Budget 2023 Highlights

-CGST Act.

Sec 10 – Composition dealers of goods in 10(2)& 10(2(A) are allowed to sell through ECO

Sec 16 – Where the payment has not been made to the supplier within 180 days the ITC is to be paid along with interest u/s 50 ( as against presently to be added to the output tax liability)

Sec 17(3) – In - Bond transfer  is added to the scope of exempt supply for Rule 42/43 thereby increasing Scope of Reversal

Sec 17(5)(fa) added – Goods or services or both  used for mandatory CSR activities are not eligible for ITC prospectively. For period before amendment will remain disputable issue

Sec 23 – Retrospective amendment has been made to provide that sec 23 shall prevail over sec 22 and sec 24. In other words wholly exempt suppliers need not go for registration. RCM ???

Sec 37 – No GSTR1 can be filed after 3 years from its due date.

Sec 39 – No GSTR3B can be filed after 3 years from its due date.

Sec 44 - No GSTR 9 can be filed after 3 years from its due date.

Sec 52 - No TCS return can be filed after 3 years from its due date.

Sec 54(6)–  90% provisional refund may be given without reducing the amount of ITC provisionally accepted. (change is due to no concept of provisional ITC now Sec 41)

Sec 56 – Interest on delayed refund – manner and conditions and restrictions shall be provided by way of rules.

Sec 122 – sub section (1B) has been inserted to make ECO liable for penalties for 3 defaults pertaining  allowing certain transaction through him and pertaining incorrect data in return 

Sec 132 – Changes are made to remove certain activities liable for punishment.Clause g,j,k 

Minimum Threshhold raised to Rs. 2 crores from 1 crore for launching prosecution except Issuance of invoices without supply. 

Sec 138 – Changes are made with regard to compounding of offence also compounding fees reduced.

Sec 158A– Consent Based Sharing of information by common portal with other systems.

Schedule III – Explanation with regard to High Sea sales, bond sales, Merchant Trading Transactions  has been made effective from 01.07.2017. No refund can be claimed on account of this change.

-IGST Act:

Sec 2(16) – Definition of non taxable online recipient has been changed (rationalised).

Sec 2(17) – in the definition of OIDR has been amended wherein  “essentially automated and involving a minimal human intervention and” has been omitted.

Section 12(8)Proviso omitted related to POS as Destination of Goods for Transportation of Goods outside India due to ITC issues. For past Circular 184 issued. 

By CA Tomy Veerath & CA Alex V John