This articles covers gst updates march 2023. It contains all the Notifications and Circulars issued in March-2023 which covers all GST Updates March 2023. All these amendments have been presented hear topic wise and reference of relevant latest gst notifications and latest gst circulars have been given at bottom of each topic. As well as, I have given our own analysis wherever it is necessary
Latest change in GST Rate of Rab by GST Updates March 2023
As a consequence of 49th GST Meeting, it has been clarified in circular that the issues for the past period related to GST Rate applicability on “Rab” is regularized on “as is” Basis.
Analysis
- Circular No 189/01/2023-GST Dt-13-01-2023 has already been issued in this regard and it has been clarified as under
Rab Means‘massecuite prepared by concentrating sugarcane juice on open pan furnaces, and includes Rab Galawat and Rab Salawat, but does not include khandsari molasses or lauta gur.’ Although, a product of sugarcane, Rab exists in semi-solid/liquid form, and is thus not covered under heading 1701.
Accordingly, it is hereby clarified that Rab is appropriately classifiable under heading 1702 attracting GST rate of 18% (S. No. 11 in Schedule III of notification No. 1/2017-Central Tax (Rate), dated the 28th of June 2017)
- The issue related to GST on “Rab” Primarily discussed in 49th GST council meeting held on 18-02-2023 which was as under.
- GST on “Rab” is as under with effect from 01.03.2023 as per Notification No.03/2023-Rate date 28-02-2023
| Product | Before 01-03-2023 | W.e.f 01-03-2023 |
| Rab | 18% | 5% -If sold Pre-packaged and labelled Exempt – If sold otherwise |
Now the circular has been issued in this regard which stated that the issue for the past period is regularized on “as is” basis, so there will be no any confusion in relation to GST Rate on Rab for the past issues related to the same.
| Circular No 191/03/2023-GST Dt-27-03-2023 |
GST Amnesty of GSTR-4 non fillers by Latest GST Updates March 2023
- The government has come out again to help composition dealers by introducing new Amnesty to GSTR-4 non filling.
- This amnesty is in form of waiver and reduction of late fees of GSTR-4 for those composition dealers who failed to furnish the return in FORM GSTR-4 for the quarters from July 2017 to March 2019 or for the financial years from 2019-20 to 2021-22 by the due date but furnish the said return between the period from the 1st day of April 2023 to the 30th day of June 2023.
- Let’s understand this amnesty in table form as under
- In case GSTR-4 is other than NIL
| Period | Furnish Return between the period | Original Late Fees (Section 47 of CGST Act 2017) | Reduced Late Fees by Notification 73/2017 as amended by Notification 02/2023 |
| Quarters July-17 to March-19 Or F.Y. 2019-20 to 2021-22 | 01.04.23 To 30.06.23 | Rs.200 per day Or Maximum Rs 10,000 | Rs 200 per day Or Maximum Rs 500 |
In case GSTR-4 is NIL
| Period | Furnish Return between the period | Original Late Fees (Section 47 of CGST Act 2017) | Reduced Late Fees by Notification 73/2017 as amended by Notification 02/2023 |
| Quarters July-17 to March-19 Or F.Y. 2019-20 to 2021-22 | 01.04.23 To 30.06.23 | Rs.200 per day Or Maximum Rs 10,000 | NIL |
| Notification 73/2017 Central Tax amended by Notification No.02/2023 dated 31.03.2023. |
gst notification 2023 latest pdf download
Withdrawal of assessment orders issued under Section 62 by latest GST Updates March 2023
The government has come out with special procedure in case where GST returns (GSTR-3B, GSTR-6, GSTR-5, GSTR-7, GSTR-8, GSTR-4, CMP-08) and or final return GSTR-10 was not filed within 30 days from the date of Assessment order issued u/s 62(1) of CGST Act, 2017. As per this procedure, said assessment order shall be deemed to have been withdrawn subject to the following conditions/procedure.
- Assessment orders issued under Section 62(1) of CGST Act 2017 on or before 28.02.2023.
- The registered person failed to furnish the valid return within a period of 30 days from the service of such assessment order.
- Now this Return furnished by such registered persons on or before 30-06-2023 along with the payment of interest u/s 50 and Late fees u/s 47.
