GST Updates Summary May-2023

This articles covers the latest gst updates summary May-2023. It contains all the Notifications and Circulars issued in May-2023 which covers all GST Updates May-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.

Date of Exercising option of Forward charge for GTA has been extended

The deadline for Goods Transport Agency (GTA) to exercise the option of Forward Charge for the financial year 2023-24 has been extended from March 15, 2023 to May 31, 2023.

For GTAs who have recently registered for GST, they will have either 45 days from the date of their application for GST registration or 1 month from the date of their registration, whichever is later, to choose whether they want to use the Forward Charge option. The Forward Charge option allows the GTA to pay the GST themselves and claim a credit for the GST paid on their inputs. This rule gives newly registered GTAs some time to decide whether to use the Forward Charge option and make the necessary arrangements to comply with the GST regulations.

Our Analysis:

  • As per Notification No.11/2017 –Central Tax (Rate) Dated 28-06-2017 amended with notification no.03/2022-Central Tax (Rate) dated 13-07-2022 –GTA have option to pay GST itself on services supplied by it by choosing GST rate 2.5% or 6% .
  • Such options have conditions :

Regarding 2.5% rate – if GTA choose 2.5% rate to pay to government he shall not entitle to take credit of input tax charged on goods and services used in supplying the service.

Regarding 6% rate – – if GTA choose 6% rate to pay to government he shall entitle to take credit of input tax charged on goods and services used in supplying the service.

  • GTA has to provide declaration in Annexure-V on or before 15th March of the preceding financial year after choosing one the above rates.

In case of 2022-23, the option should exercise before 16th Augsut-2022.

  • Now the Government has made further amendment in above contained notification by inserting following proviso as follow:

“Provided also that the option for the Financial Year 2023-2024 shall be exercised on or before the 31st May, 2023”.

“Provided also that a GTA who commence new business or crosses threshold for registration during any financial year may exercise the option to itself pay GST on the services supplied by it during that financial year by making a declaration in Annexure V Before the expiry of forty five days from the date of applying for GST registration or one month from the date of obtaining registration whichever is later”.

  • Government has extended the last date for exercising the option of Forward charge by Goods Transport Agency (GTA) for FY 2023-24 from 15-03-2023 to 31-05-2023. Furthermore, for newly registered GTAs, a time period of 45 days from the date of application of GST registration or 1

month from the date of registration, whichever is later, shall be available for exercising option of Forward charge.

E invoice limit has been reduced to 5 Crores from ten crore limit with effect from 01-08-2023

With Effect from 01-08-2023, E invoice will be applicable to all taxpayers having aggregate turnover in the preceding financial year from 2017-18 exceeds 5 Crore rupees. Now the E invoice limit has been reduced to 5 Crores from ten crore limit with effect from 01-08-2023.

E Invoice applicability
Notification No.13/202061/202088/202005/202101/202217/202210/2023
Turnover Limit          for application of E invoice100 Crore500 Crore100 Crore50 Crore20 Crore10 Crore5 Crore
Date            of Applicability1-10- 202001-01-202101-04-202101-04-202201-10-202201-08-2023
For Turnover limit – Aggregate Turnover of any preceding financial year from 2017-18 onwards exceeds the limits above specified

Guidelines for special All –India Drive against fake registration

Purpose of GuidelinesTo address fraudulent activities related to fake GST registrations and bogus invoices
Special Drive PeriodMay 16 to July 15, 2023
Identification of Suspect GSTINsUsing data analytics and risk parameters, suspicious GST registrations will be identified
Verification ProcessField officers will verify suspicious GSTINs promptly to determine if they are fraudulent
Action Against Fraudulent GSTINsIf found fraudulent, GST registrations will be suspended or canceled, and input tax credit misuse addressed
National Coordination CommitteeWill monitor the progress of the Special Drive, meet periodically, and compile unique modus operandi
Reporting and FeedbackWeekly progress reports will be submitted, and feedback on results of verification will be provided

This table summarizes the key aspects and actions outlined in the guidelines for addressing fake GST registrations and bogus invoices during the Special Drive period.

Due dates of GSTR-1, GSTR-3B & GSTR-7 extended for the 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.

Type of ReturnDue dateExtension in Due dateNotification Effective from

Standard Operating Procedure for Scrutiny of Returns for FY 2019-20 onwards.

SOP Modification for Scrutiny of ReturnsThe Standard Operating Procedure (SOP) for scrutiny of returns under the CGST Act has been modified to include an online workflow for scrutiny of returns in the CBIC ACES-GST application.
Functionality DevelopmentDG Systems has developed the “Scrutiny of Returns” functionality, containing the online workflow for scrutiny of returns, and provided a User Manual for detailed guidance.
Selection and CommunicationGSTINs selected for scrutiny for a financial year will be communicated by DGARM to the concerned proper officer of Central Tax on ACES-GST application based on identified risk parameters.
Scrutiny ScheduleA scrutiny schedule will be finalized by the proper officer with divisional approval, prioritizing riskier GSTINs, and monitored by the Principal Commissioner/ Commissioner of the concerned Commissionerate.
Process of ScrutinyThe proper officer will scrutinize returns and discrepancies, communicate discrepancies to registered persons through forms on ACES-GST application, and take further action based on responses received within specified timelines.
Timelines for ScrutinySpecific timelines are provided for communication, issuance of notices, receipt of replies, and initiation of further actions during the scrutiny process, ensuring a time-bound and efficient scrutiny of returns.
Reporting and MonitoringMIS reports on the ACES-GST application will display the progress and details of actions taken during the scrutiny of returns, facilitating monitoring and oversight by jurisdictional authorities.

This table summarizes the key aspects and procedures outlined in the instructions for the scrutiny of returns under the CGST Act, including the modification of the SOP, development of the online functionality, selection and communication processes, scrutiny schedule, timelines, and reporting mechanisms.

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