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March 27, 2023

Amendments to GST in the Finance Bill Passed for 2023

Amendments to GST in the Finance Bill Passed for 2023


With years passing, there have been various amendments in the GST law and yet again in the recent Finance bill passed on 24th March, 2023 few more amendments have been introduced. These amendments have been discussed at length in this article.

1. Specified Category Persons exempted from GST Registration, need not register under the GST Act.

There is amendment to the GST Act 2017 passed, with a non-obstante (not withstanding / despite) clause, with retrospective effect from 1/7/2017. Persons required to take registration in GST as per section 22(1) and compulsory registration under CGST Act, need not register, if they are exempted from registration for special reason(s) as they do not come in the ambit of this Act.

There are specified persons already exempted from compulsory registration like person with outward supplies covered under Reverse Charge Mechanism (RCM), person involved in the supply services through E- commerce operator having aggregate turnover not exceeding Rupees 20 Lakhs in the financial year. Person supplying handicraft goods and persons into interstate taxable supplies whose turnover is less than 20 Lakhs in the financial year.

2. Removal of 30 days limit for cancellation revocation

The limitation of 30 days to apply for revocation of GST registration is removed. The registration of a person when cancelled by a proper officer, the person should apply to such officer in the manner that is prescribed even beyond the earlier limit of 30 days.

Form GSTR 3B or Form GSTR 10 (Final Return) was to be filed in 30 days now increased to 60 days where the proper officer has assessed tax liability on best judgement assessment basis.

Further where the registered person fails to furnish a valid return within 60 days of the service assessment order, he may furnish the same in the next 60 days on payment of Rs.100 per day for the delayed period. Once the valid return are furnish in the extended period the assessment order shall be deemed to have been withdrawn. Liability to pay interest under section 50(1) and late fee under Section 47 of the CGST Act shall continue.

3. Formation of Appellate Tribunal (GSTAT) and Benches thereof

Section 109 of CGST Act is proposed to be replaced under which jurisdiction powers are distributed under GSTAT as follows.

Principal Bench and the State Bench instead of the National Bench or Regional Bench which would be set up in every state.

Principal Bench will be in New Delhi, consisting of the President, a Judicial Member, a Technical Member (Centre) and a Technical Member (State). The issues involving place of supply will be heard by the Principal Bench.

State Benches will consist of two judicial members, a technical member (Centre) and a Technical Member (State)

Location of the recipient of services or goods is the place of supply. Recipient of goods by mail or courier not included as place of supply. Section 13(9) of the IGST act is to be omitted. Section 13(2) of IGST Act says the location of recipient of services will be the place of supply.

4. Proposal to amend the GST cess, maximum rate to be collected

Pan Masala135% ad valorem to 50%  of the retail sale price /unit
Manufactured Tobacco Substitutes including tobacco productsRs. 4170/- (1000 sticks) or 290% ad valorem or combination of  both but not exceeding  Rs.4170/- 1000 sticks +290% ad valorem or 100% of retail sale price/unit)

The above discussed amendments have been passed under the Finance Bill of 2023 passed on 24/3/2023 in the Lok Sabha (Parliament)

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