GST Notifications

Key Changes in September Impacting Your GST Return Filing

 The GST return filing has significantly changed since September 2024. The key changes made in the GST return filing will potentially affect your compliance and financial reporting standards. These key changes impacting your GST filing in India have introduced new threshold and liability adjustment criteria via Notification No. 12/2024, issued on July 2024.

Significant Changes in GSTR Filing from September

We all are well aware of the importance of GSTR filing in the current scenario. Some of the significant changes made in GST return filing effective from the 1^st of September 2024 are provided below:

Introduced New Reporting Threshold for B2CL

According to Notification No. 12/2024 issued on July 10024, any supply valued above Rs. 1 lakh must be reported in GSTR-1’ Table B2CL (Business to Customer Large). This improves the accuracy and transparency of reporting high-value transactions.

Adjustment of Negative Liability in GSTR-3B

The key changes in the GST return filing benefit taxpayers by reporting the negative liability in GSTR-3B’s Table No.3, which will be automatically carried forward to next month’s return. The ultimate carry forward of the negative liability to the next month’s return simplifies the reconciliation process to ease the burden on businesses.

Blocked GSTR-1 or IFF of the Taxpayers

The key changes effective from September 1 are that taxpayers’ GSTR-1 will be blocked if they fail to add and validate their bank account details in the GST registration. Adding and validating your bank account details in your GST registration can save your IFF or GSTR-1 from getting blocked.

Mandatory E-Invoicing for All B2B Transactions

The government has started implementing mandatory e-invoicing for all B2B (business-to-business) transactions for businesses generating turnover exceeding Rs. 10 crores. The system ensures that electronic invoices are generated and validated through the GST portal before being issued to customers.

Revised GST Rates for Certain Goods and Services

In September 2024, the government revised the GST rates for certain goods and services in response to changing economic conditions. Businesses dealing with specific goods and services, such as food items, healthcare services, and educational materials, generally update their GST rate calculations and invoicing systems to reflect the new rates.

Introduced New GST Return Forms

The new GST return forms are duly introduced to simplify the filing of GST returns in India. Further, introducing new GSTR-9 (annual return) and GSTR-9C (reconciliation statement) forms ensures better compliance with reporting standards.

With the significant changes in GST return filing effective from September 2024, businesses can benefit from professional GST return filing services to ensure compliance with updated regulations, such as e-invoicing, negative liability adjustments, and new GST forms.

Impact of Changes in GST Return Filing

The changes in the GST Act effective from September 1, 2024, impact the filing of your GST return in India:

Enhanced Compliance

The changes in the GST return filing have enhanced compliance, ensuring all registered businesses maintain updated and accurate bank account details with the GST portal.

Affects Overall Tax Liability

The adjustments in the tax rates of the business dealing with specified goods and services affect the overall tax liability, and the amount of input tax credit claimed.

Impacts Calculation Rate

The significant changes in the GST return filing impact the rate calculations made to collect the amount of GST accurately reported in the GST rates.

Real-Time Reporting

The changes to the GST return filing impact the real-time reporting of invoices, which facilitates quicker reconciliation of sales and purchase data.

Improved Data Accuracy

Introducing the new forms for GST return filing improved data accuracy by building checks and validations to reduce errors during data entry.

Impact on Pricing

The changes in the GST rates have a significant impact on the pricing of goods and services. The changes could potentially lead to adjustments in pricing strategies and customer billing.

Consequences of Failure to Implement Changes in GSTR Filing

Any kind of ignorance of the latest changes affecting the GST return filing for the month of September may lead to both operational or financial loss for the applicants. Some of the consequences of any failure to implement significant changes in the GST return filing are as described below:

1. Attracts Penalties and Fines

Any failure to comply with the changes made in the GST return filing attracts penalties and fines as prescribed by the regulation.

2. Suspension of GST Registration

If the taxpayers fail to add and validate the changes proposed by the updated GST filing rules, their GSTR-1/ IFF registration is either blocked or suspended for a time being.

3. Loss of Input Tax Credit

The failure to comply with the latest GST updates/ changes while filing GST returns might also result in the loss of the businesses eligible to claim the input tax credit.

4. Impact on Business Reputation

A significant impact on the reputation and the credit rating of the business is also observed if they fail to comply with the changing/ updating regulations.

5. Other Legal Consequences

Consistent non-compliance with the changing GST filing regulations also attracts several legal proceedings against the applicants/ taxpayers. 

Who Must Proceed with Filing GSTR?

All the businesses and individuals registered under GST should proceed with filing GSTR at the right time without fail. Eligible ones to file GST return are mentioned below-

Businesses- Partnerships, Sole Proprietorships, Companies, etc.

Individuals- Professionals, Freelancers, etc.

Non-resident Taxable Persons- Foreign Business Ventures Functioning in India.

Factors on Which Frequency of Filing Depends

The frequency of filing depends on the significant factors mentioned below-

• Nature of Business
• Annual Turnover
• Other Significant Factors

Conclusion

The new updates, which are valid from September 1 and introduce mandatory e-invoicing, updated return forms, revised GST rates, and blocking of GSTR-1 or IFF, are crucial for taxpayers or businesses filing GST returns. These changes are part of the government’s ongoing effort to simplify the complexities to secure smooth GST compliance and tax administration in India.

Stay ahead of the GST regulations with expert assistance! Visit our website www.enterslice.com to simplify your GST return filing and get started today.

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