Thursday, 3 August 2023

CBIC notifies effective date for amendments under GST law made vide Finance Act 2021 and 2023

 


This Tax Alert summarizes recent Notifications and Circulars issued by Central Board of Indirect Taxes and Customs (CBIC).

The highlights are:

  • Amendment made in Section 16 of the Integrated Goods and Services Tax Act, 2017 (IGST Act) vide Finance Act, 2021 and various other amendments in Central Goods and Services Tax Act, 2017 (CGST Act) and IGST Act vide Finance Act, 2023 are being made effective from 1 October 2023.
  • Changes in provisions relating to GST Appellate Tribunal are made effective from 1 August 2023.
  • For transitional credits, special procedure is being prescribed for filing appeal against the order passed by proper officer in accordance with Circular No. 182/14/2022-GST.
  • Registered person having aggregate turnover up to INR2 crores in financial year 2022-23 have been exempted from filing annual return in Form GSTR-9.
  • Clarifications have been issued on various issues under GST, basis recommendations made in the 50th GST Council Meeting.


Comments

  • Rule 96(10) of the CGST Rules prohibits certain class of exporters from availing the option to export goods or services on payment of IGST and claiming refund of the same (rebate route). After section 16(4) becomes operational, such class of exporters may be separately notified by the Government.
  • Allowing composition dealers to supply through ECOs and relaxation in registration requirement for online suppliers may boost MSME sector
  • Presently, persons supplying services through ECO and having aggregate turnover of less than registration threshold are already exempted from obtaining registration vide Notification No. 65/2017 – Central Tax.
  • Though it is clarified that renting of immovable services provided by directors in their private or personal capacity is outside the ambit of Entry 6 of Notification No. 13/2017 - Central Tax (Rate), renting of residential dwelling by such directors to the company may still get covered under reverse charge through Entry 5AA of the said Notification.
  • Whether the clarification in relation to supply of food by cinema halls can be extended to similar supplies made by airlines, supermarkets, etc., may need to be evaluated.

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