Such assessment orders will be withdrawn irrespective of whether an appeal has been filed against such assessment order under section 107 of the said Act or whether the appeal, if any, filed against the said assessment order has been decided.
Our Analysis-:
- Section 62 of the CGST Act is for assessment of non-fillers of returns.
- Under this Section, proper officer assesses liability to the best of his judgement and issues assessment order,
- Now this assessment order can be withdrawn based on the above-mentioned conditions/procedures.
- In short Amnesty has been issued by government for withdrawal of such best judgment assessment orders
| Notification No.06/2023-Central tax dated 31-03-2023. |
gst notification pdf
GST Amnesty for GSTR-9, 9A, 9B non fillers by latest GST Updates March 2023
- This amnesty is for reduction of late fees for those who fail to furnish annual returns (GSR-9, 9A, 9B) by the due date for any of the financial years 2017-18, 2018-19, 2019-20, 2020-21 or 2021-22, but furnish the said return between the period from the 1st day of April 2023 to the 30th day of June, 2023.
- Let’s understand this amnesty in table form as under
Amnesty to annual returns GSTR-9, GSTR-9A and Annual Statement GSTR-9B
| Period | Annual Returns are furnished between | Original Late Fees (Section 47) | Reduced Late Fees (Notification 07/2023) |
| 2017-18 2018-19 2019-20 2020-21 2021-22 | 01-04-2023 To 30-06-2023 | Rs 200 per day Or 0.25% of Turnover (Maximum) | Rs 200 per day Or Rs 20,000 (Maximum) |
| Notification No.07/2023-Central tax dated 31-03-2023. |
Latest Changes in GST Late fees for GSTR-9/9A/9B by latest GST Updates March 2023
Rationalization of late fees for annual returns GSTR-9, GSTR-9A, and Annual Statement GSTR-9B
| Period | Aggregate Turnover | Original Late Fees (Section 47) | Reduced Late Fees (Notification 07/2023) |
| 2022-23 onwards | Up to Rs 5 crore | Rs 200 per day Or 0.25% of Turnover (Maximum) | Rs 50 per day Or 0.02% of Turnover (Maximum) |
| 2022-23 onwards | More than Rs 5 crore and up to 20 crore. | Rs 200 per day Or 0.25% of Turnover (Maximum) | Rs 100 per day Or 0.02% of Turnover (Maximum) |
| 2022-23 onwards | More than Rs 20 crore. | Rs 200 per day Or 0.25% of Turnover (Maximum) | No Reduction |
| Notification No.07/2023-Central tax dated 31-03-2023. |
Latest changes in GST Amnesty for GSTR-10 by Latest GST Updates March 2023
- This amnesty is for waiver of late fees for those who fail to furnish GSTR-10 (Final Return) by the due date but furnish the said return between the period from the 1st day of April 2023 to the 30th day of June 2023.
- Let’s understand this amnesty in table form as under
- Amnesty to GSTR-10 (Final Return)
| Return is furnished between | Original Late Fees (Section 47) | Reduced Late Fees (Notification 07/2023) |
| 01-04-2023 To 30-06-2023 | Rs 200 per day Or 10,000 (Maximum) | Rs 200 per day Or Rs 1000 (Maximum) |
| Notification No.08/2023-Central tax dated 31-03-2023. |
Latest changes in GST Time limit for issuance of Order U/S 73(9) by Latest GST Updates March 2023
The time limit for passing order under section 73(9) of CGST Act, 2017 has been extended for the following financial years:
| Sr No | Year | Original Due Date of Annual Return | Extended Due date of Annual Return | Due date of issue of order under Section 73(9) See Note-1 | Extended Due date of order under Section 73(9) |
| 1 | 2017-18 | 31-12-2018 | 07-02-2020 | 07-02-2023 | 31-12-2023 |
| 2 | 2018-19 | 31-12-2019 | 31-12-2020 | 31-12-2023 | 31-03-2024 |
| 3 | 2019-20 | 31-12-2020 | 31-03-2021 | 31-03-2024 | 30-06-2024 |
Note-1
The due date of the issue of Order under Section 73(9) is three years from the due date of Annual Return of relevant year.
| Notification No.09/2023-Central tax dated 31-03-2023. |
Latest changes in GST Time limit for issuance of SCN U/S 73(1) by latest GST Updates March 2023
- As we have seen above, the time limit to issue orders under Section 73(9) has been extended.
