Important Changes Final 05.02.24 GST

IMPORTANT CHANGES IN GST LAW IN FY 2023-24 AND PROPOSED CHANGES IN THE
INTERIM BUDGET 2024
- MS. ASHIMA BANSAL

JOINT SECRETARY, GST COUNCIL
CHANGES IN INTERIM
BUDGET 2024
Changes relating to Input Service Distributor:
Finance Bill 2024

These changes are in light with the recommendations in 50th GST Council meeting held on 11.07.2023 which provides that ISD (Input Service Distributor)
procedure as laid down in Section 20 of the CGST Act, 2017 may be made mandatory prospectively for distribution of ITC in respect of input services
procured by Head Office (HO) from a third party but attributable to both HO and Branch Office (BO) or exclusively to one or more BOs. Further, The Council
in its 52nd GST meeting held on 7th October, 2023 has recommended amendments in Section 2(61) and section 20 of CGST Act, 2017 as well amendment in
rule 39 of CGST Rules, 2017 in respect of the same.
a) Amendment in the Definition of Input Service Distributor(ISD) (Section 2(61) of the CGST Act):
The amended definition of ISD reads as - ‘an office of the supplier of goods or services or both which receives tax invoices towards the receipt of input
services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons
referred to in section 25, and liable to distribute the input tax credit in respect of such invoices in the manner provided in section 20’.
The amendment proposed to include the ISD to distribute ITC in respect of services, the tax on which is liable to be paid under reverse charge mechanism
u/s 9(3) and 9(4) of the CGST Act.
‘2(61) “Input Service Distributor” means an office of the supplier of goods or services or both which receives tax invoices towards the
receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or
on behalf of distinct persons referred to in section 25, and liable to distribute the input tax credit in respect of such invoices in the manner
provided in section 20;’.
Changes relating to Input Service Distributor:
Finance Bill 2024
b) Amendment in the Manner of distribution of ITC by the ISD (Section 20 of the CGST Act):
• It is proposed to make registration as Input Service Distributor (ISD) mandatory in case of procurement of common input services and distribution of ITC
thereof to distinct persons. Clause (61) of section 2 relating to the definition of ISD are proposed to be substituted for this purpose. Earlier through 50th
Council Meet held on 11.07.2023, followed by a CBIC Circular No. 199/11/2023-GST dated 17-07-2023, it was clarified that the Head Office (HO) had an
option to distribute ITC in respect of such common input services either by following ISD mechanism or cross charge and that the ISD route was not
mandatory as per the current provisions of the CGST Act and Rules.
• A new manner of distribution along with the restrictions and conditions would be prescribed, to distribute the credit of central tax or integrated tax
charged on invoices received by ISD.
20. (1) Any office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services,
including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of
distinct persons referred to in section 25, shall be required to be registered as Input Service Distributor under clause (viii) of
section 24 and shall distribute the input tax credit in respect of such invoices.
(2) The Input Service Distributor shall distribute the credit of central tax or integrated tax charged on invoices received by him,
including the credit of central or integrated tax in respect of services subject to levy of tax under sub-section (3) or sub-section
(4) of section 9 paid by a distinct person registered in the same State as the said Input Service Distributor, in such manner,
within such time and subject to such restrictions and conditions as may be prescribed.
(3) The credit of central tax shall be distributed as central tax or integrated tax and integrated tax as integrated tax or central
tax, by way of issue of a document containing the amount of input tax credit, in such manner as may be prescribed.
Insertion of new section 122A for levying penalty in case failure to register certain machines used in manufacture
of goods as per special procedure notified u/s 148 of CGST Act (i.e. Tobacco, Pan-masala and similar items)
• It is proposed to insert a new section 122A, relating to the penalty for failure to register certain machines used in manufacture of goods as
per special procedure notified u/s 148 of the Act.
• According to the newly inserted section, an additional penalty of Rs. 1 lakh per unregistered machine shall be imposed. The other
penalties specified under Chapter XV under the CGST Act would continue to apply. Also, there would also be a provision for confiscation of
unregistered machines.
• Recently, Notification No. 4/2024-Central Tax, dated 05-01-2024 was issued to prescribe new special procedure to be followed by registered
persons engaged in manufacturing notified goods. The effective date for the implementation of this notification is April 01, 2024.
• The Section 122A read as:
122A. (1) Notwithstanding anything contained in this Act, where any person, who is engaged in the manufacture of goods in respect of which
any special procedure relating to registration of machines has been notified under section 148, acts in contravention of the said special
procedure, he shall, in addition to any penalty that is paid or is payable by him under Chapter XV or any other provisions of this Chapter, be
liable to pay a penalty equal to an amount of one lakh rupees for every machine not so registered.
(2) In addition to the penalty under sub-section (1), every machine not so registered shall be liable for seizure and confiscation:
Provided that such machine shall not be confiscated where––
(a) the penalty so imposed is paid, and
(b) the registration of such machine is made in accordance with the special procedure within three days of the receipt of communication of the
order of penalty.
CHANGES IN CGST/IGST ACT:
FINANCE ACT 2023
No.34/2023–Central Tax] Dated: 31st July, 2023 (w.e.f. 1.10.2023)
Persons making supplies of goods through an ECO who is required to collect tax at source under section 52 of the
said Act and having an Aggregate turnover in the preceding financial year and in the current financial year not
exceeding the amount of Aggregate turnover above which a supplier is liable to be registered in the State or Union
territory in accordance with the provisions of sub-section (1) of section 22 of the said Act, as the category of persons
exempted from obtaining registration under the said Act, subject to the following conditions, namely: —
(i) such persons shall not make any inter-State supply of goods;
(ii) such persons shall not make supply of goods through Electronic commerce operator in more than one State or
Union territory;
(iii) such persons shall be required to have a Permanent Account Number issued under the Income Tax Act, 1961 (43
of 1961);
(iv) such persons shall, before making any supply of goods through Electronic commerce operator, declare on the
Common portal their Permanent Account Number issued under the Income Tax Act, 1961 (43 of 1961), address
of their Place of business and the State or Union territory in which such persons seek to make such supply, which
shall be subjected to validation on the Common portal;
(v) such persons have been granted an enrolment number on the Common portal on successful validation of the
Permanent Account Number declared as per clause (iv);
(vi) such persons shall not be granted more than one enrolment number in a State or Union territory;
(vii) no supply of goods shall be made by such persons through Electronic commerce operator unless such persons
have been granted an enrolment number on the Common portal; and
(viii)where such persons are subsequently granted registration under section 25 of the said Act, the enrolment
number shall cease to be valid from the effective date of registration.
Section 137 of the FA, 2023 — Section 10 CGST Act, 2013
Composition levy extended to suppliers of goods under ecommerce model:

[Notification No. 28/2023 – Central Tax dated 31.07.2023]
• Previously, registered individuals involved in supplying goods through an E-commerce operator (ECO) did not have
access to the Composition Scheme’s benefits. (Supply of services still restricted)
• Now, these benefits will be extended to them.
• However, certain restrictions will still apply to registered individuals engaged in providing services through an E-
commerce operator.
The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification Nos. 36/2023 – Central Tax on August
04, 2023. These notifications outline a special procedure that E-commerce operators must follow when dealing with
the supply of goods by individuals who are tax-paying Composition Dealers under Section 10 of the Act.
The procedure in respect of supply of goods made through ECO by the persons paying tax under section 10 of the
said Act (hereinafter referred to as the said person) is summarized hereunder:
1. The ECO is prohibited from allowing any inter-state supply of goods through its platform by the said person.
2. The ECO shall allow the supply of goods through it by the said person only if an enrolment number has been
allotted on the common portal to the said person;
3. The ECO must collect tax at source under sub-section (1) of Section 52 of the CGST Act for the supplies of goods
made by the said person through its platform.
Section 138 of the FA, 2023 — Second and third proviso to Section 16(2) of the CGST Act:
Clarificatory amendment concerning payment to supplier within 180 days
To align the language of law with the return filling system provided in the CGST Act, the updated provision stipulates that
if a recipient fails to settle the invoice amount, including taxes, to the supplier within 180 days from the date of
issue of the invoice, the recipient must pay an amount equivalent to the ITC they have claimed, in addition to the
interest outlined in Section 50 of the CGST Act.
Amended second and third proviso to Section 16(2) of the CGST Act:
Provided further that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on
reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the
date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be 9[paid by him along with interest
payable under section 50], in such manner as may be prescribed:
Provided also that the recipient shall be entitled to avail of the credit of input tax on payment made by him 10[to the supplier] of the amount towards
the value of supply of goods or services or both along with tax payable thereon.
9. Substituted (w.e.f. 1st October, 2023 vide Notification No. 28/2023-C.T., dated 31st July, 2023) by s. 138 of The Finance Act 2023 (No. 8 of 2023) for "added to his output tax
liability, along with interest thereon".
10. Inserted (w.e.f. 1st October, 2023 vide Notification No. 28/2023-C.T., dated 31st July, 2023) by s. 138 of The Finance Act 2023 (No. 8 of 2023).

Section 139 of the FA, 2023 - Section 17(3) of the CGST Act:
Sale of warehoused goods before filing BOE includible in value of exempt supply for reversal of common ITC u/s 17(3)
r.w. Rule 42/43
The value of transactions as may be prescribed in respect of para 8(a) of Schedule III to the CGST Act i.e., “Supply of
warehoused goods to any person before clearance for home consumption”, shall be includible in the value of exempt supply for
the purpose of reversal of common input tax credit u/s 17(3) r. w. Rule 42/43.
17(2) Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods
and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable
supplies including zero-rated supplies.
(3) The value of exempt supply under sub-section (2) shall be such as may be prescribed, and shall include supplies on which the recipient is liable to pay tax on reverse charge basis,
transactions in securities, sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building.
Explanation.- For the purposes of this sub-section, the expression "value of exempt supply" shall not include the value of activities or transactions specified in Schedule III, 4[except,—
(i) the value of activities or transactions specified in paragraph 5 of the said Schedule; and
(ii) the value of such activities or transactions as may be prescribed in respect of clause (a) of paragraph 8 of the said Schedule.]
Schedule III - 8. (a) Supply of warehoused goods to any person before clearance for home consumption
Section 17(5)(fa) of the CGST Act: ITC blocked on CSR activities

ITC shall not be available on goods/services received by taxable person, which are used or intended to be used for activities
relating to fulfilment of obligations under Corporate Social Responsibility (“CSR”) activities. This is applicable prospectively.
17(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the
following, namely:-………………
(fa) goods or services or both received by a taxable person, which are used or intended to be used for activities relating to his obligations under corporate social
responsibility referred to in section 135 of the Companies Act, 2013.
Section 140 of the FA, 2023 — Section 23(2) of the CGST Act:
Retrospective overriding effect of Section 23(2) on Sections 22 and 24 w.e.f. July 2017
Retrospective amendment from 01.07.2017, to provide that the persons exempted from obtaining
registration by virtue of a notification issued u/s 23(2) of the CGST Act need not be obtain registration
notwithstanding anything contained u/s 22 (threshold limit cases) or 24 (mandatory cases).
It was observed that the overriding effect of sub-section (2) of section 23 over sub-section (1) of section
22 and section 24 of CGST Act is required to ensure that a person specifically exempted from registration
vide a notification issued under sub-section (2) of section 23 of CGST Act, subject to the conditions
specified in the said notification, may not be subjected to the requirement of the provisions of sub- section
(1) of section 22 and section 24 of CGST Act for taking registration, as the same may in effect nullify the
effect of the said notification.
Amendment to Section 23: "(2) Notwithstanding anything to the contrary contained in sub-section (1) of section 22 or section 24, the
Government may, on the recommendations of the Council, by notification, subject to such conditions and restrictions as may be specified
therein, specify the category of persons who may be exempted from obtaining registration under this Act.”

Section 141 of FA, 2023 — Section 30(1) of the CGST Act:
Time limit on application for revocation of cancelled registration
Time limit of 30 days prescribed u/s 30 has been omitted for moving an application for Revocation of
Cancellation of GST Registration.
The time period has been prescribed under Rule 23 which is increased to 90 days from the date of order of
cancellation or such further period as may be allowed by Commissioner not exceeding 180 days.
Rule 23 (1) A registered person, whose registration is cancelled by the proper officer on his own motion, may 1[subject to the provisions of rule 10B ] submit an
application for revocation of cancellation of registration, in FORM GST REG-21, to such proper officer, 4[within a period of thirty days from the date of the service
of the order of cancellation of registration or within such time period as extended by the Additional Commissioner or the Joint Commissioner or the Commissioner,
as the case may be, in exercise of the powers provided under the proviso to sub-section (1) of section 30, [within a period of ninety days from the date of the
service of the order of cancellation of registration]at the common portal, either directly or through a Facilitation Centre notified by the Commissioner:
Provided that 4[Provided that such period may, on sufficient cause being shown, and for reasons to be recorded in writing, be extended by the
Commissioner or an officer authorised by him in this behalf, not below the rank of Additional Commissioner or Joint Commissioner, as the case may
be for a further period not exceeding one hundred and eighty days:] no application for revocation shall be filed, if the registration has been cancelled for the
failure of the registered person to furnish returns, unless such returns are furnished and any amount due as tax, in terms of such returns, has been paid along
with any amount payable towards interest, penalty and late fee in respect of the said returns.
Provided also that all returns due for the period from the date of the order of cancellation of registration till the date of the order of revocation of cancellation of
registration shall be furnished by the said person within a period of thirty days from the date of order of revocation of cancellation of registration.
Provided also that where the registration has been cancelled with retrospective effect, the registered person shall furnish all returns relating to period from the
effective date of cancellation of registration till the date of order of revocation of cancellation of registration within a period of thirty days from the date of order of
revocation of cancellation of registration.
[Notification No. 38/2023- Central Tax dated August 04, 2023]

Sections 142-145 of the FA, 2023 — Sections 37(5), 39(11), 44(1) & (2) and 52(15) of the CGST Act:
Limitation of 3 years on filing of returns
The registered person shall not be allowed to furnish the return in GSTR-1, GSTR-3B, GSTR-9, GSTR-9C
and GSTR-8 after a period of 3 years from the due date of furnishing the relevant return.
Amendment to Section 37: “(5) A registered person shall not be allowed to furnish the details of outward supplies under sub-section (1) for a tax period
after the expiry of a period of three years from the due date of furnishing the said details:
Provided that the Government may, on the recommendations of the Council, by notification, subject to such conditions and restrictions as may be specified
therein, allow a registered person or a class of registered persons to furnish the details of outward supplies for a tax period under sub-section (1), even after the
expiry of the said period of three years from the due date of furnishing the said details.”
Amendment to Section 39: "(11) A registered person shall not be allowed to furnish a return for a tax period after the expiry of a period of three years from
the due date of furnishing the said return:
therein, allow a registered person or a class of registered persons to furnish the return for a tax period, even after the expiry of the said period of three years from
the due date of furnishing the said return.".
Amendment to Section 44: “(2) A registered person shall not be allowed to furnish an annual return under sub-section (1) for a financial year after the
expiry of a period of three years from the due date of furnishing the said annual return:
Provided that the Government may, on the recommendations of the Council, by notification, and subject to such conditions and restrictions as may be specified
therein, allow a registered person or a class of registered persons to furnish an annual return for a financial year under sub-section (1), even after the expiry of
the said period of three years from the due date of furnishing the said annual return.".
Amendment to Section 52: "(15) The operator shall not be allowed to furnish a statement under sub-section (4) after the expiry of a period of three years
from the due date of furnishing the said statement:
therein, allow an operator or a class of operators to furnish a statement under sub-section (4), even after the expiry of the said period of three years from the due
date of furnishing the said statement.".

