This article covers the latest gst updates summary August 2023. It contains all the Notifications and Circulars issued in August 2023 which covers all GST Updates August 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.
Clarification regarding GST Rates on certain goods
| Item | GST Rate Before 27th July 2023 | GST Rate After 27th July 2023 | Remarks |
| Uncooked/Un-fried Snack Pellets | 18% | 5% | See Summary -1 |
| Ready-to-eat Snack Pellets | 18% | 18% | |
| Fish Soluble Paste | 18% | 5% | See Summary -2 |
| Desiccated Coconut | 12% up to 15-11-2017 5% rate w.e.f 15-11- 2017 | Past interpretational issue Regularized “as is” | See Summary -3 |
| Biomass Briquettes | 5% w.e.f. 13.10.2017 | Past interpretational issue Regularized “as is” | See Summary -4 |
| Supply of Raw Cotton to Cooperatives | 5% on reverse charge basis | Past interpretational issue Regularized “as is” | See Summary -5 |
| Imitation Zari Thread/Yarn | 12% (before 27th July 2023) | 5% (after 27th July 2023) | See Summary -6 |
| Plates, Cups made from Areca Leaves | Not specified | Regularized “as is” before Oct. 2019 | See Summary -7 |
| Goods under HSN 9021 (Implants) | 12% (before 18th July 2022) | 5% (after 18th July 2022) | See Summary -8 |
| Sr No | Particular | Summary |
| 1 | Changes in GST Rates for Snack Pellets | In the 48th GST Council meeting, it was decided that snack pellets made using extrusion (like ‘fryums’) fall under tariff item 1905 90 30. They are considered as ‘Extruded or expanded products, savory or salted,’ and are taxed at an 18% GST rate. Later, in the 50th meeting, it was recommended that uncooked/un-fried snack pellets of the same type (under CTH 1905) should have a 5% GST rate starting from July 27, 2023. However, the ready- to-eat versions still have an 18% GST rate. To address confusion about the GST rate for uncooked/un-fried snack pellets before July 27, 2023, the issue is now resolved based on how it was before that date. |
| 2 | Applicability of GST on Fish Soluble Paste: | Fish soluble paste used to have an 18% GST rate under a certain category in the GST schedule. But in a recent decision, the GST Council recommended reducing this rate to 5% for fish soluble paste under category CTH 2309. This change became effective from July 27, 2023. To address any confusion or doubts about the GST rate on fish soluble paste before July 27, 2023, it has been regularized based on how it was previously taxed. |
| 3 | Desiccated coconut | There was some confusion and debates about how the GST rate applied to desiccated coconut (which falls under category CTH 0801) for the period from July 1, 2017, to July 27, 2017. To resolve this, the GST Council decided to regularize the issue based on how it was previously handled. |
| 4 | Biomass briquettes | Due to confusion about how GST rates applied to biomass briquettes from July 1, 2017, to October 12, 2017, the GST Council has decided to regularize the issue based on how it was handled during that period. |
| 5 | Supply of raw cotton by agriculturist to cooperatives | The GST Council clarified that when agriculturists supply raw cotton, including kala cotton, to cooperatives (which are registered entities), it counts as a taxable supply. This supply is subject to a 5% GST rate, applied on a reverse charge basis as per notification no. 43/2017-Central Tax (Rate) dated November 14, 2017. Due to genuine doubts and confusion before this clarification, any past periods related to this issue are regularized based on how they were handled before this clarification was issued. |
| 6 | Imitation Zari thread or yarn known by any name in trade parlance | Initially, the GST rate for embroidery or zari articles was set at 5%. However, later, there was a clarification stating that imitation zari thread or yarn, known as “Kasab” or by any other name in trade, would have a higher GST rate of 12%. In the 50th meeting of the GST Council, it was decided to reduce the GST rate on imitation zari thread or yarn back to 5%. This change became effective from July 27, 2023. Because there was confusion in the trade regarding the GST rate on these products before July 27, 2023, any issues related to this are now regularized based on how they were handled before this change. |
| 7 | Plates, cups made from areca leaves | The GST Council has decided to regularize any issues related to the GST applied to plates and cups made from areca leaves based on how they were handled before October 1, 2019. This means that the GST treatment for these items will be considered unchanged for the period before that date. |