- So therefore, the time limit for issued of Show Cause Notice (SCN) under Section 73(1) will also automatically be extended. This is because SCN is required to be issued at least three months prior to the time limit specified for issue of order under Section 73(9)
- So now let’s understand this extension of SCN dates in the following table form.
The time limit for issue of SCN under section 73(1) of CGST Act, 2017 is also extended as under following financial years:
| Sr No | Year | Extended Due Date of issue of order under Section 73(9) | Extended Due Date of issue of SCN under Section 73(1) See Note-2 |
| 1 | 2017-18 | 31-12-2023 | 30-9-2023 |
| 2 | 2018-19 | 31-03-2024 | 31-12-2023 |
| 3 | 2019-20 | 30-06-2024 | 31-03-2024 |
Note-2
Due date of issue of SCN under Section 73(1) is three months prior to the time limit specified for issue of order under Section 73(9)
| Notification No.09/2023-Central tax dated 31-03-2023. |
Rate of compensation cess effective from 01-04-2023 by Latest GST Updates March 2023
Following are the Changes in the rate of GST Compensation cess which shall come in to force from 01-04-2023.
Note: In this table in column five, R represents Retail Sale Price
| Sr No | HSN | Description of Goods | Old rate of GST Compensation cess | New Rate of GST Compensation Cess effective from 01-04-2023 |
| 1 | 2106 90 20 | Pan-masala | 60% | 0.32 R Per unit |
| 5 | 2401 | Unmanufactured tobacco (without lime tube) – bearing a brand name | 71% | 0.36 R Per unit |
| 6 | 2401 | Unmanufactured tobacco (with lime tube) – bearing a brand name | 65% | 0.36 R Per unit |
| 7 | 2401 30 00 | Tobacco refuse, bearing a brand name | 61% | 0.32 R Per unit |
| 19 | 2403 11 10 | ‘Hookah’ or ‘gudaku’ tobacco bearing a brand name | 72% | 0.36 R Per unit |
| 20 | 2403 11 10 | Tobacco used for smoking ‘hookah’ or ‘chilam’ commonly known as ‘hookah’ tobacco or ‘gudaku’ not bearing a brand name | 17% | 0.12 R Per unit |
| 21 | 2403 11 90 | Other water pipe smoking tobacco not bearing a brand name | 11% | 0.08 R Per unit |
| 22 | 2403 19 10 | Smoking mixtures for pipes and cigarettes | 290% | 0.69 R Per unit |
| 23 | 2403 19 90 | Other smoking tobacco bearing a brand name | 49% | 0.28 R Per unit |
| 24 | 2403 19 90 | Other smoking tobacco not bearing a brand name | 11% | 0.08 R Per unit |
| 26 | 2403 99 10 | Chewing tobacco (without lime tube) | 160% | 0.56 R Per unit |
| 27 | 2403 99 10 | Chewing tobacco (with lime tube) | 142% | 0.56 R Per unit |
| 28 | 2403 99 10 | Filter khaini | 160% | 0.56 R Per unit |
| 29 | 2403 99 20 | Preparations containing chewing tobacco | 72% | 0.36 R Per unit |
| 30 | 2403 99 30 | Jarda scented tobacco | 160% | 0.56 R Per unit |
| 31 | 2403 99 40 | Snuff | 72% | 0.36 R Per unit |
| 32 | 2403 99 50 | Preparations containing snuff | 72% | 0.36 R Per unit |
| 33 | 2403 99 60 | Tobacco extracts and essence bearing a brand name | 72% | 0.36 R Per unit |
| 34 | 2403 99 60 | Tobacco extracts and essence not bearing a brand name | 65% | 0.36 R Per unit |
| 35 | 2403 99 70 | Cut tobacco | 20% | 0.14 R Per unit |
| 36 | 2403 99 90 | Pan masala containing tobacco ‘Gutkha’ | 204% | 0.61 R Per unit |
Following New Entries which have been inserted in the GST Compensation cess are as under:
| Sr No | HSN | Description of Goods | Old rate of GST Compensation cess | New Rate of GST Compensation Cess effective from 01-04-2023 |
| 24A | 24039100 | “Homogenised” or “reconstituted” tobacco, bearing a brand name | – | 0.36R Per unit |
| 36A | 2403 99 90 | All goods, other than pan masala containing tobacco ‘gutkha’, bearing a brand name | 96% | 0.43R Per unit |
| 36B | 2403 99 90 | All goods, other than pan masala containing tobacco ‘gutkha’, bearing a brand name | 89% | 0.43R Per unit |
- In the above table, Serial No 24A has been inserted after serial No 24.
