The turn of year 2023 into 2024 marks the completion of six and half years (seventy eight months) of Goods and Services Tax in India. While GST has been a work-in-progress so far and yet evolving, 2023 saw many legislative and procedural changes in GST law, procedures, rates, exemptions, amendments and almost in all every spheres.
This write up captures the developments and changes in GST in the year, 2023.
2023: Crucial Milestones in GST
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01.02.2023
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Union Budget 2023 introduced key changes to the GST law inter alia including amendments in CGST Act, 2017 and IGST Act, 2017. Few major budget proposals –
- Removal of the restriction imposed on registered persons engaged in supplying goods through e-commerce operators from opting to pay tax under the Composition Levy.
- ITC shall not be available in respect of 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.
- Penal provisions inserted amounting to Rs. 10,000 or amount of tax evasion, whichever is higher, applicable to Electronic Commerce Operators in case of contravention of provisions relating to supplies of goods made through them by unregistered persons or composition taxpayers.
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07.03.2023
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GSTN portal introduced new facility of providing option to utilize the amount in Cash ledger of one GSTN by another GSTN under the same Permanent Account Number (PAN)through form GST PMT-09
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30.04.2023
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Highest ever GST collection recorded in the month of April 2023 at INR 187,035 crores, this remains the highest for the entire year 2023.
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10.05.2023
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CBIC reduced the threshold limit for e-invoices w.e.f. 1stAugust 2023 to Rs. 5 Crores from 10 Crores earlier. (Notification No. 10/2023/CT dated 10.05.2023)
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26.05.2023
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CBIC issued instructions in the form of Standard Operating Procedure (SOP) for scrutiny of returns for the FY 2019-20 onwards on the manner, procedure and methodology to conduct scrutiny of returns under section 61 of CGST Act, 2017 read with Rule 99 of the CGST Rules, 2017.
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14.06.2023
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CBIC issued new guidelines for GST Registration to check menace of fake registration and issuance of bogus invoices.
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07.07.2023
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GSTN made live the ‘Geocoding’ functionality for all the States and Union Territories
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31.07.2023
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Effective dates for enforcement of Finance Act, 2023 amendments announced through Notification No. 28/2023- CT dated 31.07.2023
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11.08.2023
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IGST and CGST Amendment Bill introduced in Lok Sabha defining online gaming, online money gaming, specified actionable claim and virtual digital asset and provided special provision for specified actionable claims (online gaming) supplied by a person located outside the taxable territory to a person located in India.
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06.09.2023
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CBIC notified new Rule 31B for value of supply in case of online gaming including online money gaming and new Rule 31C for value of supply of actionable claims in case of casino.
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14.09.2023
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Central Government notified the constitution of number of State Benches of GST Appellate Tribunal (GSTAT)
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29.09.2023
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GST at the rate of 28% to be leviable on online gaming and casinos.
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07.10.2023
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52nd GST Council meeting recommended the conditions of appointment (i.e. age, eligibility) of President and members of GST Appellate Tribunal (Section 110 of CGST Act, 2017)
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25.10.2023
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MoF notified GST Appellate Tribunal (Appointment and Conditions of Service of President and Members) Rules, 2023.
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02.11.2023
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CBIC notified an ‘Amnesty Scheme’ for belated filing of appeals under section 107 of CGST Act, 2017 as recommended by GST Council in its 52ndmeeting held on 07.10.2023.
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28.11.2023
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GSTN issued an Advisory for the procedures and provisions related to the amnesty for taxpayers who missed the appeal filing deadline for the orders passed on or before March 31, 2023.
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13.12.2023
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CGST (2nd Amendment) Bill, 2023 passed in Lok Sabha on 19 December, 2023, the bill proposed amendment to section 110 of CGST Act, 2023, which provided for the President and Members of Appellate Tribunal, their qualification, appointment, conditions of service etc.