Refunds and Interest on delayed refunds

• Sub-section (6) of Section 54 of the CGST/SGST Act, 2017, provided for provisional refund of ninety percent of the total amount claimed as
refund on account of zero rated supplies of goods or services or both excluding the amount of input tax credit provisionally accepted.
• The concept of ‘provisionally accepted input tax credit’ was related to the GSTR-1-2-3 system of return filing which has never been implemented.
However, in the absence of implementation of GSTR-1-2-3 system of return filing, it was clarified vide para 2.0 of Circular no 24/24/2017 –GST
dated 21.12.2017 that provisionally accepted input tax credit would be sanctioned upon obtaining of an undertaking in relation to Sections 16(2)(c)
and 42(2) of the CGST/SGST Act, 2017. Therefore, in practice, no deduction on account of provisionally accepted input tax credit is being made
while granting provisional refund.
• Further, Section 41 of the CGST/SGST Act, 2017 that provided for availing of eligible input tax credit as self-assessed in the return on a provisional
basis in terms of GSTR-1-2-3 system of return filing has been amended in Finance Act, 2022 w.e.f. 01.10.2022 by doing away with the provision of
availment of input tax credit on a provisional basis.
This amendment removes the reference to the provisionally accepted ITC to align the same with the
scheme of availment of self-assessed ITC as per Section 41(1) of the CGST Act.
Amendment to Section 54: provision relating to availment of input tax credit on provisional basis has been done away with, the
words “excluding the amount of input tax credit provisionally accepted,” are omitted in sub-section (6) of Section 54 of the CGST
Act
Section 147 of the FA, 2023 — Section 56 of the CGST Act:
Interest on delayed refunds granted subject to certain conditions & restrictions and in the manner which will be
prescribed.
Section 56 of the CGST Act has been amended so as to provide for an enabling provision to prescribe manner of computation of
period of delay beyond 60 days from the date of receipt of application till date of refund, for calculation of interest on delayed
refunds.
Amendment to Section 56: In section 56 of the Central Goods and Services Tax Act, for the words "from the date immediately after the
expiry of sixty days from the date of receipt of application under the said sub-section till the date of refund of such tax", the words "for the
period of delay beyond sixty days from the date of receipt of such application till the date of refund of such tax, to be computed in such
manner and subject to such conditions and restrictions as may be prescribed" shall be substituted.
The amended Rule now read as: [Notification No. 38/2023- Central Tax dated August 04, 2023]
Rule 94. Order sanctioning interest on delayed refunds.-
(1) Where any interest is due and payable to the applicant under section 56, the proper officer shall make an order along with a 1[payment order]
in FORM GST RFD-05 , specifying therein the amount of refund which is delayed, the period of delay for which interest is payable and the amount of
interest payable, and such amount of interest shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration
particulars and as specified in the application for refund.
(2) The following periods shall not be included in the period of delay under sub-rule (1), namely:-
(a) any period of time beyond fifteen days of receipt of notice in FORM GST RFD-08 under sub-rule (3) of rule 92, that the applicant takes to-
(i) furnish a reply in FORM GST RFD-09, or
(ii) submit additional documents or reply; and
(b) any period of time taken either by the applicant for furnishing the correct details of the bank account to which the refund is to be credited or for
validating the details of the bank account so furnished, where the amount of refund sanctioned could not be credited to the bank account furnished by
the applicant.
Section 148 of FA, 2023 — Section 62(2) of the CGST Act:
Assessment of unregistered persons
• The registered person furnishes return under section 39 or section 45 after the period of 30 days of
service of the assessment order issued under sub-section (1) of section 62.
• Therefore, such assessment order and the liability created by such order are not withdrawn and remain
valid.
• such liabilities remain as recoverable arrears in the books of the tax authorities and are liable to be
recovered.
• The only option available with the registered person in such cases is to file appeal against the said
assessment order under section 107 of CGST Act, after depositing the pre-deposit as per sub-section (6)
of section 107.
 Time period of 30 days specified under section 62(2) increased to 60 days.

 A proviso inserted to section 62(2) - "Provided that where the registered person fails to furnish a valid return
within sixty days of the service of the assessment order under sub-section (1), he may furnish the same within a
further period of sixty days on payment of an additional late fee of one hundred rupees for each day of delay beyond
sixty days of the service of the said assessment order and in case he furnishes valid return within such extended
period, the said assessment order shall be deemed to have been withdrawn, but the liability to pay interest under sub-
section (1) of section 50 or to pay late fee under section 47 shall continue."
 An amnesty scheme provided under section 148 of CGST Act for deemed withdrawal of assessment
orders for the past cases where the concerned returns have been filed along with due interest and late
Section 155 of the FA, 2023 — Section 122(1B) of the CGST Act:
Penalty for certain offences:
A new Section 122(1B) of the CGST Act has been inserted so as to provide for penal provisions applicable to
Electronic Commerce Operators in case of contravention of provisions relating to supplies of goods made through
them by unregistered persons or composition taxpayers. The Section reads as under:
"(1B) Any electronic commerce operator who––
(i) allows a supply of goods or services or both through it by an unregistered person other than a person exempted
from registration by a notification issued under this Act to make such supply;
(ii) allows an inter-State supply of goods or services or both through it by a person who is not eligible to make such
inter-State supply; or
(iii) fails to furnish the correct details in the statement to be furnished under sub-section (4) of section 52 of any
outward supply of goods effected through it by a person exempted from obtaining registration under this Act, shall be
liable to pay a penalty of ten thousand rupees, or an amount equivalent to the amount of tax involved had such
supply been made by a registered person other than a person paying tax under section 10, whichever is higher.".
Decriminalization of certain offences
Section 132(1) of the CGST Act has been amended so as:
• to decriminalize offences specified in clause (g) (obstruct or prevents any officer in the discharge – IPC Section
186) , clause (j) (tampers with or destroys any material evidence or documents – IPC Section 204) and clause
(k) (fails to supply any information – IPC Section 176) of the said section
• to increase the monetary threshold for launching prosecution for the offences under the said Act from 1 crore
rupees to crore rupees, except for the offences related to issuance of invoices without supply of goods or services
or both.
Thus, in case of offences, other than fake invoices, prosecution provisions to be initiated if the value of taxes is more
than Rs. 2 Crores and for fake invoices, the prosecution will continue as for the threshold tax amount of Rs. 1 Crore.
No Compounding of offences: Fake/bogus invoice cases are excluded from the option of compounding of
offences.
Reduction in Compounding fees: Reduction of amount for compounding of various offences except
offence of fake invoice, by reducing the minimum and maximum amount for compounding as mentioned
below: Earlier Now
Minimum Higher of INR 10,000 or 50% 25% of the tax involved
of the tax involved
Maximum Higher of INR 30,000 or 150% 100% of the tax involved
of the tax involved
[Notification No. 38/2023- Central Tax dated August 04, 2023] – Rule 162
amended
Section 158 of the FA, 2023 — Section 158A of the CGST Act:
Consent based sharing of information furnished by taxable person
A new section 158A in the CGST Act has been inserted so as to provide for prescribing manner and conditions for
sharing of the information furnished by the registered person in his return or in his application of registration or in
his statement of outward supplies, or the details uploaded by him for generation of electronic invoice or E-way bill or
any other details, as may be prescribed, on the common portal with such other systems, as may be notified.
New Rule 163 inserted:

163. Consent based sharing of information.-
(1) Where a registered person opts to share the information furnished in— (a) FORM GST REG-01 as amended from time to time; (b) return in FORM
GSTR-3B for certain tax periods; (c) FORM GSTR-1 for certain tax periods, pertaining to invoices, debit notes and credit notes issued by him, as
amended from time to time, with a system referred to in sub-section (1) of section 158A (hereinafter referred to as “requesting system”), the
requesting system shall obtain the consent of the said registered person for sharing of such information and shall communicate the consent along
with the details of the tax periods, where applicable, to the common portal.
(2) The registered person shall give his consent for sharing of information under clause (c) of sub-rule (1) only after he has obtained the consent of all
the recipients, to whom he has issued the invoice, credit notes and debit notes during the said tax periods, for sharing such information with the
requesting system and where he provides his consent, the consent of such recipients shall be deemed to have been obtained.
(3) The common portal shall communicate the information referred to in sub-rule (1) with the requesting system on receipt from the said system-
(a) the consent of the said registered person, and
(b) the details of the tax periods or the recipients, as the case may be, in respect of which the information is required.
Section 159 of the FA, 2023 — Para 7, 8(a) and 8(b) in Schedule III of the CGST Act:
Retrospective applicability of Para 7, 8(a) and 8(c) of Schedule III
Following entries in Schedule III (non-taxable supplies) deemed to have been inserted with effect from July
01, 2017 to put an end on ongoing litigations or prospective litigations in cases wherein no tax is paid by
any taxpayer on following supplies:
• Supply of goods from a place in outside the taxable territory to another place outside the taxable territory
without such goods entering India
• high seas sales.
• Supply of warehoused goods to any person before clearance for home consumption.
No refund of such tax paid shall be available in cases where any tax has already been paid in respect of
such transactions/ activities during the period from July 01, 2017 to January 31, 2019.
Section 160 of the FA, 2023 — Section 2(16) of the IGST Act:
Scope of OIDAR services widened
Section 2(16) of the IGST Act has been amended so as to revise the definition of "non-taxable online recipient" by removing the
condition of receipt of online information and database access or retrieval services (OIDAR) for purposes other than commerce,
industry or any other business or profession so as to provide for taxability of OIDAR service provided by any person located in non-
taxable territory to an unregistered person receiving the said services and located in the taxable territory.
Further, it also seeks to clarify that the persons registered solely in terms of clause (vi) of Section 24 of CGST Act shall be treated as
unregistered person for the purpose of the said section. It now reads as:
2(16) "non-taxable online recipient" means any unregistered person receiving online information and database access or
retrieval services located in taxable territory.
Explanation.—For the purposes of this clause, the expression "unregistered person" includes a person registered solely
in terms of clause (vi) of section 24 of the Central Goods and Services Tax Act, 2017;
Also, section 2 (17) has been amended to revise the definition of "online information and database access or retrieval services" to
remove the condition of rendering of the said supply being essentially automated and involving minimal human intervention.
Inclusion of ‘Non-taxable online recipient’
A significant inclusion to Rule 64 is the term “non-taxable online recipient” as referred to in the Integrated Goods and
Services Tax Act, 2017 (“the IGST Act”). This change expands the scope of Rule 64 to cover more categories of
recipients, thereby promoting greater tax compliance.
Section 161 of the FA, 2023 — Section 12(8) of the IGST Act omitted:
Place of Supply in relation of Transportation of Goods
Proviso to section 12(8) of the IGST Act has been omitted so as to specify the place of supply of services by way of
transportation of goods to a registered person, shall be the location of recipient and else shall be location at which goods
are handed over for their transportation, irrespective of destination of the goods, in cases where the supplier of services
and recipient of services are located in India.
Section 162 of the FA, 2023 - Section 13(9) of the IGST Act omitted:
Under Section 13(9) of the IGST Act, 2017, which provides the place of supply of services in case of transportation
of goods, other than by way of mail or courier is now covered under the default provision of Section 13(2) of IGST
Act and the location of the recipient of services, in cases where either the supplier of services or recipient of
services is located outside India. As a result, Services to recipients outside India now qualify as exports, and
Services from suppliers outside India qualify as import of service irrespective of the destination of goods
GST Council Meetings/NCM held in 2023-24
49th GST Council Meeting held on 18.02.2023
50th GST Council Meeting held on 11.07.2023
51st GST Council Meeting held on 02.08.2023
52nd GST Council Meeting held on 07.10.2023
1st National Coordination Meeting held on 24.04.2023
2nd National Coordination Meeting held on 14.12.2023
Based on the recommendations of these meetings Notifications/Circular/Instructions have been issued in 2023-24
Changes related to Rate
To exempt services supplied by National Testing Agency (NTA) by way of conduct of entrance examinations for
admission to educational institutions
[Notification No. 01/2023-Central Tax (Rate) dated 28 February 2023]
• Conduct of entrance examinations by educational institutions is exempt from GST. [Notification No. 12/2017-CT(R) dated
28.06.2017 S.No. 66 (aa)].
• Exemption available extended to educational institutions and Central and State educational boards for conduct of entrance
examination to any authority, board or a body set up by the Central Government or State Government including National
Testing Agency for conduct of entrance examination for admission to educational institutions.
services supplied by Courts/Tribunals to be taxed under Reverse Charge Mechanism (RCM)
• Services by Courts and Tribunals have been declared as neither a supply of goods nor a supply of service. [Schedule III, para 2 of
CGST Act, 2017].
• Courts and Tribunals besides judicial functions, also perform certain commercial activities such as renting of their premises to
telecommunication companies for installation of telecommunication towers, renting of chambers to lawyers etc.
• To extend the dispensation available to Central Government, State Governments, Parliament and State Legislatures with regard
to payment of GST under reverse charge mechanism (RCM) to the Courts and Tribunals also in respect of taxable services
supplied by them such as renting of premises to telecommunication companies for installation of towers, renting of chamber to
lawyers etc.
Rab
[Notification No. 03/2023-Central Tax (Rate) and Notification No. 04/2023 –
Central Tax (Rate) dated 28 February 2023 and Circular No. 191/03/2023-GST]
• Treated on similar lines of jaggery stating that it is a liquid form of jaggery.

