Monthly GST Newsletter for April 2023
Please find below the important clarifications/ amendments issued by the Government on GST in March/ April 2023 alongwith compliance timelines in April 2023:
Compliance timelines:
| Form No. | Description | To whom applicable | Period | Due date |
|---|---|---|---|---|
| GSTR-7 | Details of Tax deducted at source (TDS) under GST | Tax deducted at source (TDS) deductors | March 2023 | 10th April 2023 |
| GSTR-8 | Details of Tax collected at source (TCS) under GST | Tax collected at source (TCS) deductors | March 2023 | 10th April 2023 |
| GSTR-1 | The return of outward supplies | Tax payers (Monthly Filers) | March 2023 | 11th April 2023 |
| GSTR-1 | The return of outward supplies | Tax payers (Quarterly Filers under QRMP) | Jan – Mar 2023 | 13th April 2023 |
| GSTR-5 | Summary of outward and inward supplies | Non-resident foreign taxpayer | March 2023 | 13th April 2023 |
| GSTR-6 | Details of inputs to be distributed | Input Service Distributor | March 2023 | 13th April 2023 |
| CMP 08 | Statement for payment of self-assessed tax | Composition Dealers | Jan – Mar 2023 | 18th April 2023 |
| GSTR-5A | Summary of outward supplies | Online Information and Database Access or Retrieval (OIDAR) service providers | March 2023 | 20th April 2023 |
| GSTR-3B | Summary of outward and inward supplies and payment of tax liability | Tax payers (Monthly Filers) | March 2023 | 20th April 2023 |
| GSTR-3B | Summary of outward and inward supplies and payment of tax liability | Tax payers (Quarterly Filers under QRMP) | Jan - Mar 2023 | 22nd/ 24th April 2023 (See Note 1 below) |
| GSTR 4 | Return for FY of registered person who has opted for Composition | Composition Dealers | FY 2022-23 | 30th April 2023 |
Note 1:
List 1 States - Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep
List 2 States - Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi.
List 1 States - Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep
List 2 States - Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi.
pdates in the month of March/ April 2023
As per provision of section 2(62) of The Companies Act, 2013 “One Person Company” is defined as a company which has only one person as member. Some issues have been raised by the persons registering as ‘One Person Company’ while they take GST registration since the option of choosing One Person Company is not there in form notified by CGST/SGST Acts and hence not available on the GSTN portal.
It is advised that in the ‘Part B’ of GST Registration Form ‘REG-01’, applicant may select (Constitution of Business under ‘Business Details’ tab using dropdown list) option “Others”. After selecting option as “Others”, the applicant shall also mention “One Person Company” in the text field.
https://www.gst.gov.in/
As per Notification No. 78/2020 –Central Tax dated 15th October 2020, it is now mandatory for taxpayers, having Aggregate Annual Turnover of more than 5 crores in any previous financial year, to report a minimum of six-digit valid HSN code for their outward supplies. However, the Government is in the process of implementing the same at IRPs portal and the exact date of implementation would be communicated shortly.
Therefore, GSTN has issued an advisory for taxpayers that in case wherever valid six digit HSN code is not available at IRPs portal, a corresponding valid eight digit HSN code be reported instead of artificially creating six digit HSN code.
The exact date of implementation shall be communicated by GSTN shortly.
