Important GST filing changes for September: What you need to know

GST filing changes: September has ushered in several crucial updates that could significantly affect your GST return filing process. The latest changes, part of Notification No. 12/2024, are designed to enhance compliance and ensure businesses keep their bank details up-to-date in the GST portal.

New reporting requirements 

Starting this month, any supply valued above Rs 1 lakh must be reported in Table B2CL of GSTR-1, as mandated by Notification No. 12/2024, issued on July 10, 2024. This change aims to improve accuracy in reporting high-value transactions and boost transparency.

Negative liability reporting

Taxpayers can now report negative liability in Table No. 3 of GSTR-3B. This negative amount will automatically carry forward to the next month’s return, streamlining the reconciliation process and reducing the reporting burden on businesses.

Bank Details Validation

Effective September 1, 2024, GSTR-1 or IFF has been blocked if taxpayers did not add and validate their bank account details in their GST registration. Chartered Accountant Anupam Sharma highlighted this critical update, stressing that failure to update bank details could lead to blockage of the return filing.

Gross GST collections for August 2024 demonstrated a strong 10 per cent growth, totalling around Rs 1.75 lakh crore. This rise, fuelled by robust domestic consumption, saw GST revenues from domestic transactions increase by 9.2 per cent to about Rs 1.25 lakh crore. Revenue from the import of goods also surged by 12.1 per cent, reaching Rs 49,976 crore.

Despite this growth, August’s collections showed a slight decrease from the Rs 1.82 lakh crore collected in July 2024. However, industry experts like M S Mani from Deloitte India remain positive, noting that the 10 per cent year-on-year growth as the festive season begins indicates a strong consumption trend for the upcoming months.

The government's ongoing efforts to streamline the GST process, including rationalising rates to reduce working capital costs, have been well-received. This is reflected in the Rs 24,460 crore in refunds issued in August 2024, marking a 38 per cent increase from the previous year.

Experts observed that GST collections are likely to remain stable around Rs 1.75 lakh crore in the coming months. However, variations in growth rates amongst major states suggest a need for increased compliance efforts, particularly in Gujarat, Andhra Pradesh, and Tamil Nadu, which reported lower single-digit growth.

With the festive season approaching, GST collections are expected to rise further, reinforcing the government's optimistic outlook on achieving its annual targets.