Budget 2023: Finance Minister made important proposal for CGST and IGST Act, read full details here
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Union Budget 2023: Finance Minister Nirmala Sitharaman has presented the annual budget for the financial year 2023-24 on Wednesday. This full budget of the year before this election is important for everyone. Through this budget, an attempt has been made to help employed people, elders, businessmen, women, farmers and backward class people. The most important thing is that in this budget, Nirmala Sitharaman has presented many important proposals regarding direct and indirect taxes, in which important proposals have been made for CGST and IGST Act. Chartered Accountant Aanchal Kapoor explaining in detail about these laws. Come, let’s read the full details…
CGST Act
Section 10: Section 10(2) and 10(2(a) of the CGST Act allow composition dealers to sell goods through ECOs.
Section 16: Where payment has not been made to the supplier within 180 days, ITC is to be paid with interest under section 50 (as against being added to the output tax liability at present).
Section 17(3) : In-bond transfer is brought under the purview of exempt supply for Rule 42/43 thereby widening the scope of reversal.
Section 17(5)(fa) added : Goods or services or both potentially used for mandatory CSR activities are not eligible for ITC. Will remain a disputed issue for the period prior to amendment.
Section 23: It has been amended retrospectively to provide that section 23 shall prevail over section 22 and section 24. In other words fully exempted suppliers need not go for registration. RCM?
Section 37: No GSTR1 can be filed after 3 years from the due date.
Section 39: No GSTR3B can be filed after 3 years from the due date.
Section 44: No GSTR 9 can be filed after 3 years from the due date.
Section 52 : No TCS return can be filed after 3 years from the due date.
Section 54(6) : 90% provisional refund can be given without reducing the amount of ITC provisionally allowed. (The change is due to no concept of section 41 of provisional ITC).
Section 56: Interest on delayed refund – The manner and conditions and restrictions will be provided through the rules.
Section 122: Sub-section (1B) has been inserted to allow the ECO to allow certain transactions through him and in turn make him liable to penalty for 3 defaults relating to incorrect data.
Section 132: Changes are made to remove certain activities liable for punishment. Raising the minimum threshold of clauses G, J, Rs. 1 crore to Rs. 2 crore for prosecution in addition to issuing invoices without supply from Rs.
Section 138: Changes are made regarding compounding of offense and compounding fees are also reduced.
Section 158A: Consent based information sharing with other systems through the common portal.
Schedule III : Clarification regarding high sea sale, bond sale, merchant trading transactions has been made effective from July 01, 2017. No refund can be claimed due to this change. Section 10(2) and 10(2(a) of the CGST Act allow composition dealers to sell goods through ECOs.
Section 16: Where payment has not been made to the supplier within 180 days, ITC is to be paid with interest under section 50 (as against being added to the output tax liability at present).
Section 17(3) : In-bond transfer is brought under the purview of exempt supply for Rule 42/43 thereby widening the scope of reversal.
Section 17(5)(fa) : Goods or services or both potentially used for mandatory CSR activities are not eligible for ITC. Will remain a disputed issue for the period prior to amendment.
Section 23: It has been amended retrospectively to provide that section 23 shall prevail over section 22 and section 24. In other words fully exempted suppliers need not go for registration. RCM?
Section 37: No GSTR1 can be filed after 3 years from the due date.
Section 39: No GSTR3B can be filed after 3 years from the due date.
Section 44: No GSTR 9 can be filed after 3 years from the due date.
Section 52 : No TCS return can be filed after 3 years from the due date.
Section 54(6) : 90% provisional refund can be given without reducing the amount of ITC provisionally allowed. (The change is due to no concept of section 41 of provisional ITC).
Section 56: Interest on delayed refund – The manner and conditions and restrictions will be provided through the rules.
Section 122: Sub-section (1B) has been inserted to allow the ECO to allow certain transactions through him and in turn make him liable to penalty for 3 defaults relating to incorrect data.
Section 132: Changes are made to remove certain activities liable for punishment. Raising the minimum threshold of clauses G, J, Rs. 1 crore to Rs. 2 crore for prosecution in addition to issuing invoices without supply from Rs.
Section 138: Changes are made regarding compounding of offense and compounding fees are also reduced.
Section 158A: Consent based information sharing with other systems through the common portal.
Schedule III : Clarification regarding high sea sale, bond sale, merchant trading transactions has been made effective from July 01, 2017. No refund can be claimed due to this change.
igst act
Section 2(16) : The definition of non-taxable online payee has been changed (rationalised).
Section 2(17) : The definition of OIDR has been amended, wherein (essentially automated and involving minimal human intervention) has been omitted.
Omitted section 12(8) relating to POS as destination for transportation of goods outside India due to ITC issues. Previous circular issued for 184.
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