14 Local State GST Changes w.e.f 1st Oct 2023

 

Intra-State GST Changes w.e.f 1st Oct 2023

1. Composition levy extended to suppliers of goods under the      e-commerce model

The Benefit of composition scheme which was earlier not available to the registered person engaged in supplying goods through an E-commerce operator ("ECO") shall now be extended to them. The ECO is prohibited from allowing inter-state supply of goods through its platform by the said person.

 

2. Clarificatory amendment concerning payment to supplier within 180 days

To align the language of law with the return filling system provided in the CGST Act, the updated provision stipulates that if a recipient fails to settle the invoice amount, including taxes, to the supplier within 180 days from the date of issue of the invoice, the recipient must pay an amount equivalent to the ITC they have claimed.

 

 3. Sale of warehoused goods

supply of warehoused goods to any person before clearance for home consumption within the meaning of exempted supply for the purpose of reversal of common ITC

ITC blocked on CSR activities. 

Henceforth, there would be restrictions on ITC on goods/services received by taxable person, that are used or intended to be used for activities associated with fulfilling Corporate Social Responsibility ("CSR") obligations. This is applicable prospectively.

 

 4. Retrospective overriding effect

Person making outward supplies which are exclusively covered under RCM, person making supplies of services through E-Commerce Operator having aggregate turnover not exceeding INR 20L in a FY, person supplying handicraft goods having aggregate turnover not exceeding INR 20L in a FY, person making inter-state supplies of tax- able services having aggregate turnover not exceeding INR 20 Lakhs in a FY, etc. need not to obtain GST registration.

 

5. Time limit on application for revocation of cancelled registration

The time period has now been increased to 90 days from the date of order of cancellation.

 

6. Limitation of 3 years on filing of returns

The Registered person will not be allowed to furnish belated returns in Form GSTR-1, GSTR-3B, GSTR-8, GSTR-9 and GSTR-9C after the expiry of three years from the due date of furnishing the relevant returns.

 

7. Refunds and Interest on delayed refunds

The government will be empowered to prescribe the mechanism, computation, manner, and restrictions for payment of interest on delayed refunds beyond 60 days from the date of receipt of refund application until the date of refund.

 

8. Assessment of unregistered persons

 The time period for furnishing Form GSTR 3B or Form GSTR 10 (Final Return) under the Best Judgment Assessment, for the deemed withdrawal of the best judgment order, will increase from 30 days to 60 days. The period of 60 days may further be extended to 120 days on the payment of additional late fees over above the standard late fee.

 

9. Penalty for certain offences

Introduction of a penal provision applicable to ECO subject to a penalty of INR 20,000 (CGST + SGST) or the tax amount involved in such supply, whichever is higher, in cases where there is a violation of specified provisions relating to supplies of goods made through ECO by unregistered person or composition taxpayers.

 

10. Decriminalization of certain offences

Decriminalization of the offences which is related to obstructing or preventing any officer in the discharge of his duties, tampering with, or destroying any material evidence or documents, or failure to supply any information or supplies false information.

Monetary limit for prosecution:

Further, this amendment will increase the limit for launching prosecution from INR 1 Crore to INR 2 Crores except for the offence of issuance of invoice without supply of goods or services. Thus, in case of offences, other than fake invoices, prosecution provisions to be initiated if the value of taxes is more than Rs. 2 Crores and for fake invoices, the prosecution will continue as for the threshold tax amount of Rs. 1 Crore.

 

11. compounding of offences

No Compounding of offences: Fake/bogus invoice cases are excluded from the option of compounding of offences.

Reduction in Compounding fees: Reduction of amount for compounding of various offences except offence of fake invoice, by reducing the minimum and maximum amount for compoundingas mentioned below:  

	Earlier	Now
Minimum	Higher of INR 10,000 or 50% of the tax involved	25% of the tax involved
Maximum	Higher of INR 30,000 or 150% of the tax involved	100% of the tax involved

 

12. Consent based sharing of information furnished by taxable person

This new provision will allow sharing of information or details furnished by the taxpayers (viz. particulars in the registration application, returns or e-invoice or e-Waybill or any other as may be prescribed) on the GST Common portal, with other systems upon taxpayer's consent.

 

13. Retrospective applicability

1.        Supply of goods from a place in outside the taxable territory to another place outside the taxable territory without such goods entering India, high seas sales.

2.        Supply of warehoused goods to any person before clearance for home consumption.

 

14. Inclusion of 'Non-taxable online recipient'

A significant inclusion to Rule 64 is the term "non-taxable online recipient" as referred to in the Integrated Goods and Services Tax Act, 2017 ("the IGST Act"). This change expands the scope of Rule 64 to cover more categories of recipients, thereby promoting greater tax compliance.