Key Highlights in Budget – GST

Key Budget Highlights 2023 – GST

  • Composition taxpayers allowed to supply goods through electronic commerce operators who is required to collect tax at source.
  • Input tax credit not available if used by the corporate relating to its CSR activities.
  • Registration requirement under Section 23 amended and now even if your turnover exceeds the limit, you need not register if:
  • (a) You are exclusively in the business of sullying wholly exempted / non taxable goods or services or
  • (b) Agriculturist (on the supply of agriculture produce)
  • GSTR 1 cannot be filed after three years form the due date.
  • GSTR 3B cannot be filed after three years form the due date.
  • GSTR 9 (Annual return) cannot be filed after three years form the due date.
  • TCS returns under section 52 cannot be filed after three years from the due date.
  • Change in the way interest on refund of GST will be calculated.
  • Decriminalisation of offences. Any evasion between one crore to two crores, no arrest unless in the case of fake invoicing.
  • Compounding of offence limit reduced to minimum of 25% and maximum of 100% from the existing limit of 50% and 150% respectively.
  • Data of your registration, returns shall be shared with other systems after the consent from the registered person.
  • Schedule III inserted para 7 & 8 in 2018 which are:
  • (7) Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India.
  • (8) (a) Supply of warehoused goods to any person before clearance for home consumption.

(b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption.

They have inserted an explanation now to clarify that no refund shall be made for any taxes paid in the above situations before such insertion.

  • Non-taxable online recipient definition amended and now means any unregistered person receiving online information and database access or retrieval services located in taxable territory.
  • The place of supply provision in the case of transportation of goods where the supplier and recipient are in India, the proviso to say where the destination of goods is outside India, the place of supply will be the place of destination has been omitted.