| 8 | GST rate on goods falling under HSN 9021 | There were questions about the GST rates for trauma, spine, and arthroplasty implants under HSN heading 9021 before July 18, 2022. This confusion arose because there were two different rates for similar items before that date. After discussions in the GST Council meetings, it was decided to have a single uniform GST rate of 5% for these items (except for hearing aids, which remained at a Nil rate) starting from July 18, 2022. To address past doubts about the GST rates on these items, it’s now clarified that the 5% rate applies retroactively. However, there won’t be any refunds for cases where GST was already paid at a higher rate of 12%. |
Services supplied by the Director to the company in his private/personal capacity are not taxable under RCM
| Topic | Clarification |
| Services Supplied by Director of a Company in Personal Capacity | Services such as renting immovable property to the company or body corporate by a director in their private capacity are not subject to Reverse Charge Mechanism (RCM). Only services supplied by a director in their capacity as a director of the company or body corporate are taxable under RCM. |
| Supply of Food or Beverages in Cinema Hall | The supply of food or beverages in a cinema hall is taxable as a ‘restaurant service’ if: a) the food or beverages are supplied as part of a service, and b) they are supplied independently of the cinema exhibition service. If cinema tickets and food/beverages are sold together and meet the criteria for a composite supply, then the entire supply is taxed at the rate applicable to the cinema exhibition service, which is considered the principal supply. |
Special Procedure for E-Commerce Operators with Composition Dealer Supplies
With Effect from 01.10.2023, composition dealers of goods will be allowed to do transactions through e-ecommerce operators. The Central Government, based on recommendations from the Council, has outlined a special procedure for electronic commerce operators regarding goods supplied by taxpayers under section 10 of the Central Goods and Services Tax Act, 2017. Here’s what it involves:
- Electronic commerce operators cannot facilitate any interstate supply of goods for these taxpayers.
- They must collect tax at source as per section 52 of the Act for goods supplied by these taxpayers through them. This tax collected must be paid to the Government as per the Act’s provisions.
- Electronic commerce operators must electronically submit details of these supplies in Form GSTR-8 on the common portal
Special Procedure for E-Commerce Operators with Exempted Persons
| Key Points | |
| Heading | Description |
| Enrolment Number Requirement | Electronic commerce operators can allow supply of goods only if the exempted person has an allotted enrolment number on the common portal. |
| Inter-State Supply Restriction | No inter-State supply of goods allowed through the electronic commerce operator by the exempted person. |
| Tax Collection Exemption | Electronic commerce operators are not required to collect tax at source under section 52 for goods supplied by exempted persons. |
| Details Submission Requirement | Electronic commerce operators must electronically submit details of goods supplied by exempted persons in FORM GSTR-8 on the common portal. |
| Definition in Multiple Operator Scenario | In cases of multiple electronic commerce operators, “the electronic commerce operator” refers to the one who finally releases payment for the supplied goods. |
| Effective Date: October 1, 2023 | |
CBIC Issues Notification for CGST (Second Amendment) Rules, 2023
| CGST Rules, 2017 | Summary |
| Rule -25 – Physical verification of business premises in certain cases. | Now physical verification can done without the presence of applicant at such place.(effective from 04-08-2023) |
| Rule-10A – Furnishing of Bank Account Details | With in 30 days days from granting registration certificate or before filling outward supply u/s 37 of CGST Act in GSTR-1/IFF whichever is earlier for furnish bank details. (effective from 04-08-2023) |
| Rule -21A – Suspension of registration | one more reason to suspend the registration: – “b) There is a contravention of the provisions of rule 10A by the registered person.” 21A(4) : On the compliance of Rule 10A, the suspension of registration shall deemed to be revoked. (effective from 04-08-2023) |
| Rule -23 -Revocation of Cancellation of registration | Registered person can apply revocation of cancellation within 90 days from the date of service of order of cancellation of registration (effective from 01-10-2023) |