- New serial No 36A & 36B has been substituted against Sr No.37 & 38.
- In Serial No 37 & 38 Following chapter /heading /sub heading/Tariff item has been substituted which shall come in to force from 01-04-2023
| Sr No | HSN | Description of Goods | Old rate of GST Compensation cess | New Rate of GST Compensation Cess |
| 37 | 24041100, 24041900 | All goods, other than pan masala containing tobacco ‘gutkha’, bearing a brand name | 96% | 96% |
| 38 | 24041100, 24041900 | All goods, other than pan masala containing tobacco ‘gutkha’, bearing a brand name | 89% | 89% |
| 25 | 24041100 (earlier it was 2403 91 00 or 2404 11 00 | “Homogenised” or “reconstituted” tobacco, bearing a brand name | 72% | 72% |
- For the explanation after clause (3) in Notification No 01/2017-Compensation Cess(Rate) dated 28-06-2017 following clause shall be inserted:
“(4) For the purposes of this notification, “R” appearing in column (4) means “retail sale price” as provided in the Schedule to the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017)”
- After the Explanation, and before the Paragraph 2, the following shall be inserted, namely: –
“Illustration: Calculation of goods and services tax compensation cess on Pan Masala (S. No. 1 in the Schedule above): Rate of goods and services tax compensation cess = 0.32R per unit; If retail sale price of unit (pouch) of Pan Masala = Rs. 10; goods and services tax compensation cess leviable = 0.32R = 0.32*10 = Rs. 3.2 per unit (pouch)”.
| Notification No.02/2023-Compensation cess (Rate) tax dated 31-03-2023 shall be effective from 01-04-2023 |
gst compensation cess (Rate) notification 2023
Maximum compensation cess rate w.e.f. 1-04-2023 by Latest GST Updates March 2023
- The change in maximum compensation cess in finance bill was proposed in the budget 2023.
- Now this finance bill has been enacted and the effective date of the new range of compensation cess will be applicable from 01/04/2023 a explained in the following table.
| Sr No | HSN | Description | Maximum Compensation Cess rate Old | Maximum Compensation Cess rate w.e.f. 1-04-2023 |
| 1 | 2106 90 20 | Pan Masala | 135% ad velorem | 51% of retail sales price per unit |
| 2 | 24 | Tobacco and manufactured tobacco substitutes, including tobacco products. | Four thousand one hundred and seventy rupees per thousand sticks or two hundred and ninety per cent. ad valorem or a combination thereof, but not exceeding four thousand one hundred and seventy rupees per thousand sticks plus two hundred and ninety per cent. ad valorem. | “Four thousand one hundred and seventy rupees per thousand sticks or two hundred and ninety per cent. ad valorem or a combination thereof, but not exceeding four thousand one hundred and seventy rupees per thousand sticks plus two hundred and ninety per cent. ad valorem or hundred per cent. of retail sale price per unit” |
For the purpose of above Explanations have been inserted in the finance Act, 2023 which are as under:
- “Retail sale price” means the maximum price at which the concerned goods in packaged form may be sold to the ultimate consumer and includes all taxes, local or otherwise, freight, transport charges, commission payable to dealers, and all charges towards advertisement, delivery, packing, forwarding and the like and the price is the sole consideration for such sale.
Provided that where the provisions of the Legal Metrology Act, 2009 or the rules made thereunder or any other law for the time being in force require to declare on the package, the retail sale price excluding any taxes, local or otherwise, the retail sale price shall be construed accordingly.
- where on the package of any concerned goods more than one retail sale price is declared, the maximum of such retail sale price shall be deemed to be the retail sale price.
- where the retail sale price, declared on the package of any concerned goods at the time of its clearance from the place of manufacture, is altered to increase the retail sale price, such altered retail sale price shall be deemed to be the retail sale price.