• GST rate on rab reduced to 5% if sold in pre-packaged and labelled form and nil, if sold in loose form w.e.f 1st March, 2023.
• clarified that the issue for the past periods regularized on as is basis.
Pencil Sharpener
• GST rates on supply of pencils pencils, pastels, drawing charcoal, Mathematical boxes, geometry boxes and colour boxes etc
attract 12% and eraser attracts 5%. But a Pencil Sharpener attracted 18% GST.
• GST rate on Pencil Sharpeners (falling under CTH 8214) reduced from 18 % to 12%.
GTA opted to pay GST under Forward Charge Mechanism (FCM) deemed to be exercised for future Financial Years
[Notification No. 05/2023-Central Tax (Rate) dated 9 May 2023 and Notification No. 05/2023-Central Tax (Rate)
dated 26 July 2023 ]
• GTAs who want to pay GST under FCM during any Financial Year are required to exercise the option to do so by filing an
online declaration on Goods and Services Tax Network (GSTN) portal by 15th March of the preceding financial year.
• This requirement was notified on 13.07.2022 based on the recommendations of the 47th GST Council meeting. Accordingly,
the deadline for exercising this option for Financial Year 2023-2024 was 15th March, 2023.
• Representations were received that some of the GTAs could not file declaration by 15th March, 2023 for various reasons
including the presumption that the GTAs who had already opted for FCM are not required to file option every year.
• The following two changes were made with the approval of GST Implementation Committee (GIC) to resolved the issues in
view of the urgency involved:
• The last date for exercising the option to pay GST under FCM was extended from 15th March, 2023 to 31st May, 2023 and
• GTAs who commence new business or cross registration threshold during any Financial Year, have been allowed to exercise
the option for the year in which they commence business or cross registration threshold within 45 days from date of
applying for GST registration or 1 month from date of obtaining registration whichever is later.
• The above changes were notified w.e.f 09.05.2023 thereby resolving this issue for the current Financial Year.
• As a trade friendly measure, GTAs will not be required to file declaration for paying GST under forward charge every year. If
they have exercised this option for a particular financial year, they shall be deemed to have exercised it for the next and
future financial years unless they file a declaration that they want to revert to reverse charge mechanism (RCM).
• It has also been decided that the last date of exercising the option by GTAs to pay GST under forward charge shall be
31st March of preceding Financial Year instead of 15th March. 1st January of preceding Financial Year shall be the start date
for exercise of option.
Fish Soluble Paste
[Notification No. 09/2023-Central Tax (Rate) dated 26 July 2023 and

Circular No. 200/12/2023-GST]
• Retrospective GST exemption was given till 30.09.2019 to Fishmeal and unintended waste
generated during the production of fish meal (falling under heading 2301), except for fish
oil, on the recommendation of the 37th and 45th GST Council meetings respectively.
• Fish soluble paste is a by-product produced while producing fish meal and fish oil.
• Fishmeal attracts GST rate of 5% but fish soluble paste, generated as a waste by-product
during the process of manufacture of fish meal, attracts 18% GST rate.
• GST rate on fish soluble paste (CTH 2309) reduced from 18 % to 5%.
• The issue for the past periods regularized on as is basis.
uncooked/unfried extruded snack pellets
[Notification No. 09/2023-Central Tax (Rate) dated 26 July 2023 and Circular No.
200/12/2023-GST]
• On the recommendations of 48th GST Council, a clarification was issued that extruded products
such as “fryums” are classifiable under 19059030 attracting GST rate of 18%.
• GST rate on uncooked/unfried extruded snack pellets, by whatever name called, reduced to 5%.
• The issue for the past periods may be regularized on as is basis.
LD SLag
[Notification No. 09/2023-Central Tax (Rate) dated 26 July 2023]

• LD Slag is a recyclable waste produced during the separation of molten steel slag from impurities in steel-making
furnaces (200kg LD slag generated per ton of crude steel).
• Only 25% of the total slag generated in India is being reused/recycled. It is used for road project, sintering and iron-
making.
• It is posing an environmental problem as it is getting accumulated over the years and less land is available for
disposal of such huge quantities.
• The Council in the 23rd meeting recommended reduction of GST rate on BF Slag/Fly Ash to 5% based on the reason
that it is an environmentally harmful product and its re-usage needs to be promoted.
• GST rate reduced on LD slag from 18% to 5%.
Supply of raw cotton by agriculturist to cooperatives

[Circular No. 200/12/2023-GST]
• Supply of raw cotton by an agriculturist to any registered person is taxable under reverse charge mechanism.
• Section 2(84) (i) of the CGST Act, 2017 defines ‘person’ as including “a co-operative society registered under any law relating to
co-operative societies”. As per Section 7 (1) (aa) of the CGST Act “supply” includes “the activities or transactions, by a person,
other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable
consideration.”
• Supply includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or
disposal made or agreed to be made for a consideration by a person in the course or furtherance of business.
• clarified that supply of raw cotton, including kala cotton, from agriculturists to cooperatives is a taxable supply and such supply
to the cooperatives (being a registered person) attracts 5% GST under reverse charge mechanism.
• The issue for the past periods regularized on as is basis.
Whether services supplied by director of a company in his personal capacity such as renting of immovable property to
the company or body corporate are subject to Reverse Charge mechanism
• Entry No. 6 of notification No. 13/2017 CTR dated 28.06.2017, provides that services supplied by a director of a company or
a body corporate to the said company or the body corporate are subject to Reverse Charge Mechanism under the
provisions of Section 9(3) of CGST Act.
• clarified by way of circular that services supplied by a director of a company to the company in his private or personal
capacity such as supplying services by way of renting of immovable property to the company or body corporate are not
taxable under RCM. Only those services supplied by a director of company or body corporate, which are supplied by him as
or in the capacity of director of that company or body corporate shall be taxable under RCM in the hands of the company or
body corporate under notification No. 13/2017-CTR (Sl. No. 6) dated 28.06.2017.
Whether supply of food or beverages in cinema hall is taxable as restaurant service

• As per Explanation at Para 4 (xxxii) to notification No. 11/2017-CTR dated 28.06.2017,“Restaurant Service’ means supply, by
way of or as part of any service, of goods, being food or any other article for human consumption or any drink, provided by
a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food
or any other article for human consumption or drink is supplied.”
• clarified by way of a circular that the food or beverages served in a cinema hall is taxable as restaurant service as long as:
the food or beverages are supplied by way of or as part of a service and supplied independent of the cinema exhibition
service.
• Where the sale of cinema ticket and supply of eatables such as popcorn or cold drinks etc. are clubbed together, and such
bundled supply satisfies the test of composite supply, the entire supply will attract GST at the rate applicable to service of
exhibition of cinema, the principal supply.
To specify a positive list of services under Sr. No. 3 & 3A of notification No. 12/2017-Central Tax (Rate)
[Notification No. 13/2023-Central Tax (Rate) dated 19 October 2023]

• This issue has been discussed in the 45th, 47th , 48th and 50th GST Council meetings.
• After detailed deliberations, Council recommended that entries at Sl. No. 3 and 3A of notification No. 12/2017-CTR dated
28.06.2017 may be retained as they are with no change.
• Also, a new entry created to exempt following five services supplied to Governmental Authority:
Water Supply
Public health
Sanitation Conservancy
Solid waste management
Slum improvement and upgradation
Changes in 9(5) – bus operators organised as companies

With effect from 1st January 2022, liability to pay GST on bus transportation services supplied through Electronic Commerce
Operators (ECOs) has been placed on the ECO under section 9(5) of CGST Act, 2017. This trade facilitation measure was taken on
the representation of industry association that most of the bus operators supplying service through ECO owned one or two buses
and were not in a position to take registration and meet GST compliances.
To arrive at a balance between the need of small operators for ease of doing business and the need of large organized players to
take ITC, bus operators organised as companies excluded from the purview of section 9(5) of CGST Act, 2017. This would enable
them to pay GST on their supplies using their ITC.
In exercise of the powers conferred by sub-section (5) of section 9, the Central Government, amendments in the
notification No.17/2017- Central Tax (Rate), dated the 28th June, 2017 –
In the said notification,

(i) in clause (i), for the words "omnibus or any other Motor vehicle", the words "or any other Motor vehicle except
omnibus" shall be substituted;
(ii) after clause (i), the following clause shall be inserted, namely:-
"(ia) services by way of transportation of passengers by an omnibus except where the person supplying such service
through Electronic commerce operator is a company.";
(iii) in the Explanation, after item (c), the following item shall be inserted, namely, -
"(d) "Company" has the same meaning as assigned to it in clause (20) of section 2 of the Companies Act, 2013(18 of
2013).".
Updated Notification 17/2017 CT (R), dt 28.06.2017
Updated Notification
(i) services by way of transportation of passengers by a radio-taxi, motorcab, maxicab, motor cycle, 5[or
any other Motor vehicle except omnibus;
(ia) services by way of transportation of passengers by an omnibus except where the person
supplying such service through Electronic commerce operator is a company.
(ii) services by way of providing accommodation in hotels, inns, guest houses, clubs, campsites or other
commercial places meant for residential or lodging purposes, except where the person supplying such
service through electronic commerce operator is liable for registration under clause (vi) of section 21 of the
Union Territory Goods and Services Tax Act, 2017 read with sec 22(1)
(iii) services by way of house-keeping, such as plumbing, carpentering etc, except where the person
supplying such service through Electronic commerce operator is liable for registration u/s 22(1)
(iv) supply of restaurant service other than the services supplied by restaurant, eating joints etc. located at
specified premises.
Food preparation of millet flour in powder form, containing at least 70% millets
[Notification No. 17/2023-Central Tax (Rate) and Notification No. 18/2023-Central Tax (Rate) dated 19 October 2023]
● When millets undergo multiple stages of preparation including washing, roasting, grinding, addition of additives and
other substances such as pulses, further processing and packaging for use as food preparations, the final products are
food preparations of flour.
● This heading covers a number of food preparations with a basis of flour, which derive their essential character from
such materials whether or not these ingredients predominate by weight or volume.
● Since 2023 is being celebrated as Year of the Millets in 2023, to promote millet-based products, Council recommended
the following rates:
0% - food preparation of millet flour, in powder form, containing at least 70% millets by weight (CTH 1901), sold in other
than pre-packaged and labelled form.
12% - if sold in pre-packaged and labelled form.
ENA

