment number in a State or Union territory;

(vii) no supply of goods shall be made by such persons through electronic commerce operator unless such persons have been granted an enrolment number on the common portal; and

(viii) where such persons are subsequently granted registration under section 25 of the said Act, the enrolment number shall cease to be valid from the effective date of registration.

2. This notification shall come into force with effect from the 1stday of October, 2023

For more details, please visit https://taxinformation.cbic.gov.in/view-pdf/1009812/ENG/Notifications

E-Commerce- Buying and selling goods or services through electronic medium without paper document (sec2(44) of CGST Act 2017).

E Commerce Operator

Any person who is operates electronic facility for electronic commerce. A person supplying goods or service on his account would not be considered as E-commerce.

Registration-They are liable to register under GST without the threshold limit.

TCS-ECO is required to collect 1% (0.5% each to CGST and SGST) tax from supplier. TCS is applicable to E-commerce operator only, not when owner sells his product/service through electronic plat from.

Remittance of TCS-Within 10th day of subsequent month.

ITC- TCS collected by E-Commerce operator will reflect in GSTR2 of supplier based on GSTR 8 filed by operator.

E Commerce operator has to file monthly return GSTR 8 and annual return GSTR9B.

A registered person shall not be allowed to furnish the Details Of Outward Supplies(GSTR1)/ Returns (GSTR3B/4)/TCS Statement( GSTR8)/Annual Returns (GSTR9/9c) for a tax period after the expiry of a period of 3 years from the due date.

(Clause 132 to Clause 135 of Finance Bill, 2023)

GST Council approved 28% GST rate on online gaming( i gaming such as fantasy,teen patti,rummy,poker,betting and gambling among ), Casino and horse racing with effect from 01.1.2023 on the entry amount and not on the winning amount. Industry is concerned about high rate of tax.

This rate is not applicable to video games and E sports industry and will be charged@18%

The Government has notified certain changes in Table 4 of Form GSTR-3B to enable taxpayers in reporting correct information regarding ITC availed, ITC reversal, ITC re-claimed and ineligible ITC vide Notification No. 14/2022 – Central Tax dated 05th July, 2022 (read with circular 170/02/2022-GST, Dated 6 th July,2022). Accordingly, the reclaimable ITC earlier reversed in Table 4(B)2 may be subsequently claimed in Table 4(A)5 on fulfilment of necessary conditions. Such reclaimed ITC in Table 4(A)5 also needs to be explicitly reported in Table 4D(1).

1) In order to facilitate the taxpayers in correct and accurate reporting of ITC reversal and reclaim thereof and to avoid clerical mistakes, a new ledger namely Electronic Credit and Re-claimed Statement is being introduced on the GST portal. This statement will help the taxpayers in tracking of their ITC that has been reversed in Table 4B(2) and thereafter re-claimed in Table 4D(1) and 4A(5) for each return period, starting from August return period.

2) This statement shall facilitate that while re-claiming ITC in GSTR-3B, the amount aligns appropriately with the corresponding reversed ITC. This aims to improve the overall consistency and correctness of ITC reversal and re-claims related transactions. For Monthly taxpayers, the specified return period pertains to August 2023. For those filing quarterly returns, the specified return period corresponds to Q2 of the financial year 2023-24, encompassing the months of JulySeptember 2023.

3) Taxpayers are being provided a facility to report their cumulative ITC reversal (ITC that has been reversed earlier and has not yet been reclaimed) as opening balance for “Electronic Credit Reversal and Re-claimed Statement”, if any. The navigation to report ITC reversal balance: Login >> Report ITC Reversal Opening Balance. or Services >> Ledger >> Electronic Credit Reversal and Re-claimed Statement >> Report ITC Reversal Opening Balance

a. Taxpayers having monthly filing frequency are required to report their opening balance considering the ITC reversal done till the return period of July 2023.

b. In contrast, quarterly taxpayers shall report their opening balance up to Q1 of the financial year 2023-24, considering the ITC reversal made till the April-June 2023 return period.

c. The taxpayers have the opportunity to declare their opening balance for ITC reversal Until 30 th November 2023.

d. The taxpayers shall also be provided 3 (three) amendment opportunities to correct their opening balance in case of any mistakes or inaccuracies in reporting. Importantly, until 30th November 2023, both reporting and amendment facilities are accessible.

e. However, after 30th November till 31st December 2023, only amendments will be permitted and the option for fresh reporting will not be available. This amendment facility shall be discontinued after 31st December 2023.

4) With the provision for taxpayers to report their accumulated ITC reversal balance, the portal will subsequently maintain a record of reversal and re-claimed amounts on a return period basis in statement. Hence, a validation mechanism is incorporated into the GSTR-3B form. This validation will trigger a warning message if a taxpayer attempts to re-claim excess ITC in table 4D(1) than the available ITC reversal balance in the statement along with ITC reversal made in current return period in Table 4B(2). This warning message would facilitate accurate reporting but the taxpayers will still have the option to proceed with filing. However, the taxpayers are advised not to reclaim ITC exceeding the closing balance of “Electronic Credit Reversal and Re-claimed Statement” and may report their pending reversed ITC, if any, as ITC reversal opening balance.

5) For monthly taxpayers, the warning message will commence appearing from the GSTR-3B filing for the August 2023 return period. Similarly, for quarterly taxpayers this warning message would start from the filing period covering July to September 2023.

 Businesses that supply goods through E-commerce can  register under Composition scheme

Businesses with an annual turnover up to Rs 1.50Crores can opt into the composition scheme.

Registration limit of E commerce operators

Supply of goods -Rs 40 Lakhs (Rs 20 Lakhs in some Northern eastern states)

Supply of services    Rs 20 lakhs