- where different retail sale prices are declared on different packages for the sale of any concerned goods in packaged form in different areas, each such retail sale price shall be the retail sale prices for the purposes of determination of the rate of cess for the said goods intended to be sold in the area to which the retail sale price relates.
| Notification No.01/2023-Compensation cess tax dated 31-03-2023 shall effective from 01-04-2023 |
gst compensation cess notification 2023
Sections of Finance Act, 2023 will Applicable from the date to be notified
The following are the sections of the Finance Act, 2023 which will be applicable from the date notified by the Central government in the official gazette.
| Sections of Finance Act 2023 | Particulars |
| 137 | Person supplying goods through ECO will also be eligible for both composition schemes |
| 138 | ITC for nonpayment to suppliers not to be added now to output tax liability |
| 139 | Supply of warehouse goods before home consumption will also now increase reversal of Common ITC |
| 139 | CSR Expenses now will not be eligible for Input Tax Credit |
| 140 | Section 23 of CGST Act will be applicable notwithstanding anything to the contrary in Section 22 and Section 24 of CGST Act 2017 |
| 141 | Restriction is being removed in revocation of cancellation of registration |
| 142to 145 | Maximum 3 years’ time limit specified for filling certain statements and returns |
| 146 | Concept of Provisional ITC in GST refund is no more applicable |
| 147 | Manner of calculation of Interest on delayed refund may be prescribed |
| 148 | The scope of Assessment of non-filers of return is being enlarged now |
| 149 | Constitution of Appellate Tribunal and Benches thereof |
| 150 | President and Member of Appellate Tribunal and their qualification, appointment, conditions of services etc. |
| 151 | Financial and Administrative powers of President |
| 152to154 | Certain changes in section 117,118 &119 of CGST Act,2017 |
| 155 | Electronic Commerce Operators must monitor transactions to avoid penalties |
| 156 | Decriminalization of certain offences under GST |
| 157 | The scope of Compounding of offences is being enlarged now |
| 158 | GST data will be shared with other system |
| 159 | Retrospective exemption for high sea sales and merchant trade |
| 160 | Recipient will be “nontaxable online recipient” even OIDAR services used for business purpose |
| 160 | The definition of Online Information and Database Access or retrieval services is being amended. |
| 161 | Changes in place of Supply of transportation services for taking goods outside India. |
| 159 | Changes in Place of supply of Transportation of goods other than Mail or courier |
All the above sections of the Finance Act, 2023 have already been discussed in our old presentation named GST Budget 2023 as per clauses of the Finance Bill.
These sections of the Finance Act, 2023 will come into force on such date as central government may, by notifications in the Official Gazette appoint
FAQS
What is amnesty scheme for GST 2023?
Following amnesty has been declared by government in March-2023 by issuing notifications.
1.The amnesty is for waiver of late fees for those who fail to furnish GSTR-10 (Final Return).
2. The amnesty is in form of waiver and reduction of late fees of GSTR-4 for those composition dealers who failed to furnish the return in FORM GSTR-4.
3. Amnesty Scheme for deemed withdrawal of assessment orders issued under Section 62
4. Amnesty to GSTR-9, 9A, 9B non fillers in relation to late fees
5. Amnesty to GSTR-10 Final Return in relation to late fees
Is Late fee waived for GSTR-9?
Answer- partly waived .
Fee reduced by Rs.50 or 0.02% of turnover in case when turnover is up to 5 crore
Fee reduced by Rs.100 or 0.02% of turnover in case when turnover is more than Rs.5 crore up to 20 crore.
What are the new GST Changes for 2023?
GST changes are as follows for March-2023.
1. GST Rate of Rab is regularized on “as is “basis for past period
2.Amnesty to GSTR-4 non fillers (Amnesty to Composition dealer)
3. Amnesty Scheme for deemed withdrawal of assessment orders issued under Section 62
4. Amnesty to GSTR-9, 9A, 9B non fillers
5. Rationalization of Late fees for GSTR-9/9A/9B
6. Amnesty to GSTR-10 Final Return
7.Extension of Time limit for issuance of Order U/S 73(9)
8.Extension of Time limit for issuance of SCN U/S 73(1)
9.Changes in rate of compensation cess effective from 01-04-2023
10. Certain changes in Maximum compensation cess Rate effective from 01-04-2023
11. Sections of Finance Act, 2023 will Applicable from the date to be notified
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