Changes are set to take effect from 1st September 2024
Starting in September 2024, taxpayers in India will need to adjust their GST return filing practices due to significant changes aimed at enhancing compliance and financial reporting, according to a Hindustan Times report. Chartered accountant RJA highlighted several updates, which align with Notification No. 12/2024 issued on July 10, 2024. These changes are part of ongoing reforms aimed at improving tax compliance, streamlining reporting processes, and reducing administrative delays for businesses. The following changes are set to take effect from 1st September 2024:
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Reporting High-Value Supplies in GSTR-1:
- New Reporting Threshold: Taxpayers will now be required to report any supply valued above ₹1 lakh in Table B2CL of GSTR-1. This change aims to improve the accuracy and transparency of high-value transactions.
- Notification No. 12/2024 (10 July 2024): For supplies with a value exceeding ₹1 lakh, these must now be reported in Table B2CL of GSTR-1. This step enhances transparency in GST reporting, especially for business-to-consumer large transactions.
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Reporting Negative Liability in GSTR-3B:
- Notification No. 12/2024 (10 July 2024): Taxpayers can now declare negative liability in Table 3 of GSTR-3B, and this negative liability will be automatically adjusted in the next month’s return. This feature improves reconciliation processes and minimizes errors in tax returns.
- Taxpayers can declare negative liability in Table 3 of GSTR-3B, which will be automatically carried forward to the following month’s return. This adjustment simplifies the reconciliation process and helps avoid errors in returns.
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Blocking of GSTR-1 for Missing Bank Account Details:
- From 1st September 2024, if you haven’t updated and validated your bank account information in your GST registration, your GSTR-1 and IFF (Invoice Furnishing Facility) submissions will be blocked. It’s essential for taxpayers to ensure their bank details are accurate and verified.
- Starting September 1, GSTR-1 or IFF filings will be blocked if taxpayers fail to add and validate their bank account details in their GST registration. Sharma stressed the importance of verifying these details to prevent disruptions in filing.
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GSTR-9 and GSTR-9C Availability:
- Forms GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement) will be activated on the GST portal for taxpayers to complete their annual compliance requirements.
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Reduction in Time Limit for Reopening Assessments under Section 148A:
- Effective 1st September 2024, the time limit for issuing notices under Section 148A for reopening assessments has been reduced:
- Income up to ₹50 lakhs: The time limit remains at 3 years from the end of the relevant assessment year.
- Income above ₹50 lakhs: The reopening period is now reduced from 10 years to 5 years. This significant change shortens the period for which old cases can be scrutinized.
- CBDT raises monetary limits for filing income tax appeals (Circular No. 09/2024):
Central Board of Direct Taxes (CBDT) issued Circular No. 09/2024, which raised the monetary limits for filing income tax appeals across various judicial bodies. The revised thresholds are as follows:
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- Income Tax Appellate Tribunal : The new limit for filing appeals is INR 60 lakh, up from the previous INR 50 lakh.
- High Courts: The threshold has been increased to INR 2 crore, compared to the earlier INR 1 crore.
- Supreme Court or Special Leave Petitions : The new monetary limit for filing appeals is INR 5 crore, a significant jump from the previous limit of INR 2 crore.
| Appeals/SLPs | Monetary Limits |
| Before Appellate Tribunal | INR 50,00,000/- |
| Before High Court | INR 1,00,00,000/- |
| Before Supreme Court | INR 2,00,00,000/- |
Impact of the Circular (Circular No. 09/2024- CBDT raises monetary limits for filing income tax appeals
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- The CBDT will withdraw all pending appeals below these revised thresholds, aligning with the updated limits.
- This update supersedes Circular No. 5/2024 dated March 15, 2024, which had lower thresholds for filing appeals.
- The goal of these revisions is to reduce the litigation burden by discouraging the filing of appeals in minor tax disputes, helping streamline judicial processes and improve efficiency in handling substantial cases.
This move reflects an effort to curb unnecessary tax litigation and focus judicial resources on higher-value disputes
Rajput Jain & AssociatesRajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders.
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