MM TAX CLUB

On recommendation of 50^th GST council meeting, CBIC notified rule 88D vide notification No. 38/2023 – Central Tax dated August 04, 2022 under CGST Rules, to deal with difference in input tax credit available in auto-generated statement containing the details of input tax credit and that availed in return.

Under rule 88D, GSTN enable Form DRC-01C on GST portal in October 2023, which intimate the taxpayer for any excess input tax credit claimed in GSTR Return (i.e. GSTR-3B)

Form DRC-01C has two parts, the system will automatically issue intimation to the taxpayer in PART-A of the Form DRC-01C if input credit claimed in GSTR-3B exceeds the credit available in auto-generated statement GSTR-B, after receipt of intimation taxpayer has to reply that intimation within 7 days in PART-B of the Form DRC-01C. Non-compliance of the same will lead to initiating recovery action by department under section 73 or 74 of CGST Act and GST return for the succeeding period will be blocked to file until aforesaid intimation resolve.

Now, since this is first month of implementation of Form DRC-01C on GST portal, the system is not able identified which taxpayer have the difference in ITC and liable for intimation and which is not, and because of this glitches, the portal has restricted all the taxpayer to file GSTR-1 for the month of October 2023 by saying;

“Error! The system is checking on compliance for Form DRC-01C. Please try to file GSTR-1 again after some time.”

Since this is implementation phase of new system at GST Portal so it’s taking time to check compliance of Form DRC-01C.

So many grievances have been raised by the taxpayers in this regard, department is working on to resolve the issue. Once the system implemented properly on GST portal, the same issue should not come to the taxpayer’s from upcoming month.

As a Taxpayer what should do to resolve the error?

Since this is not an actual error or discrepancies from the taxpayer part, the error is coming due to the system glitches because its not ready to accept GSTR-1 as portal is still checking compliance of Form DRC-01C. Once the compliance check done by the system, it will issue intimation to the taxpayer who is liable for it, and will allow to file GSTR-1 return by those taxpayer’s who are not liable for intimation by Form DRC-01C.

GST revenue collection for October 2023 is second highest ever, next only to April 2023, at ₹1.72 lakh crore; records increase of 13% Y-o-Y

Revenue from domestic transactions (including import of services) is also 13% higher Y-o-Y

Average gross monthly GST collection in FY 2023-24 now stands at ₹1.66 lakh crore; 11% higher Y-o-Y

The gross GST revenue collected in the month of October, 2023 is ₹ 1,72,003 crore out of which ₹ 30,062 crore is CGST, ₹ 38,171 crore is SGST, ₹ 91,315 crore (including ₹ 42,127 crore collected on import of goods) is IGST and ₹ 12,456 crore (including ₹ 1,294 crore collected on import of goods) is cess.

The government has settled ₹ 42,873 crore to CGST and ₹ 36,614 crore to SGST from IGST. The total revenue of Centre and the States in the month of October, 2023 after regular settlement is ₹72,934 crore for CGST and ₹ 74,785 crore for SGST.

The gross GST revenue for the month of October, 2023 is 13% higher than that in the same month last year. During the month, revenue from domestic transactions (including import of services) is also 13% higher than the revenues from these sources during the same month last year. The average gross monthly GST collection in the FY 2023-24 now stands at Rs. 1.66 lakh crore and is 11% per cent more than that in the same period in the previous financial year.

The chart below shows trends in monthly gross GST revenues during the current year. The table below shows the state-wise figures of post settlement GST revenue of each State till the month of October 2023.

Over 7.65 crore ITRs filed for AY 2023-24 till 31st October, 2023; 11.7% higher Y-o-Y

More than 7.51 crore ITRs verified and almost 96% of the verified ITRs stand processed till 31st October 2023

Over 1.44 crore statutory forms filed up to 31st October, 2023

The Income Tax Department registered a record number of filing of Income Tax Returns (ITRs) till 31^st October, 2023, which was the due date for filing of ITRs (other than ITR 7) for taxpayers not having any international or specified domestic transaction, in whose case books of account were required to be audited.

More than 7.65 crore ITRs were filed for AY 2023-24 till 31^st October, 2023, which is 11.7% higher as compared to the 6.85 crore ITRs filed for AY 2022-23 till 7^th November, 2022, the due date for filing such ITRs in the preceding year. Further, total number of ITRs filed in FY 2023-24 for all assessment years up to 31^st October, 2023 stands at 7.85 crore, an all-time high when compared to a total of 7.78 crore ITRs filed in FY 2022-23.

Out of the 7.65 crore ITRs filed for AY 23-24, more than 7.51 crore ITRs have already been verified. Further, out of the 7.51 crore verified ITRs, 7.19 crore have already been processed till 31^st October 2023 i.e. almost 96% of the verified ITRs stand processed.

