Changes in GST applicable from 1st October 2023

Vide Notification no. 28/2023 dated 31st July 2023

  1. Sub section 1B inserted in Section 122 of the CGST Act to levy penalty on the following:

“(1B) Any electronic commerce operator who––

  • 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;
  • 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
  • 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.”.

  • Many offenses decriminalized under section 132 of the CGST Act
  • Section 158A inserted to share the information furnished by the taxable person based on his consent.
  • Schedule III para 7 & 8 regarding supply of goods from a place in the non-taxable territory to another place in non-taxable territory without goods entering into India and supply of warehoused goods to any person before clearance for home consumption and supply of goods by endorsement of documents of title of goods before clearance for home consumption is made effective from 1st July 2017.
  • Non-taxable online recipient definition in IGST Act is changed to “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’;

  • Proviso to sub section 8 of section 12 of the IGST Act is omitted, meaning thereby, the place of supply of services by way of transportation of goods where the location of supplier and recipient is in India, will henceforth be determined based on the clause (a) and (b) of the sub section and not by the destination of goods.