GSTN, which stands for Goods and Services Tax Network, is an organisation in India without profit motives. It handles the technology infrastructure necessary for implementing the Goods and Services Tax in the country. What GSTN essentially does is provide a shared IT setup for both central and state governments, as well as taxpayers and other involved parties. They use this system for their GST registration related activities and to ensure compliance. Through the GSTN portal, taxpayers can do a variety of tasks such as registering for GST, filing returns, making payments, and claiming refunds.
Lately, the GST portal has seen several updates. These updates are designed to make it easier for taxpayers to handle their returns. Keeping up with these changes is crucial for taxpayers, as it helps them meet important requirements and, in turn, prevents potential issues like receiving notices. In this blog, we shall see some new features of GSTN that every taxpayer should be aware of.
Important New Features of GSTN
Some new updates and new features of GSTN include:
1. Comparison of Liability and Input Tax Credit
The GSTN website introduced one of the new features of GSTN for tax filers to compare their tax liabilities and input tax credit. This comparison includes:
- Liability other than export/reverse charge: Compare GSTR-3B tax liabilities with GSTR-1 filings.
- Liability due to reverse charge: Examine liabilities due to reverse charge.
- Liability due to export and SEZ supplies: Analyse liabilities related to exports and SEZ supplies.
- ITC credit claimed and due: Compare input tax credit claimed in GSTR-3B with available credits in GSTR-2A.
These functions facilitate reconciliation of GST returns and aid in annual return preparation for financial years 2017-18 and 2018-19.
2. GSTR-9 and GSTR-9A Updates
The GSTN website provides updates for two annual return forms:
- GSTR-9: Annual return form for regular taxpayers.
- GSTR-9A: Annual return form for composition taxpayers.
In the 35th GST council meeting, the due date for filing annual returns was extended to August 30, 2019. Taxpayers are encouraged to complete their filings promptly and refer to a comprehensive guide available for assistance.
3. Filing of Appeals in GSTN
As per the new features of GSTN, taxpayers now have online access to file appeals in GSTN under the following circumstances:
- An order passed by an appellate authority.
- An advanced ruling by an appellate authority.
- An application to the appellate authority in case of a modification of a mistake in an order.
In case the appellate authority fails to issue a final acknowledgement within the specified time frame, an automatic acknowledgement will be generated. The system-generated acknowledgement will be marked as “subject to validation of certified copies” by GSTN.
4. Incorporating GSTIN in Refund Applications
Taxpayers can now include their GSTIN (GST number) when filing a refund application, which is applicable to registered taxpayers seeking a refund of collected input tax credit. These new features of GSTN allow taxpayers to input their GSTIN in the inward supply detailed statement while filing on the GST portal.
5. Quarterly Filers and Monthly Refund Applications
According to the new features of GSTN, quarterly filers now have the option to file refund applications on a monthly basis, a flexibility not available previously. To file a refund application, taxpayers must ensure they have filed GSTR-1 for the respective quarter. This adjustment allows businesses and SMEs to manage their cash flows more effectively by not having to wait until the end of the quarter to apply for a refund.
6. TDS/TCS Credits in GST Returns
The GST website now offers a feature for claiming TDS/TCS (Tax Deducted at Source/Tax Collected at Source) credits when filing GST returns. This feature is entirely optional, allowing taxpayers to decide whether to accept or reject these credits. Accepted credits can be used for making GST payments, offering users greater control over their current credits and their utilisation.
7. Responding to Show-Cause Notices
Responding to show-cause notices, particularly those related to the compulsory withdrawal from the composition scheme, has been made more convenient as per the new features of GSTN. If a show-cause notice is issued and proceedings have commenced, taxpayers now have the option to reply directly on the GSTN website. This updated process saves time and simplifies responses for composition taxpayers.
8. Bank Account Information Declaration
Regular OIDAR (Online Information Database Access and Retrieval) and NRTP (Non-Resident Taxable Person) taxpayers now have the flexibility to declare their bank details during registration or at a later stage. Previously, bank details had to be submitted during registration. This new option is particularly beneficial for new businesses, as it allows them to obtain a GST registration number without the initial requirement of opening a bank account.
9. Claiming Input Tax and Amending B2B Invoices
The GST website has reinstated the option to claim input tax, which was previously unavailable. Additionally, these new features of GST allow for the amendment of B2B (Business-to-Business) invoices for the financial year 2017-18. This amendment window was open until March 31, 2019, and proved beneficial for taxpayers who needed to rectify reporting errors or claim previously missed input tax credits.
10. Selection of Preferred Banks for Payments
The portal now supports the selection of six preferred banks when making payments. User bank details can be saved on the portal, and during payment, users can easily select their preferred bank from a drop-down menu for added convenience of the users under GST law and registration.
11. Integration with E-way Bill
The GST portal is now seamlessly integrated with the E-way bill system, allowing users to import data effortlessly. Users can import B2B and B2C invoices and HSN-wise summaries of outward supplies automatically, enhancing the efficiency of the system and also providing convenience for end users.
Final Thoughts
The recent new features of GSTN platform have brought a new era of efficiency and convenience for taxpayers. These updates include options to claim input tax, amend invoices, and choose preferred banks for payments. The integration with the E-way bill system streamlines data import, making compliance more accessible. Furthermore, features such as TDS/TCS credit claims, response to show-cause notices, and the flexible bank account declaration process provide taxpayers with greater control and ease in their interactions with the GSTN. Overall, these developments signify a commitment to simplifying tax procedures and supporting businesses, both established and new, in their GST-related endeavours.
