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Advisory on Business Continuity for e-Invoice and e-Waybill Systems
January 27th, 2025
Posted By: Team-MMTaxClub

Recent advisory issued by GSTN regarding business continuity measures for e-Invoice and e-Waybill systems. This post outlines the key points and recommended actions to ensure uninterrupted operations for taxpayers.

Alternate Mechanisms and Redundancy for e-Invoice and e-Waybill Systems

To mitigate disruptions and ensure seamless operations, GSTN has introduced alternate mechanisms and business continuity plans. Taxpayers are encouraged to coordinate with their system integrators, IRPs, ERPs, GSPs, or ASPs to integrate these mechanisms into their systems.

Multi IRPs for e-Invoice Reporting

To ensure redundancy and uninterrupted service, six Invoice Registration Portals (IRPs) are operational:

  1. NIC-IRP 1: https://www.einvoice1.gst.gov.in

  2. NIC-IRP 2: https://www.einvoice2.gst.gov.in

  3. Cygnet IRP: https://einvoice3.gst.gov.in

  4. Clear IRP: https://einvoice4.gst.gov.in

  5. EY IRP: https://einvoice5.gst.gov.in

  6. IRIS IRP: https://einvoice6.gst.gov.in

NIC-IRP 1 and 2 are interoperable, allowing users to switch between them during disruptions. Testing these redundancies in the NIC sandbox environment (https://einv-apisandbox.nic.in) is recommended. Additionally, the other listed IRPs can also be used as alternatives if NIC-IRP services are down.

Dual Portals for e-Waybill Services

Redundancy for e-Waybill operations is provided through two portals:

  1. eWaybill1: https://ewaybillgst.gov.in

  2. eWaybill2: https://ewaybill2.gst.gov.in

Unified Authentication Token

A single authentication token generated from NIC-IRP e-Invoice1 or e-Invoice2 can also be used across NIC e-Waybill1 and e-Waybill2 portals. This eliminates the need for separate tokens for each platform.

API Interoperability for Seamless Operations

Taxpayers using APIs can enable cross-portal operations by ensuring proper system configuration. Some key cross-operation functionalities include:

  • e-Invoice APIs:

    • Get IRN Details

    • Cancel IRN

    • Get IRN Details by Document Details

    • Generate e-Waybill by IRN

    • Get e-Waybill Details by IRN

  • e-Waybill APIs:

    • Get e-Waybill Details

    • Update Part B

For interoperability, taxpayers should pass relevant values in the API header, such as "NIC1" or "NIC2," depending on the portal being accessed.

Recommended Actions for Taxpayers

  1. Direct API Access: Ensure that your systems support cross-portal interoperability for uninterrupted services.

  2. Coordination with Service Providers: Engage with your IRP, ERPs, GSPs, or ASPs to enable and integrate alternate mechanisms.

  3. Explore Additional IRPs: Familiarize yourself with all six IRPs to use them as needed.

Conclusion

These measures are designed to help taxpayers maintain seamless operations during service disruptions. MM Tax Club encourages businesses to act promptly to integrate these redundancies into their systems.

For further assistance, please contact your system integrators, service providers, or the GST helpdesk. Detailed information is available on the respective IRPs and e-Waybill portals.

 

CBIC Notified GST Late Fee Waiver on Annual Returns for Past Financial Years
January 25th, 2025
Posted By: Team-MMTaxClub

Central Board of Indirect Taxes and Customs (CBIC) recently issued notified GST Late Fee Waiver on Annual Returns for Past Financial Years.

In a significant relief to businesses and taxpayers, the Central Government has issued a new notification under section 128 of the Central Goods and Services Tax Act, 2017 (CGST Act). The government, following the recommendations of the GST Council, has decided to waive off a portion of the late fees for specific financial years. This announcement is a major step toward easing compliance for businesses that faced challenges in furnishing their GST reconciliation statements in the past.

