GST Updates for the Month of October 2023
A detailed summery of October 2023 GST updates
In this post, we will go through the updates happened in GST during the month of October 2023.Let’s look at these sections in detail:
1. GST Return Due Dates
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2. Summary of Latest Circulars / Notifications
1. Unifying Central Tax Adjudication Country wide
[NN 46/2023-Central Tax dated 18.09.2023] 2. Special procedure to be followed by a registered person engaged in manufacturing of certain goods
[NN 47/2023-Central Tax dated 25.09.2023] 3. Central Goods and Services Tax (Amendment) Act, 2023
[NN 48/2023-Central Tax dated 29.09.2023] 4. Amendments in CGST Rules 2017
[NN 51/2023-Central Tax dated 29.09.2023] 5. Advance Received for supply of Specified Actionable Claims
[NN 50/2023-Central Tax dated 29.09.2023] 6. Integrated Goods and Services Tax (Amendment) Act, 2023
[NN 02/2023-Integrated Tax dated 29.09.2023] 7. Grant of Registration to Supplier of Online Money Gaming provider located outside India to person in India
[NN 04/2023-Integrated Tax dated 29.09.2023] 8. Changes in GST Rates
[NN 11/2023-Central Tax (Rate) dated 29.09.2023] [NN 14/2023-Integrated Tax dated 29.09.2023]
[NN 11, 12, 13/2023-Integrated Tax dated 29.09.2023] |
3. Financial Act Changes made effective from 1.10.2023
1. Supply to SEZ: Supply of goods or services or both will qualify as Zero-Rated Supply when provided for authorised operations.
- 2. Refund on Zero-Rated Supply:Refund on Zero-Rated Supply:
- Registered person has the option either to claim refund of unutilised ITC or refund of GST paid on zero rated supply.
- With effect from 1st October, 2023, this option to choose is not available in all cases. Government vide N. No. 1/2023-IT had notified the class of goods who won’t be eligible for refund on payment of taxes.
- Further, in case of zero-rated supply of goods, where refund of unutilised ITC is claimed, payment is not realised within stipulated time limit prescribed under the Foreign Exchange Management Act, 1999, the refund so received along with interest to be deposited within 30 days of the expiry of the such stipulated time limit.
- 3.
| Relavant Section | Impact |
CGST Act | |
| Amendment to Section 10 | Removal of the restriction imposed on registered persons engaged in supplying goods through electronic commerce operators from opting to pay tax under the composition levy |
| Amendment of section 16 | Align the said sub-section with the return filing system provided in the said Act |
Amendment of section 17 and Insertion of new Clause in Section 17 | 1. Restrict the availment of input tax credit in respect of certain transactions specified in clause (a) of paragraph 8 of Schedule III of the said Act, as may be provided by rules, by including the value of such transactions in the value of exempt supply |
| 2. It also seeks to amend sub-section (5) so as to provide that input tax credit shall not be available in respect of goods or services or both received by a taxable person which are used or intended to be used for activities relating to his obligations under corporate social responsibility referred to in section 135 of the Companies Act, 2013. | |
| Substitution of new section for section 23 | With effect from the 1st day of July, 2017, section 23 of the Central Goods and Services Tax Act relating to persons not liable for registration so as to provide overriding effect to the said section over sub-section (1) of section 22 and section 24 of the said Act |
| Amendment to Section 30 | Amend section 30 of the Central Goods and Services Tax Act so as to provide by rules for the manner of the revocation |
| Amendment of section 37 | New sub-section (5) in section 37 of the Central Goods and Services Tax Act so as to provide a time limit of three years upto which the details of outward supplies under sub-section (1) of the said section for a tax period can be furnished by a registered person. It further seeks to empower the Government, on the recommendation of the Council, to extend by notification, the said time limit for a registered person or a class of registered persons, subject to certain conditions and restrictions. |
| Amendment of section 39 | New sub-section (11) in section 39 of the Central Goods and Services Tax Act so as to provide a time limit of three years upto which the return for a tax period can be furnished by a registered person. It further seeks to empower the Government, on the recommendation of the council, to extend by notification, the said time limit for a registered person or a class of registered persons, subject to certain conditions and restrictions |
| Amendment of section 44 | A new sub-section (2) in section 44 of the Central Goods and Services Tax Act so as to provide a time limit of three years upto which the annual return under sub-section (1) of the said section for a financial year can be furnished by a registered person. It further seeks to empower the Government, on the recommendation of the Council, to extend by notification, the said time limit for a registered person or a class of registered persons, subject to certain conditions and restrictions |
| Amendment of section 52 | A new sub-section (15) in section 52 of the Central Goods and Services Tax Act so as to provide a time limit of three years upto which the statement under sub-section (4) of the said section for a month can be furnished by an electronic commerce operator. It further seeks to empower the Government, on the recommendation of the Council, to extend by notification, the said time limit for an operator or a class of operators, subject to certain conditions and restrictions |
| Amendment of section 54 | Amend sub-section (6) of section 54 of the Central Goods and Services Tax Act by removing reference to the provisionally accepted input tax credit so as to align the same with the present scheme of availment of self-assessed input tax credit as per sub-section (1) of section 41 of the said Act |
| Amendment of section 56 | Amend section 56 of the Central Goods and Services Tax Act so as to provide by rules the manner of computation of period of delay for calculation of interest on delayed refunds |
| Amendment of section 62 | To provide for the time limit of 60 days for filing instead of 30 days and to impose late fees for delay compliance |