31^st October, 2023 was also the due date for filing of some crucial statutory forms like Form 10B, 10BB and Form 3CEB. More than 1.44 crore of various types of statutory forms filed upto 31^st October, 2023.

During the peak filing days the e-filing portal successfully handled the traffic providing a seamless experience to the taxpayers and tax professionals for filing of Forms and ITRs.  This was widely appreciated by the taxpayers and professionals on various platforms including Social Media.

The support from the helpdesk was provided to taxpayers through inbound calls, outbound calls, live chats, Webex and co-browsing sessions. The helpdesk team also supported resolution of queries received on the Twitter handle of the Department through Online Response Management (ORM), by proactively reaching out to the taxpayers/stakeholders and assisting them for different issues on near real-time basis.

Eight webinars related to filing of auditable & time barring forms, filing of ITR-3/5/6, DSC registration, form 10B/10BB filing, etc. were conducted to guide the taxpayers and tax professionals. Educational videos pertaining to the same were also uploaded on the e-filing portal.

The IT Department expresses its gratitude to all the taxpayers and tax professionals for their support in compliances and requests the attention of taxpayers who are yet to file the Forms and ITRs, to file them. The Department urges all taxpayers and tax professionals to continue to make tax related compliances in time.

The Monthly Account of the Union Government of India upto the month of September 2023 has been consolidated and reports published. The highlights are given below:-

The Government of India has received ₹14,17,278 crore (52.2% of corresponding BE 2023-24 of Total Receipts) upto September 2023 comprising ₹11,60,340 crore Tax Revenue (Net to Centre), ₹2,36,772 crore of Non-Tax Revenue and ₹20,166 crore of Non-Debt Capital Receipts. Non-Debt Capital Receipts consists of Recovery of Loans ₹13,216 crore and Miscellaneous Capital Receipts of ₹6,950 crore.

The Government of India has transferred ₹4,55,444 crore to State Governments as Devolution of Share of Taxes upto this period which is ₹79,338 crore higher than the previous year.

Total Expenditure incurred by Government of India is ₹21,19,139 crore (47.1% of corresponding BE 2023-24), out of which ₹16,28,511 crore is on Revenue Account and ₹4,90,628 crore is on Capital Account. Out of the Total Revenue Expenditure, ₹4,84,329 crore is on account of Interest Payments and ₹2,06,396 crore is on account of Major Subsidies. 

Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman, will be embarking on an official visit to Sri Lanka,beginning November 1, 2023 for three days

During the visit, Smt. Sitharaman give the Keynote Address as the Guest of Honour at the ‘NAAM 200’organised by Government of Sri Lanka to commemorate the 200th anniversary of arrival of India-origin Tamils (IOTs) to Sri Lanka, on 2nd November, at Sugathadasa Indoor Stadium in Colombo.

“NAAM 200” will be graced by H.E. Ranil Wickremesinghe, President of Sri Lanka, Mr. Dinesh Gunawardena, Prime Minister of Sri Lanka, Mr. Jeevan Thondaman, Minister of Water Supply and Estate Infrastructure Development, senior leaders cutting across political parties, among several other dignitaries.  Other invitees from Indian political parties, and Representative of Malaysian Tamil Congress, will also be present in the event.

Union Finance Minister Smt. Sitharaman will also give Keynote Address at the India Sri Lanka Business Summit on the theme ‘Enhancing Connectivity: Partnering for Prosperity’, being jointly organised by Confederation of Indian Industries (CII), Indo-Lanka Chamber of Commerce & Industry, and the Ceylon Chamber of Commerce, on 2nd November, at Hotel Taj Samudra in Colombo.

As part of the official visit, the Union Finance Minister will have call-on meetings with H.E. Ranil Wickremesinghe, President of Sri Lanka and Mr. Dinesh Gunawardena, Prime Minister of Sri Lanka.

The Union Finance Minister will witness the exchange of the Memorandum of Understanding for Solar Electrification of Religious Places in Sri Lanka wherein India will allocate INR 82.40 crores out of the GOI grant assistance of INR 107.47 crores earmarked for the promotion of Buddhist ties.

Smt. Sitharaman will also inaugurate SBI Branches at Trincomalee and Jaffna on 2nd November and 3rd November respectively.

Union Finance Minister will visit Sri Dalada Maligawa (The Temple of the Sacred Tooth Relic) in Kandy, Jaya Sri Maha Bodhi in Anuradhapura, Thirukoneswaram Temple in Trincomalee and Nallur Kandaswamy Temple in Jaffna during the course of her visit to Sri Lanka.

Besides the above engagements, the Union Finance Minister is also slated to visit Lanka IOC Oil Tank Farms, Jaffna Cultural Centre and Jaffna Public Library during her visit.