Recent Updates and Amendments to GST Rules

As per notifications issued on 31st March 2023

CBIC has released some notifications on 31st March 2023, to give effect to the recommendations as discussed by the GST Council in its 49th Meeting held on 18th February, 2023. In this blog, we have discussed in brief the notifications and the benefits that are provided to tax payers through the Amnesty scheme.

1. For Composition tax payers, late fee for Form GSTR-4 from July-2017 till F.Y 2021-22 waived completely for NIL returns and reduced to Rs 500/- in other cases provided the said returns are filed between 01.04.2023 to 30.06.2023.
(NOTIFICATION NO.02/2023–CENTRAL TAX)

2. If GSTR-10- Final return is not filed within due date, late fee on it will be restricted to Rs. 1000, if it is filed between 01.04.2023 to 30.06.2023.
(NOTIFICATION NO.08/2023–CENTRAL TAX)

3. For registrations cancelled on or before 31.12.2022 due to non-filing of returns, tax payers may apply for revocation of cancellation of their registrations up to 30.06.2023. This can be done only after furnishing the returns due up to the effective date of cancellation of registration and payment of any amount due as tax, interest, penalty and late fee in respect of the such returns.
(NOTIFICATION NO.03/2023–CENTRAL TAX)

4. Late fees for Annual Returns rationalised
Pending annual returns for FY 2017-18, 2018-19, 2019-20, 2020-21 and 2021-22, if filed between 01-04-2023 to 30-06-2023, the late fee shall only be Rs. 20000.

From FY 2022-23 onwards, late fee shall be calculated on the basis of annual aggregate turnover as follows

Annual Aggregate Turnover

Late fee

Upto 5 crores

Rs. 50 per day,

Subject to the maximum of 0.04% of turnover in state or Union territory

More than 5 crores upto 20 crores

Rs. 100 per day,

Subject to the maximum of 0.04% of turnover in state or Union territory

(NOTIFICATION NO.07/2023–CENTRAL TAX)

5. Assessment of non-filers of returns to be withdrawn if returns furnished on or before 30.06.2023 along with payment of interest and late fee. This will be irrespective of whether or not an appeal filed against the said assessment order or filed appeal has been decided.
(NOTIFICATION NO.06/2023–CENTRAL TAX)

6.Time limit for issuance of order u/s 73 of the Act for recovery of tax not paid or short paid or of ITC wrongly availed or utilised has been extended as follows-

FY 2017-18- upto 31^st December,2023

FY 2018-19- upto 31^st March,2024

FY 2019-20- upto 30^th June,2024.

(NOTIFICATION NO.09/2023–CENTRAL TAX)

7. Levy of compensation cess on tobacco and pan masala will be based on Retail Sale Price.
(NOTIFICATION NO.02/2023–COMPENSATION CESS RATE)

Conclusion :

The non-filers will be relieved through this amnesty scheme as they can complete their pending compliances such as GSTR-4 for composition tax payers, annual return and final return with concession in late fees. Also relief related to increase in time limit for revocation of cancelled registration and withdrawal of assessment of non-filers will reduce assessment related burden on tax payers to some extent. The tax payers are recommended to take advantage of this scheme and file their pending returns.

Disclaimer

The information provided in this presentation does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This presentation is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi-judicial authorities may not take a position contrary to the views mentioned herein.

Recent Updates and Amendments to GST Rules

As per notifications issued on 31st March 2023

Conclusion :

Disclaimer

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