Key Highlights of the Notification

  1. Late Fee Waiver
    The notification waives the late fee referred to in section 47 of the CGST Act for returns required to be filed under section 44 of the Act. This applies to the financial years:
    • 2017-18
    • 2018-19
    • 2019-20
    • 2020-21
    • 2021-22
    • 2022-23
  2. Eligibility for the Waiver
  3. The waiver is available to registered persons required to file their reconciliation statement in FORM GSTR-9C along with the annual return in FORM GSTR-9 for the aforementioned financial years.
  4. The waiver applies only if the reconciliation statement in FORM GSTR-9C, which was not furnished on time, is filed subsequently on or before March 31, 2025.
  5. The waiver applies to the portion of the late fee exceeding the prescribed limit as per section 47 of the CGST Act, provided the conditions are met.
  6. It is important to note that no refund will be provided for late fees already paid for delayed filing of FORM GSTR-9C for these financial years.
  7. Extent of the Waiver
  8. No Refund Clause

Implications for Taxpayers

This waiver offers a much-needed reprieve to businesses that struggled to comply with the requirements of annual return and reconciliation filing due to various reasons. It incentivizes taxpayers to regularize their filings without incurring excessive penalties. However, taxpayers must act promptly to avail of this benefit by ensuring all pending filings are completed by March 31, 2025.

Action Steps for Taxpayers

  • Review your filing status for FORM GSTR-9 and GSTR-9C for the financial years 2017-18 to 2022-23.
  • File any pending reconciliation statements (FORM GSTR-9C) before the March 31, 2025 deadline.
  • Seek professional advice if you’re unsure about the compliance process or need assistance with GST filings.

By leveraging this late fee waiver, businesses can mitigate past compliance lapses and ensure a smoother transition toward meeting future GST obligations.

For further queries or assistance, feel free to reach out to us.

CBIC amended provisions for GST Temporary Identification Number
January 25th, 2025
Posted By: Team-MMTaxClub

Central Board of Indirect Taxes and Customs (CBIC) recently issued notification with respect to amendment in provision for Grant of temporary identification number.

— In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely: —

1. (1) These rules may be called the Central Goods and Services Tax (Amendment) Rules, 2025.

(2) Save as otherwise provided in these rules, they shall come into force on the date of their publication in the Official Gazette.

2. In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), with effect from a date to be notified, after rule 16, the following rule shall be inserted, namely: -

“16A. Grant of temporary identification number. - Where a person is not liable to registration under the Act but is required to make any payment under the provisions of the Act, the proper officer may grant the said person a temporary identification number and issue an order in Part B of FORM GST REG-12.”.

3. In the said rules, with effect from a date to be notified, in rule 19, in sub-rule (1), after the words, letters and figures “FORM GST REG-10”, the words, letters and figures “or in the intimation furnished by the composition taxpayer in FORM GST CMP-02” shall be inserted.

4. In the said rules, with effect from a date to be notified, in rule 87, in the sub-rule (4), after the words “common portal”, the words, figures and letters “as per rule 16A” shall be inserted.

5. In the said rules, with effect from a date to be notified, for FORM REG-12, the following form shall be substituted, namely:–

 

“FORM GST REG-12

[See rule16(1), 16A]

Reference Number -                                                                                                               Date:

To

(Name):

(Address):

Temporary Registration Number/Temporary Identification Number

Order of Grant of Temporary Registration/Suo Moto Registration/ Temporary Identification Number

Whereas the undersigned has sufficient reason to believe that you are liable for registration under the Act, and therefore, you are hereby registered on a temporary basis. The particulars of the business as ascertained from the business premises are given as under:

Access Notification for detailed Form.

CBDT Clarifies Key Issues Under the Direct Tax Vivad Se Vishwas Scheme, 2024
January 23rd, 2025
Posted By: Team-MMTaxClub

On 20th January 2025, the Central Board of Direct Taxes (CBDT) issued an important clarification under S.O. 348(E) to address certain challenges encountered during the implementation of the Direct Tax Vivad Se Vishwas Scheme, 2024.

