Twitter Space Discussion on - Impact of Budget 2023 on GST

The discussion was hosted by Sri CA Dinesh Wadera and various  esteemed panelists participated in the discussion. Sri CA Abhishek Raja gave a clear insight on amendments of GST Sections announced in the Budget 2023

Gone are the days where Indirect taxation is predominant in the Budget, GST Council has the power now. There are 15 amendments in announced in the Budget 2023 on GST. 4 of the amendments are on change of due date where returns can be filed upto 3 years.

Other amendments were expected since the GST council had recommended the same.

The Panelists expected some relief in GST Amnesty.

Some Panelists felt that when show cause notice is served, order was not passed on time.

Amendments

Section 10 Amendment

Removal of restriction imposed on registered persons engaged in supply of goods through electronic commerce operators.

Section 16

In case recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be paid by him along with interest payable under section 50, in such manner as may be prescribed: Also recipient would be entitled to re-avail the ITC on payment made by him to supplier towards value of supply along with tax thereon.

Section 17

Restriction of availment of ITC with respect to various transactions of Para 8 (a) of Schedule III.

Supply of custom bonded warehouse goods before clearance for home consumption. Above stated supply will be included in exempt supply.

Section 23

No registration required for business  dealing in exempted supplies. This is a retrospective amendment.

Section 37 and 39

Filing of belated GSTR-1, GSTR-3B, GSTR-9/9A & GSTR-8 not beyond three years of the due date-  Now three years time limit have  been allowed from due date of filling GSTR-1/GSTR-3B /GSTR-9/GSTR-9A/ GSTR-8 for furnishing these returns.

Section 54

Removed the reference to provisionally accepted input tax credit to align with present scheme of availment of self assed input tax credit as per sec 41 (1) of the CGST ACT.

Section 122

Penalty provisions on e-commerce operators if there is any contravention of provisions. 

Section 132

Deals with prosecution and decriminalization. Monetary threshold for launching prosecution for offenses under the Act increased from 1 crore to 2 crores except in case of fake invoices.

Section 138: Compounding of offenses

Invoice issued without supply of goods or services is an offense. The compounding offence proposed is Rs 20000 or 25 % to 100 % of tax amount involved.

Retrospective amendment of changes in Schedule III Certain activities:

1. Supply of goods from place outside the taxable territory to another place outside taxable territory.
2. High Sea Sales
3. Supply of warehouse goods before their home consumption Treated as neither supply of goods nor supply of services retrospectively.

Listen to the Complete Twitter Space Discussion on "Impact of India Budget 2023 on GST" by CA Dinesh Wadera & CA Abhishek Raja Ram