CA Shivprasad Sakhare on LinkedIn: **1. GSTN Advisory on Refund of Additional IGST Paid Due to Upward Price… (2024)

1

**Deduction for Pre-Construction Interest - House Property Income**If you earn income from house property, various deductions can reduce your taxable income, including pre-construction interest under Section 24(b). Pre-construction interest is the interest incurred before the completion of a house's construction. This interest cannot be claimed during the construction period but can be claimed in five equal installments once the construction is completed.For self-occupied properties, pre-construction interest cannot be claimed under the new tax regime. For let-out properties, it can be claimed even under the new regime. The maximum deduction for interest on a self-occupied house is Rs. 2,00,000, which includes pre-construction interest. There is no such limit for let-out properties, but the loss from house property that can be set off against other income heads is limited to Rs. 2,00,000 annually, with any excess carried forward to future years.To claim this deduction, ensure the loan is for property acquisition or construction, and the construction is completed within five years from the loan's financial year end. You can claim pre-construction interest in Schedule HP of your ITR form.

1

From July 5, 2024, the new income tax return filing utilities (ITR forms) uploaded on the e-filing portal are incorrectly disallowing the rebate under section 87A for all types of incomes taxable at special rates under Schedule SI.

1

**Refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports**1. GST Council has approved that application of refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports may also be processed by Tax Administration. Accordingly, Notification No. 12/2024-Central Tax dt. 10th July, 2024 has also been issued. GSTN is in the process of development of a separate category of refund application in FORM GST RFD-01, for filing an application of refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports.2. However, till the time such separate category for claiming refund of additional amount of IGST paid is developed on the common portal, such exporter(s) may claim refund of the additional IGST by filing an application of refund in FORM GST RFD-01 under the category “Any other” with remarks “Refund of additional IGST paid on account of increase in price subsequent to export of goods” and uploading of Statement 9A & 9B (Refer to Notification No. 12/2024-Central Tax dt. 10th July, 2024) along with the relevant documents as specified in the Circular 226/20/2024-GST dated. 11.07.2024.3. The Refund application filed under this category will be processed by the officer based on the documentary proof submitted by the refund applicant. The list of documents which are required to be accompanied with the refund claim are also mentioned in Para 6 of the said Circular.4. Issues (if any) faced by the taxpayers in filing refund application may be reported on Grievance redressal portal :https://lnkd.in/g9YpVfyD

2

### Common Errors in IGST Refunds for Exports with Payment:1. Mismatch in Invoice Details:- Shipping Bill and GSTR-1 Mismatch: If the details of invoices filed in the GSTR-1 do not match with the shipping bills filed with customs, the refund claim may be rejected.- Invoice Number Mismatch: Differences in invoice numbers between the GST return and the shipping bill can lead to errors.2. Incorrect or Incomplete Data:- Incorrect GSTIN: Providing an incorrect GSTIN in the refund application can cause mismatches and lead to rejections.- Incomplete or Incorrect Shipping Bill Numbers: Ensuring that the shipping bill numbers are correctly mentioned in the returns is crucial.3. Errors in Bank Account Details:- Incorrect Bank Account Information: If the bank account details provided for the refund are incorrect, the refund amount cannot be credited to the taxpayer’s account.4. Invoice Date Issues:- Date Mismatch: The date of the invoice as per the GST returns and as recorded in the shipping bill should match. Any discrepancy can cause refund issues.5. Non-Transmission of Data from GSTN to ICEGATE:- Technical Glitches: Sometimes, due to technical issues, the data may not be transmitted properly from the GST Network (GSTN) to the ICEGATE (Indian Customs Electronic Gateway), causing delays in refunds.6. Errors in EGM (Export General Manifest):- EGM Errors: If there are errors or delays in the filing of the Export General Manifest (EGM) by the shipping lines or airlines, it can impact the processing of IGST refunds.7. Jurisdictional Issues:- Jurisdictional Mismatches: Refund claims may get stuck if there are jurisdictional issues between the central and state tax authorities.8. Manual Errors:- Data Entry Mistakes: Manual errors during the entry of data in the GST returns or shipping bills can lead to mismatches and refund rejections.### Steps to Mitigate IGST Refund Errors:1. Reconciliation of Data:- Ensure that the details in the GSTR-1 return match the details in the shipping bills.- Regularly reconcile the data between the GST returns and the customs data to identify and correct mismatches promptly.2. Correct and Complete Information:- Double-check the GSTIN, invoice numbers, shipping bill numbers, and bank account details before submitting the returns and refund applications.3. Timely Filing of Returns and EGM:- Ensure that the Export General Manifest (EGM) is filed on time by the shipping or airline company.- File the GSTR-1 and GSTR-3B returns within the due dates to avoid any delays in processing refunds.4. Regular Monitoring:- Regularly monitor the status of refund applications on the ICEGATE and GSTN portals.- Address any discrepancies or errors as soon as they are identified.#gstrefund #gstexport #export

3

**Recent Notifications by CBIC (July 10th, 2024)**1. **Central Goods and Services Tax (Amendment) Rules, 2024**Notification No.12/2024–Central Tax dated July 10th, 2024The Central Board of Indirect Taxes and Customs (CBIC) has issued amendments to the Central Goods and Services Tax (CGST) Rules, 2024, based on recommendations from the GST Council. Key changes include:- **New Form GSTR-1A:** Introduction of Form GSTR-1A for furnishing additional details or amendments to outward supply information. Corresponding changes have been made in CGST Rules to incorporate details from Form GSTR-1A alongside those from Form GSTR-1.- **Interest Liability Amendment:** Amendment to Rule 88B, stipulating no interest liability on amounts deposited up to the due date of filing GSTR-3B, which are debited from the Cash Ledger during return filing.- **Input Service Distributor (ISD) Credit Distribution:** Rule 39 has been amended to provide a mechanism for the distribution of credit by Input Service Distributors.- **Valuation of Corporate Guarantee:** Amendment to Rule 28 to declare that the value of supply of corporate guarantee services between related persons, eligible for full input tax credit, shall be the value declared in the invoice.- **Refund Procedures:** Introduction of new procedures under Rule 89 for refunds of additional Integrated Goods and Services Tax (IGST) paid due to upward revisions in export goods prices. Additionally, Rule 95B outlines a new procedure for refunding tax paid on inward supplies received by the Canteen Stores Department.2. **Exemption from Annual Return Filing for Small Taxpayers**Notification No.14/2024–Central Tax dated July 10th, 2024CBIC has provided an exemption from filing the annual return for taxpayers with turnover up to 2 crores for the financial year 2023-24. This exemption aims to reduce compliance burdens for small taxpayers.3. **Tax Collection at Source (TCS) by E-Commerce Operators (ECOs)**Notification No.15/2024–Central Tax dated July 10th, 2024Effective immediately upon publication in the official gazette, E-commerce Operators (ECOs) are mandated to collect Tax Collection at Source (TCS) at a reduced rate of 0.5% on the net value of taxable supplies made through their platform by other suppliers. This measure is aimed at streamlining tax collection processes in the digital economy.These notifications reflect CBIC’s ongoing efforts to streamline GST compliance, enhance operational efficiencies, and provide relief to small taxpayers while ensuring effective tax administration in line with GST Council directives.

2