| Rule-23- First Proviso | on the sufficient cause being shown by the registered person, commissioner, or any authorized person on his behalf or not below the rank of additional commissioner or joint commissioner may extend the time limit not exceeding 180 days. (effective from 01-10-2023) |
| Rule -25 Physical verification of business premises in certain cases. | After registration, if a physical verification of the business location is necessary, they need to upload the verification report, along with documents and photos, on GST REG-30 within 15 working days from the verification date. (effective from 04-08-2023) Before registration is granted, if physical verification of the business premises is needed as per Rule 9(1) of CGST Rules, 2017, They should upload the verification report, along with documents and photos, on GST REG-30 on the common portal at least 5 working days prior to the completion of the time period specified in the said proviso. (effective from 04-08-2023) |
| Rule- 43 Manner of determination of input tax credit in respect of capital goods and reversal thereof in certain cases. | For the purpose of calculation of exempt supply “The value of supply of services by way of transportation of goods by a vessel from the customs station of clearance in India to a place outside India” has been considered. Explanation 3 has been added with effect from 01-10-2023. “For the purpose of rule 42 and this rule, the value of activities or transactions mentioned in sub-paragraph (a) of paragraph 8 of Schedule III of the Act which is required to be included in the value of exempt supplies under clause (b) of the Explanation to sub-section (3) of section 17 of the Act shall be the value of supply of goods from Duty Free Shops at arrival terminal in international airports to the incoming passengers.” (effective from 01-10-2023) |
| Rule-46 Tax invoice | The Government has changed the Tax invoice details in case of supply of taxable services by or through an ECO or by a supplier of OIDAR services to unregistered person |
| Rule -88D – Manner of dealing with difference in input tax credit available in auto- generated statement containing the details of input tax credit and that availed in return. | Newly inserted Rule for Specified manner to deal with difference in ITC available in GSTR-2B and availed in GSTR-3B. (effective from 04-08-2023) |
| Rule-59 – Form and manner of furnishing details of outward supplies. | Clause(e) & (f) inserted: Clause (e) : if any intimation issued under rule 88D on the common portal then registered person shall not allowed to file GSTR-1 for subsequent tax period until registered person pay the amount equal to excess ITC specified in intimation or furnish reply with reason for amount still remains to be paid as per sub rule (2) of rule 88D (manner to deal with difference between ITC availed in GSTR-3B and ITC in GSTR-2B). (effective from 04-08-2023) Clause(f) : registered person shall not allowed to file GSTR-1 if he has not furnished bank details as per rule 10A (at time of registration furnishing bank details). (effective from 04-08-2023) |
| Rule -64-OIDAR | It means any registered person providing service of OIDAR to non- taxable online recipient u/s 14 of IGST Act, 2017 or to registered person have to file return in GSTR-5A before 20th of succeeding month. With effect from 01-10-2023, any OIDAR service supplied to nontaxable online recipient referred in section 14 of IGST Act, 2017 by any registered person also considered in GSTR-5A. |
| Rule-67- Supplies through E- commerce Operator | Now the government has widened the availability and transparency by providing that the TCS deducted u/s 52 by E-commerce operator is available on the common portal to every registered person who’s TCS has been deducted only after filling GSTR-8 by E-commerce operator. (effective from 01-10-2023) |
| Rule-89 – Application for refund of tax, interest, penalty, fees or any other amount | Before amendment, the refund can claim in the last return which required to be furnished by them. But now, refund can claim only after the last return furnished by casual taxable person (CTP) and Non- resident taxable person (NRTP) – (effective from 04-08-2023) |
| Rule 89(2)(k) | Before the amendment. Refund was only be the amount of excessive payment of tax but after amendment, government has made the change that to refund not only the amount of excessive tax, but also interest or any other amount paid. (effective from 04-08-2023) |
