Important GST changes that will take effect on October 1, 2023 include the following:
1. Restrictions on the Input Tax Credit for CSR Expenses. This modification is prospective in nature, and until September 30, 2023, no information regarding ITC on CSR expenses has been provided.
2. If a registered person receives a notice under Section 46 for failing to file a GST return within 60 days of the notice’s issuance, he may furnish the return within the following 60 days by paying Additional Late Fees of Rs. 200 per day [which will be in addition to the Late Fees of Rs. 20 per day or Rs. 50 per day] and Interest at 18% under Section 50(1).
3. After three years have passed after the deadline for filing the annual return for the relevant FY, filing GSTR 1, GSTR 3B, TDS Statement, and annual returns is no longer permitted.
4. No IGST must be paid by the importer of goods on ocean freight. This modification will take effect on October 1, 2023. However, the Hon’ble Apex Court declared in UOI vs. Mohit Mineral Pvt Ltd that no RCM on ocean freight should be applied for CIF contracts. Putting this modification into prospective effect will once more encourage litigation in the time before October 1, 2023.
5. When shipping goods outside of India, the registered recipient’s location must be at the point of supply, where both the supplier and the recipient are located.
6. The “Intra-state supply” of composition is now possible for dealers thanks to the E-Commerce platform. To avoid being subject to a penalty of Rs. 10,000 or the amount of tax involved in the transaction, whichever is higher, the E-commerce platform shall be responsible for ensuring that such composition dealers do not make any interstate supplies from the E-commerce platform.
7. With retroactive effect beginning on July 1, 2017, the supply of products from bonded warehouses and the supply of goods from one non-taxable country to another non-taxable territory without entering India will no longer be considered “Supplies,” necessitating the reversal of ITC in accordance with Rules 42 and 43.
8. From October 1, 2023, there will be a 28% GST on all online money gaming, betting, casinos, and gambling platforms, regardless of whether they are based in India or not. Platforms based outside of India will need to select a representative there who will be in charge of paying the GST there. Their access in India may be restricted if these platforms fail to comply with the rules. Additionally, these platforms are not eligible to profit from the composition plan.