| Amendment of section 122 | Insert a new sub-section (1B) in section 122 of the Central Goods and Services Tax Act so as to provide for penal provisions applicable to electronic commerce operators in case of contravention of provisions relating to supplies of goods or services made through them by unregistered persons or composition taxpayers |
| Amendment of section 132 | Amend sub-section (1) of section 132 of the Central Goods and Services Tax Act so as to decriminalise offences specified in clauses (g), (j) and (k) of the said sub-section and to increase the monetary threshold from one hundred lakh rupees to two hundred lakh rupees for launching prosecution for the offences under the said Act, except for the offences related to issuance of invoices without supply of goods or services or both amend sub-section (1) of section 132 of the Central Goods and Services Tax Act so as to decriminalise offences specified in clauses (g), (j) and (k) of the said sub-section and to increase the monetary threshold from one hundred lakh rupees to two hundred lakh rupees for launching prosecution for the offences under the said Act, except for the offences related to issuance of invoices without supply of goods or services or both |
Amendment of section 138 | 1. Amend first proviso to sub-section (1) of section 138 of the Central Goods and Services Tax Act so as to exclude the persons involved in offences relating to issuance of invoices without supply of goods or services or both from the option of compounding of the offences under the said Act |
| 2. It further seeks to amend sub-section (2) so as to rationalise the amount for compounding of various offences by reducing the minimum as well as maximum amount for compounding | |
| Insertion of new section 158A | Insert a new section 158A in the Central Goods and Services Tax Act so as to provide for the manner and conditions for sharing of the information furnished by the registered person in his application for registration or in his return filed or in his statement of outward supplies, or the details uploaded by him for generation of electronic invoice or E-way bill or any other details, as may be provided by rules, on the common portal with such other systems, as may be notified |
| Retrospective exemption to certain activities and transactions in Schedule III to the CGST ACT | Amend Schedule III of the Central Goods and Services Tax Act to give retrospective applicability to paragraphs 7 and 8 and the Explanation 2 to the said Schedule with effect from the 1st day of July, 2017 |
| IGST Act | |
Amendment of section 2 | 1. Restrict the meaning of the term “non-taxable online recipient” to mean any unregistered person receiving online information and database access or retrieval services located in the taxable territory. It further seeks to clarify that the persons registered solely in terms of clause (vi) of section 24 of the Central Goods and Services Tax Act shall be treated as unregistered person for the purpose of the said clause |
| 2. It also proposes to amend clause (17) of the said section by removing certain words therein so as to remove the condition of “essentially automated” and “involving minimal human intervention” from the said definition | |
| Amendment section 12 | Omit the proviso to sub-section (8) of section 12 of the Integrated Goods and Services Tax Act so as to remove the confusion regarding availment of input tax credit and other matters |
| Amendment section 13 | Omit the sub-section (9) of section 13 of the Integrated Goods and Services Tax Act so as to remove the confusion regarding availment of input tax credit and other matters |
3. GST Portal Updates
1. Time limit for Reporting Invoices on the IRP Portal
- For Taxpayers Whose AATO > 100 Cr
- E-invoice, E-Credit Note, E-Debit Notes has to be generated with 30 days from the date of Issuance
- Applicable from 1st November 2023
2. Geocoding Functionality for the Additional Place of Business
- Geocoding of Address is a process of converting an address or description of a location into geographic coordinates to ensure the accuracy of address details in GSTN records and streamline the address location and verification process.
- This functionality for normal, composition, SEZ units, SEZ developers, ISD, and casual taxpayers who are active, cancelled, and suspended.
- This can be accessed under the Services/Registration tab in the GST portal.
- The system-generated geocoded address will be displayed, and taxpayers can either accept it or update it as per their requirements of their case.
- In cases where the system-generated geocoded address is unavailable, a blank will be displayed, and taxpayers can directly update the geocoded address.
- This is a one-time activity, and once submitted, revision in the address is not allowed and the functionality will not be visible to the taxpayers who have already geocoded their address through new registration or core amendment.
- On Submission, The geocoded address details will be saved separately under the “Principal Geocoded” tab navigated through My profile>>Place of Business tab under the heading “Principal Geocoded”
- It will not change your existing addresses. The address appearing on the registration certificate can be changed only through the core amendment process. This geocoding functionality would not impact the previously saved address record.
3. Temporary /Short Period Pause in e-Invoice Auto Population into GSTR-1
- Auto Population of E-invoice in GSTR 1 is Paused for the E-invoices generated during 26th September to 29th September
- These invoices will be Auto Populated on 30th September 2023
- Check the Invoices Auto populated before adding the E-invoices generated during such period manually in GSTR 1
4. Implementation of Form DRC 01C in GST Portal
- Form DRC 01C has been Introduced in GST Common Portal in accordance with Rule 88D
- Intimation in Part A of Form DRC 01C will be issued for Input Tax Credit i.e., GSTR 3B > GSTR 2B in any tax period or periods by such amount and such percentage as may be prescribed
- Taxpayer has to either Pay through the DRC 03 along with interest or Reply to be submitted online with in 7 days In Part B of DRC 01C
- Non Submission of reply
- GSTR 1 for the next period will be blocked
- SCN will be issued under 73/74 of CGST Act
Written by
GST team, VnV (Venu and Vinay)
Original website: https://vnvca.com/resource/october_2023.aspx
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