Section

Changes Via Finance Bill, 2023

Simplification

Section 10 of

CGST Act, 2017

Clause (d) of sub-section (2) and clause (c) of

sub-section (2A) in section 10 of the CGST Act the words “goods or” shall be omitted.

Composition dealer can make intra-state supply

of goods through ecommerce operator.

Section 16 of

CGST Act, 2017

In section 16 of the Central Goods and Services
Tax Act, in sub-section (2)

(i)in the second proviso, for the words “added to
his output tax liability, along with interest
thereon”, the words and figures “paid by him
along with interest payable under section 50”
shall be substituted;

(ii)in the third proviso, after the words “made by
him”, the words “to the supplier” shall be
inserted.

No Interest would be charged if ITC remains

unutilized.

Section 17 of
CGST Act,2017

New Clause Under 17(5) shall be inserted goods

or services or both received by a taxable person,

which are used or intended to be used for activities relating to his obligations under corporate social responsibility referred to in section 135 of the Companies Act, 2013;”

ITC Would not be allowed on CSR Expenditure.

Substitution of new section for section 23

Notwithstanding anything to the contrary
contained in sub-section (1) of section 22 or
section 24,–

(a) the following persons shall not be liable to
registration, namely:–

(i) any person engaged exclusively in the
business of supplying goods or services or both
that are not liable to tax or wholly exempt from
tax under this Act or under the Integrated
Goods and Services Tax Act, 2017; 13 of 2017.

(ii) an agriculturist, to the extent of supply of
produce out of cultivation of land;b) the Government may, on the
recommendations of the Council, by
notification, subject to such conditions and
restrictions as may be specified therein, specify
the category of persons who may be exempted
from obtaining registration under this Act.”.

Person making only exempt supplies and agriculturist now not liable take registration

even though required under section 24.Section 23 has beengiven an overriding effect on section 24.

Amendment of

section 37

In section 37 of the Central Goods and Services
Tax Act, after sub-section (4), the following subsection shall be inserted, namely:––

“(5) A registered person shall not be allowed to
furnish the details of outward supplies under
sub-section (1) for a tax period after the expiry
of a period of three years from the due date of
furnishing the said details:

Provided that the Government may, on the
recommendations of the Council, by
notification, subject to such conditions and
restrictions as may be specified therein, allow a
registered person or a class of registered
persons to furnish the details of outward
supplies for a tax period under sub-section (1),
even after the expiry of the said period of three
years from the due date of furnishing the said
details.”

GSTR-1 cannot be filed after 3 years from due date.

Amendment of

section 39

In section 39 of the Central Goods and Services
Tax Act, after sub-section (10), the following
sub-section shall be inserted, namely:––

“(11) A registered person shall not be allowed to
furnish a return for a tax period after the expiry
of a period of three years from the due date of
furnishing the said return:

Provided that the Government may, on the
recommendations of the Council, by
notification, subject to such conditions and
restrictions as may be specified therein, allow a
registered person or a class of registered
persons to furnish the return for a tax period,
even after the expiry of the said period of three
years from the due date of furnishing the said
return.”.

GSTR-3B cannot be filed after 3 years from due date.

Amendment of

section 44.

Section 44 of the Central Goods and Services
Tax Act shall be re-numbered as sub-section (1)
thereof, and after subsection (1) as so renumbered,
the following sub-section shall be
inserted, namely:––

“(2) A registered person shall not be allowed to
furnish an annual return under sub-section (1)
for a financial year after the expiry of a period of
three years from the due date of furnishing the
said annual return:

Provided that the Government may, on the
recommendations of the Council, by
notification, and subject to such conditions and
restrictions as may be specified therein, allow a
registered person or a class of registered
persons to furnish an annual return for a
financial year under sub-section (1), even after
the expiry of the said period of three years from
the due date of furnishing the said annual
return.”.

GSTR-9 cannot be filed after 3 years from due

date.

Amendment of

section 52.

