GST Update (02-04-2023)

*Amnesty scheme for non-filing of various forms/ returns*

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GST Council in its 49th meeting held on 18 Feb 2023 had proposed amnesty for defaults in filing of forms/ returns by the taxpayers. Notifications for the same have been issued dated 31st March, 2023. The amnesty scheme is applicable from on April 1, 2023 till June 30, 2023. Details of the amnesty scheme are as follows:

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1.????*Waiver in late fees for non-furnishing of FORM GSTR-4 (Return to be filed for taxpayers under Composition scheme)* - The late fees has been notified to a maximum of Rs. 500/- and NIL in case of NIL returns. (Notification No. 02/2023–Central Tax dated March 31st, 2023).

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2.????*Extension for filing of revocation of cancellation of registration* - Prescribe special procedure in respect of revocation of cancellation of registration which were cancelled on or before 31st December, 2022 and the taxpayer has failed to file revocation with time prescribed. The taxpayer can apply for revocation of cancellation of such registration up to 30th June, 2023 but only after furnishing the returns due up to the effective date of cancellation of registration and payment of taxes with interest, penalty & late fees. (Notification No. 03/2023–Central Tax dated March 31st, 2023).

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3.????*Deemed withdrawal of best judgment assessment order* - An amnesty scheme has been introduced for conditional deemed withdrawal of best judgement assessment orders in past cases. This scheme shall be applicable if the concerned return could not be filed within 30 days of the assessment order but it shall be filed along with due interest and late fee up to 30th June 2023. (Notification No. 06/2023–Central Tax dated March 31st, 2023).

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4.????*Waiver in late fees for non-furnishing of FORM GSTR-9 (Annual Return)* - The late fees has been notified to a maximum of Rs. 20,000/-. (Notification No. 07/2023–Central Tax dated March 31st, 2023).

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5.????*Waiver in late fees for non-furnishing of FORM GSTR-10 (Final Return)* - The late fees has been notified to a maximum of Rs. 1,000/-. (Notification No. 08/2023–Central Tax dated March 31st, 2023).

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*Extension of time limit for issuing order u/s 73 for FYs 17-18 to 19-20*

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The CBIC has issued notification to extend the time limit for issuing orders under Section 73(10). The time limit for the financial year 2017-18 is extended up to 31st December, 2023; for the financial year 2018-19 is extended up to the 31st March, 2024 and for the financial year 2019-20 is extended up to 30th June, 2024. (Notification No. 09/2023–Central Tax dated March 31st, 2023). The revised time limit set u/s 73(2) read with 73(10) of the CGST Act, 2017 (including that u/s 74(2) read with 74(10)) for issue of Notices and completion of adjudication is as follows:

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*Procedure/ timelines for Aadhaar authentication & submission of registration application in Gujarat*

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CBIC has issued notifications to provide that if an applicant opts for authentication of Aadhaar number then the date of submission of the application shall be the date of authentication of the Aadhaar number, or fifteen days from the submission of the application whichever is earlier. It is also provided that if any person who has opted for authentication of Aadhaar number and is identified on the common portal, based on data analysis and risk parameters, then its application shall be followed by biometric-based Aadhaar authentication and taking photograph of the individual applicant or of such individuals in relation to the applicant where the applicant is not an individual. These shall be deemed to have come into force from the 26th day of December, 2022. (Notification No. 04/2023–Central Tax & Notification No. 05/2023–Central Tax dated March 31st, 2023).

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*Reduction in late fees for Annual Returns from FY 2022-23 onwards*??????

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CBIC has reduced late fees for filing of annual return for taxpayers having turnover of up to Rs. 20 Crores. This rationalization of the late fee is applicable from the FY 2022-23 onwards. The late fees shall be Rs. 50 per day (i.e. Rs. 25 in CGST and Rs. 25 in SGST) subject to a maximum of 0.04% (i.e. 0.02% in CGST and 0.02% in SGST) of the turnover for taxpayers having turnover up to 5 crores. Further the late fees shall be Rs. 100 per day (i.e. Rs. 50 in CGST and Rs. 50 in SGST) subject to a maximum of 0.04% (i.e. 0.02% in CGST and 0.02% in SGST) of the turnover for taxpayers having turnover up to 20 crores. (Notification No. 07/2023–Central Tax dated March 31st, 2023).

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*Specific levy of GST compensation cess applicable w.e.f 01.04.2023 on commodities like pan masala, tobacco, etc.*

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The Government has appointed April 1st, 2023 as date on which the provisions of section 163 of the Finance Act 2023 shall come into force. The Act provides to change the levy of GST compensation cess from ad valorem to specific tax based levy on the retail sale price for products like Pan Masala, Tobacco and manufactured tobacco substitutes, etc. (Notification No. 01/2023-Compensation Cess dated March 31st, 2023). The Government has thus notified new GST Compensation Cess rates for the said products. (Notification No. 02/2023-Compensation Cess dated March 31st, 2023)