May 2023 recorded a GST collection of Rs.1,57,090 crore, clocking a 12% year-on-year growth. The collections have been seeing healthy figures since the past 14 months of Rs.1.4 lakh crore or higher. However, this is only the fifth month since the inception of GST in 2017 that the collections have crossed the Rs.1.5 lakh crore mark.Break-up of GST Collections for May 2023The GST collection for May 2023 was Rs.1,57,090 crore. Of which, the CGST collection amounted to Rs.28,411 crore, the SGST collections amounted to Rs.35,828 crore, and the IGST collected was Rs.81,363 crore (which includes Rs.41,772 crore collected on the import of goods. The total cess collected amounted to Rs.11,489 crore (which includes Rs.1,057 crore collected on import of goods).From the IGST collection, the government settled Rs.35,369 crore towards CGST and Rs.29,769 crore towards SGST.

October 2022 witnessed the second highest GST collections ever at Rs.1,51,718 crore, only second to April 2022, which had a GST collection of Rs.1,67,540 crore. Despite the GST collections now crossing Rs.1.4 lakh crore for eight months in a row, this is only the second time since the inception of GST that the collections have crossed the Rs.1.5 lakh crore mark. GST Collection September 2022 was reported at Rs.1,47,686 crores.Break up of GST Collections for October 2022The GST collections comprised Rs.26,039 crore CGST, Rs.33,396 crore SGST, and Rs.81,778 crore IGST (including Rs.37,297 crore GST collected on the import of goods). The cess collections stood at Rs.10,505 crore (including Rs.825 crore collected on the import of goods, according to a PIB report. According to the report, the government settled Rs.37,626 crore and Rs.32,883 crore in October as CGST and SGST, respectively, from the IGST collections. Further, the Centre also settled Rs.22,000 crore on an ad hoc basis equally between the Centre and the states. This has brought the total revenue after ad hoc settlements to Rs.74,665 crore for CGST and Rs.77,279 crore for SGST.Analysis of the GST Collection for October 2022The record GST collections for October could be a result of revenue due to quarter-end filings that marked the end of the second quarter.

e-Invoicing or electronic invoicing is a system introduced under GST. Applicable taxpayers must report B2B invoices to the Invoice Registration Portal (IRP) and get it verified by the GSTN. In return, they receive a unique Invoice Reference Number (IRN) and signed QR code. The e-Invoicing system was implemented from 1st October 2020 for taxpayers with an aggregate turnover exceeding Rs.500 crore. e-Invoicing was extended to businesses with an aggregate turnover exceeding Rs.100 crore from 1st January 2021. On 8th March 2021, the CBIC also notified the applicability of the e-invoicing system from 1st April 2021 for businesses with total turnover ranging between Rs.50 crore to Rs.100 crore.

e-Invoicing applies to transactions that fall under the ambit of the reverse charge mechanism under GST. This article covers the different types of RCM transactions and e-invoicing applicability on the same.Latest Updates on e-Invoicing10th May 2023CBIC notified the 6th phase of e-invoicing. Hence, taxpayers with ₹5 Cr+ turnover in any financial year from 2017-18 shall issue e-invoices w.e.f 1st August 2023.06th May 2023The GST department has deferred the time limit of 7 days to report the old e-invoices on the IRP portals by three months. Further, the department is yet to announce the new implementation date.13th April 2023As per the GST Network's advisories dated 12th April 2023 and 13th April 2023, taxpayers with annual turnover equal to or more than Rs.100 crore must report tax invoices and credit-debit notes to IRP within 7 days of invoice date from 1st May 2023.11th October 2022The GST Council may implement the next phase of e-invoicing for businesses with an annual turnover of more than Rs.5 crore from 1st January 2023. The system may get extended to businesses with a turnover of over Rs.1 crore by the end of the next fiscal year.1st August 2022 The e-Invoicing system for B2B transactions has now been extended to those with an annual aggregate turnover of more than Rs.10 crore up to Rs.20 crore starting from 1st October 2022, vide notification no.

While registering on the e-way bill portal, businesses are provided with a User ID, and they can set their password to access the portal. However, there might be a case when businesses forget their e-way bill password or don't know how to reset the e-way bill password. In this article, we will discuss the 'e-way bill forgot password' problem, provide you with the steps on how to generate an e-way bill user ID and password, look at the e-way bill password format, and how to change the password in the e-way bill.How to know the e-way bill password?If you have no idea on how to know the e-way bill password, there is an option to access the credentials on the portal. You can click on the ‘Forgot Password’ option, and you will receive an OTP. Once you enter the OTP in the required field, you will be able to know your e-way bill password.How to generate an e-way bill user ID and password?For registered transporters To learn how to generate an e-way bill user ID and password, you are required to follow these steps for a seamless process:Step 1: First, visit the e-way bill portal.