• ENA (Extra Neutral Alcohol), also known as rectified spirit or rectified alcohol, is a high distillate alcohol,
free from impurities, typically containing 95% alcohol by volume.
• Varying practices across states with some distilleries discharging GST on ENA and not paying VAT while
some distilleries are paying VAT on ENA and not paying GST. There are also some distilleries paying GST @
18% on ENA cleared for manufacture of ‘liquor for human consumption', but not paying any GST on Grain
Neutral Spirits (GNS) when supplying to an alcohol bottling unit. In addition, there are multiple litigations
pending in various judicial forums.
• Imperative to take a decision since litigation is a time-consuming process and certainty must be provided to
the industry for ease of doing business.
• ENA for industrial use is being taxed at the rate of 18% under residual entry. However, a dedicated tariff line
“2207 10 12 – Spirits for industrial use” has been created vide Gazette Notification dated 30th September
2023.
GST on Molasses reduced from 28% to 5%. This step will increase liquidity with mills and enable faster
clearance of cane dues to sugarcane farmers. This will also lead to reduction in cost for manufacture of cattle
feed as molasses is also an ingredient in its manufacture.
An entry for spirits for industrial use attracting 18% GST inserted.
Imitation Zari
[Circular No. 205/17/2023-GST and Notification 20/2023- CT(Rate) dated 19 October 2023]
• GST rate reduced to 5% on all imitation zari thread or yarn known by any name in trade parlance vide Notification 09/2023-
CT(Rate) dated 27th July, 2023 (inserted Sl. No. 218AA).
• The request for clarification has been received in respect of metal coated plastic film converted to metallised yarn (imitation
zari) and twisted with nylon, cotton, polyester or any other yarn to make imitation zari thread. Doubts have been raised
whether this item is covered under imitation zari thread or yarn notified at 5% or under the other metallised yarn category at
12%.
• As per HS Explanatory Notes, the heading 5605 covers –
1. yarn of any textile material (including monofilament , strip and the like, and paper yarn) combined with metal thread or
strip, whether obtained by a process of twisting, cabling or by gimping, whatever the proportion of the metal present.
2. yarn of any textile material covered with metal by any other process including yarn covered with metal by electro-
deposition.
• The heading also covers products consisting of a core of metal foil (generally of aluminium) or of a core of plastic film
coated with metal dust, sandwiched by means of an adhesive between two layers of plastic film.
Clarified that imitation zari thread or yarn made from metallised polyester film/ plastic film falling under HS 5605 are
covered by Sl. No. 218AA of Schedule I attracting 5% GST. The GST Council has also recommended that no refund
will be permitted on polyester film (metallised)/plastic film on account of inversion of tax rate. Requisite changes
have been made in Notification no. 5/2017-Central Tax (Rate) vide Notification No. 20/2023-Central Tax (Rate) dated
19.10.2023
Whether ‘same line of business’ in case of passenger transport service and renting of motor vehicles includes leasing of
motor vehicles without operators
[Circular No.206/18/2023-GST]
• Services of transport of passengers by any motor vehicle (SAC 9964) and renting of motor vehicle designed to carry
passengers with operator (SAC 9966), where the cost of fuel is included in the consideration charged from the service
recipient attract GST at the rate of 5% with input tax credit of services in the same line of business.
• Same line of business as stated in the Notification No. 11/2017-Central Tax (Rate) means “service procured from another
service provider of transporting passengers in a motor vehicle or renting of a motor vehicle”.
• Clarified that input services in the same line of business include transport of passengers (SAC 9964) or renting of motor
vehicle with operator (SAC 9966) and not leasing of motor vehicles without operator (SAC 9973) which attracts GST
and/or compensation cess at the same rate as supply of motor vehicles by way of sale
Whether GST is applicable on reimbursement of electricity charges received by real estate companies, malls, airport
operators etc. from their lessees/occupants.
• Clarified that whenever electricity is being supplied bundled with renting of immovable property and/or maintenance of
premises, as the case may be, it forms apart of composite supply and shall be taxed accordingly. The principal supply is
renting of immovable property and/or maintenance of premise and the supply of electricity is an ancillary supply. Even if
electricity is billed separately, the supplies will constitute a composite supply and therefore, the rate of the principal
supply i.e., GST rate on renting of immovable property and/or maintenance of premise would be applicable.
• However, where the electricity is supplied by the Real Estate Owners, Resident Welfare Associations (RWAs), Real
Estate Developers etc., as a pure agent, it will not form part of value of their supply. Further, where they charge for
electricity on actual basis that is, they charge the same amount or electricity from their lessees or occupants as charged
by the State Electricity Boards or DISCOMs from them, they will be deemed to be acting as pure agent for this supply.
job work for processing of “Barley” into “Malted Barley”
• Malt is a food product. It can be directly consumed as part of food preparations or can be used as an ingredient in
food products and also used for manufacture of beer and alcoholic liquor for human consumption.However,
irrespective of end-use, conversion of barley into malt amounts to job work in relation to food products.
• Clarified that job work services in relation to manufacture of malt are covered by the entry at Sl. No. 26 (i) (f)
which covers “job work in relation to all food and food products falling under chapters 1 to 22 of the customs tariff”
irrespective of the end use of that malt and attracts 5% GST.
Whether District Mineral Foundations Trusts (DMFTs) set up by the State Governments are Governmental Authorities
• DMFTs work for the interest and benefit of persons and areas affected by mining related operations by regulating
receipt and expenditure from the respective Mineral Development Funds created in the concerned district. They
provide services related to drinking water supply, environment protection, health care facilities, education, welfare
of women andchildren, supply of medical equipment etc.
• These activities are similar to activities that are enlisted in Eleventh Schedule and Twelfth Schedule of the
Constitution.The ultimate users of the various schemes under DMF are individuals, families, women and children,
farmers/producer groups, SHGs of the mining affected areas etc. The services/supplies out of DMF fund are
provided free of charge and no consideration is realizedfrom the beneficiaries by DMF against such services.
• Clarified that DMFT set up by the State Governments are Governmental Authorities and thus eligible for the same
exemptions from GST as available to any other Governmental Authority.
Policy Related Changes
And Clarifications
Clarification on charging of interest under section 50(3) of the CGST Act, 2017, in cases
of wrong availment of IGST credit and reversal thereof
[Circular No. 192/04/2023-GST ]
• The amount of input tax credit available in electronic credit ledger, under any of the heads of IGST, CGST or SGST, can be
utilized for payment of liability of IGST, it is the total input tax credit available in electronic credit ledger, under the heads of
IGST, CGST and SGST taken together, that has to be considered for calculation of interest under rule 88B of CGST Rules and for
determining as to whether the balance in the electronic credit ledger has fallen below the amount of wrongly availed input tax
credit of IGST, and to what extent the balance in electronic credit ledger has fallen below the said amount of wrongly availed
credit.
• Thus, in the cases where IGST credit has been wrongly availed and subsequently reversed on a certain date, there will not be
any interest liability under sub-section (3) of section 50 of CGST Act if the balance of input tax credit (ITC) in the electronic
credit ledger, under the heads of IGST, CGST and SGST taken together, has never fallen below the amount of such wrongly
availed ITC, even if available balance of IGST credit in electronic credit ledger individually falls below the amount of such
wrongly availed IGST credit.
• Credit of compensation cess cannot be utilized for payment of any tax under CGST or SGST or IGST heads and/ or reversals of
credit under the said heads. Accordingly, credit of compensation cess available in electronic credit ledger cannot be taken into
account while considering the balance of electronic credit ledger for the purpose of calculation of interest under sub-rule (3)
of rule 88B of CGST Rules in respect of wrongly availed and utilized IGST, CGST or SGST credit
Clarification on TCS liability under Sec 52 of the CGST Act in case of multiple E-
commerce Operators (ECOs) in one transaction
[Circular No. 194/06/2023-GST ]
Circular issued to clarify that:

• in a situation where multiple ECOs are involved in a single transaction through ECO platform, the compliances under section
52 of CGST Act, including collection of TCS, is to be done by the supplier-side ECO who finally releases the payment to
the supplier for a particular supply made by the said supplier through him.
• where the Supplier-side ECO is himself the supplier of the said supply, the compliances under section 52 of CGST Act,
including collection of TCS, is to be done by the Buyer-side ECO.
Clarification on availability of ITC in respect of warranty replacement of parts and repair services during
warranty period
 Circular issued to inter alia: [Circular No. 195/07/2023-GST ]

 Clarified that where the manufacturer provides replacement of parts and/ or repair services to the customer during the
warranty period, without separately charging any consideration at the time of such replacement/ repair services, no GST is
chargeable on such replacement of parts and/ or repair service and also, no reversal of input tax credit is required to be
made by the manufacturer.
 However, if any additional consideration is charged by the manufacturer from the customer, either for replacement of any part
or for any service, then GST will be payable on such supply with respect to such additional consideration.
 Clarified the taxability and requirement of availment/ reversal of ITC in situations where distributor provides
replacement of parts and/or repair services to the customer, as part of warranty on behalf of the manufacturer.
(a) where the distributor replaces the part(s) to the customer under warranty either by using his stock or by purchasing
from a third party and charges the consideration for the part(s) so replaced from the manufacturer, by issuance of a tax
invoice, for the said supply made by him to the manufacturer - GST would be payable by the distributor on the said
supply and the manufacturer would be entitled to avail the input tax credit of the same, no reversal of input tax credit by
the distributor is required in respect of the same.
(b) where the distributor raises a requisition to the manufacturer for the part(s) to be replaced by him under warranty and
the manufacturer then provides the said part(s) to the distributor for the purpose of such replacement to the customer
as part of warranty. In such a case, where the manufacturer is providing such part(s) to the distributor for replacement
to the customer during the warranty period, without separately charging any consideration at the time of such
replacement, no GST is payable on such replacement of parts by the manufacturer. Further, no reversal of ITC.
Clarification on taxability of shares held in a subsidiary company by the holding
company
 Representations received seeking clarification as to whether the holding of shares in a subsidiary company by the
parent company is to be treated as ‘supply of service’ under GST and is to be taxed accordingly or not.
 Some of the field formations relied on the SAC code 997171- “services provided by holding companies, i.e. holding
securities of (or other equity interests in) companies and enterprises for the purpose of owning a controlling interest”,
and are demanding GST on “share capital held in subsidiary company’.
 Securities under GST Law are considered neither goods nor services in terms of definition of goods under section
2(52) of CGST Act and in terms of definitions of services under section 2(102) of the said Act.
 Further, securities include ‘shares’ as per definition of securities under clause (h) of section 2 of Securities Contracts
(Regulation) Act, 1956.
 Circular issued to clarify, specifying that mere holding of securities of a subsidiary company by a holding company,
whether located in India or abroad, cannot be treated as a supply of services and therefore, cannot be taxed under
GST.
Clarification on refund related issues
[Circular No. 197/09/2023- GST]

Clarification on Refund of accumulated input tax credit under Section 54(3) on the basis of ITC available as per FORM
GSTR 2B
 References received on whether the refund of the accumulated input tax credit under section 54(3) of CGST Act shall be
admissible on the basis of the input tax credit as reflected in FORM GSTR-2A or on the basis of that available as per FORM
GSTR-2B of the applicant consequent to change in provisions regarding ITC availment being restricted to that available as per
FORM GSTR 2B.
 Circular issued to clarify that:
 w.e.f. 01.01.2022, availment of refund of the accumulated ITC under section 54(3) for a tax period restricted to the ITC on
inward supplies as reflected in FORM GSTR-2B of the said tax period or of any previous tax period.
 refund claims, which have already been disposed off by the proper officer before issuance of this circular, not to be
reopened.
Requirement of the undertaking in FORM RFD-01 inserted vide para 7 of Circular No. 125/44/2019-GST dated 18.11.2019
 Para 7 of Circular No. 125/44/2019-GST dated 18.11.2019 and the undertaking in FORM RFD-01 requires amendment due to omission of
Section 42, FORM GSTR-2 & GSTR-3 and amendment in Section 41.
 Para 7 of Circular No. 125/44/2019-GST dated 18.11.2019 & undertaking in FORM GST RFD-01 amended to delete the references to
the omitted provisions;
 Consequently, Annexure-A to Circular No. 125/44/2019-GST dated 18.11.2019 amended to the effect that:
• “Undertaking in relation to sections 16(2)(c) and section 42(2)” wherever mentioned in Declaration/Statement/Undertaking/ Certificates
to be filled online needs to be replaced by “Undertaking in relation to sections 16(2)(c)”.
• “Copy of GSTR-2A of the relevant period” & “Self-certified copies of invoices entered in Annexure-A whose details are not found in
GSTR-2A of the relevant period” wherever required as supporting documents needs to be removed/ deleted.
Determination of value of adjusted total turnover in the formula under Rule 89(4)
 Clarification has been sought as to whether in view of insertion of Explanation in rule 89(4) of CGST Rules, for the purpose of calculation of
“adjusted total turnover” in the formula under rule 89(4), the value of goods exported out of India has to be considered as per Explanation under
rule 89(4). FoB or value of tax invoice whichever is lower.
 Consequent to Explanation having been inserted in rule 89(4) of CGST Rules vide Notification No. 14/2022- CT dated 05.07.2022, the value
of export goods to be included while calculating “adjusted total turnover” in the formula under rule 89(4) will be determined as per
the said explanation.
Clarification on the scope and computation of the refund on account of inverted duty structure as provided in sub-section (3)
of section 54 and in rule 89 (5) of the CGST Rules, 2017
 Divergent views were taken in field formations regarding treatment of refund of accumulated ITC on account of inverted rated supply
of goods in cases where subsidy is given by the Central Government or the State Governments, resulting in lower taxable value of the
outward supply of such goods.
 the term “Net ITC” covers the ITC availed on all inputs in the relevant period, irrespective of their rate of tax, as long as there are
some inputs on which the rate of tax is higher than the rate of tax on outputs;
 the taxable value of the outwards supplies has no implication on the calculation of the refund amount of accumulated input tax
credit as per the formula provided under rule 89(5) of CGST Rules, 2017;
 ITC attributable to the subsidy cannot be removed from the calculation of ‘Net ITC’, or a notional amount cannot be added
while calculating the ‘tax payable on inverted rated supply’ in the said formula under rule 89(5).
Admissibility of refund where an exporter applies for refund subsequent to compliance of the provisions of sub-rule (1) of rule
96A (LUT route –clearance for export without payment of tax)
 There were instances where exporters voluntarily make payment of due integrated tax, along with applicable interest, in cases where
goods could not be exported or payment for export of services could not be received within time frame as prescribed in rule 96A of CGST
Rules.
 Clarification were sought as to whether subsequent to export of the said goods, or as the case may be, realization of payment in case
of export of services, the said exporters are entitled to claim refund of unutilized input tax credit on account of export and also refund of
the integrated tax and interest so paid.
 substantive benefits of refund accruing on account of zero-rated supply cannot be denied due to delayed export or delayed receipt of
payment for export, as the case may be;
 refund of IGST paid in compliance of the provisions of sub–rule (1) of rule 96A of CGST Rules may also be given, but no
refund of interest paid can be given in such cases.
Clarification with respect to applicability of e-invoice w.r.t supplies made by a registered person to
Government Departments, etc./ local authorities/ PSUs registered solely for the purpose of TDS
 Representations received seeking clarification with respect to applicability of e-invoicing under rule 48(4) of CGST Rules w.r.t
supplies made by a registered person, whose turnover exceeds the prescribed threshold for generation of e-invoicing, to the
Government Departments or establishments / Government agencies / local authorities/ PSUs, which are registered solely for
the purpose of deduction of tax at source as per provisions of section 51 of the CGST Act.
 the registered person, whose turnover exceeds the prescribed threshold for generation of e-invoicing, are required to issue e-
invoices for the supplies made to such Government Departments or establishments / Government agencies / local
authorities / PSUs, etc under rule 48(4) of CGST Rules.
Issues pertaining to ISD mechanism and taxability of services provided by one distinct person to
another distinct person
 Doubts raised as to whether is it mandatory for the headquarter office (HO) of an entity to follow the Input Service Distributor(ISD) mechanism for distribution of ITC in
respect of common input services, procured from a third party which are also attributable to one or more branch offices (BOs), or can the HO also follow the mechanism
of raising invoice under section 31 to the BO without registering as ISD and the said BO thereafter claiming ITC in respect of such input services. .
 (i) For common input services procured from third party:

