CBIC Introduces Temporary Identification Number

January 27, 2025

The Central Board of Indirect Taxes and Customs (CBIC) has recently implemented changes to the Goods and Services Tax (GST) framework in India. These changes include the introduction of a Temporary Identification Number (TIN) for businesses that do not require mandatory registration. This move aims to streamline tax compliance and facilitate payments under the GST regime. Additionally, the CBIC has announced a waiver of excess late fees for the financial years 2017-18 to 2022-23 concerning annual returns.

Temporary Identification Numbers Under GST

The GST Council has recommended a new rule enabling tax officers to issue Temporary Identification Numbers to entities not liable for registration.
This provision allows businesses to make necessary payments even without a permanent GST registration.
The notification clarifies that these TINs will be granted under specific conditions outlined in Part B of FORM GST REG-12.

Threshold Limits for Registration

Under the GST framework, businesses must register if their turnover exceeds certain thresholds.
For the manufacturing sector, the limit is ₹40 lakh.
For the service sector, it is set at ₹20 lakh.
Special Category States have different thresholds, with some like Jammu and Kashmir opting for a ₹40 lakh limit for commodities.
Other states, such as Puducherry, have chosen a ₹20 lakh limit for goods.

Waiver of Late Fees for Annual Returns

The CBIC has also waived excess late fees for the delayed filing of annual returns from FY 2017-18 to FY 2022-23.
This waiver applies specifically to late fees exceeding the payable amount for Form GSTR-9C if filed by March 31, 2025.
However, taxpayers will not receive refunds for late fees already paid for these financial years.

Filing Requirements for GST Returns

Registered taxpayers whose annual turnover exceeds ₹2 crore must file Form GSTR-9, an annual return that details sales, purchases, and taxes paid. The deadline for this filing is December 31 of the year following the financial year. Additionally, those with an aggregate turnover exceeding ₹5 crore must file Form GSTR-9C, a self-certified Annual Reconciliation Statement.

Impact on Tax Compliance

These regulatory changes are expected to enhance tax compliance among small and medium enterprises. By allowing temporary identification numbers, the CBIC aims to reduce barriers for businesses to engage in GST payments. The waiver of late fees further encourages timely compliance with filing requirements.

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