As of September 2024, several significant changes have been introduced in both GST and Income Tax regulations. These updates are crucial for taxpayers and businesses to understand, as they impact filing procedures, timelines, and compliance requirements.
Also read about other financial changes from September 2024
Below is a detailed overview of these changes:
1. Time Limit for E-Verification of ITR
Previous Rule: After filing the Income Tax Return (ITR), taxpayers were required to e-verify their returns within 30 days. However, there was some flexibility if the verification was delayed.
As Time limit of 30 days is lapsed if you filled ITR till 31st July so from 1 September onwards:
- If a taxpayer fails to e-verify their ITR within 30 days from the date of filing, the return will now be considered as filed on the date of e-verification.
- Consequences:
- Late Fees: The return will attract late fees as per the provisions applicable on the date of e-verification.
- Old Regime Option: Taxpayers will no longer have the option to opt for the old tax regime if the e-verification is delayed beyond 30 days.
2. Reduction of Time Limit Under Section 148A for Issuing Notice
Previous Rule: The time limit for the Income Tax Department to issue a notice under Section 148A for reopening assessments was 10 years from the end of the relevant assessment year.
New Rule Effective from 1st September 2024:
The time limit for reopening cases u/s 148A has been reduced. The updated time limit for reopening cases with income
- Upto Rs.50 lakhs – The cases should not be reopened within 3 years from the end of the assessment year.
- Above Rs.50 lakhs – The time limit for reopening cases u/s 148A has been reduced from the earlier 10 years to 5 years.
3. Changes in Reporting Requirements for GSTR-1
Notification No. 12/2024 dated 10 July 2024:
- GSTR-1 Table B2CL: From September 2024, supplies having a value above Rs. 1 lakh must be reported in this table.
- Impact: This change enhances transparency and helps in better tracking of high-value transactions under GST.
4. Negative Liability Reporting in GSTR-3B
Notification No. 12/2024 dated 10 July 2024:
- GSTR-3B Table No. 3: Taxpayers can now report negative liability in this table.
- Impact: The negative liability reported will be automatically adjusted in the next month’s return, providing a smoother reconciliation process for taxpayers.
5. Introduction of RCM Liability/ITC Statement
- A new RCM Liability/ITC Statement has been introduced on the GST Portal.
- Requirement: Taxpayers must report the opening balance in this statement by 31st October 2024.
- Impact: This statement enhances accuracy and transparency in reporting Reverse Charge Mechanism (RCM) transactions, helping taxpayers manage their liabilities and Input Tax Credit (ITC) more effectively.
6. Blocking of GSTR-1 for Non-Furnishing of Bank Account Details
- From 1st September 2024, GSTR-1 will be blocked for taxpayers who have not added their bank account details in their GST registration.
- Impact: This ensures that all taxpayers have updated and verified bank account details, which is critical for processing refunds and other transactions.
7. Expansion of Biometric Authentication
- New States Added: Biometric authentication has now been rolled out in two more states—Dadra and Nagar Haveli and Daman and Diu, and Chandigarh.
- Total States: This brings the total number of states under this system to 9, with more states expected to be notified soon.
- Impact: The introduction of biometric authentication strengthens the GST registration process, preventing fraud and ensuring that only legitimate businesses are registered.
8. GST Changes from the 53rd GST Council Meeting
- Upcoming Notification: Changes announced by the 53rd GST Council Meeting and incorporated into the Finance Act No. 2024 will be notified after the 54th GST Council Meeting scheduled for 9th September 2024.
- Expected Changes: Taxpayers should stay updated as these changes will likely impact various aspects of GST compliance.
9. Activation of GSTR-9 and GSTR-9C
- September 2024: Forms GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement) will be active on the GST portal.
- Impact: Taxpayers must prepare to file these forms for the financial year 2023-24, ensuring accurate reconciliation of their annual returns with their books of accounts.
10. Availability of GSTR-1A for Corrections
- GSTR-1A is now available on the GST portal for correcting mistakes made in GSTR-1.
- Impact: This provides taxpayers with an opportunity to rectify any errors in their original returns, ensuring accurate reporting and compliance.
The changes introduced in GST and Income Tax regulations from September 2024 bring about significant implications for taxpayers. These updates emphasize the importance of timely compliance, accurate reporting, and staying informed about new regulatory requirements. Taxpayers and businesses should ensure that they adapt to these changes promptly to avoid penalties and ensure smooth operations.
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Sir,can we get extension of filling G S T Return 4 annual for for the year 22-23, 23-24 for composition tax payer