GST Highlights from Union Budget 2023

Registered persons engaged in supply of goods through e-commerce operator are eligible now to opt for composition scheme subject to other provisions of the Act.

Taxable person will not be eligible for availing input tax credit on goods or services received by him that were used or intended to be used for the activities in relation to his obligations under corporate social responsibility referred to in the Companies Act, 2013.

Section 23(Persons not liable for registration) has been amended retrospectively w.e.f. 01 July 2017 to make it supersede over Sec. 22(1) (registration based on aggregate turnover) and 24 (Compulsory registration in certain cases) of the CGST Act, 2017.

Eg. Earlier, a person was required take registration if he is liable to pay under reverse charge due to Sec. 24 though he was completely involved in making exempt supplies and now the amendment exempts such category of persons from taking registration.

A registered person will not be able to furnish the GSTR-1 for a period after the expiry of 3 years from the due date applicable for that period. (There was no maximum time limit earlier)

A registered person will not be able to furnish the GSTR-3B for a period after the expiry of 3 years from the due date applicable for that period. (There was no maximum time limit earlier)

A registered person will not be able to furnish the Annual return (GSTR-9 / 9A) for a period after the expiry of 3 years from the due date applicable for that period. (There was no maximum time limit earlier)

An e-commerce operator will not be able to furnish the GSTR-8 for a period after the expiry of 3 years from the due date applicable for that period. (There was no maximum time limit earlier)

The Assessment order is deemed to be withdrawn if non-filer of GST returns furnishes them within 60 days (earlier 30 days) of serving of such order but the liability to pay interest and late fee continues.

If the non-filer of GST returns fails to furnish returns within 60 days but furnishes them within a further period of 60 days on payment of an additional fee of Rs. 100 per each day of delay beyond 60 days of the service of the said assessment order even in that case the assessment order shall be deemed to be withdrawn but the liability to pay interest and late fee continues.

If e-commerce operator allows unregistered persons other than the persons exempted from taking the registration or the composite taxpayers to make supplies through it or fails to furnish correct details in GSTR-8 about the supplies made through it by the persons exempted from taking registration, then penalty is levied for Rs. 10000 or the amount of tax involved had such supply been made by a registered person other than composite taxable person, whichever is higher. (Newly introduced Sec.122(1B) to prescribe penalty in case of contravention by e-commerce operators)

to decriminalize the offences specified in clause (g) - obstructs or prevents any officer in the discharge of his duties under this Act, (j) - tampers with or destroys any material evidence or documents & (k) - fails to supply any information that he is required to supply or supplies any false information.
to increase the monetary threshold for launching prosecution for the offences under the said act from one hundred lakh rupees to two hundred lakh rupees, except for the offences related to issuance of invoices without supply of goods or services or both.

New section 158A has been inserted to provide for prescribing the manner and conditions for sharing of the information furnished by the registered person in his application for registration or in his return or in his statement of outward supplies or the details uploaded by him for generation of e-invoice or e-way bill or any other details as may be prescribed on the common portal, with the consent of the registered person, with such other systems as may be notified.

Schedule III - Para 7 and 8 along with its explanation 2 are made effective retrospectively from 01 July 2017 (earlier 01 February 2019)

Para 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.
Para 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.
No refund of tax, if already paid.

The definition of "non-taxable online recipient" has been changed such that supplier of OIDAR services located in non-taxable territory will be liable to pay tax irrespective of use by the recipient.

Earlier, if the recipients are located in taxable territory and supplier of OIDAR services is in non-taxable territory then -

The condition of automation and minimal human intervention is no longer applicable to determine a service as OIDAR (Online Information and Database Access or Retrieval) services.

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