Summary: In October 2024, the GST Network (GSTN) issued a series of recommendations aimed at improving the compliance and functionality of the portal. These updates include integration of Indian Railways Parcel Management System with E-Way Bill (EWB) system for better traceability and compliance through automatic data entry of RR/Parcel Way Bill numbers. GSTN has also addressed the new GST requirements for scrap transactions, requiring businesses in this sector to register through Form GST REG-07. The Invoice Management System (IMS) has been introduced to enable taxpayers to reconcile invoices with supplier records to get correct Input Tax Credit (ITC) claims, starting from the return cycle of October 2024. A Notice for GSTR-9 /9C clarified that eligible ITC will now automatically populate in GSTR-9 based on GSTR-2B data. Additionally, by January 2025, a ‘lock-in’ of pre-populated tax liability in GSTR-3B is anticipated to improve accuracy while allowing for adjustments through GSTR-1A. Other improvements include validating bank details during changes, ensuring accuracy of taxpayer information. Collectively, these recommendations underscore GSTN’s commitment to simplify compliance for taxpayers through digital integration and automation.

Common portal of GST, GSTN continues to issue notices on new features/updates of the portal to modernize functionalities and new options or features enabled for implementation by taxpayers.

During the month of October 2024, the following warnings have so far been issued in connection with various compliances by GSTN:

• Notice regarding the correct entry of RR/Parcel Way Bill (PWB) numbers in the EWB Post EWB-PMS system
• Advice to taxpayers on the new GST provision for scrap transactions
• Invoice Management System (IMS) Consulting
• GSTN Notice on GSTR-9/9C
• GSTN Notice on Full Blocking of Self-Populated Liability in GSTR-3B
• Additional FAQs on IMS issued by GSTN
• Validating bank account details while adding bank account as non-core change
• Notice – Reg 07

These are summarized below:

Notice regarding the correct entry of RR/Parcel Way Bill (PWB) numbers in the EWB Post EWB-PMS system

• GSTN has issued an update dated 04.10.2024 stating that the Parcel Management System (PMS) of Indian Railways has now been integrated with the E-Way Bill (EWB) system by Application Programming Interfaces (APIs).
• This integration will facilitate seamless transfer of RR No./Parcel Way Bill (PWB) data from Railways to the e-way bill portal, ensuring better traceability and compliance. It is also important that taxpayers follow the correct process for entering Parcel Way Bill numbers into the EWB system.
• The following instructions are also issued regarding:
• Applicability no. RR/Input PWB in EWB system
• Update of Part B of the EWB for rail transport
• Format for entering no. RR/PWB number
• RR number for FOIS or leased wagons
• Validation of EWB number and RR/PWB number
• Importance of accurate input
• Support and clarifications

(Source: GSTN notice of 04.10.2024)

Advice to taxpayers on the new GST provision for scrap transactions

• GSTN has issued a notice dated 13.10.2024, in relation to the new GST provision for scrap transactions..
• CBIC issued Notice no. 25/2024 – Central Tax, from October 9, 2024 in accordance with section 51 of CGST Act, 2017 enforcement of compliance by scrap metal businesses.
• The GST portal will be updated soon to enable compliance of registration through FORM GST REG-07 by this category of registered persons.

(Source: GSTN notice of 13.10.2024)

Invoice Management System (IMS) Consulting

• GSTN has issued a notice stating that the Invoice Management System (IMS) will be made available to taxpayers from 14.10.2024.
• The new system will make it easier for taxpayers to match records/invoices dream to dream issued by their suppliers to avail the correct Input Tax Credit (ITC).
• The first GSTR-2B would be generated for the return period 24-Oct-14^th November 2024 considering the actions taken on the Invoice Management System.
• It may be noted that it is not mandatory to take action on invoices in IMS dashboard for generating GSTR-2B.
• Taxpayers can use this system to take action on invoices reflected on IMS from 14.10.2024.