 To clarified through a circular that:
 ISD mechanism is not mandatory as per the present provision of GST law for passing ITC in respect of common input services procured by HO from a third
party which are attributable to both HO and BO or exclusively to one or more BOs;
 Registration as ISD mandatory if ITC is to be distributed through ISD mechanism;
 Distribution of ITC to a BO through ISD mechanism or through issuance of invoice under section 31 only if the said services are actually being supplied to the
concerned BO.
 For future, ISD mechanism to be made mandatory prospectively by amendment in the law for distribution of ITC in respect of input services procured by HO from
a third party but attributable to both HO and BOs or exclusively to one or more Bos, including in cases, where such input services are liable to tax on reverse charge
basis.
(ii) For internally generated services:
 To clarify through a circular that in cases where full input tax credit is available to the recipient:
 in view of second proviso to rule 28 of CGST Rules, the value of such supply of services declared in the invoice by HO to BOs may be deemed as open
market value, irrespective of the fact whether cost of any particular component of such services, like employee cost etc., has not been included in the value of
the services in the invoice, or not.
 if the invoice is not issued with respect to any internally generated services by the HO to the BO, the value of such services may be deemed to be declared
as Nil by HO to BO, and may be deemed as open market value in terms of the said proviso.
 Law Committee to further deliberated the issue of taxability and valuation of such internally generated services in cases, where full input tax credit is not available to
the recipient in its 52nd Meeting which is yet to be implemented.
Clarification on issues pertaining to Place of Supply
Circular No. 203/15/2023-GST
i. supply of service of transportation of goods, including through mail and courier: Place of supply will be determined by the default rule
under section 13(2) of IGST Act i.e. in cases where location of recipient of services is available, the place of supply of such services shall be the
location of recipient of services and in cases where location of recipient of services is not available in the ordinary course of business, the place
of supply shall be the location of supplier of services.
ii. supply of services in respect of advertising sector:

• In case wherein there is supply (sale) of space or supply (sale) of rights to use the space on the hoarding/ structure (immovable property) belonging
to vendor to the client/advertising company for display of their advertisement on the said hoarding/ structure, the place of supply of services
provided by the vendor to the advertising company in such case shall be governed by the provisions of section 12(3)(a) of IGST Act.
• In case where the advertising company wants to display its advertisement on hoardings/ bill boards at a specific location availing the services of a
vendor and the responsibility of arranging the hoardings/ bill boards and display of advertisement on the said location lies with the vendor and
during this entire time of display of the advertisement, the vendor is in possession of the hoarding/structure at the said location on which
advertisement is displayed whereas the advertising company is not occupying the space or the structure, the place of supply shall be determined in
terms of Section 12(2) of IGST Act.
Clarification on issues pertaining to Place of Supply
Circular No. 203/15/2023-GST
i. Place of supply in case of supply of the “co-location services”:

• Co-location services are in the nature of “Hosting and information technology (IT) infrastructure provisioning services”, and the said services
do not merely involve providing of a physical space, but also involve the supply of various components of ‘Hosting and information technology
(IT) infrastructure provisioning services’ like network connectivity, backup facility, firewall services, and monitoring and surveillance service for
ensuring continuous operations of the servers and related hardware, etc. Accordingly, the place of supply of the same shall be determined by
the default place of supply provision under sub-section (2) of Section 12 of the IGST Act i.e. location of recipient of co-location service.
• However, in cases where the agreement between the supplier and the recipient is restricted to providing physical space on rent along with
basic infrastructure, without components of Hosting and Information Technology (IT) Infrastructure Provisioning services and the further
responsibility of upkeep, running, monitoring and surveillance, etc. of the servers and related hardware is of recipient of services only, then the said
supply of services shall be considered as the supply of the service of renting of immovable property. Accordingly, the place of supply of these
services shall be determined by the provisions of clause (a) of sub-section (3) of Section 12 of the IGST Act which is the location where the
immovable property is located.
Clarification on issues pertaining to taxability of personal guarantee and corporate guarantee in GST
Circular - 204/16/2023-GST dated 27th October, 2023
Q1 -Whether the activity of providing personal guarantee by the Director of a company to the bank/ financial institutions for sanctioning of credit
facilities to the said company without any consideration will be treated as a supply of service or not and whether the same will attract GST or not.
As per Explanation (a) to section 15 of CGST Act, the director and the company are to be treated as related persons. As per clause (c) of sub-section
(1) of section 7 of the CGST Act, 2017, read with S. No. 2 of Schedule I of CGST Act, supply of goods or services or both between related persons,
when made in the course or furtherance of business, shall be treated as supply even if made without consideration.
Accordingly, the activity of providing personal guarantee by the Director to the banks/ financial institutions for securing credit facilities for their
companies is to be treated as a supply of service, even when made without consideration.
Rule 28 of CGST Rules, 2017 prescribes the method for determining the value of the supply of goods or services or both between related parties,
other than where the supply is made through an agent. In terms of Rule 28 of CGST Rules, the taxable value of such supply of service shall be the
open Market value of such supply.
The open market value of the said transaction/ supply may be treated as zero and therefore, taxable value of such supply may be treated as zero. In
such a scenario, no tax is payable on such supply of service by the director to the company.
However, there may be cases where the director, who had provided the guarantee, is no longer connected with the management but continuance of
his guarantee is considered essential because the new management's guarantee is either not available or is found inadequate, or there may be other
exceptional cases where the promoters, existing directors, other managerial personnel, and shareholders of borrowing concerns are paid
remuneration/ consideration in any manner, directly or indirectly. In all these cases, the taxable value of such supply of service shall be the
remuneration/ consideration provided to such a person/ guarantor by the company, directly or indirectly.
Clarification on issues pertaining to taxability of personal guarantee and corporate guarantee in GST
Circular - 204/16/2023-GST dated 27th October, 2023
Q2 -Whether the activity of providing corporate guarantee by a person on behalf of another related person, or by the holding
company for sanction of credit facilities to its subsidiary company, to the bank/ financial institutions, even when made without
any consideration will be treated as a taxable supply of service or not, and if taxable, what would be the valuation of such
supply of services.
It is clarified that where the corporate guarantee is provided by a holding company, for its subsidiary company, those
two entities also fall under the category of ‘related persons’. Hence the activity of providing corporate guarantee by a
holding company to the bank/financial institutions for securing credit facilities for its subsidiary company, even when
made without any consideration, is also to be treated as a supply of service. In respect of such supply of services by a
person to another related person or by a holding company to a subsidiary company, in form of providing
corporate guarantee on their behalf to a bank/ financial institution, the taxable value will be determined as per
the newly inserted sub rule (2 ) of Rule 28 of CGST Rules.
Clarification regarding eligibility of construction of roads, bridges for inverted duty structure refund
Notification No. 15/2023 – CT(Rate) dated 19 October, 2023

• References have been received from field formations requesting for clarification regarding applicability of Notification number 15/2017-Central Tax
(Rate), dated 28.06.2017 (which restricts refund of accumulated credit on account of inverted duty structure in respect of supplies covered under Entry
5(b) of Schedule II of CGST Act, 2017) in respect of refund on account of inverted duty structure in the case of supply of certain services like construction
of bridges and roads etc.
• If the said services are construed as civil structure under Entry 5(b) of Schedule II of CGST Act, 2017, then refund will be not admissible but if they are
construed as under works contract services under Entry 6(a) of Schedule II, then refund would be admissible.
 Vide the Notification, in opening paragraph, for the words, brackets, letters and figures“ specified in sub-item (b) of item 5 of Schedule II of the
Central Goods and Services Tax Act”, the words “of construction of a complex, building or a part thereof, intended for sale to a buyer, wholly or
partly, where the amount charged from the recipient of service includes the value of land or undivided share of land, as the case may be, except
where the entire consideration has been received after issuance of completion certificate , where required , by the competent authority or after its
first occupation , whichever is earlier”, shall be substituted.
 The amendment allows the no refund of unutilised input tax credit shall be allowed under sub-section (3) of section 54 of the said Central Goods
and Services Tax Act in construction of only such civil structures including a complex or building, which are intended for sale to a buyer along with
land or undivided share of land, are covered under Entry 5(b) of Schedule II of CGST Act, 2017 and not in supply of certain services like
construction of bridges and roads etc.
Capacity based taxation and Special Composition Scheme in certain Sectors in
GST
Notification No. 04/2024 – CT dated 5 January 2024, Notification No. 27/2023 – CT dated 31 July, 2023 Notification No. 30/2023 –
CT dated 31 July, 2023 and
 GST Council in its 42nd meeting recommended for constitution of a Group of Ministers (GoM) for looking into the possibility of
Capacity based taxation and Special Composition Scheme in certain Sectors in GST.
 The GoM submitted its report with various recommendations which inter-alia included special registration mechanism for machines
used in production of tobacco, pan masala and other similar items, special monthly returns to be filed by manufacturers of these items
and prescribing heavy penalty for any unregistered machines found operating.
 These recommendations were accepted by GST Council in its 49th meeting and 50th meeting and accordingly, procedure for
implementation of said recommendation needed to be devised.
 special procedure prescribed in respect of registration of machines used in manufacturing of tobacco, pan masala and similar
items and special monthly returns to be filed by manufacturers of these items.
 Insertion of a new section 122A in CGST Act to provide for penalty for non-declaration of machines by such manufacturers, in
addition to the penalty provisions specified in Section 122 of CGST Act. (yet to be notified)
 Special registration of machines and filing of special monthly returns to be done on the common portal without any manual
interface to prevent any undue harassment of the taxpayers.
 Amendment to Section 16 of IGST Act made through section 123 of Finance Act 2021 (which provided for enabling provision for
restricting IGST Refund route in respect of certain supplies or suppliers) may be notified with effect from 01.10.2023.
 Tobacco, pan masala & similar items as well as mentha oil notified under the proposed section 16(4) of IGST Act as goods on
whose supply IGST refund route shall not be available.
Mechanism of dealing with differences in ITC between GSTR-3B and GSTR-2B (88 D/DRC- 01C)
Notification No. 38/ 2023 - CT dated 4th August, 2023
 GSTR-3B return of a registered person for a tax period is being auto-populated on the portal from the details in his FORM GSTR-1 and FORM
GSTR-2B for the said tax period. However, the registered person is allowed presently to freely edit the same.
 This may lead to availment of input tax credit by the registered person in GSTR-3B return in excess of that made available in his FORM
GSTR-2B.
 There is a need to safeguard revenue by finding suitable manner of handling and controlling the difference in ITC availed in FORM GSTR-3B by the
registered person and that available as per his FORM GSTR-2B.
 A mechanism to be based on system based identification of the taxpayers based on certain approved risk criteria, along with system-based
intimation, and a procedure of auto-compliance on the part of the taxpayers to explain/ take remedial action in respect of such differences, in a
manner similar to that provided for the difference between the liability reported in FORM GSTR-1 and FORM GSTR-3B vide Rule 88C of CGST
Rules.
 Insertion of new rule 88D in CGST Rules for system based intimation to the registered person about the difference between the input tax
credit availed as per FORM GSTR-3B and that available as per FORM GSTR-2B and to direct payment of the differential amount or
explain the difference.
 Insertion of a new clause (e) in sub-rule (6) of rule 59 of CGST Rules to enable blocking of FORM GSTR-1/ IFF for a subsequent tax period
unless the taxpayer has reversed the amount specified in the intimation or has furnished a reply explaining the reasons for any amount
remaining to be reversed.
 Insertion of FORM GST DRC-01C in CGST Rules as required under sub-rule (1) of the proposed rule 88D.
 To begin with, system based intimation under proposed rule 88D to the concerned registered person may be given in those cases where
difference between the input tax credit availed in FORM GSTR-3B & that available as per FORM GSTR-2B is more than 20% as well as
more than Rs. 25 lakhs.
 This would help in safeguarding the revenue by controlling the difference in ITC availed in FORM GSTR-3B and that available as per
FORM GSTR-2B of the taxpayers, and will reduce ITC mismatches.
Procedure for Recovery of Tax and Interest in terms of Rule 88C(3)
 As per recommendations of the GST Council in its 48th meeting, rule 88C was inserted in the CGST Rules with effect from
26.12.2022 for system based intimation to the registered person in cases of difference in output tax liability in terms of FORM
GSTR-1 and GORM GSTR-3B of a registered person for any particular month above a specified threshold.
 The Council had also directed Law Committee to formulate a procedure in cases where the taxpayer deposits the differential tax
liability only partly, with or without an explanation for such short payment, and for further action for recovery of the unpaid
amount in accordance with section 79, for which no satisfactory explanation has been furnished.
 insertion of a new Rule 142B in the CGST Rules and insertion of a new FORM GST DRC-01D to provide for creation of
liability in Electronic Liability Register by the proper officer in respect of -
• the amount intimated under rule 88C which is not paid by the registered person and for which no explanation has been
furnished or the explanation furnished is not satisfactory; and
• the amount of interest
This would help in expeditious recovery of due tax liability and interest amount.
Amendment in CGST Rules, 2017 regarding registration

