Registered person engaged in making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52 can now Opt for Composition Scheme

Amendment in 2nd Proviso: ITC availed shall be added back to the tax liability along with the interest in payment is not made to the supplier within the period of 180 days from the date of issue of invoice by the supplier.

Third Proviso has been amended to include the words “to the supplier”, to ensure that payment has been made by the taxpayer to the supplier only and not any third person.

Changes have been made in Explanation of Section 17(3) to restrict the availment of Proportionate ITC on transaction covered in para 5 (i.e., Sale of land and sale of building(After issuance of completion certificate)) and para 8(a) (i.e. Sale of warehoused goods before custom clearance for home consumption) of Schedule III by including it in the value of exempt supplies. So as a result taxpayer will need to reverse more ITC.

Sub-section (5) has been amended so as to provide that ITC 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 CSR Activities

Sub-section (2) has been amended to start with a non obstante clause to override the provisions of compulsory registration as required under section 22 & section 24.

This is applicable w.e.f. 1st July 2023

Sub-section (1) of Section 30 has been amended to remove such restriction. Now revocation application may be filed within such time as may be prescribed by govt. Therefore govt. will surely notify a new time limit with more days to file revocation application in the interest of taxpayers.

Subsection (5) has been inserted in section 37 to restrict registered person from filing GSTR-1 for a tax period after the expiry of a period of 3 years from the due date of furnishing the said details

Subsection (11) has been inserted in section 39 to restrict registered person from filing GSTR-3B for a tax period after the expiry of a period of 3 years from the due date of furnishing the said details

Subsection (2) has been inserted in section 44 to restrict registered person from filing GST Annual Return for a tax period after the expiry of a period of 3 years from the due date of furnishing the said details

Subsection (15) has been inserted in section 52 to restrict E-Com operator from filing GSTR-8 for a tax period after the expiry of a period of 3 years from the due date of furnishing the said details

Section 54(6) of the CGST Act viz Provisional refund of 90% of total amount claimed in cases of zero rated supplies, is being amended so as to remove the reference to the provisionally accepted input tax credit to align the same with the present scheme of availment of self assessed input tax credit as per section 41(1) of the CGST Act. Currently provisionally accepted ITC are not eligible for provisional refund.

Section 56 of the CGST Act is being amended so as to provide for an enabling provision to prescribe manner of computation of period of delay beyond 60 days from the date of receipt of application till date of refund, for calculation of interest on delayed refunds.

Section 62(2) of the CGST Act i.e. Assessment of unregistered persons has been amended, so as to provide the time period of 60 days instead of 30 days, for furnishing return Form GSTR 3B or Form GSTR 10 (Final Return) where the proper officer has assessed tax liability on best judgment assessment basis.

A proviso has been inserted to give additional time of 60 days over and above time as per section 62(2) to file the pending return with payment of late fees of Rs. 200 (CGST + SGST) for each day. If GST Return is filed in this period, the BJA shall be deemed to be withdrawn, but liability to pay Interest u/s 50(1) and Late Fees u/s 47 shall contine.

Constitution of GST Appellant Tribunal (GSTAT) Notified. Accordingly relevant amedments made in the Act

Constitution of GST Appellant Tribunal (GSTAT) Notified. Accordingly relevant amedments made in the Act

Constitution of GST Appellant Tribunal (GSTAT) Notified. Accordingly relevant amedments made in the Act

Constitution of GST Appellant Tribunal (GSTAT) Notified. Accordingly relevant amedments made in the Act

Constitution of GST Appellant Tribunal (GSTAT) Notified. Accordingly relevant amedments made in the Act

Constitution of GST Appellant Tribunal (GSTAT) Notified. Accordingly relevant amedments made in the Act

In section 122 of CGST Act, after sub-section (1A), the following sub-section shall be inserted, namely:—

“(1B) Any electronic commerce operator who—

(i) allows a supply of goods or services or both through it by an unregistered person other than a person exempted from registration by a notification issued under this Act to make such supply;

(ii) allows an inter-State supply of goods or services or both through it by a person who is not eligible to make such inter-State supply; or

(iii) fails to furnish the correct details in the statement to be furnished under sub-section (4) of section 52 of any outward supply of goods effected through it by a person exempted from obtaining registration under this Act,

shall be liable to pay a penalty of Rs. 10,000, or an amount equivalent to the amount of tax involved had such supply been made by a registered person other than a person paying tax under section 10, whichever is higher.”.

Section 132(1) of the CGST Act is being amended so as to decriminalize offences specified in clause (g) (obstruct or prevents any officer in the discharge) , clause (j) (tampers with or destroys any material evidence or documents) and clause (k) (fails to supply any information) of the said section.

First proviso to section 138(1) of the CGST Act is being amended so as to simplify the language of clause (a), to omit clause (b) and to substitute the clause (c) of said proviso 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.

It further seeks to amend sub-section (2) so as to rationalize the amount for compounding of various offences by reducing the minimum as well as maximum amount for compounding.

A new section 158A in the CGST Act is being inserted so as to provide for prescribing manner and conditions for sharing of the information furnished by the registered person in his return or in his application of registration or in his statement of outward supplies, or the details uploaded by him for generation of electronic invoice or Eway bill or any other details, as may be prescribed, on the common portal with such other systems, as may be notified.

In Schedule III to the Central Goods and Services Tax Act, paragraphs 7 [Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India] and 8 [(a) Supply of warehoused goods to any person before clearance for home consumption; (b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption.] and the Explanation 2 [For the purposes of paragraph 8, the expression “warehoused goods” shall have the same meaning as assigned to it in the Customs Act, 1962 (52 of 1962)] thereof shall be deemed to have been inserted therein with effect from the 1st day of July, 2017.

It is also being clarified that where the tax has already been paid in respect of such transactions/ activities during the period from 01st July, 2017 to 31st January, 2019, no refund of such tax paid shall be available.

Definition of non-taxable online recipient as per Section 2(16) of IGST Act amended:

– for removing the condition of receipt of OIDAR Services for purposes other than commerce, industry or any other business or profession so as to provide for taxability of OIDAR service provided by any person located in non-taxable territory to an unregistered person receiving the said services and located in the taxable territory.

– to clarify that the persons registered solely in terms of clause (vi) of Section 24 of CGST Act shall be treated as unregistered person for the purpose of the said section.

Section 2 (17) is being amended to revise the definition of OIDAR to remove the condition of rendering of the said supply being essentially automated and involving minimal human intervention.

In sub-section (8), the proviso [Provided that where the transportation of goods is to a place outside India, the place of supply shall be the place of destination of such goods.] shall be omitted.

Sub-section (9) [The place of supply of services of transportation of goods, other than by way of mail or courier, shall be the place of destination of such goods.] shall be omitted.

The circular gives Guidelines for verifying the Transitional Credit in light of the order of the Hon’ble Supreme Court in the Union of India vs. Filco Trade Centre Pvt. Ltd., SLP(C) No. 32709-32710/2018, order dated 22.07.2022 & 02.09.2022

This notification shall come into force with effect from the 1st day of October, 2023.

Conditions:

Aggregate turnover not exceeding the registration threshold, no inter-State supplies, one-State or UT operations, valid PAN, and enrollment on the common portal.

The notification comes into effect from October 1, 2023.