A detailed summery of August 2023 GST updates

1. Due Date Extension:

1. For the State of Manipur for the tax period April 2023, May 2023 & June 2023 and April – June 2023, due date of GSTR-1, GSTR-3B and GSTR-7 was extended till 31st July 2023. 
   1. [NN 18/2023, 19/2023, 20/2023, 21/2023 CT dated 17.07.2023]

2. Amnesty Scheme Extension:

3. Extension Time Limit for Revocation of Cancellation of Registration

1. Applicable to registered persons whose registrations were cancelled on or before 31 December 2022
2. Taxpayers may apply for revocation of cancellation of their registrations if it was cancelled due to non-filing of returns
3. Taxpayers can apply for revocation under the scheme until 31st August 2023,
4. A registered person can apply for revocation only if all pending returns up to the effective date of cancellation of registration are filed and any due tax, interest, penalty, and late fee are paid.

• [NN 23/2023 CT dated 17.7.2023]

4. Extension of Amnesty Scheme for deemed withdrawal of assessment orders issued under Section 62

1. Applicable to registered persons who failed to furnish Valid return within 30 days from the date of Order issued on or before 28 February 2023
2. Taxpayers shall file the returns on or before 31st July 2023
3. Taxpayers have to file the returns by paying Tax, Interest, Late fees as applicable.
4. Assessment Order issued under Section 62 is deemed to be Withdrawn.

• [NN 24/2023 CT dated 17.7.2023]

5. Manner of Appeal Filing:

• Special procedure has been prescribed to enable manual filing of appeal against the orders passed by proper officers in respect of TRAN- 1/ TRAN-2 claims of the registered persons, filed in pursuance of the directions of Hon’ble Supreme Court in case of the Union of India v/s Filco Trade Centre Pvt. Ltd.

6. Capacity based taxation and Special Composition Scheme

• Special procedure to be followed by the manufacturers of tobacco, pan masala & the similar items inter alia for registration of machines and for filing of special monthly returns has been notified.

7. GSTR-9/9C

• In continuation of the exemption granted to taxpayers in the past years with Aggregate Turnover of less than Rs.2 Crores from filing Annual Return in Form 9, the same exemption has been carried forward for filing the Annual Return for FY 22-23. 

8. Account Aggregator

• Section 158A has been enacted by Finance Act 2023, which provides for Consent based sharing of the following information furnished by taxable person by GST Portal. “Account Aggregator” as the systems with which information may be shared by the common portal based on consent under Section 158A of the Central Goods and Services Tax Act, 2017.  
• “Account Aggregator” means a non-financial banking company which undertakes the business of an Account Aggregator in accordance with the policy directions issued by the Reserve Bank of India under section 45JA of the Reserve Bank of India Act, 1934 and defined as such in the Non-Banking Financial Company – Account Aggregator (Reserve Bank) Directions, 2016. This notification shall come into force from 1st October 2023, which also means that the notifications, notifying the amendments made in Finance Act 2023 shall be issued before that date.

9. Registration:

1. Procedure: Procedure to allow registrations based:
   1. Aadhaar Authentication
   2. For certain persons identified on GST Portal, the following additional process needs to be followed 
      1. Taking photograph of the applicant where the applicant is an individual
      2. Taking photographs of ARs of Companies, etc where the applicant is not an individual 
   3. Verification of the original copy of the documents uploaded with the application in FORM GST REG-01 at one of the Facilitation Centres notified by the Commissioner 

• This additional process has now also been implemented to ‘Puducherry’. 

• 2. Supply of Goods through E-Commerce Operator: From 1st October 2023, Mandatory Registration for supply ‘goods’ from E-Commerce Platform even though below threshold limit has been waived off. This waiver is subject to the following conditions:

1.  
   1. It is only for ‘supply of goods’ and not supply of services.
   2. Inter-State supply of goods cannot be made by such persons through the E-Commerce platform.
   3. Such persons can make supply of goods through electronic commerce operator in only one State or Union territory; 
   4. Such persons shall be required to have a PAN issued under the Income Tax Act, 1961 and shall declare the following on the common portal before making the supply through the E-Commerce Portal 
      1. Their PAN
      2. Address of their place of business
      3. The State or Union territory in which such persons seek to make such supply These shall be subjected to validation on the common portal; 
   5. Such persons shall be granted not more than ONE “enrolment number” on the GST portal on successful validation of the PAN in ONE State or UT.
   6. This Enrolment No is a must.
   7. This enrolment no shall become invalid when the GSTIN is allotted to such person.