(Source: GSTN Advisory from 14.10.2024)

GSTN Notice on GSTR-9/9C

• GSTN has issued a notice that the GST system will automatically populate eligible ITC on domestic supplies (excluding reverse charge and imports ITC) from Table 3(I) of GSTR-2B to Table 8A of GSTR-9.
• A validation utility will be run progressively (for taxpayer validation) to populate the vehicle population of GSTR-9 from GSTR-2B from April 23 to March 24.
• These changes in GSTR-9 and 9C for FY 2023-24 are available on the GST portal from October 15, 2024.

(Source: GSTN notice of 15.10.2024)

GSTN Notice on Full Blocking of Self-Populated Liability in GSTR-3B

• GSTN has issued a notice regarding blocking of self-populated liability in GSTR-3B. To help taxpayers file their returns and minimize human error, GSTN is continuously improving the GST return filing process and in this endeavor, the GST Portal now offers a pre-filled form GSTR-3B where the tax liability is automatically populated from supplies declared in GSTR-1/ GSTR-1A/ IFF by the supplier while Input Tax Credit (ITC) is auto-populated from GSTR-2B. A detailed pdf system generated self-populated GSTR-3B is also provided to all taxpayers.
• Taxpayers now also have the option to amend their incorrectly declared outbound supplies in GSTR-1/IFF through GSTR-1A, giving them an opportunity to correct their liabilities before filing GSTR-3B. Additionally, to manage inbound supplies and ensure accurate ITC claims in GSTR-3B, taxpayers have the option to take informed accept/reject/pending action on inbound supplies by The Invoice Management System (IMS) which is now available to taxpayers.
• It may be noted that from January 2025 tax onwards, GST Portal will restrict making changes in auto-populated liability in pre-populated GSTR-3B from GSTR-1/1A/IFF to further improve the accuracy of return filing. It is hereby once again suggested that if any change in self-populated liability is required, it can be handled through GSTR-1A.
• However, the blocking of self-populated ITCs in GSTR-3B, after the launch of IMS, will be implemented from a later date. A separate opinion would be issued for the same after addressing all IMS related issues raised by the trade.

(Source: GSTN notice of 17.10.2024)

Additional FAQs on IMS issued by GSTN

• The Invoice Management System (IMS) is now available to taxpayers. This new system will make it easier for taxpayers to match their records/invoices with those issued by their suppliers to get the correct Input Tax Credit (ITC).
• Taxpayers can now use this facility to accept, reject or keep invoices pending in the system for later benefit when required.
• The first GSTR-2B based on the actions taken in IMS will be generated for the return period October 24 on November 14, 2024.

(Source: GSTN notice of 17.10.2024)

Validating bank account details while adding bank account as non-core change

• GSTN has a validation process has been implemented and a new procedure for cases where a taxpayer attempts a non-core change to update bank account details. Therefore, taxpayers are requested to follow the prescribed procedure while adding their bank account details on the portal.
• Under the new procedure, when the bank account details are entered, the taxpayer must click on the “VALIDATE ACCOUNT DETAILS” button and before clicking the “Validate Account” button, the “Save” button at the bottom of the screen as shown remains disabled.

(Source: GSTN notice of 22.10.2024)

Notice – Reg 07

• GSTN has introduced an update to facilitate registration compliance for scrap metal buyers through Form GST REG-07.
• This update follows the new GST provisions for scrap metal buyers as outlined in the advisory issued on 13 October.
• Taxpayers in this category must select ‘Other’ in Part B of Table 2 in the ‘Business Constitution’ section. A text box will appear in which the taxpayer must enter “Scramble Dealers”.
• This entry is required for those who select the “Other” option. Once this is filled, the remaining details of Form GST REG-07 need to be filled and submitted on the common portal to fulfill the registration requirements under Notice no. 25/2024 – Central Tax, from October 9, 2024.

(Source: GSTN Advisory from 22.10.2024)

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