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GST Council meetings in 2023
Notifications and Circulars issued in 2023
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Notifications 2023
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Number
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Central Tax
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1 to 56
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Central Tax (Rate)
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1 to 20
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Integrated Tax
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1 to 5
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Integrated Tax (Rate)
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1 to 23
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Union Territory
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1 to 2
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Union Territory (Rate)
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1 to 20
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Compensation Cess
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1
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Compensation Cess (Rate)
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1 to 3
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Circulars CGST 2023
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189 to 206
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Instructions 2023
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1 to 5
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GST (Amendment) Acts
- CGST (Amendment) Act, 2013 has been legislated as Act No. 30 of 2023 as per Gazette Notification S.No. 33 dated 18.08.2023 of the Gazette of India.
- IGST (Amendment) Act, 2013 has been legislated as Act No 31 of 2023 as per Gazette Notification S.No. 34 dated 18.08.2023 of the Gazette of India.
- These shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
[Source: Gazette Notifications published in The Gazette of India]
CGST (Amendment) Bill, 2023
- CGST (Amendment) Bill, 2023 has been introduced in Lok Sabha on 11.08.2023.
- The Bill proposes the following :
- It provides for defining online gaming [section 2 (80A)], online money gaming [section 2 (80B)], specified actionable claim [section 2 (102A)] and virtual digital asset [section 2 (117A)]
- It amends definition of supplier in section 2(105) to provide clarity on who is supplier in case of supply of specified actionable claim
- It provides for mandatory registration of the person for supplying online money gaming from a place outside India to a person in India (section 24)
- In Schedule III, ‘lottery, betting and gambling’, shall be substituted by ‘specified actionable claims’.
- These shall be effective after enactment from a notified date.
(Source: CGST (Amendment) Bill, 2023)
IGST (Amendment) Bill, 2023
- IGST (Amendment) Bill, 2023 has been introduced in Lok Sabha on 11.08.2023
- The Bill proposes the following :
- Defines online gaming [section 2(17)]
- Scope of section 5 on ‘integrated tax on goods’ is proposed to be changed to provide ‘goods other than goods as may be notified …’
- Place of supply to any unregistered person to be location of supplier where address of such person is not recorded in the invoice (section 10)
- Provide for special provision for specified actionable claims (online gaming) supplied by a person located outside the taxable territory to a person located in India [Section 14A]
- Provide for special provision of requirement of taking single registration under a simplified scheme, payment of integrated tax on online gaming and blocking of access by the public to any information used for such supplier in case of non- compliance of registration or non-payment of tax [Section 14A].
- This shall be effective after enactment from a notified date.
(Source: IGST (Amendment) Bill, 2023)
CGST (2nd Amendment) Bill, 2023
- Central Government has presented CGST (2nd Amendment) Bill, 2023 in Lok Sabha on 13 December, 2023
- This Bill No. 159 of 2023 proposes amendment to section 110 of CGST Act, 2023, which provides for the President and Members of Appellate Tribunal, their qualification, appointment, conditions of service etc.
- Following amendments in relation to GST Appellate Tribunal are proposed in the Bill:
- An advocate for 10 years with substantial experience in litigation matters relating to indirect taxes in Appellate Tribunal, CESTAT, State VAT Tribunal, High Court or Supreme Court to be eligible for Judicial member of GST Appellate Tribunal.
- Person who has completed age of 50 shall be eligible for appointment as President or Member of GST Appellate Tribunal.
- For President, maximum age would be 70 years and he / she would be eligible for reappointment for a period, not exceeding two years, subject to age limit.
- For Member (judicial or technical), maximum age would be 67 years and he / she would be eligible for reappointment for a period, not exceeding two years, subject to age limit.
- The amendment seeks to align the provisions with the provisions of Tribunal Reforms Act, 2021.
- Lok Sabha has passed the CGST (2nd Amendment) Bill, 2023 on 19.12.2023 and Rajya Sabha on 20.12.2023.
(Source: CGST (2nd Amendment) Bill, 2023 dated 13.12.2023)
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