What is the Vivad Se Vishwas Scheme, 2024?

Introduced through the Finance (No.2) Act, 2024, this Scheme came into effect on 1st October 2024. It aims to reduce litigation and provide a simplified mechanism for resolving direct tax disputes.

Why Was This Order Issued?

Certain complexities arose in cases where:

  1. An order was passed on or before 22nd July 2024 (the specified date).
  2. The time for filing an appeal was still available as of 22nd July 2024.
  3. The appeal was filed after 22nd July 2024 but within the stipulated time limit for filing such appeals.
  4. The appeal was filed without an application for condonation of delay.

These scenarios created ambiguity regarding the eligibility of such appeals under the Scheme.

Key Clarifications Provided by CBDT

To address these issues, the CBDT has invoked the powers under section 98 of the Finance (No.2) Act, 2024, and clarified as follows:

  1. Appeals Considered Pending as of 22nd July 2024:
    Appeals filed after the specified date but within the stipulated time will be treated as pending appeals as of 22nd July 2024.

  2. Eligibility as Appellants:
    Individuals in such cases will be treated as appellants under the Scheme, ensuring their eligibility to participate.

  3. Calculation of Disputed Tax:
    The amount of disputed tax will be calculated based on the details of the filed appeal.

  4. Applicability of Scheme Provisions:
    All relevant provisions of the Scheme, along with the applicable rules, will extend to these cases.

Significance of This Clarification

This Order removes any doubts about eligibility for appeals filed after 22nd July 2024, within the stipulated time, and ensures that taxpayers can avail themselves of the benefits of the Scheme. It reinforces the Government's commitment to creating a fair and accessible resolution mechanism for taxpayers.

Final Words

The Vivad Se Vishwas Scheme, 2024, continues to serve as a crucial initiative in reducing litigation and facilitating a smoother tax resolution process. This clarification by CBDT ensures more inclusivity and clarity, aligning with the Scheme’s overarching objective of resolving disputes efficiently.

For further details, visit the Ministry of Finance or the CBDT website.

CBDT Notifies Amendments to Income-Tax Rules, 1962 for Presumptive Taxation of Non-Resident Cruise Ship Operators
January 23rd, 2025
Posted By: Team-MMTaxClub

The Central Board of Direct Taxes (CBDT) has issued Notification No. 9/2025 dated 21st January 2025, prescribing conditions for the applicability of the presumptive taxation regime for non-resident entities engaged in the operation of cruise ships in India. This measure aligns with the provisions introduced under the Finance (No. 2) Act, 2024, aimed at promoting investment and employment in the tourism and shipping sectors.

Key Highlights of the Presumptive Taxation Regime

  1. Scope of Applicability:
    The regime applies to non-resident entities engaged in the business of operating cruise ships for leisure and recreation purposes in India.

  2. Exemption on Lease Rentals:
    Income from lease rentals of cruise ships received by a foreign company from a related company operating such ships in India is exempt from taxation.

  3. Conditions for Applicability:
    To qualify under the presumptive taxation regime, the non-resident entity must meet the following criteria:

    • Operate passenger ships with a carrying capacity of over 200 passengers or a length of 75 meters or more, equipped with appropriate dining and cabin facilities.
    • Operate ships on scheduled voyages or shore excursions touching at least two Indian sea ports or the same port twice.
    • Operate ships primarily for passenger transportation, not for cargo.
    • Adhere to procedures and guidelines issued by the Ministry of Tourism or Ministry of Shipping.

Objective of the Amendment

This initiative underscores the Government's commitment to fostering the growth of the cruise tourism sector, attracting foreign players, and boosting employment opportunities in India.

For further details, refer to CBDT Notification No. 9/2025 available on the e-Gazette portal.

Stay updated on tax amendments and compliance requirements with MM Tax Club. Feel free to contact us for expert accounting and tax-related services.