The Central Board of Indirect Taxes and Customs (CBIC) has issued various GST related notifications on 31st March, 2023. These notifications issued inter-alia relates to effective date for changes made in the GST (Compensation to States) Act, 2017 vide Section 163 of the Finance Act, 2023, to give effect to the recommendations as discussed by the GST Council in its 49th Meeting held on 18th February, 2023. 

The gist of the notifications is discussed as under

A. Changes pertaining to payment of GST Compensation Cess

1. Notified 1st April, 2023 as the date for applicability of changes made in Schedule to the Goods and Services Tax (Compensation to States) Act, 2017
   
   The CBIC vide Notification No. 01/2023-Compensation Cess dated 31.03.2023, has notified the date to be 1st April, 2023 for the applicability of provisions of Section 163 of the Finance Act, 2023. The Section 163 of the Finance Act, 2023 is in respect to the amendment of Schedule to the Goods and Services Tax (Compensation to States) Act, 2017. The Amendment in schedule pertains to change as under:
   
   a) Maximum rate at which GST Compensation Cess may be collected for Pan masala changes from 135% ad valorem to 51% of retail sale price per unit.
   b) Maximum rate at which GST Compensation Cess may be collected for Tobacco and manufactured tobacco substitutes, including tobacco products  changes to Rs.4170 per 1000 sticks or 290% ad valorem or a combination thereof but not exceeding INR 4170 per 1000 sticks + 290% ad valorem or 100% of retail sale price per unit.
   c) An Explanation has been inserted to define the term “retail sale price”.
   
   The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/04/01_2023_Cess_English.pdf
2. Changes made rate of Compensation Cess on goods w.e.f. 01st April, 2023
   
   The CBIC vide Notification No. 02/2023-Compensation Cess (Rate) dated 31.03.2023, has amended in Notification No. 01/2017-Compensation Cess (Rate) dated 28.06.2017 as last amended vide Notification No. 01/2023-Compensation Cess (Rate) dated 28.02.2023, to effect changes in rate of compensation cess for supply of goods under GST (Compensation to States) Act, 2017.The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/04/Cess02_2023_eng.pdf

B. Amnesty Schemes 

1. Conditional late fees waiver for non-filers of return in FORM GSTR 4 – (Annual Return of Composition Taxpayers)
   
   The CBIC vide Notification 02/2023-Central Tax dated 31.03.2023, notified waiver of the late fees in excess of Rs.500 (Rs.250 CGST + Rs. 250 SGST) and fully waived where total amount of central tax payable in FORM GSTR-4 is NIL. The late fees waiver is for the registered person who fails to furnish return in FORM GSTR-4 for the quarters from July, 2017 to March, 2019 by the due date or for the F.Y. 2019-20 to 2021-22 by the due date, subject to the condition that said returns are furnished between the period from 1^st April, 2023 to 30^th June, 2023.The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/04/02_ENG-1.pdf
2. Conditional late fees waiver for non-filers of return in FORM GSTR 10 – Final return

The CBIC Vide Notification No. 08/2023-Central Tax dated 31.03.2023, notified waiver of the late fees in excess of Rs.1000 (Rs.500 CGST + Rs. 500 SGST), for the registered persons who fails to furnish return in FORM GSTR-10 i.e. final return by the due date, subject to the condition that the said returns are furnished between the period from 1^st April, 2023 to 30^th June, 2023.

The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/04/08_ENG-1.pdf

       3. Conditional late fees waiver for non-filers of Annual Return

The CBIC vide Notification No. 07/2023-Central Tax dated 31.03.2023, notified the waiver of total amount of late fees which is in excess of Rs. 20,000 (Rs, 10,000 CGST + Rs. 10,000 SGST) for failure to furnish Annual return for any of the financial years from 2017-18 to 2021-22 by the due date, subject to the condition that the said returns are furnished between the period from 1^st April, 2023 to 30^th June, 2023.  

The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/04/07_ENG-1.pdf

       4. Filing of valid return under Section 62, of the CGST Act, 2017 i.e. Best Judgment Order upto 30^th June, 2023

The CBIC vide Notification No. 06/2023-Central Tax dated 31.03.2023, has notified to provide an amnesty scheme for conditional deemed withdrawal of assessment orders issued under Section 62(1) of the CGST Act, 2017 (i.e. Best Judgment Assessment Order) in past cases where the valid return could not be filed within 30 days from the service of the assessment order issued on or before 28^th February, 2023, if such registered person furnishes the such return on or before 30^th June, 2023, along with interest under Section 50(1) and late Fee under Section 47 of the CGST Act.