https://www.gst.gov.in/
GST Council in its 49th meeting held on 18 Feb 2023 had proposed amnesty for defaults in filing of forms/ returns by the taxpayers. Notifications for the same have been issued dated 31st March, 2023. The amnesty scheme is applicable from on April 1, 2023 till June 30, 2023. Details of the amnesty scheme are as follows:
The CBIC has issued notification to extend the time limit for issuing orders under Section 73(10). The time limit for the financial year 2017-18 is extended up to 31st December, 2023; for the financial year 2018-19 is extended up to the 31st March, 2024 and for the financial year 2019-20 is extended up to 30th June, 2024. (Notification No. 09/2023–Central Tax dated March 31st, 2023). The revised time limit set u/s 73(2) read with 73(10) of the CGST Act, 2017 (including that u/s 74(2) read with 74(10)) for issue of Notices and completion of adjudication is as follows:
*Extended vide Notification No. 13/2022 Central Tax dated 5th Jul, 2022 (w.e.f. 01.03.2020)
**Extended vide Notification No. 09/2023–Central Tax dated March 31st, 2023
CBIC has issued notifications to provide that if an applicant opts for authentication of Aadhaar number then the date of submission of the application shall be the date of authentication of the Aadhaar number, or fifteen days from the submission of the application whichever is earlier. It is also provided that if any person who has opted for authentication of Aadhaar number and is identified on the common portal, based on data analysis and risk parameters, then its application shall be followed by biometric-based Aadhaar authentication and taking photograph of the individual applicant or of such individuals in relation to the applicant where the applicant is not an individual. These shall be deemed to have come into force from the 26th day of December, 2022. (Notification No. 04/2023–Central Tax & Notification No. 05/2023–Central Tax dated March 31st, 2023).
CBIC has reduced late fees for filing of annual return for taxpayers having turnover of up to Rs. 20 Crores. This rationalization of the late fee is applicable from the FY 2022-23 onwards. The late fees shall be Rs. 50 per day (i.e. Rs. 25 in CGST and Rs. 25 in SGST) subject to a maximum of 0.04% (i.e. 0.02% in CGST and 0.02% in SGST) of the turnover for taxpayers having turnover up to 5 crores. Further the late fees shall be Rs. 100 per day (i.e. Rs. 50 in CGST and Rs. 50 in SGST) subject to a maximum of 0.04% (i.e. 0.02% in CGST and 0.02% in SGST) of the turnover for taxpayers having turnover up to 20 crores. (Notification No. 07/2023–Central Tax dated March 31st, 2023).
The Government has appointed April 1st, 2023 as date on which the provisions of section 163 of the Finance Act 2023 shall come into force. The Act provides to change the levy of GST compensation cess from ad valorem to specific tax based levy on the retail sale price for products like Pan Masala, Tobacco and manufactured tobacco substitutes, etc. (Notification No. 01/2023-Compensation Cess dated March 31st, 2023). The Government has thus notified new GST Compensation Cess rates for the said products. (Notification No. 02/2023-Compensation Cess dated March 31st, 2023)
WBGST has implemented a system of electronic generation of Document Identification Number (DIN) w.e.f. April 01, 2023 for those communications under GST that cannot be generated through GSTN portal e.g. summons, arrest memos, search authorizations, inspection notices, recovery proceedings etc. Some exceptions and relaxations have also been provided to the officers in issue of WBGST DIN. A structure has also been recommended for WBGST DIN. One can also check the genuineness of such communication through the website of the Directorate of Commercial Taxes, GoWB. (https://egov.wbcomtax.gov.in/
It may be noted that, subject to the exceptions and relaxations, any communication, as specified, which does not bear the WBGST DIN shall be treated as invalid and shall be deemed to have never been issued.
(Trade Circular No. 01/2023 dated 29.03.2023)
https://www.wbcomtax.gov.in/
- Advisory for taxpayers wishing to register as “One Person Company” in GST
As per provision of section 2(62) of The Companies Act, 2013 “One Person Company” is defined as a company which has only one person as member. Some issues have been raised by the persons registering as ‘One Person Company’ while they take GST registration since the option of choosing One Person Company is not there in form notified by CGST/SGST Acts and hence not available on the GSTN portal.
It is advised that in the ‘Part B’ of GST Registration Form ‘REG-01’, applicant may select (Constitution of Business under ‘Business Details’ tab using dropdown list) option “Others”. After selecting option as “Others”, the applicant shall also mention “One Person Company” in the text field.
https://www.gst.gov.in/
- GSTN issues advisory on HSN Code Reporting in e-Invoice on IRPs Portal
As per Notification No. 78/2020 –Central Tax dated 15th October 2020, it is now mandatory for taxpayers, having Aggregate Annual Turnover of more than 5 crores in any previous financial year, to report a minimum of six-digit valid HSN code for their outward supplies. However, the Government is in the process of implementing the same at IRPs portal and the exact date of implementation would be communicated shortly.
