Your GST return filing could see significant changes this month, potentially affecting your compliance and financial reporting processes.
From new reporting thresholds and liability adjustments to stricter compliance measures, these changes under Notification No. 12/2024 are set to impact every taxpayer. Here’s what you need to know to stay ahead.
How much tax do I have to pay? Calculate now
According to a post in X from chartered accountant Anupam Sharma, starting September, any supply valued above ₹1 lakh must be reported in GSTR-1’s Table B2CL, according to Notification No. 12/2024 issued on July 10, 2024.
This adjustment aims to enhance accuracy in reporting and improve the transparency of high-value transactions.
Additionally, taxpayers now have the ability to report negative liability in GSTR-3B’s Table No. 3. This negative liability will be automatically carried forward to the next month’s return, simplifying the reconciliation process and easing the burden on businesses.
A critical compliance update comes with the new mandate that from September 1, 2024, GSTR-1 or IFF will be blocked if taxpayers fail to add and validate their bank account details in the GST registration.
“If you haven’t added and validated your bank account details in your GST registration, your GSTR-1 /IFF will be blocked,” Sharma wrote.
This step is aimed at tightening compliance and ensuring all registered businesses maintain updated and accurate bank details with the GST portal.
On the broader financial front, gross GST collections for August 2024 reflected a robust 10% growth, reaching approximately ₹1.75 lakh crore.
This increase, driven by strong domestic consumption, saw GST revenues from domestic transactions rise by 9.2% to about ₹1.25 lakh crore. Revenue from the import of goods also saw a significant uptick of 12.1%, amounting to ₹49,976 crore.
Despite this growth, the month-on-month comparison showed a slight dip from the ₹1.82 lakh crore collected in July 2024. However, industry experts like M S Mani from Deloitte India remain optimistic, pointing out that the 10% year-on-year increase at the beginning of the festive season is a strong indicator of sustained and potentially increasing consumption in the coming months.
The government’s continued efforts to streamline the GST process, particularly through initiatives like rationalizing rates to reduce working capital costs, have been well-received. This commitment is further reflected in the ₹24,460 crore in refunds issued in August 2024, marking a 38% increase from the previous year.
Experts like EY Tax Partner Saurabh Agarwal and KPMG Indirect Tax Head Abhishek Jain noted the stability in GST collections, suggesting that the collections might hover around ₹1.75 lakh crore in the coming months. However, the disparity in growth rates among major states signals areas where tax authorities may need to intensify compliance efforts, particularly in states like Gujarat, Andhra Pradesh, and Tamil Nadu, which reported single-digit increases.
As the festive season approaches, the next few months are expected to see further surges in GST collections, reinforcing the government’s optimistic outlook on meeting its annual targets.