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GST-Updates-for-October
Blogs Goods and service Tax (GST)

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

ReturnTypePeriodDue Date
GSTR 1 (Outward Supplies)MonthlySeptember 202311th October 2023
GSTR 1 (Outward Supplies)QRMPJuly 2023 – September 202313th October 2023
GSTR 3B (Monthly Return)MonthlySeptember 202320th October 2023
GSTR 3B (Monthly Return)QRMPJuly 2023 – September 202322/24th October 2023
GSTR 5 (NRTP)MonthlySeptember 202313th October 2023
GSTR 5A (NR OIDAR)MonthlySeptember 202320th October 2023
GSTR 6 (ISD)MonthlySeptember 202313th October 2023
GSTR 7 (TDS)MonthlySeptember 202310th October 2023
GSTR 8 (TCS)MonthlySeptember 202310th October 2023
CMP 08 (Composition Dealer)QuarterlyJuly 2023 – September 202318th October 2023
 

 

2. Summary of Latest Circulars / Notifications

1. Unifying Central Tax Adjudication Country wide

  • In exercise of the powers conferred by section 5 of the CGST Act, the Board has appointed common joint or Additional Commissioner of CGST and Central  Excise, Thane Commissionerate for adjudicating various notices issued to ‘M/s Inkuat Infrasol Pvt Ltd’

[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

  • The Applicability of the Special procedure to be followed by a Registered Person engaged in manufacture of Certain Goods as issued by CBIC vide Notification 30/2023 dated 31.07.2023 will be from 1st January 2024.

[NN 47/2023-Central Tax dated 25.09.2023]

3. Central Goods and Services Tax (Amendment) Act, 2023

  • Following provisions will be Applicable from 1st October 2023
  •  
  • a. Specified Actionable Claims (Section 2(102A))
    • Specified Actionable Claims includes
      1. Betting
      2. Casino
      3. Gambling
      4. Horse racing
      5. Lottery
      6. Online Money gaming
  •  
  • b. Online gaming (Section 2(80A))
    • online gaming means offering of a game on the internet or an electronic network and includes online money gaming 
  •  
  • c. Online Money Gaming (Section 2(80B))
    • “online money gaming” means online gaming in which players pay or deposit money or money’s worth, including virtual digital assets, in the expectation of winning money or money’s worth, including virtual digital assets, in any event including game, scheme, competition or any other activity or process, whether or not its outcome or performance is based on skill, chance or both and whether the same is permissible or otherwise under any other law for the time being in force 
  •  
  • d. The Definition of Supplier has been Broadened covering the following (proviso to Section 2(105)
    • a person who organises or arranges, directly or indirectly, supply of specified actionable claims, including a person who owns, operates or manages digital or electronic platform for such supply, shall be deemed to be a supplier of such actionable claims, whether such actionable claims are supplied by him or through him and whether consideration in money or money’s worth, including virtual digital assets, for supply of such actionable claims is paid or conveyed to him or through him or placed at his disposal in any manner, and all the provisions of this Act shall apply to such supplier of specified actionable claims, as if he is the supplier liable to pay the tax in relation to the supply of such actionable claims. 
  •  
  • e. Virtual Digital Assets (Section 2(117A))
    • “virtual digital asset” shall have the same meaning as assigned to it in clause (47A) of section 2 of the Income-tax Act, 1961 
  •  
  • f. Mandatory Registration for every person supplying online money gaming from a place outside India to a person in India
  •  
  • g. Specified Actionable Claims as defined in Section 2(102A) have been excluded from Schedule III ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER AS A SUPPLY OF GOODS NOR A SUPPLY OF SERVICES 
  •  

[NN 48/2023-Central Tax dated 29.09.2023]