 Some unscrupulous elements are misusing the identity of other persons to obtain fake/ bogus registration under GST, with an intention to defraud the
Government exchequer.
 Such fake/ non-genuine registrations are being used to fraudulently pass on input tax credit to unscrupulous recipients by issuing invoices without any
underlying supply of goods or services or both.
 This menace of fake registrations and issuance of bogus invoices for passing of fake ITC has become a serious problem, wherein fraudulent people engage
in dubious and complex transactions, causing revenue loss to the government.
 There is, therefore, a need for further strengthening and streamlining the registration process in GST to tackle the menace of fake registrations.
 Amendment in rule 10A to provide that the details of bank account may be required to be furnished within 30 days of grant of registration, or before
filing of statement of outwards supply under section 37 of CGST Act in FORM GSTR-1/ IFF, which ever is earlier.
 Amendment to sub-rule (2A) of rule 21A to provide for system based suspension of the registration in respect of such registered persons who either
do not furnish details of valid bank account under rule 10A of CGST Rules within the time period prescribed in the said rule.
 Insertion of 3rd proviso in sub-rule (4) of rule 21A to provide for automatic revocation of suspension upon compliance with provisions of
rule 10A.
 Amendment to sub-rule (6) of rule 59 to provide that in cases where a registered person has not furnished details of a valid bank account under rule
10A or where the said bank account is not validated, the said registered person may not be allowed to furnish the details of outward supplies in FORM
GSTR-1 or using IFF.
 Amendment in rule 9(1) and rule 25 to do away with the requirement of presence of the applicant for physical verification of business premises
and to provide for physical verification in rule 25 in high risk cases even where Aadhaar has been authenticated.
Amendment in CGST Rules
Omission of clause (c) of Explanation (1) to Rule 43
 Services by way of transportation of goods by a vessel from customs station of clearance in India to a place outside India was an exempt supply till 30.09.2022, which was not
further extended after 30.09.2022. As a result, the said service has become taxable after 30.09.2022.
 Clause (c) of Explanation (1) to Rule 43 of CGST Rules provides that aggregate value of exempt supplies for the purpose of reversal of common input tax credit under rule 42 or
rule 43 shall exclude value of supply of services by way of transportation of goods by a vessel from customs station of clearance in India to a place outside India.
 Since, the above service is not an exempt supply w.e.f. 01.10.2022, reversal of ITC in respect of supply of the said services is not required w.e.f. 01.10.2022. Therefore,
clause (c) of Explanation (1) to Rule 43 of CGST Rules becomes redundant and may be omitted.
 clause (c) of Explanation (1) at the end of Rule 43 of CGST Rules omitted.
Amendment in proviso to rule 46(f) of CGST Rules 2017

 Rule 46 of CGST Rules amended vide Notification No. 26/2022 –Central Tax dated 26.12.2022 by adding a proviso to clause (f) of the said rule to provide that:
 where any taxable services is supplied by or through an ECO or by a supplier of OIDAR services to an unregistered recipient, irrespective of the value of such supply, a tax
invoice issued by the registered person shall contain the name, address, PIN code and the name of the State of the recipient and the said address shall be deemed to be
the address on record of the recipient for purpose of place of supply.
 This led to concern by some tax administrations that where full address of the recipient is not available, the supplier may declare the place of supply as his own location leading to
loss of revenue for the consumption states.
 Concerns raised by some taxpayers in difficulty in providing full address of the recipients on the tax invoices.
 Accordingly, request made to not insist for full address details of the recipient and only the name of State of the recipient may be sufficient to be provided in the tax invoice.
 proviso to rule 46(f) of CGST Rules amended to provide that only name of the State of the recipient may be sufficient to be provided on the tax invoice for deeming as address
on record, and that name, address and PIN code of the recipient may not be required to be declared on the tax invoice.
Amendment in rule 64 and FORM GSTR-5A of CGST Rules 2017
 Rule 64 of CGST Rules provides for filing of a monthly return in FORM GSTR-5A by a registered person providing OIDAR services from a place outside India to a person in
India other than a registered person.
 FORM GSTR-5A did not capture details of supplies made by the OIDAR service provider to registered persons in India.
 There may be cases where such person registered persons in India may not be paying applicable tax on RCM basis on such supplies received from OIDAR service provider.
 Accordingly, there may be a need to include details of supplies made by the OIDAR service provider located outside India to registered persons in India in FORM GSTR-5A to
keep track of such supplies.
 Amendment in rule 64 and in FORM GSTR-5A so as to also include details of supplies made by the OIDAR service provider located outside India to registered persons in
India.
Amendment in Rule 89(1):

 3rd proviso to sub-rule (1) of rule 89 of CGST Rules provided that refund of any amount by casual taxable person or by a non-resident taxable person shall be claimed in the last
return required to be furnished by him.
 However, Form GSTR- 3B does not provide any option of claiming such refund, thus creating an anomaly regarding manner of claiming refund by casual taxable person or a non-
resident taxable person.
 3rd proviso to sub-rule (1) of rule 89 of CGST Rules amended so that casual taxable person or a non-resident taxable person can claim refund of advance tax amount in the nature
of excess balance in electronic cash ledger, after the last return required to be furnished by him has been so furnished.
Amendment in rule 108 and rule 109
 In terms of sub-rule (1) of rule 108 and sub-rule (1) of rule 109 of CGST Rules, doubts are being raised as to whether an appeal under section 107 can be filed either
electronically or manually at the liberty of the Appellant, or the appeal needs to be filed electronically only, if not otherwise notified by the Commissioner.
 There is a need to provide a clarity in the matter and also to provide for manual filing of appeal in some specific circumstances.
 Amendment in rule 108(1) and rule 109(1) of CGST Rules by inserting a proviso in both of the said rules providing for filing of appeal manually under certain specified
circumstances.
Notice in FORM GSTR-3A for non-filing of Annual Return in FORM GSTR-9 or FORM GSTR-9A:
 Section 46 of the CGST Act, read with Rule 68 of CGST Rules, require issuance of a notice in FORM GSTR-3A to a registered person who fails to furnish return under Section 39
or Section 44 or Section 45 or Section 52 of CGST Act requiring him to furnish such return within fifteen days.
 While FORM GSTR-3A has provision to issue notice to return defaulters as well as defaulters of final return, there is no provision in it to issue notice to defaulters of Annual
returns.
 amendment in FORM GSTR-3A for issuance of notice to the registered taxpayers for their failure to furnish Annual Return in FORM GSTR-9 or FORM GSTR-9A.
Rules amendment consequent to submission of report of Group of Ministers (GoM) on implementation
of E-way bill requirement for movement of Gold/ Precious stones under chapter 71
 The Group of Ministers (GoM) on e-way bill for gold and precious stones had submitted its report containing various
recommendations in respect of e-way bill requirement for intra-state movement of gold and precious stones, which were accepted by
the GST Council in its 47th meeting.
 A separate rule 138F inserted in CGST Rules, 2017, as well as in SGST Rules, 2017 of the States who want to mandate the
requirement of generation of e-way bills for intra-State movement of gold and precious stones under Chapter 71, for implementing
the said recommendations of GoM.
 It will enable the States to implement the requirement of e-way bill for intra-State movement of gold and precious stones,
thus reducing evasion in respect of the said commodities.
Amendment in CGST Rules and GST/PCT Form(s)
Notified by Notification No. 52/2023 – CT dated 26.10.2023

(i) Incorporation of ‘One Person Company’ in FORM GST REG 01 i.e. Application for Registration
• While applying for Registration, an applicant is required to select one of the categories mentioned in ‘Constitution of
Business’ from dropdown in Part B of FORM GST REG-01 i.e. Application for Registration.
• In the existing system, it is mandatory for applicant to update minimum two Partners/Promoters, if he selects any of
the categories of “Constitution of Business”. In case where an applicant tries to proceed with less than two Promoters
and Partners, an error message is being displayed on the portal and he is not able to submit the application for
registration.
• The option of choosing ‘One Person Company’ is not available among different categories of ‘Constitution of
Business’ in notified FORM REG-01 and hence there is a need to make this option available in the FORM and on GST
portal as well.
• Incorporated ‘One Person Company’ as a Constitution of Business in Part-B of FORM GST REG-01 the
applicant to fill only the details of the single member or owner and to submit the application successfully on system.

• Application for Enrolment as Goods and Services Tax Practitioner-Amendment in Form GST PCT-01
• Rule 83(1) of the CGST Rules, 2017 stipulates certain conditions for enrolment as Goods and Services Tax practitioner some of which are not available
in the notified FORM GST PCT-01 and on the portal.
• Hence, necessary changes mentioned below made on the portal as well as in Part-B of Form GST PCT-01 in line with the rules.
• Certificate of Practice (COP) not required for CA/ICWA/CS as per the rules.
• Option related to Graduate or Post Graduate in Law and Higher Auditing is not available in notified form and existing implementation
• Option related to any other examination notified by Government is also not there.
• Deleting the option of “Advocate” as it is not aligned with the existing rules.
• S. No. 4 of Part-B of Form amended GST PCT-01 in line with rule 83(1) of the CGST Rules.
Application for cancellation of TCS and TDS registration- Enhancement in Form GST REG-08 format for having
options for cancellation of registration against the request made by the TDS and TCS registered persons
• Notification no. 26/2022-CT dated 26.12.2022 amended rule 12(3) of the CGST Rules to provide for facility to TDS
and TCS registered person for cancellation of their registration on their request.
• The tax officers were issuing Order of cancellation of Registration as Tax Deductor at Source or Tax Collector at
Source in FORM GST REG-08 for suo-moto cancellation of registration alone as there was no separate format for
issuing order of cancellation of registration for those persons against self-cancellation application.
• Hence, there was a need to amend FORM GST REG-08 to specifically provide for cancellation of registration
against the request made by the TDS and TCS registered persons and also to rephrase and re-align the reasons for
cancellation in FORM GST REG-08 on the lines of those notified in respect of FORM GST REG-19 vide CGST (5th
Amendment) Rules, 2022 for better clarity.
• substituted FORM GST REG-08 to provide for cancellation of registration against the request made by the TDS
and TCS registered persons and to rephrase and re-align the reasons for cancellation in FORM GST REG-08 on the
lines of those notified in respect of FORM GST REG-19.
Before Amendment
After Amendment
Amendment in rule 142 (3) of the CGST Rules with respect to FORM GST DRC-05
• FORM GST DRC-05 used the word intimation to denote the format in which the proper officer intimates the taxpayer
regarding the conclusion of proceedings ( section 73/74/129 proceedings) initiated against him. However, rule 142 (3)
of the CGST Rules states that “…and the proper officer shall issue an order in FORM GST DRC-05 concluding the
proceedings in respect of the said notice.” i.e. the word used in rule 142(3) is 'order' and not 'intimation‘. This created
an anomaly as the intention behind FORM GST DRC-05 was to intimate the taxpayer about the proceedings and not to
issue an order which is appealable.
• Rule 142 (3) amended so that words “intimation” shall be used instead of “order” with respect to FORM GST DRC-
05.
Automatic restoration of provisionally attached property
• Section 83(2) of CGST Act, 2017 mentions that the provisional attachment shall cease to have effect after the expiry
of a period of one year from the date of the order i.e. provisional attachment order in the form of FORM GST
DRC-22, there is no mention of need for issuance of any order to release/ restore the provisionally attached property
after expiry of this time period of one year.
• At the same time, Rule 159(2) of CGST Rules, 2017 mentions that the provisional attachment of a property shall
be removed only on the written instructions from the Commissioner to that effect.
• It has been brought to notice that there is a confusion among the concerned revenue authorities, transport authorities,
bankers and other such authorities as to whether the said encumbrance placed on the said movable or immovable
property automatically expires after a period of one year from the date of FORM GST DRC – 22, or the said
authorities have to wait for a written instructions from the Commissioner to that effect.
• Notified by Notification No. 52/2023 – CT dated 26.10.2023
• an amendment in sub-rule (2) of Rule 159 of CGST Rules, 2017, to insert the words “or on expiry of a period
of one year from the date of issuance of order in FORM GST DRC-22, whichever is earlier,” after the words “to
that effect”, to clearly provide that order issued under FORM GST DRC-22 shall cease to have effect after
expiry of period of one year from the date of issuance.
• an amendment in FORM GST DRC-22 inserting the words “This order shall cease to have effect, on the date
of issuance of order in FORM GST DRC-23 by the Commissioner, or on the expiry of a period of one year from
the date of issuance of this order, whichever is earlier.”
Amnesty Scheme for Appeal [Notification 53/2023-CT dated 02.11.2023]
In exercise of the powers conferred by section 148 of CGST Act, the Central Government, on the recommendations of the Council, hereby
notifies Taxable persons who
• could not file an appeal against the order passed by the Proper officer on or before the 31st day of March, 2023 under section 73 or 74
of the said Act (hereinafter referred to as the said order), within the time period specified in sub-section (1) of section 107 read with sub-
section (4) of section 107 of the said Act, and
• the Taxable persons whose appeal against the said order was rejected solely on the grounds that the said appeal was not filed within
the time period specified in section 107, as the class of persons (hereinafter referred to as the said person) who shall follow the
following special procedure for filing appeals in such cases:
The said person shall file an appeal against the said order in FORM GST APL-01 in accordance with subsection (1) of Section 107 of the
said Act, on or before 31st day of January 2024:
Provided that an appeal against the said order filed in accordance with the provisions of section 107 of the said Act, and pending before the
Appellate Authority before the issuance of this notification, shall be deemed to have been filed in accordance with this notification, if it fulfills
the condition specified at para 3 below.
No appeal shall be filed under this notification, unless the appellant has paid-
(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and
(b) a sum equal to twelve and a half per cent. of the remaining amount of tax in dispute arising from the said order, subject to a maximum of
twenty-five crore rupees, in relation to which the appeal has been filed, out of which at least twenty percent should have been paid by
debiting from the Electronic cash ledger.
Amnesty Scheme for Appeal
No refund shall be granted on account of this notification till the disposal of the appeal, in respect of any amount paid by
the appellant, either on their own or on the directions of any authority (or) court, in excess of the amount specified in para
3 of this notification before the issuance of this notification, for filing an appeal under sub-section (1) of Section 107 of the
said Act.
No appeal under this notification shall be admissible in respect of a demand not involving tax.
6. The provisions of Chapter XIII of the Central Goods and Service Tax Rules, 2017 (12 of 2017), shall mutatis mutandis,
apply to an appeal filed under this notification.
Amendments in CGST Act 2017, IGST Act 2017 & CGST Rules and amendment/ issuance of notifications for
online gaming/ casinos, etc.
Major Amendments in CGST Act/ IGST Act
Amendment in Entry 6 of Schedule III of CGST Act to clarify taxability of actionable claims in casinos, horse
racing and online gaming and insertion of related definitions in sectoin 2:
Entry 6, Schedule III CGST Act

