Summary: In October 2024, the GST Network (GSTN) issued a series of advisories 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 automated data entry of RR/Parcel Way Bill numbers . GSTN also addressed the new GST requirements for scrap metal 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 for accurate Input Tax Credit (ITC) claims, starting from the October 2024 reporting cycle .A notification for GSTR-9/9C has clarified that eligible ITCs will now be automatically populated in GSTR-9 based on GSTR-2B data. Additionally, a “hard lock” of pre-populated tax liability in GSTR-3B is planned by January 2025 to improve accuracy, while allowing adjustments through GSTR-1A. Other improvements include validating bank details during changes, ensuring taxpayer information is accurate. Collectively, these notices underscore GSTN’s commitment to streamlining compliance for taxpayers through digital integration and automation.

Common GST portal, GSTN continues to issue notices on new features/updates on the portal for upgrade of features and new options or functions which can be implemented by the taxpayers.

During the month of October 2024, the following notices have been issued so far regarding various compliances by GSTN:

• Notice on correct entry of RR number/Parcel Waybill (PWB) numbers in EWB system after EWB-PMS
• Notice to taxpayers on new GST provision for scrap metal transactions
• Invoice Management System (IMS) Consulting
• GSTN Notice on GSTR-9/9C
• GSTN Notice on Material Lockdown of Auto-Filled Liability in GSTR-3B
• Additional FAQs on IMS issued by GSTN
• Validating bank account details when adding the bank account as a non-essential amendment
• Notice – Regulation 07

These are summarized below:

Notice on correct entry of RR number/Parcel Waybill (PWB) numbers in EWB system after EWB-PMS

• GSTN has issued an update dated 04.10.2024 informing that the Parcel Management System (PMS) of Indian Railways has now been integrated with the E-Way Bill (EWB) System. via Application programming interfaces (APIs).
• This integration will facilitate seamless transfer of Railways RR/Parcel Way Bill (PWB) number data to the e-bill portal, thereby ensuring better traceability and compliance. It is also important that taxpayers follow the correct process for entering Parcel Way Bill numbers into the ISF system.
• The following guidelines are also issued on:
• Applicability of RR/PWB number entry in EWB system
• Update to ISF Part B for rail transport
• RR number/PWB number input format
• RR number for FOIS or rented wagons
• Validation of EWB and RR/PWB numbers
• Importance of accurate entry
• Support and clarifications

(Source: GSTN notice dated 04.10.2024)

Notice to taxpayers on new GST provision for scrap metal transactions

• GSTN has issued a notification dated 13.10.2024 regarding the new GST provision for scrap metal transactions..
• The CBIC has published Notification No. 25/2024 – Central tax, dated October 9, 2024 under article 51 of the CGST Act, 2017 requiring companies dealing with scrap metal to comply.
• The GST portal will soon be updated to enable compliance of registration through FORM GST REG-07 by this category of registrants.

(Source: GSTN notice dated 13.10.2024)

Invoice Management System (IMS) Consulting

• GSTN has issued a notice providing that Invoice Management System (IMS) will be made available to taxpayers from 14.10.2024.
• New system will help taxpayers match their records/invoices vis à vis issued by their suppliers to benefit from the correct input tax credit (ITC).
• The first GSTR-2B would be generated for the return period on October 24 on 14^th November 2024, taking into account the measures taken regarding the invoice management system.
• Please note that it is not mandatory to act on invoices in the IMS dashboard for GSTR-2B generation.
• Taxpayers can use this system to act on invoices reflecting on IMS from 14.10.2024.

(Source: GSTN Notice of 10/14/2024)

GSTN Notice on GSTR-9/9C

• GSTN has issued a notification which provides that the GST system will automatically populate eligible ITCs for domestic supplies (excluding reverse charge and ITCs on import) from Schedule 3(I) of GSTR-2B to Schedule 8A of GSTR-9.
• A validation utility will be run progressively (for validation by taxpayers) to complete the automatic population of GSTR-9 of GSTR-2B from April 23 to March 24.
• These amendments to GSTR-9 and 9C for the financial year 2023-24 are available on the GST portal from October 15, 2024.

(Source: GSTN notice dated 15.10.2024)

GSTN Notice on Material Lockdown of Auto-Filled Liability in GSTR-3B

• GSTN has issued a notification regarding locking of auto-populated liability in GSTR-3B. In order to help taxpayers file their returns and minimize human errors, GSTN has continuously improved the GST return filing process and in this effort, the GST portal now provides a pre-filled Form GSTR-3B , wherein the tax payable is automatically populated from the supplies declared in GSTR-1/GSTR-1A/IFF by the supplier, while the input tax credit (ITC) is automatically populated from GSTR -2B. A detailed PDF file generated by the GSTR-3B system auto-populated is also provided to all taxpayers.
• Now, taxpayers also have the option to amend their outgoing supplies incorrectly declared in GSTR-1/IFF through GSTR-1A, allowing them to correct their liabilities before filing their GSTR-3B. Further, to manage inbound supplies and ensure accurate ITC claims in GSTR-3B, taxpayers have the option to take informed steps to accept/reject/wait for inbound supplies. via the invoice management system (IMS) now available to taxpayers.
• It is to be noted that from the January 2025 tax period onwards, the GST portal is going to restrict changes to obligations auto-populated in GSTR-3B pre-populated from GSTR-1/1A/IFF in order to further improve the accuracy of filing declarations. It is once again hereby suggested that if any change is required in the auto-populated liability, it can be processed through GSTR-1A.
• However, locking of auto-populated ITCs in GSTR-3B, after IMS deployment, will be implemented at a later date. Similarly, a separate notice would be issued after addressing all IMS-related issues raised by the trade.

(Source: GSTN notice dated 17.10.2024)

Additional FAQs on IMS issued by GSTN

• The Invoice Management System (IMS) is now accessible to taxpayers. This new system will help taxpayers match their records/invoices with those issued by their suppliers in order to benefit from the correct input tax credit (ITC).
• Taxpayers can now use this feature to seamlessly accept, reject or retain pending invoices in the system for future use, when needed.
• The first GSTR-2B based on actions taken in IMS would be generated for the return period from October 24 to November 14, 2024.

(Source: GSTN notice dated 17.10.2024)

Validating bank account details when adding the bank account as a non-essential amendment

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

(Source: GSTN notice dated 22.10.2024)

Notice – Regulation 07

• GSTN has introduced an update to facilitate registration compliance for buyers of scrap metal through Form GST REG-07.
• This update follows the new GST provisions for buyers of scrap metal, as outlined in the notice published on October 13.
• Taxpayers in this category must select “Other” in Part B of Table 2 under the “Business Incorporation” section. A text box will appear in which the taxpayer must enter “Scrap Metal Dealers”.
• This entry is mandatory for those who select the “Others” option. Once this is completed, the remaining details of Form GST REG-07 are required to be filled and submitted on the common portal to meet the registration requirements as per Notification No. 25/2024 – Central tax, dated October 9, 2024.

(Source: GSTN Notice of 10/22/2024)

**********