Therefore, GSTN has issued an advisory for taxpayers that in case wherever valid six digit HSN code is not available at IRPs portal, a corresponding valid eight digit HSN code be reported instead of artificially creating six digit HSN code.
The exact date of implementation shall be communicated by GSTN shortly.
https://www.gst.gov.in/
- Amnesty scheme for non-filing of various forms/ returns
GST Council in its 49th meeting held on 18 Feb 2023 had proposed amnesty for defaults in filing of forms/ returns by the taxpayers. Notifications for the same have been issued dated 31st March, 2023. The amnesty scheme is applicable from on April 1, 2023 till June 30, 2023. Details of the amnesty scheme are as follows:
- Waiver in late fees for non-furnishing of FORM GSTR-4 (Return to be filed for taxpayers under Composition scheme) - The late fees has been notified to a maximum of Rs. 500/- and NIL in case of NIL returns. (Notification No. 02/2023–Central Tax dated March 31st, 2023).
- Extension for filing of revocation of cancellation of registration - Prescribe special procedure in respect of revocation of cancellation of registration which were cancelled on or before 31st December, 2022 and the taxpayer has failed to file revocation with time prescribed. The taxpayer can apply for revocation of cancellation of such registration up to 30th June, 2023 but only after furnishing the returns due up to the effective date of cancellation of registration and payment of taxes with interest, penalty & late fees. (Notification No. 03/2023–Central Tax dated March 31st, 2023).
- Deemed withdrawal of best judgment assessment order - An amnesty scheme has been introduced for conditional deemed withdrawal of best judgement assessment orders in past cases. This scheme shall be applicable if the concerned return could not be filed within 30 days of the assessment order but it shall be filed along with due interest and late fee up to 30th June 2023. (Notification No. 06/2023–Central Tax dated March 31st, 2023).
- Waiver in late fees for non-furnishing of FORM GSTR-9 (Annual Return) - The late fees has been notified to a maximum of Rs. 20,000/-. (Notification No. 07/2023–Central Tax dated March 31st, 2023).
- Waiver in late fees for non-furnishing of FORM GSTR-10 (Final Return) - The late fees has been notified to a maximum of Rs. 1,000/-. (Notification No. 08/2023–Central Tax dated March 31st, 2023).
- Extension of time limit for issuing order u/s 73 for FYs 17-18 to 19-20
The CBIC has issued notification to extend the time limit for issuing orders under Section 73(10). The time limit for the financial year 2017-18 is extended up to 31st December, 2023; for the financial year 2018-19 is extended up to the 31st March, 2024 and for the financial year 2019-20 is extended up to 30th June, 2024. (Notification No. 09/2023–Central Tax dated March 31st, 2023). The revised time limit set u/s 73(2) read with 73(10) of the CGST Act, 2017 (including that u/s 74(2) read with 74(10)) for issue of Notices and completion of adjudication is as follows:
| Last date for issue of SCN and Order under GST | ||||||
|---|---|---|---|---|---|---|
| Financial Year | 9/9C Due date | SCN u/s 73(2) | Order u/s 73(10) | SCN u/s 74(2) | Order u/s 74(10) | Original/ Extended |
| Within 2 years 9 months | Within 3 years | Within 4 years 6 months | Within 5 years | |||
| 2017-18 | 05/07/ Feb/ 2020 | 05/07/ Nov/ 22 | 05/07/ Feb/ 23 | 05/07/ Aug/ 24 | 05/07/ Feb/ 25 | Original |
| 30/06/23 | 30/09/23* | Extended* | ||||
| 30/09/23 | 31/12/23** | Further Extended** | ||||
| 2018-19 | 31/12/20 | 30/09/23 | 31/12/23 | 30/06/25 | 31/12/25 | |
| 31/12/23 | 31/03/24** | Extended** | ||||
| 2019-20 | 31/03/21 | 31/12/23 | 31/03/24 | 30/09/25 | 31/03/26 | |