This is irrespective of whether appeal has been filed or not against such assessment order, or the appeal, if any, filed against such assessment order has been decided or not.

The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/04/06_ENG-1.pdf

       5. Filing application for revocation of cancellation of registration upto 30^th June, 2023

The CBIC vide Notification No. 03/2023-Central Tax dated 31.03.2023, has notified to provide amnesty scheme in case where registration has been cancelled on or before 31^st December, 2022 on account of non-filing of the returns, and application for revocation of cancellation of registration could not be filed within the time specified in section 30 of CGST Act. The benefit of this amnesty scheme is also available to the person whose appeal against the order of cancellation of registration or the order rejecting application for revocation of cancellation of registration has been rejected on the ground of failure to adhere to the time limit specified under Section 30 of the Act.

Such person may file application for revocation of cancellation of such registration upto 30^th June, 2023, subject to the condition that returns due upto the effective date of cancellation of registration has been furnished and amount of tax due has been paid, in terms of such returns, along with any amount payable towards interest, penalty and late fee.

No further extension of time period for filing application for revocation of cancellation of registration shall be available in such cases.

The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/04/03_ENG-1.pdf

 C. Rationalisation of Late fees for FORM GSTR-9:

The CBIC vide Notification No. 07/2023-Central Tax dated 31.03.2023, notified the rationalization of late fees for Annual return in FORM GSTR-9 for F.Y. 2022-23 and onwards for registered person having aggregate turnover in that financial year up to 20 crores in the following manner.

Aggregate Turnover in a F.Y.	From late fees	To late fees
Upto Rs. 5 Cr	Rs. 200 per day (Rs. 100 CGST + Rs. 100 SGST), subject to maximum 0.5% of turnover in the State or UT.	Rs. 50 per day (Rs. 25 CGST + Rs. 25 SGST), subject to maximum of 0.04% of turnover in the State or UT.
Rs. 5 Cr to Rs. 20 Cr	Rs. 200 per day (Rs. 100 CGST + Rs. 100 SGST), subject to maximum 0.5% of turnover in the State or UT.	Rs. 100 per day (Rs. 50 CGST + Rs. 50 SGST), subject to maximum of 0.04% of turnover in the State or UT.

The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/04/07_ENG-1.pdf

D. Extension of limitation period to issue the order under section 73(10) of the CGST Act for the F.Y. 2017-18 , 2018-19, 2019-20.

The CBIC vide Notification No. 09/2023-Central Tax dated 31.03.2023, has extended the time limit specified under Section 73(10) of the CGST Act for issuance of order under Section 73(9) of the CGST Act, for recovery of tax not paid or short paid or of input tax credit wrongly availed or utilized, in respect of a tax period specified below:

• for the financial year 2017-18, up to 31^st December, 2023.
• for the financial year 2018-19, up to 31^st March, 2024.
• for the financial year 2019-20, up to 30^th June, 2024.

 The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/04/09_ENG-1.pdf

E. Procedural Changes in CGST Rules, 2017 having retrospective effect from 26.12.2022

The CBIC vide Notification No. 04/2023-Central Tax dated 31.03.2023, has notified changes in CGST Rules, 2017. These changes are made under Rule 8(4A) of the CGST Rules, 2017, stating that where the applicant for registration under GST opts for Aadhaar Authentication, then the date of submission of  registration application shall be earlier of date of authentication of Aadhaar number or 15 days from the date of submission of application in PART B of FORM GST REG-01.

Provided that the application for registration which is identified on the portal based on data analysis and risk parameters, shall be deemed to be complete only after the biometric-based Aadhaar authentication and taking photograph of the applicant in case of an individual or of such individuals in relation to the applicant as notified where the applicant is not an individual, along with the verification of the original copy of the documents uploaded with the application in FORM GST REG-01 at one of the notified Facilitation Centres.

However, the above proviso of sub-rule 4A would not apply to all the states except State of Gujarat – vide Notification No. 27/2022-Central Tax dated 26.12.2022 as amended by Notification No. 05/2023-Central Tax  dated 31.03.2023.

The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/04/04_ENG-1.pdf