Rationale for amendment
Schedule III of CGST Act contains activities or 6. Actionable claims, other than lottery, betting and
transactions which shall be treated neither as a supply gambling specified actionable claims.
of goods nor a supply of services. Entry 6 of the said
Schedule is “Actionable claims, other than lottery,
betting and gambling”. There is a need to provide
clarity in Entry 6 so as to specifically provide that
“specified actionable claims” (which include actionable
claims involved in or by way of casinos, horse racing
and online money gaming) are not covered under the
said entry.
Insertion of related definitions in section 2
Section 2(80A) CGST Act

The term “online gaming” needs to be Section 2
defined in the CGST Act. (80A) "online gaming" means offering of a game on the
internet or an electronic network and includes online money
gaming.
Section 2(80B) CGST Act

The term “online money gaming” needs Section 2
to be defined in the CGST Act. (80B) "online money gaming " means online gaming in which players pay or
deposit money or money's worth, including virtual digital assets, in the
expectation of winning money or money's worth, including virtual digital assets,
in any event including game, scheme, competition or any other activity or
process, whether or not its outcome or performance is based on skill, chance or
both and whether the same is permissible or otherwise under any law for the time
being in force.
The term “specified actionable (102A) “specified actionable claim” means actionable claim involved in
claims” need to be defined in the or by way of
CGST Act. (i) betting; or
(ii) casinos; or
(iii) gambling; or
(iv) horse racing; or
(v) lottery; or
(vi) online money gaming.
Section 2(105) CGST Act
The definition of “supplier” in the Section 2
CGST Act needs amendment so as (105) “supplier” in relation to any goods or services or both, shall mean the person supplying the
to provide for a deeming provision said goods or services or both and shall include an agent acting as such on behalf of such supplier in
to treat a person as supplier in relation to the goods or services or both supplied;
respect of a supply of specified
Provided that a person who organises or arranges, directly or indirectly, supply of specified
actionable claims. .
actionable claims, including a person who owns, operates or manages digital or electronic platform
for such supply, shall be deemed to be a supplier of such actionable claims, whether such actionable
claims are supplied by him or through him and whether consideration in money or money’s worth,
including virtual digital assets, for supply of such actionable claims is paid or conveyed to him or
through him or placed at his disposal in any manner, and all the provisions of this Act shall apply to
such supplier of specified actionable claims as if he is the supplier liable to pay the tax in relation to
the supply of such actionable claims.
Rationale for amendment Suggested formulation
The term “virtual digital asset” Section 2
needs to be defined in the CGST (117A) "virtual digital asset" shall have the same meaning as
Act. assigned to it in section 2(47A) of Income Tax Act, 1961 (43 of
1961).
Section 2(17) CGST Act

Clause (17) of section 2 defines online information database (17) “online information database access or retrieval
access or retrieval services. The said definition includes services”….
online gaming. However, amendment is required in the said
(vii) online gaming, excluding online money gaming;
definition of online information database access or retrieval
services so as to exclude “online money gaming” from the
said definition.
Section 24 CGST Act
Section 24 provides for compulsory registration 24. Compulsory registration in certain cases.— Notwithstanding
in certain cases. It is proposed that a person anything contained in sub-section (1) of section 22, the following
supplying online money gaming from a place categories of persons shall be required to be registered under this Act,––
outside India to a person in India may be
....
required to get mandatorily registered under
GST. Accordingly, amendment is proposed in (xia) every person supplying online money gaming from a place outside
section 24 to cover person supplying online India to a person in India;
money gaming from a place outside India to a ....
person in India under compulsory registration.
Major Amendments in CGST Act/ IGST Act
Providing for taxability of cross-border supplies of online money gaming by a supplier located outside India to a person
in India
Section 14A IGST Act

There is a need for special provisions to be inserted 14A. Special provision for online money gaming supplied by a person located outside the taxable
in the Act for supply of online money gaming by a territory.
person located outside the taxable territory to a
(1) A supplier of online money gaming as defined in clause (80B) of section 2 of the CGST Act, 2017 not
person in India. Such provisions may provide for:
located in the taxable territory, shall in respect of the supply of online money gaming by him to a person in the
taxable territory, be liable to pay integrated tax on such supply.
(i) liability on the said supplier for paying integrated
tax on such supply. (2) For the purposes of complying with provisions of sub section (1), the supplier of online money gaming shall
take a single registration under the Simplified Registration Scheme referred to in section 14 of this Act:
(ii) Single registration under the Simplified
Registration Scheme referred to in section 14 of this Provided that any person located in the taxable territory representing such supplier for any purpose in the
taxable territory shall get registered and pay integrated tax on behalf of the supplier:
Act for the said supplier.
Provided further that if such supplier does not have a physical presence or does not have a representative for
(iii) blocking of access by the public to any any purpose in the taxable territory, he shall appoint a person in the taxable territory for the purpose of paying
information generated, transmitted, received or integrated tax and such person shall be liable for payment of such tax.
hosted in any computer resource used for supply of
online money gaming by such supplier, in case of (3) In case of failure to comply with provisions of sub section (1) and/or sub section (2) above by the supplier
of the online money gaming or a person appointed by such supplier or both, notwithstanding anything
failure to comply with the above provisions.
contained in section 69A of the Information Technology Act, 2000 (21 of 2000), any information generated,
transmitted, received or hosted in any computer resource used for supply of online money gaming by such
supplier shall be liable to be blocked for access by the public in such manner as specified in the said Act.
Amendments in CGST Act 2017, IGST Act 2017 & CGST Rules and amendment/ issuance of
notifications for online gaming/ casinos, etc.
Notification No. 45/2023 – CT dated 05.09.2023, Notification No. 48/2023 – CT, Notification No. 49/2023 – CT, Notification No. 51/2023 – CT
dated 29.09.2023
Value of supply of actionable claims in case of casino
Rule 31C. Notwithstanding anything contained in this chapter, the value of supply of actionable claims in casino shall be the total amount paid or
payable by or on behalf of the player-
(i) for purchase of the tokens, chips, coins or tickets, by whatever name called, for use in casino; or
(ii) for participating in any event, including game, scheme, competition or any other activity or process, in the casino, in cases where the token,
chips, coins or tickets, by whatever name called, are not required.
Explanation: For the purpose of rule 31B and rule 31C, any amount received by the player by winning any event, including game, scheme,
competition or any other activity or process, which is used for playing by the said player in a further event without withdrawing, shall not be
considered as the amount paid to or deposited with the supplier by or on behalf of the said player.
Issue of treatment of refund/ return of money to the players:
 Insertion of proviso after proposed rule 31B:
Provided that any amount returned or refunded by the supplier to the player for any reasons whatsoever, including player not using the amount
paid or deposited with the supplier for participating in any event, shall not be deductible from the value of supply of online money gaming.
 Insertion of proviso after proposed rule 31C:
Provided that any amount returned or refunded by the casino to the payer on return of token, coins, chips, or tickets, as the case may be, or
otherwise, shall not be deductible from the value of the supply of actionable claims in casino.
Besides, there are some other amendments proposed in CGST Rules to provide for other consequential changes.
Advisory for Pilot Project of Biometric-Based Aadhaar Authentication
Advisory for Pilot Project of Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants
of Gujarat, Puducherry and Andhra Pradesh
Following key points during the registration process:
1. Rule 8 of the CGST Rules, 2017 has been amended to provide that an applicant can be identified on the Common portal, based on data
analysis and risk parameters for Biometric-based Aadhaar Authentication and taking photograph of the applicant along with the verification
of the original copy of the documents uploaded with the application.
2. The above-said functionality has been developed by GSTN. It was launched in Puducherry on 30th August 2023 and will be rolled out in
Gujarat on 7th November 2023.
3. The said functionality now also provides for the document verification and appointment booking process. After the submission of the
application in Form GST REG-01, the applicant will receive either of the following links in the e-mail,
(a) A Link for OTP-based Aadhaar Authentication OR
(b) A link for booking an appointment with a message to visit a GST Suvidha Kendra (GSK) along with the details of the GSK and
jurisdiction, for Biometric-based Aadhaar Authentication and document verification (the intimation e-mail)
4. If the applicant receives the link for OTP-based Aadhaar Authentication as mentioned in point 3(a), she/he can proceed with the
application as per the existing process.
5. However, if the applicant receives the link as mentioned in point 3(b), she/he will be required to book the appointment to visit the
designated GSK, using the link provided in the e-mail. Once the applicant gets the confirmation of appointment through e-mail (the
appointment confirmation e-mail), she/he will be able to visit the designated GSK as per the chosen schedule.
Advisory for Pilot Project of Biometric-Based Aadhaar Authentication
6. At the time of the visit of GSK, the applicant is required to carry the following details.
(a) a copy (hard/soft) of the appointment confirmation e-mail
(b) the details of jurisdiction as mentioned in the intimation e-mail
(c) Aadhaar Number
(d) the original documents that were uploaded with the application, as communicated by the intimation e-mail.
7. The biometric authentication and document verification will be done at the GSK, for all the required individuals as per the GST application
Form REG-01.
8. The applicant is required to choose an appointment for the biometric verification during the maximum permissible period for the
application as indicated in the intimation e-mail. In such cases, ARNs will be generated once the Biometric-based Aadhaar Authentication
process and document verification are completed.
9. The feature of booking an appointment to visit a designated GSK is currently available for the applicants of the Gujarat State and it will be extended to
the other notified States/UTs shortly.
Earlier, Notification 27/2022 dated 26.12.2022 was issued to conduct the pilot in Gujarat and Puducherry regarding
risk-based biometric-based Aadhar authentication. Further, vide Notification No. 54/2023 dated 17.11.2023, the
State of Andhra Pradesh also added to join this pilot after the system’s readiness is tested in the State of Gujarat
and U.T. of Puducherry.
Difference in ITC available in GSTR-2B & ITC claimed in the GSTR-R3B
Dated 14.11.2023
1. It is informed that GSTN has developed a functionality to generate automated intimation in Form GST
DRC-01C which enables the taxpayer to explain the difference in Input tax credit available in GSTR-2B
statement & ITC claimed in GSTR-3B return online as directed by the GST Council. This feature is now live
on the GST portal.
2. This functionality compares the ITC declared in GSTR-3B/3BQ with the ITC available in GSTR-2B/2BQ for
each return period. If the claimed ITC in GSTR 3B exceeds the available ITC in GSTR-2B by a pre-defined
limit or the percentage difference exceeds the configurable threshold, taxpayer will receive an intimation in
the form of DRC-01C.
3. Upon receiving an intimation, the taxpayer must file a response using Form DRC-01C Part B. The
taxpayer has the option to either provide details of the payment made to settle the difference using Form
DRC-03, or provide an explanation for the difference, or even choose a combination of both options.
4. In case, no response is filed by the impacted taxpayers in Form DRC-01C Part B, such taxpayers will not
be able to file their subsequent period GSTR-1/IFF.
ITC Reversal on Account of Rule 37A- Amount not paid by supplier to
govt
Dated 14.11.2023
1. Vide Rule 37A of CGST Rules, 2017 the taxpayers have to reverse the ITC availed on such invoice or
debit note, the details of which have been furnished by their supplier in their GSTR-1/IFF but the return in
GSTR-3B for the said period has not been furnished by their supplier till the 30th day of September following
the end of FY in which the ITC in respect of such invoice or debit note had been availed.
2. The said amount of ITC is required to be reversed by such taxpayers, while furnishing a return in FORM
GSTR-3B on or before the 30th day of November following the end of such financial year, as part of this legal
obligation.
3. To facilitate the taxpayers, such amount of ITC required to be reversed on account of Rule 37A for the FY
2022-23 has been computed from system and has been communicated to the concerned recipient. The
email communication to this effect has been sent on the registered email id of the taxpayer.
4. The taxpayers are advised to take note of it and to ensure that such ITC, if availed by them, is reversed as
per rule 37A before 30.11.2023 in Table 4(B)(2) of GSTR-3B while filing the concerned GSTR-3B.
GSTAT
Purpose of GoM ON GSTAT
As per Provisions of CGST Act,2017
GoM was mandated to recommend
Each bench of the Tribunal is composed of one Judicial Member,
one Technical Member (Centre) and one Technical Member necessary amendments required in the GST
(State) Laws to ensure that the legal provisions:
Hon’ble High Court of Madras in its order dated
20.09.2019 in WP 21147 of 2018 – Revenue Bar a) Maintain the right federal balance;
Association Vs. Union of India
b) Are in line with the overall objective of
The number of expert members cannot exceed the number of
judicial members on the bench and struck down the relevant uniform taxation within the country; and
provisions of the law.
c) Are in line with the principles outlined in
Hon’ble Supreme Court of India various judgements of Courts in relation to
Laid down various principles with respect to appointment to various aspects of Tribunal and are legally
Tribunals, conditions of service etc. in various other judgements.
including order of Supreme Court in CA 3067 of 2004, CA No. sustainable.
8588 of 2019
Group of Ministers(GoM)
Draft amendments were placed before the GST Council in its

47th Meeting in Chandigarh and the matter referred to a Group
of Ministers.
86
Section 110: Qualification of Members (Finance Act 2023)
President Judge of the Supreme Court or Chief Justice of High Court
Judicial Judge of a High Court or District Judge or an Additional District Judge (With
Member 10 years experience)
Technical Min. 25 years of Group A Service + Member of IRS (C&CE) or AIS with three-
Member year experience in GST or existing law
(Centre)
Technical Officer of the State Government or AIS + not below the rank of Additional
Member Commissioner of Value Added Tax or the State goods and services tax or
(State) such rank, not lower than that of the First Appellate Authority
25 Years of Group A Services or equivalent, with at least three years of experience in the administration
of an existing law or the goods and services tax or in the field of finance and taxation in the State
Government, which may be reduced by the State Government on recommendation of the Council.
first preference shall be given to officers who have worked in the State Government of the State to which the jurisdiction
87
of the Bench extends.
Composition of the Search-cum-Selection Committee
Chairperson Chief Justice of India or a Judge of Supreme Court Nominated by Him
Member One Secretary of Central Government nominated by the Cabinet Secretary
Member Chief Secretary of a State to be nominated by the Council
(A) in case of appointment of a President of a Tribunal, shall be the outgoing President