In section 52 of the Central Goods and Services
Tax Act, after sub-section (14), the following
sub-section shall be inserted, namely:––

“(15) The operator shall not be allowed to
furnish a statement under sub-section (4) after
the expiry of a period of three years from the
due date of furnishing the said statement:

Provided that the Government may, on the
recommendations of the Council, by
notification, subject to such conditions and
restrictions as may be specified therein, allow
an operator or a class of operators to furnish a
statement under sub-section (4), even after the
expiry of the said period of three years from the
due date of furnishing the said statement.”.

GSTR-8 cannot be filed after 3 years from due

date.

Amendment of

section 54.

In section 54 of the CGST, in sub-section (6), the words “excluding the amount of input tax credit provisionally accepted,” shall be omitted.

90% of refund shall be granted considering

provisionally accepted ITC.

Amendment of section 56.

In section 56 of the Central Goods and Services

Tax Act, for the words “from the date

immediately after the expiry of sixty days from

the date of receipt of application under the said

subsection till the date of refund of such tax”,

the words “for the period of delay beyond sixty

days from the date of receipt of such application

till the date of refund of such tax, to be

computed in such manner and subject to such

conditions and restrictions as may be

prescribed” shall be substituted.

Rules shall be prescribed

Amendment of section 122.

In section 122 of the Central Goods and
Services Tax Act, after sub-section (1A), the
following sub-section shall be inserted,
namely:––

“(1B) Any electronic commerce operator who––
(i) allows a supply of goods or services or both
through it by an unregistered person other than
a person exempted from registration by a
notification issued under this Act to make such
supply;

(ii) allows an inter-State supply of goods or
services or both through it by a person who is
not eligible to make such inter-State supply; or

(iii) fails to furnish the correct details in the
statement to be furnished under sub-section (4)
of section 52 of any outward supply of goods
effected through it by a person exempted from
obtaining registration under this Act, shall be
liable to pay a penalty of ten thousand rupees,
or an amount equivalent to the amount of tax
involved had such supply been made by a
registered person other than a person paying
tax under section 10, whichever is higher.”.

ECO shall be liable for penalties.

Amendment of section 132.

In section 132 of the Central Goods and

Services Tax Act, in sub-section (1),–– (a)

clauses (g), (j) and (k) shall be omitted; (b) in

clause (l), for the words, brackets and letters

“clauses (a) to (k)”, the words, brackets and

letters “clauses (a) to (f) and clauses (h) and (i)”

shall be substituted; (c) in clause (iii), for the

words “any other offence”, the words, brackets

and letter “an offence specified in clause (b),”

shall be substituted; (d) in clause (iv), the

words, brackets and letters “or clause (g) or

clause (j)” shall be omitted.

Minimum Threshold raised to Rs. 2 Crore from Rs 1 Crore.

Insertion of new

section 158A.

Consent based sharing of information furnished

by taxable person.

Consent based sharing of information furnished by taxable person.

Retrospective exemption to

certain activities and

transactions in Schedule III to the Central Goods and

Services Tax Act.

In Schedule III to the Central Goods and
Services Tax Act, paragraphs 7 and 8 and the
Explanation 2 thereof (as inserted vide section
32 of Act 31 of 2018) shall be deemed to have
been inserted therein with effect from the 1st
day of July, 2017.

(2) No refund shall be made of all the tax which
has been collected, but which would not have
been so collected, had subsection (1) been in
force at all material times

No Refund

Amendment of section 2.

In the Integrated Goods and Services Tax Act,

2017 (hereinafter referred to as the Integrated

Goods and Services Tax Act), in section 2,– (a)

for clause (16), the following clause shall be

substituted, namely:–– ‘(16) “non-taxable online

recipient” means any unregistered person

receiving online information and database

access or retrieval services located in taxable

territory. Explanation.––For the purposes of this

clause, the expression “unregistered person”

includes a person registered solely in terms of

clause (vi) of section 24 of the Central Goods

and Services Tax Act, 2017’; (b) in clause (17),

the words “essentially automated and involving

minimal human intervention and” shall be

omitted

Definition of OIDR has been changed.

Amendment of section 12.

In section 12 of the Integrated Goods and

Services Tax Act, in sub-section (8), the proviso

shall be omitted