10. Unifying CENTRAL Tax Adjudication Countrywide

• In exercise of the powers conferred by section 5 of the CGST Act, the Board has appointed common Central tax officers of CGST – Bengaluru for adjudicating various notices issued to ‘BSH Household Appliances Manufacturing Pvt. Ltd’ with distinct GSTINs in Mumbai, Bengaluru and Chennai

11. Clarification on charging of interest under section 50(3) in cases of wrong availment of IGST credit and reversal thereof.

1. If ECrL IGST Balance < IGST Credit wrongly availed but EcrL Balance of CGST+SGST+IGST > IGST wrongly availed at all times, till the time of Reversal of said wrongly availed ITC, then No Interest is Applicable
2. Since the amount of input tax credit available in electronic credit ledger, under any of the heads of IGST, CGST or SGST, can be utilised for payment of liability of IGST, it is the total input tax credit available in electronic credit ledger, under the heads of IGST, CGST and SGST taken together, that has to be considered for calculation of interest under rule 88B of CGST Rules
3. ECrL balance of Compensation cess should not be considered for the purpose of Calculation of Interest as per Rule 88B

• [Circular 192/04/2023 GST dated 17.07.2023]

12. Clarification to deal with difference in ITC availed in FORM GSTR-3B as compared to that detailed in FORM GSTR-2A for the period 01.04.2019 to 31.12.2021

•  [Circular 193/05/2023 GST dated 17.07.2023]

13. Clarification on TCS liability under Sec 52 of the CGST Act, 2017 in case of multiple E-commerce Operators in one transaction

In the case of the ONDC Network or similar other arrangements, there can be multiple ECOs in a single transaction – one providing an interface to the buyer and the other providing an interface to the seller.

1. Where the supplier-side ECO himself is not the supplier of goods or services or both then TCS compliances U/s 52 is to be done by supplier side ECO who releases payment to the supplier for particular supply made by it.
2. Where supplier-side ECO himself is the supplier of goods or services or both; then TCS compliances u/s.52 is to be done by buyer side ECO while making payment to the supplier for particular supply made through it

• [Circular 194/06/2023 GST dated 17.07.2023]

14. Clarification on availability of ITC in respect of warranty replacement of parts and repair services during warranty period

The value of original supply of goods (provided along with warranty) by the manufacturer to the customer includes the likely cost of replacement of parts and / or repair services to be incurred during the warranty period, on which tax would have already been paid at the time of original supply of goods.

1. Where manufacturer provides replacement of parts and/ or repair services during the warranty period,

1. LEVY

i. Without separately charging any consideration at the time of such replacement/ repair services, no further GST is chargeable.

ii. If any additional consideration is charged by the manufacturer from the customer, either for replacement of any part or for any service, then GST will be payable on such supply with respect to such additional consideration.

• 2. ITC Reversal

These supplies are not exempt supply and accordingly, the manufacturer, who provides replacement of parts and/ or repair services to the customer during the warranty period, is not required to reverse the ITC.

• B. If parts replaced by dealer and reimbursed by Distributor / manufacturer

1. Under a Bill or Tax Invoice: GST would be payable by the dealer on the said supply by him to the distributor / manufacturer and the distributor /manufacturer would be entitled to avail the input tax credit of the same.
2. Only exchange of parts i.e. Collect from the Manufacturer and give to Customer, then no GST is payable on such replacement of parts by the manufacturer.
3. Through Credit Note: Manufacturer issues credit note for the stock used by dealer, then ITC Reversal by dealer, liability reduction by Manufactures subject to sec 34(2)

• C. Extended Warranty

1. Product rate would vary from the goods, but if extended warranty is purchased at the time of product supply, then extended warranty becomes part of the value of the composite supply, the principal supply being the supply of goods, and GST would be payable accordingly.
2. Extended warranty obtained subsequent to original purchase under a different contract GST would be payable depending on the nature of the contract. Cost of Replacement will be already collected at the time.