- Union budget 2023 proposed a three-year limit for filing tax returns Implemented from October 1, 2023.
- CBIC introduced relaxations in compliance timelines and penalties to bring non-compliant taxpayers into the mainstream.
- GST collections in April 2023 hit an all-time high of ₹1.87 lakh crores India remained a relative bright spot and fastest-growing major economy in FY 23 driven by private consumption and increased capital formation.
- Emphasized reliance on existing information to issue show cause notices.
- CBIC begun work on prefilled consolidated GST returns similar to the Income Tax department’s Annual Information Statement.
- GSTN enlisted for disclosure under the Prevention of Money-laundering Act to share information with the Enforcement Directorate.
- e-invoicing threshold reduced to ₹5 crores, A step towards fine-tuning the GST ecosystem for compliance and streamline Input Tax Credit (ITC) flows.
- Patna High Court upholds the constitutional validity of the time limit for claiming ITC under Section 16(4).
- Default route for exports and supplies to SEZ for authorized operations changed to bonds/LUT.
- Allahabad High Court stays adjudication of Show Cause Notices (SCNs) for FY 2017-18 issued under extended time limits, The decision is likely to have a far-reaching impact on taxpayers.
- Amnesty scheme notified for taxpayers unable to file appeals against orders passed before March 31, 2023, allowing appeals until January 31, 2024.
- GSTN seamlessly integrated into the Account Aggregators (AA) ecosystem as a Financial Information Provider (FIP), providing taxpayers with a holistic financial view.
- Counter party e-Invoice Json made available leading to compliance before purchase entry in ERP – Futuristic Digitization.
2024 – Way Forward
- Dealing with the influx of AI generated notices for past years is likely to remain a challenge as we start with the new year.
- Government would be on track to exceed GST collections target for FY 24.
- Corporates are expected to adopt predictive models to detect the lapses in compliances and frauds before they occur.
- CBIC is likely to introduce pre-filled returns to reduce litigation and compliance cost.
- Tax authorities are likely to demand more transparency in reporting due to increased availability of data.
Companies don’t always get in trouble because they managed tax wrong, but because they can’t produce the evidence that prove they’re doing it correctly. Time to check on tax transformation strategy?