One Member
of the Tribunal; or
(B) in case of appointment of a Member of a Tribunal, shall be the sitting President of
the Tribunal; or
(C) in case of the President of the Tribunal seeking re-appointment or where the
outgoing President is unavailable or the removal of the President is being
considered, shall be a retired Judge of the Supreme Court or a retired Chief Justice
of a High Court nominated by the Chief Justice of India
88
Secretary of the Department of Revenue in the Ministry of Finance of the Central
Member Secretary
Government
• The Chairperson shall have the casting vote and the Member Secretary shall not have a vote.
89
Composition of the Search-cum-Selection Committee for Technical Member (State) of a State Bench
Chairperson the Chief Justice of the High Court in whose jurisdiction the State Bench is located
the senior-most JudiciaI Member in the State, and where no JudiciaI Member is
Member available, a retired Judge of the High Court in whose jurisdiction the State Bench is
located
Member Chief Secretary of the State in which the State Bench is located
one Additional Chief Secretary or Principal Secretary or Secretary of the State in which
the State Bench is located, as may be nominated by such State Government, not in-
Member
charge of the Department responsible for administration of State tax
Additional Chief Secretary or Principal Secretary or Secretary of the Department

Member Secretary
responsible for administration of State tax, of the State in which the State Bench is
located
90
THE CENTRAL GOODS AND SERVICES TAX (SECOND AMENDMENT) ACT, 2023 DATED 28.12.2023
Alignment of provisions of the CGST Act, 2017 with the provisions of the Tribunal Reforms Act, 2021 in
respect of Appointment of President and Member of the proposed GST Appellate Tribunals: The Council in
its 52nd Meeting has recommended amendments in section 110 of the CGST Act, 2017 to provide that:
i) an advocate for ten years with substantial experience in litigation under indirect tax laws in the
Appellate Tribunal, Central Excise and Service Tax Tribunal, State VAT Tribunals, by whatever name
called, High Court or Supreme Court to be eligible for the appointment as judicial member;
ii) the minimum age for eligibility for appointment as President and Member to be 50 years;
iii) President and Members shall have tenure up to a maximum age of 70 years and 67 years
respectively.
Amnesty
Schemes/Relaxations
Special procedure for revocation of cancellation of registration (w.e.f. 31 March 2023)
[Notification No. 03/2023-Central Tax dated 31 March 2023]

• Special procedure prescribed for registered persons whose registration has been cancelled for non-furnishing of
returns under clauses (b) or (c) of Section 29(2) of the Central Goods and Services Tax Act, 2017 (‘CGST Act, 2017’) on
or before 31st December, 2022 and who failed to apply for revocation of cancellation of such registration within 30
days from the date of cancellation by the proper officer.
• To avail the benefit under the above notification,

 Registered person to apply for revocation of cancellation of such registration up to 30 June 2023,
 Returns due up to effective date of cancellation of registration should have been furnished,
 Payment of tax due, along with interest, penalty and late fee should have been paid,
 No further extension of time period available for filing the said application,
• The aforesaid benefit extends to the following persons:

 Persons who failed to apply for revocation of cancellation of registration within time specified in Section 30
and
 A person whose appeal against the order of cancellation of registration or order rejecting application for
revocation of cancellation of registration has been rejected on ground of failure to adhere to time limit
specified under Section 30(1).
Conditional waiver of late fee on failure to furnish GSTR-4
• Late fee payable under Section 47 for failure to furnish GSTR-4 has been waived to the extent that the same is in excess of INR 250
and shall stand fully waived where the total amount of central tax payable in the said return is nil, for the registered persons who fail
to furnish the return in Form GSTR-4
 for the quarters from July, 2017 to March 2019 or
for the FY from 2019-20 to 2021-22 by the due date but furnish the said return between the period from 1 April 2023 to 30
June 2023.
• Notification 73/2017-Central Tax has been amended by Notification No. 02/2023-Central Tax dated 31 March 2023 (w.e.f. 31 March
2023) to insert proviso 7 to the same.
Special Procedure for non-filers of returns (w.e.f. 31 March 2023)

• The Central Government notified that the registered persons who failed to furnish a valid return within a period of 30 days from
service of assessment order issued on or before 28th February 2023 under Section 62(1), as the classes of registered persons, in
respect of whom said assessment order shall be deemed to have been withdrawn if:
 registered persons furnished the said return on or before the 30 June 2023, 2. return is accompanied by payment of
interest under Section 50(1) and late fee payable under Section 47,
 The same shall be available irrespective of whether or not an appeal had been filed against such assessment order under
Section 107 of the CGST Act or whether or not the appeal, if any, filed against the said assessment order has been decided.
Amnesty Scheme for failure to furnish Annual Return (w.e.f. 31 March 2023)
• The Central Government waived the amount of late fee referred to in Section 47 in respect of GSTR-9 for the FY 2022-23 onwards,
which is in excess of amount as specified in Column (2) of the Table below, for the classes of registered persons mentioned in the
corresponding entry in Column (1) of the Table below, who fail to furnish the return by the due date:
Class of registered persons Amount

(1) (2)
Registered persons having an aggregate INR 25 per day, subject to a maximum
turnover of up to INR 5 crore in the of an amount calculated at 0.02 per
relevant FY cent. of turnover in the State or Union
territory
Registered persons having an aggregate INR 50 per day, subject to a maximum
turnover of more than INR 5 crore and of an amount calculated at 0.02 per
up to INR 20 crore in the relevant FY cent. of turnover in the State or Union
territory
It was further provided that the registered persons who failed to furnish GSTR-9 for any of the FY 2017-18, 2018-19, 2019-20, 2020-
21 or 2021-22, but furnished the said return between the period from 1st April 2023 to 30th June 2023, the total amount of late fee
payable in respect of the said return, shall stand waived which is in excess of INR 10,000.
Extension of time limit to issue order under Section 73(10) (w.e.f. 31 March 2023)
• The Central Government extended the time limit under Section 73(10) of the CGST Act, 2017 for issuance of order for recovery of tax
not paid or short paid or of input tax credit wrongly availed or utilized under 73(9) relating to the period as specified below:
FY Extended Upto
2017-18 31 December 2023
2018-19 31 March 2024
2019-20 30 June 2024
Conditional waiver of late fee on failure to furnish GSTR-10 (w.e.f. 31 March 2023)
waives the amount of late fee referred in Section 47, which is in excess of INR 500 for the registered persons who fail to furnish the final
return in Form GSTR-10 by the due date but furnish the said return between 1 April 2023 to 30 June 2023.
Amnesty Provided in July
 Notification No. 22/2023 - Central Tax dated 17.07.2023 issued to extend amnesty for GSTR-4 non-filers
The Central Government vide the said Notification extended the amnesty scheme for GSTR-4 non-filers till 31.08.2023.
 Notification No. 23/2023 - Central Tax dated 17.07.2023 issued to extend time limit for application for revocation of cancellation of registration
The Central Government vide the said Notification extended the application period for revocation of cancellation of registration till 31.08.2023.
 Notification No. 24/2023 - Central Tax dated 17.07.2023 issued to extend amnesty scheme for deemed withdrawal of assessment orders issued
under Section 62
The Central Government vide the said Notification extended the amnesty scheme for deemed withdrawal of assessment orders issued under Section 62 till
31.08.2023.
15 Q&A
From 1 to 1.15 PM
Q1 - Whether ISD Mechanism is Mandatory prior to Finance Act
2024
a) Yes It was mandatory

b) It was not applicable
c) It was optional
c
Q2 – What is the new Penalty amount prescribed for failure to
register certain machine of goods like Pan Masala
a) One Lacs
b) 10000 or 100% of Tax
c) No penalty
a
Q3 – When the machine used for manufacturing of tobacco, is not
liable for confiscation if the penalty is paid with in
a) 3 days
b) 7 days
c) 45 days
d) 10 days
a
Q4 Can composite dealer make the supply of goods and Services
through ECO
a) He can make the supply of goods or service and both through

ECO
b) He can make the supply of goods but not the service through
ECO
c) He can make the supply of services but not the goods through
ECO
d) He cannot make the supply of goods and services thru ECO
b
Q5 Can unregistered person make the supply of goods through
ECO below threshold limit -
a) Yes possible but only Intra State supply

b) No not possible
a
Q6. Can unregistered person make the supply of services through ECO
below the threshold limit
a) Yes possible but only Intra State supply
b) Yes possible both inter and Intra State supply
c) No not possible
b
Q8. What is the new entry of block category of ITC in the section 17(5)
Clause (fa) to section 17(5) – Corporate Social

Responsibility
Q9. What is the current time limit for revocation of cancellation of
registration
90+180 = 270 days

Q10. GST Return cannot be furnished after the expiry of
a) 5 years from the due date of return

b) 3 Years from the due date of return
c) 2 years from the due date of return
d) 60 month from the due date of annual return of a FY
b
Q11. Whether the additional late fees and late fees are same. Please
tell the situations when the additional late fees is being levied
Yes it different. In case of Assessment of non filling of

return – return filled after 60 days before 120 days then
need to pay Rs 100 per days as additional late fees
Q12 If Court give the renting of property to Telecommunication
Company (Registered in the GST) then who will pay the tax
a. Exempted in the GST

b. Court will pay the tax under Forward Charge
c. It is covered in Schedule III and out of GST
d. Recipient will pay the Tax under RCM
d
Q13 Can the GTA opted Forward Charge, pay 5% and 12% both in same
FY
a. Yes
b. No
a. Yes. Restriction is either forward or RCM. But if opted

FCM then he can opt any rate i.e. 5% or 12%. In case of 5%
he has to reverse the ITC Common ITC as per section 17(2)
read with rule 42/43
Q14 Supply of Cotton to Co operative Society is covered under RCM or
FCM
a. Forward Charge
b. Reverse charge
c. No Supply as per schedule III
b
Q15 Commercial property of Director has been given on rent as Rs 2
lacs per month to the company then tax will be paid
a. By the director under Forward Charge

b. By the Company under Reverse charge
c. No Supply as per schedule III
a
THANK YOU

Important Changes Final 05.02.24 GST

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IMPORTANT CHANGES IN GST LAW IN FY 2023-24 AND PROPOSED CHANGES IN THE

INTERIM BUDGET 2024

- MS. ASHIMA BANSAL

Finance Bill 2024

• The Section 122A read as:

Composition levy extended to suppliers of goods under ecommerce model:

Clarificatory amendment concerning payment to supplier within 180 days

[Notification No. 28/2023 – Central Tax dated 31.07.2023]

Section 17(5)(fa) of the CGST Act: ITC blocked on CSR activities

[Notification No. 28/2023 – Central Tax dated 31.07.2023]

Time limit on application for revocation of cancelled registration

[Notification No. 38/2023- Central Tax dated August 04, 2023]

Limitation of 3 years on filing of returns

[Notification No. 28/2023 – Central Tax dated 31.07.2023]

Refunds and Interest on delayed refunds

Assessment of unregistered persons

 Time period of 30 days specified under section 62(2) increased to 60 days.

Penalty for certain offences:

Decriminalization of certain offences

Section 132(1) of the CGST Act has been amended so as:

Consent based sharing of information furnished by taxable person

New Rule 163 inserted:

Retrospective applicability of Para 7, 8(a) and 8(c) of Schedule III

Scope of OIDAR services widened

Place of Supply in relation of Transportation of Goods

49th GST Council Meeting held on 18.02.2023

50th GST Council Meeting held on 11.07.2023

51st GST Council Meeting held on 02.08.2023

52nd GST Council Meeting held on 07.10.2023

1st National Coordination Meeting held on 24.04.2023

2nd National Coordination Meeting held on 14.12.2023

services supplied by Courts/Tribunals to be taxed under Reverse Charge Mechanism (RCM)

[Notification No. 02/2023-Central Tax (Rate) dated 28 February 2023]

• Treated on similar lines of jaggery stating that it is a liquid form of jaggery.

[Notification No. 09/2023-Central Tax (Rate) dated 26 July 2023 and

uncooked/unfried extruded snack pellets

[Notification No. 09/2023-Central Tax (Rate) dated 26 July 2023]

Supply of raw cotton by agriculturist to cooperatives

Whether supply of food or beverages in cinema hall is taxable as restaurant service

[Notification No. 13/2023-Central Tax (Rate) dated 19 October 2023]

[Notification No. 16/2023-Central Tax (Rate) dated 19 October 2023]

In the said notification,

[Notification No. 17/2023-Central Tax (Rate) dated 19 October 2023]

Circular issued to clarify that:

 Circular issued to inter alia: [Circular No. 195/07/2023-GST ]

[Circular No. 197/09/2023- GST]

 (i) For common input services procured from third party:

ii. supply of services in respect of advertising sector:

i. Place of supply in case of supply of the “co-location services”:

Notification No. 15/2023 – CT(Rate) dated 19 October, 2023

Notification No. 38/ 2023 - CT dated 4th August, 2023

Amendment in proviso to rule 46(f) of CGST Rules 2017

Amendment in Rule 89(1):

Notified by Notification No. 52/2023 – CT dated 26.10.2023

Notified by Notification No. 52/2023 – CT dated 26.10.2023

Notified by Notification No. 52/2023 – CT dated 26.10.2023

Notified by Notification No. 52/2023 – CT dated 26.10.2023

Major Amendments in CGST Act/ IGST Act

Entry 6, Schedule III CGST Act