| 31/03/24 | 30/06/24** | Extended** | ||||
| 2020-21 | 28/02/22 | 30/11/24 | 28/02/25 | 31/08/26 | 28/02/27 | |
| 2021-22 | 31/12/22 | 30/09/25 | 31/12/25 | 30/06/27 | 31/12/27 | |
*Extended vide Notification No. 13/2022 Central Tax dated 5th Jul, 2022 (w.e.f. 01.03.2020)
**Extended vide Notification No. 09/2023–Central Tax dated March 31st, 2023
- Procedure/ timelines for Aadhaar authentication & submission of registration application in Gujarat
CBIC has issued notifications to provide that if an applicant opts for authentication of Aadhaar number then the date of submission of the application shall be the date of authentication of the Aadhaar number, or fifteen days from the submission of the application whichever is earlier. It is also provided that if any person who has opted for authentication of Aadhaar number and is identified on the common portal, based on data analysis and risk parameters, then its application shall be followed by biometric-based Aadhaar authentication and taking photograph of the individual applicant or of such individuals in relation to the applicant where the applicant is not an individual. These shall be deemed to have come into force from the 26th day of December, 2022. (Notification No. 04/2023–Central Tax & Notification No. 05/2023–Central Tax dated March 31st, 2023).
- Reduction in late fees for Annual Returns from FY 2022-23 onwards
CBIC has reduced late fees for filing of annual return for taxpayers having turnover of up to Rs. 20 Crores. This rationalization of the late fee is applicable from the FY 2022-23 onwards. The late fees shall be Rs. 50 per day (i.e. Rs. 25 in CGST and Rs. 25 in SGST) subject to a maximum of 0.04% (i.e. 0.02% in CGST and 0.02% in SGST) of the turnover for taxpayers having turnover up to 5 crores. Further the late fees shall be Rs. 100 per day (i.e. Rs. 50 in CGST and Rs. 50 in SGST) subject to a maximum of 0.04% (i.e. 0.02% in CGST and 0.02% in SGST) of the turnover for taxpayers having turnover up to 20 crores. (Notification No. 07/2023–Central Tax dated March 31st, 2023).
- Specific levy of GST compensation cess applicable w.e.f. 01.04.2023 on commodities like pan masala, tobacco, etc.
The Government has appointed April 1st, 2023 as date on which the provisions of section 163 of the Finance Act 2023 shall come into force. The Act provides to change the levy of GST compensation cess from ad valorem to specific tax based levy on the retail sale price for products like Pan Masala, Tobacco and manufactured tobacco substitutes, etc. (Notification No. 01/2023-Compensation Cess dated March 31st, 2023). The Government has thus notified new GST Compensation Cess rates for the said products. (Notification No. 02/2023-Compensation Cess dated March 31st, 2023)
- Document Identification Number (DIN) on communications issued under GST by WBGST
WBGST has implemented a system of electronic generation of Document Identification Number (DIN) w.e.f. April 01, 2023 for those communications under GST that cannot be generated through GSTN portal e.g. summons, arrest memos, search authorizations, inspection notices, recovery proceedings etc. Some exceptions and relaxations have also been provided to the officers in issue of WBGST DIN. A structure has also been recommended for WBGST DIN. One can also check the genuineness of such communication through the website of the Directorate of Commercial Taxes, GoWB. (https://egov.wbcomtax.gov.in/
It may be noted that, subject to the exceptions and relaxations, any communication, as specified, which does not bear the WBGST DIN shall be treated as invalid and shall be deemed to have never been issued.
(Trade Circular No. 01/2023 dated 29.03.2023)
https://www.wbcomtax.gov.in/