Latest Update on GST Meeting held on 18th Feb 2023

MOHAN ARYA | Last updated: 20 February 2023

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The GST Council meeting on 18th February 2023 brought several key changes. Time limits for applying to revoke cancelled GST registrations have been extended, with provisions for amnesty for past cases. Additionally, the period to file returns for the withdrawal of best judgment assessments has been increased. For smaller businesses, late fees for annual GST returns (GSTR-9) have been rationalised, with reduced daily rates and caps based on turnover.

1. Time Limit Extension Under Section 30 of CGST Act, 2017 and rule 23 of CGST Rules, 2017

Taxpayer application for revocation of cancellation of registration and one time amnesty for past cases:

the time limit for making an application for revocation of cancellation of registration be increased from 30 days to 90 days;
where the registered person fails to apply for such revocation within 90 days, the said time period may be extended by the Commissioner or an officer authorised by him in this behalf for a further period not exceeding 180 days.

GST Meeting Updates: 18th Feb 2023 Decisions

Provided an amnesty may be provided in the past cases, where registration has been cancelled on account of non-filing of the returns, but application for revocation of cancellation of registration could not be filed within the time specified in section 30 of CGST Act, by allowing such persons to file such application for revocation by a specified date, subject to certain condition

2. Section 62 of CGST Act, 2017 to extend timelines under sub-section (2) thereof and one time amnesty for past cases: As per sub-section (2) of section 62 of CGST Act, 2017, the best judgment assessment order issued under sub-section (1) of the said section is deemed to be withdrawn

if the relevant return is filed within 30 days of service of the said assessment order.
amend section 62 so as to increase the time period for filing of return for enabling deemed withdrawal of such best judgment assessment order, from the present 30 days to 60 days, extendable by another 60 days, subject to certain conditions.

3. Rationalisation of Late fee for Annual Return:

i. Presently, late fee of Rs 200 per day (Rs 100 CGST + Rs 100 SGST), subject to a maximum of 0.5% of the turnover in the State or UT (0.25% CGST + 0.25% SGST), is payable in case of delayed filing of annual return in FORM GSTR-9.

ii. Rationalise this late fee for delayed filing of annual return in FORM GSTR-9 for FY 2022-23 onwards, for registered persons having aggregate turnover in a financial year upto Rs 20 crore, as below:

Late Fees u/s 47 for the delay in filing of GST Annual Return in Form GSTR 9 for small taxpayers for FY 2022-23 and onwards has been rationalized.

a. Taxpayer having an aggregate turnover of up to Rs. 5 crores 2022-23 financial year: Rs 50 per day (Rs 25 CGST + Rs 25 SGST), subject to a maximum of an amount calculated at 0.04 per cent. of his turnover in the State or Union territory (0.02% CGST + 0.02% SGST).

b. Taxpayerhaving an aggregate turnover of more than Rs. 5 crores and up to Rs. 20 crores in the said financial year: Rs 100 per day (Rs 50 CGST + Rs 50 SGST), subject to a maximum of an amount calculated at 0.04 per cent. of his turnover in the State or Union territory (0.02% CGST + 0.02% SGST).

4. Rationalization of provision of place of supply of services of transportation of goods:

Rationalize the provision of place of supply for services of transportation of goods by deletion of section 13(9) of IGST Act, 2017 so as to provide that the place of supply of services of transportation of goods, in cases where location of supplier of services or location of recipient of services is outside India, shall be the location of the recipient of services.

FAQ :

The time limit for taxpayers to apply for revocation of cancelled GST registration has been extended from 30 days to 90 days. The Commissioner or an authorised officer can further extend this by another 180 days.

Yes, an amnesty scheme is provided for past cases where registration was cancelled due to non-filing of returns, allowing eligible persons to file revocation applications by a specified date, subject to conditions.

The period to file a return for the deemed withdrawal of a best judgment assessment order has been increased from 30 days to 60 days, with a possibility of a further 60-day extension under certain conditions.

For FY 2022-23 onwards, taxpayers with turnover up to Rs 5 crore will pay Rs 50 per day (max 0.04% of turnover), and those with turnover between Rs 5 crore and Rs 20 crore will pay Rs 100 per day (max 0.04% of turnover).

Section 13(9) of the IGST Act has been deleted. For services where the supplier or recipient is outside India, the place of supply for transporting goods will now be the location of the recipient.