| Rule-94-Order sanctioning interest on delayed refunds | Government has inserted sub rule (2) for consideration of period on which government pay interest for delayed refunds (effective from 01-10-2023) |
| Rule -96 – Refund of integrated tax paid on goods 23[or services] exported out of India | Under Sub rule (2) two proviso has omitted. Earlier it is possible for registered person to file GSTR-3B without filling GSTR-1. But Now without filling GSTR-1, one cannot file GSTR-3B. Hence no more use of above two proviso. (effective from 04-08-2023) |
| Rule -108 – Appeal to Appellate Authority | Before the amendment, appeal can file by electronically or any other way which is notified by the government, but now government has placed specific word electronically. (effective from 04-08-2023) |
| Proviso of Rule 108 | Insertation of Proviso for Rule 108: to File appeal manually (effective from 04-08-2023) |
| Rule 109 – Application appellate authority | Before the amendment, application to appellate authority can file electronically or any other way which is notified by the government, but now government has placed specific word electronically. (effective from 04-08-2023) |
| Proviso of Rule -109 | CBIC has inserted the proviso for filing manual appeal. Registered person can file appeal manually in GST-APL-03 along with relevant documents in following situations: On the order of commissioner If it is not possible to file appeal electronically due to non- availability of decision or order to be appealed on the common portal. Provisional acknowledgement shall issue to appellant on filing such appeal. (effective from 04-08-2023) |
| Rule 138F- Information to be furnished in case of intra-State movement of gold, precious stones, etc. and generation of e-way bills thereof. | New Rule 138F inserted. (effective from 04-08-2023) |
| Rule-142B- Intimation of certain amounts liable to be recovered under section 79 of the Act. | New Rule 142B inserted. (effective from 04-08-2023) |
| Rule 162 -Procedure of Compounding Offence | Amendment made in Compounding amount if offence is punishable under section 132 (1) (i) & Section 132 (1) (ii) with effect from 01-10- 2023 Sub rule (3) Rule 162 of CGST Rules, 2017 has amended by CBIC by omitting following words: “has cooperated in the proceedings before him and”. (effective from 01-10-2023) |
| Rule -163- consent based sharing of information | New rule for – consent based sharing of information inserted which is effective from 01-10-2023 |
| Amendment in FORM GSTR-3A | Amendment made in Form GSTR-3A by inserting “Notice to return defaulter u/s 46 for not filling annual return” at the end of Form. (effective from 04-08-2023) |
Jurisdiction of Central Tax Officer has widened
Central Government has made amendment in Notification No.02/2017 dated 19th June 2017 by substituting entries which specifies the territorial jurisdiction of Principal Commissioner/ commissioner of central Tax.
Appointment of officer to discharge duties and exercise the powers for specified case
The CBIC has appoint the officer to act as authority to exercise the power and discharge the duties imposed on officer as per below table.
| Sr No | Name of Noticee and Address | Notice Number and Date | Name of Adjudicating Authority | Name of the Authority |
| 1 | M/s United Spirits Ltd. (USL), 26th floor, A Wing, Marathon Futurex, N.M. Joshi Marg, Lower Parel, Mumbai, Maharashtra400013. | 37/ADC/CGST / MC/ Audit-II / 2022 dated 24.08.2022 issued vide F.No.CGST- A2/MUM/F22/GST/United Spirits/5307/5668/2021/5962. | Joint or Additional Commissioner, CGST and Central Excise, Mumbai Central Commissionerate | Joint or Additional Commissioner of Central Tax, Kolkata North Central Excise and GST Commissionerate |
Due dates of GSTR-1, GSTR-3B & GSTR-7 extended in state of Manipur
The Registered person whose place of business is in the state of Manipur, have extension in furnishing return for Outward supply, TDS return and GSTR-3B for the month of April-2023, May-2023, June-2023, & July-2023.
| Type of Return | Due date | Extension in Due date | Notification Effective from |
| GSTR-1 | 11-05-2023 & 11-06-2023 & 11-07-2023 & 11-08-2023 | 25-08-2023 | 31-07-2023 |
| GSTR-3B | 20-05-2023 & 20-06-2023 & 20-07-2023 & 20-08-2023 | 25-08-2023 | 31-07-2023 |
| GSTR-7 | 10-05-2023 & 10-06-2023 & 10-07-2023 & 10-08-2023 | 25-08-2023 | 31-07-2023 |
| GSTR-3B- (QRMP) | 22-07-2023/24-07-2023 | 25-08-2023 | 31-07-2023 |
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