3. Royalty in

4. Body Corporate Provides Security Services.

5. Legal fees paid to advocates.

6. Rent a cab/hire a motor

7. Payment to directors other than salary when TDS is deducted under Section 194J of the Income Tax Act,

8. Renting out residential property.

Please refer to N T 04/2017 of CGST (Rate) for RCM list of Goods, N T 13/2017 of CGST (Rate) for RCM list of Service, N T 10/2017 of IGST (Rate) for RCM list of Service, and N T 04/2017 of IGST (Rate) for RCM list of Goods, as amended from time to time, for the most up-to-date list of RCM goods and services.

The input tax credit for such RCM paid is only available until October 2024, after which the ITC may lapse. Please make sure you pay the RCM and receive the ITC by October 2024.

3. Reclassification of Place of Supply: -

It may happen that, at the time of original invoicing supply has been classed as intrastate and local tax imposed thereon, but later on it turns out to be interstate and payable for IGST, or vice versa, so as per the provision of the act in such circumstances,

1. The IGST must be paid.

2. We also have to claim the reimbursement of CGST/SGST that was improperly However, there will be no interest implications for both activities.

4. Credit Notes [Section 34(2) of the CGST Act, 2017].

Already issued credit notes.

Credit Notes issued between April 2023 and March 2024 that have not yet been declared in the filed returns may be disclosed as late as October 2024.

Issuance of Credit notes linked to supplies made in Fiscal Year 2023-24-

The credit note for the invoices for fiscal year 2023-24 can be given as late as October 2024 and reported by November 30, 2024. If a credit note is provided for such invoices after October 2024, the credit by way of reversal in tax liability will not be accessible.

5. ITC on Inward Supply [Proviso to Section 38(5) of the CGST Act, 2017]

To claim the ITC, the provider must have paid the applicable taxes, and if the liability is not discharged, it may result in further tax demand as well as interest and penalty at the time of assessment. As a result, according to a recent modification effective January 1, 2022, ITC can only be claimed if it is represented in GSTR 2B. Additionally, the CBIC recently issued an advisory to claim ITC only from GSTR 2B. In this regard, a reconciliation between GSTR -2B (ITC declared by vendor) and GSTR-3B (ITC claimed by us) for the relevant period is required to identify suppliers who have not disclosed GST invoices in their returns. The supplier recorded the transaction in GSTR 2B, however the related invoices were not booked for the year. Credit notes were issued, resulting in a reduction in ITC, however they are either unrelated to our company or not accounted for by our company. In all of the scenarios listed above, it will have an impact on the company's ITC and must be claimed / reversed in the books of account. The Input Tax Credit for Purchases, Expenses, and Capital Goods for Fiscal Year 2023-24 must be claimed by October 2024. If any ITC was not claimed in the previously filed return, or if excess ITC was claimed incorrectly, now is the last time to fix the error and claim the remaining ITC.

6. Obtaining E-Invoice copies for inward supply, when applicable.

In addition, check to see if an e-invoice has been obtained, as vendors are required to generate one. If a vendor has a stipulated turnover limit (above Rs.500/100 crores/50 crores/20 crores/10 crores/5 crores) and does not produce an e-invoice during the fiscal year 2023-24, no ITC claim can be made on non-e-invoice.

7. ITC Reversal- Input tax credit must be reversed in the following cases:

A. ITC Reversal under Rules 42 and 43 of the CGST Rules, 2017:

If an input tax credit is taken against an exempt outward supply (sales), the ITC will be reversed in relation to the proportion of exempt supplies (sales) to total outward supplies.

For example, suppose total outward supplies (sales) are Rs.100 and exempt supplies (sales) are Rs.40, indicating that 40% of total sales are exempt. In this scenario, 40% of the common ITC will be reversed. (CGST Rules, 2017: Rules 42 and 43).

This calculation must be done on a monthly basis, and the ITC must be reversed using the usual GSTR 3B. Furthermore, on an annual basis, the same needs to be recalculated using yearly ratios.

If an additional reversal of ITC is required based on yearly ratios, it must be done by October 20, 2024.

If an excess ITC was reversed throughout the year, it can be re-credited by the 20 October 2024.

B. ITC Reversal under Rule 37 owing to non-payment to creditors within 180 days.

If payment to suppliers/creditors is not made within 180 days of the tax invoice's issuance date, the ITC on the unpaid amount is reversed, plus interest at 18%. To do this, creditors must be carefully scrutinized and reported no later than the October 2024 return. It is also crucial to note that, while ITC is reversed due to nonpayment within 180 days, it can be reclaimed at any point in the future after payment is made to the supplier. And there is no time restriction for this.

