PPT on Finance Act 2023 GST Changes notified by CBIC

The Central Board of Indirect Taxes and Custom(CBIC) has notified various GST Changes/ Amendment on the basis of Finance Act 2023.

The Finance Act 2023 is a critical financial legislation that contains the Indian government’s tax ideas and budgetary allocations for fiscal year 2023-24. And Amendments made on the basis of this finance act. Let’s look into this Amendments.

Amendment to Section 137:

Section 10 of CGST Act-

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. This will be applicable from 1st October 2023.

Amendment to Section 138:

Section 16 of CGST Act-

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.

This will be applicable from 1st October 2023.

Amendment to Section 139:

Section 17 of CGST Act-

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.

This will be applicable from 1st October 2023.

Amendment to Section 140:

Section 23 of CGST Act-

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

Amendment to Section 141:

Section 30 of CGST Act-

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.

This will be applicable from 1st October 2023.

Amendment to Section 142:

Section 37 of CGST Act-

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.

This will be applicable from 1st October 2023.

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