4. Amendments in CGST Rules 2017

  • a. Online Money Gaming Service
    • i. Registration of Online Money Gaming Service provider from Place Outside India
      1. Simplified Registration procedure  – Rule 8
      2. Application of Registration in REG 10 – Rule 14
      3. Grant of Registration in REG 06 – Rule 14
      4. Necessary amendments in Form REG 10 made in respect to Online Money Gaming Registration
    • ii. Valuation  of Supply in case of Online Gaming including Online Money Gaming  – Rule 31B
      1. VOS = Total amount paid or payable to or deposited with the supplier by way of money or money’s worth, including virtual digital assets, by or on behalf of the player 
      2. any amount returned or refunded by the  supplier to the  player for any reasons, including player not using the amount paid or deposited with the supplier for  participating  in  any  event,  shall  not  be  deductible  from  the  value  of  supply 
      3. any amount received by the player by winning  any  event, including  game,  scheme,  competition  or  any  other  activity  or  process, which is used for playing by the said player in a further event without withdrawing, shall not  be considered as the amount paid to or deposited with the supplier by or on behalf of the said player.
    • iii. Invoice
      • Supply in case of Online Gaming including Online Money Gaming to a unregistered person, Tax Invoice should contain “Name of the state of the Recipient” 
    • iv. Return
      • GSTR 5A to be filed on or before 20th day of succeeding month
    • v. Payment
      • person supplying  online  money  gaming from a place outside India to a person in India can make payment of tax through International Money Transfer through society of worldwide interbank Financial Telecommunication Payment Network 
  • b. Valuation of Supply of Actionable claims in case of Casino – Rule 31C
    • i. VOS = Total amount paid or payable by or on behalf of the player for –
      1. purchase of the tokens, chips, coins or tickets, by whatever name called, for use in casino; or
      2. participating  in  any  event,  including  game,  scheme,  competition  or  any  other  activity  or process,  in  the  casino,  in  cases  where  the  token,  chips,  coins  or  tickets,  by  whatever  name called, are not required
    • ii. any amount returned or refunded by the  Casino to the player on return of token, coins, chips, or tickets , as the case may be, or otherwise, shall not be deductible from VOS
    • iii. any amount received by the player by winning  any  event, including  game,  scheme,  competition  or  any  other  activity  or  process, which is used for playing by the said player in a further event without withdrawing, shall not  be considered as the amount paid to or deposited with the supplier by or on behalf of the said player.

[NN 51/2023-Central Tax dated 29.09.2023]

5. Advance Received for supply of Specified Actionable Claims

  • GST is payable on Advance Received for any Specified Actionable Claims

[NN 50/2023-Central Tax dated 29.09.2023]

6. Integrated Goods and Services Tax (Amendment) Act, 2023

  • a. Valuation of Supply of Online Money Gaming as Goods
    1. Value to be determined as per Section 15 of CGST Act 2017
    2. Value shall not be determined as per Customs Tariff Act 1975
  • b. POS in case of Goods other than goods imported into India – Section 10
    1. POS in case of Recipient Other Than Registered (B2C) –
      1. Address of Recipient mentioned in Invoice – Such Location 
      2. Address of Recipient not mentioned in Invoice – Location of Supplier
        • Name of State shall be regarded as Address
  • c. Special procedure for Specified Actionable Claims supplied by a Person located outside Taxable Territory
    1. IGST has to be paid by such Supplier
    2. Single Registration under Simplified Registration Scheme has to be taken
    3. If there is no physical Presence in Taxable Territory, Registration to be taken by a Representative of the Supplier for the purpose of Tax in the Taxable Territory
    4. Non Compliance of the same leads to blockage of access of any computer resource used for Supply of Online Money Gaming to Public as per Information Technology Act.

[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

  • Central Government Notifies, Principal Commissioner of Central Tax, Bangalore West for Grant of Registrations

[NN 04/2023-Integrated Tax dated 29.09.2023]

8. Changes in GST Rates

  • a. Specified actionable claim are chargeable to GST @ 28%

[NN 11/2023-Central Tax (Rate) dated 29.09.2023]

[NN 14/2023-Integrated Tax dated 29.09.2023]

  • RCM on Import Ocean Freight for CIF imports
    1. Terminate the RCM Liability on Ocean Freight for CIF Imports to align with Supreme Court Judgement in case of UOI Vs Mohit Minerals

[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:
    1. Registered person has the option either to claim refund of unutilised ITC or refund of GST paid on zero rated supply.
    2. 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. 
    3. 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 SectionImpact

CGST Act

Amendment to Section 10Removal 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 16Align 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 23With 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 30Amend 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 37New 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 39New 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 44A 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 52A 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 54Amend 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 56Amend 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 62To 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 122Insert 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 132Amend 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 158AInsert 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 ACTAmend 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 12Omit 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 13Omit 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

  1. For Taxpayers Whose AATO > 100 Cr
  2. E-invoice, E-Credit Note, E-Debit Notes has to be generated with 30 days from the date of Issuance
  3. Applicable from 1st November 2023

2. Geocoding Functionality for the Additional Place of Business 

  1. 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.
  2. This functionality for normal, composition, SEZ units, SEZ developers, ISD, and casual taxpayers who are active, cancelled, and suspended.
  3. This can be accessed under the Services/Registration tab in the GST portal.
  4. The system-generated geocoded address will be displayed, and taxpayers can either accept it or update it as per their requirements of their case.
  5. In cases where the system-generated geocoded address is unavailable, a blank will be displayed, and taxpayers can directly update the geocoded address.
  6. 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.
  7. 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”
  8. 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

  1. Auto Population of E-invoice in GSTR 1 is Paused for the E-invoices generated during 26th September to 29th September
  2. These invoices will be Auto Populated on 30th September 2023
  3. 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

  1. Form DRC 01C has been Introduced in GST Common Portal in accordance with Rule 88D
  2. 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
  3. 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
  4. Non Submission of reply
    1. GSTR 1 for the next period will be blocked
    2. 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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