C. Nonpayment of Tax by Supplier on the invoices issued by the supplier Rule 37(A).

In the case of invoices issued by the supplier and reported in GSTR 1, the invoices are reflected in our GSTR 2B, but the associated tax has not been paid by September 30, 2024. ITC must be revoked, along with interest at 18%, by November 30, 2024. It is vital to note that once the supplier has paid the tax, the previously reversed ITC can be claimed back.

D. ITC reversal due to excess claim of input tax credit

In the event that an Excess Input Tax credit is taken, the ITC will be reversed. Interest at 18% is applied. for example, the ITC on one purchase bill was taken twice due to a clerical error. This excess ITC must be reversed, along with interest of 18%.

E. Latest list of ineligible input tax credit in case of certain purchases/expenses under section 17(5)

motor vehicle and other conveyance, except where they are not protected under section 17(5) used for business.

Supply of goods and/or services, such as:

i. Food and beverages.

ii. Outdoor Catering

iii. Beauty Treatment

IV. Health Services,

v. Cosmetic and Plastic Surgery

vi. membership in a club or health and fitness center.

vii. Rent a Cab

viii. Passenger vehicle with seating capacity fewer than 13 persons and related expenses such as insurance, repairs, and maintenance

ix. life and health insurance, unless where notified by the government.

x. travel benefits for employees on vacation (leave or home trip)

xi. Works contract services when supplied for the building of immovable property, other than plant and machinery, unless it is for continuing delivery of works contract service.

xii. Goods or services received by a taxable person for the building of immovable property on his own account, excluding plant and machinery, even if utilized in the course or furtherance of business.

xiii. Goods or services, or both, for which tax is paid under composition

xiv. items or services or both received by a non-resident taxable person, excluding items imported by

xv. Products or services utilized for personal consumption.

xvi. Goods lost, stolen, destroyed, written off, or disposed of as a gift or for free

F. Reclaim of ITC reversed in 2017-18, 2018-19, 2019-20, 2020-21, 2021-22, or 2022-23:

If any ITC was reversed in 2017-18, 2018-19, 2019-20,2020-21, 2021-22, or 2022-23 due to payment not made to vendors within 180 days and is now paid to the vendor during 2023-24, the ITC can be retrieved in 2023-24 upon settlement of overdue invoices. If a payment is made to a vendor but no re-claim is made in returns between 2023-24, the reclaim might be done until October 2024.

G. Export-related compliances.

1. Goods exported with payment of tax (without LUT).

If products are exported outside India with a tax payment option and a refund is obtained directly (using the ICEGATE matching mechanism), it is necessary to ensure that the export proceeds are realized within the time period stipulated by FEMA.

If proceeds are not realized, the refund obtained must be returned within 30 days of the expiration of the FEMA time limit, together with interest at 18% from the date of receipt of the refund. It is crucial to note that a refund claim can be resubmitted once the export revenues are realized.

2. Export of goods or services under LUT (without IGST).

If products are exported outside India under LUT and a refund of accrued ITC is claimed, it is necessary to determine if the export revenues are realized within the time limit prescribed by FEMA.

If proceeds are not realized, the refund obtained must be returned within 30 days of the expiration of the FEMA time limit, together with interest at 18% from the date of receipt of the refund. It is crucial to note that a refund claim can be resubmitted once the export revenues are realized.

3. Supply to SEZ (with payment of IGST or under LUT)

According to a recent revision to the IGST Act, the benefit of ZERO Rated supply will be accessible for products supplied to SEZ only if the goods or services are given for the approved operation of SEZ units or SEZ Developer. In this regard, if goods or services are given to a SEZ unit or developer during the fiscal year 2023-24, an authorization letter (endorsement copy) must be obtained.

Conclusion:

Navigating the GST landscape needs effort and foresight, especially when starting a new financial year. Businesses can ensure a smooth assessment of FY 2023-24 and lay the groundwork for FY 2024-25 by following compliance deadlines, claiming / reversing ITC, RCM-related compliances, planning for e-invoicing, and export-related claims, among other things. Furthermore, understanding and following laws governing job activity, real estate sector regulations, and export-related compliances is critical for maximizing benefits and reducing liabilities under GST. Businesses who prepare carefully and comply can look forward to a successful and financially secure new fiscal year.