Supply chain finance is a range of financial solutions that help improve liquidity in supply chains. It allows buyers to extend their payment schedules to suppliers while allowing both big and SME suppliers to receive their payments on time or in advance. In this article, we will learn about supply chain finance, its working mechanism, and how it strengthens business relationships between buyers and suppliers. What is Supply Chain Finance?Supply Chain Finance (SCF), also known as reverse factoring, is a service designed to improve cash flow for both buyers and suppliers by facilitating early payments on invoices while allowing buyers to extend payment terms. It helps the management of the cash flow between buyers and suppliers by automating transactions, from invoice initiation to bill payment. A range of technological solutions come into play to automate electronic transactions, invoice monitoring and payments between buyers and suppliers. Usually, factoring is arranged by the supplier. But, in SCF, the process is initiated by the buyer.

All registered taxpayers under GST are required to file an annual return in Form GSTR-9 irrespective of the turnover of an entity. Filing GSTR-1 and GSTR-3B is mandatory before filing the annual return. The annual return is a compilation of data filled in GSTR-1 and GSTR-3B.Even if a taxpayer identifies that certain data is incorrect in GSTR-1/GSTR-3B, the same cannot be corrected in GSTR-9. The intent of the form is just the aggregation of data and not rectification. However, the books of accounts of an entity should be in line with the returns filed.

Claiming ITC (input tax credit) refers to claiming the credit of taxes paid on an entity’s inward supplies, which are used to carry out business. The main aim behind the introduction of GST was to avoid the cascading effect of taxes. Section 16 of the Central Goods and Services Tax (CGST) Act lays down the conditions for ITC, along with certain provisions and restrictions.The mechanism of ITC allows the businesses to reduce their output tax liability by claiming credit of taxes already paid on their purchases. Thus, claiming maximum ITC is important to reduce the output tax liability and reduce overall working capital impact. How to Claim Maximum ITC Under GST?Here are Seven ways to claim maximum ITC under GST-Regularly follow-up with your vendors- Taxpayers should regularly follow up with their vendors to upload their sales invoices in the GSTR-1 on time. When the suppliers upload their sales invoices in the GSTR-1 return on time, the GSTR-2A/2B of the recipient taxpayer will get auto-populated with the ITC values, and the recipient will be able to claim this credit in their GSTR-3B return.Identify tax payable on an RCM basis- Under reverse charge, a recipient must pay the tax instead of the supplier.

The government introduced Rule 86A to block the use of fraudulently availed ITC and thereby protect the interests of the revenue.What is Rule 86A under GST?Rule 86A was introduced by the government vide Notification no. 75/2019 dated 26.12.2019 to block fraudulently availed ITC. The main purpose behind the introduction of this Rule was to block the use of fraudulently availed ITC. As per this Rule, a Commissioner or any officer authorised by him can block the ITC available in the electronic credit ledger of the taxpayer if he has ‘reasons to believe’ that he has fraudulently availed ITC.The Commission shall record the reason in writing for blocking ITC. What are the conditions under which ITC in the electronic credit ledger can be blocked?The commission or any officer authorised by him, not below the rank of an Assistant Commissioner, can block a taxpayer’s ITC provided he has reasons to believe that the ITC is claimed fraudulently or the ITC is ineligible as follows-The tax invoices basis that ITC is being claimed has been issued by a registered person who is found to be non-existent or is not conducting business from the place for which the registration has been obtained. The ITC is available on an invoice for which supply has not been received.ITC is availed on an invoice on which tax has not been paid to the government.ITC is availed by a registered person who is found to be non-existent or is not conducting business from the place for which the registration has been obtained.The registered person does not have the invoice or debit note basis which he is claiming ITC.The Commissioner may allow the use of credit if he finds that the conditions for disallowing the credit no longer exist.\Is blocking of ITC by the GST officer legal?As per section 16(1) of the CGST Act, all registered taxpayers who have paid tax on their inward supplies used to further their business can claim ITC on such taxes paid.

The Finance Bill 2022 introduced a new section in the Central Goods and Services Tax (CGST) Act, 2017 by way of substituting the existing Section 38. The revised Section 38 was proposed in a bid to further tighten input tax credit (ITC) claims, owing to the extent of ITC fraud that takes place by way of fake entities and fake invoices. The provisions of this section will also help avoid any matters of litigations in the court of law.The revised Section 38 has not yet been passed by parliament nor notified for taxpayers at the moment. However, it could become part of the GST law in the months to come. Let’s decode the new Section 38 and find out how it will impact the ITC claims of a business.How does the existing Section 38 govern ITC claims?The existing Section 38 of the CGST Act is titled ‘Furnishing details of inward supplies’. It governed the furnishing of details of outward supplies (i.e.