Budget 2023 Highlights: GST

  1. The composition scheme is available to taxpayers even if they supply goods through e-commerce operators where TCS is collected under section 52
  2. Section 16 is amended to provide that if a recipient taxpayer fails to pay their supplier invoice value including GST within 180 days of the invoice date, then they must pay with interest computed under Section 50.
  3. Section 17(5) is revised to include another item under ineligible ITC- Expenditure on CSR initiative for corporates.
  4. As per revised Section 17(3), high sea sales and similar transactions are not considered exempt and thus ITC proportional to these sales cannot be claimed.
  5. Sections 37, 39, 44, and 52 are amended to restrict taxpayers from filing GSTR-1 (return for outward supplies), GSTR-3B (summary returns), GSTR-9 (annual returns), and GSTR-8 (e-commerce operator) for a tax period after the expiry of three years from the due date.
  6. A penalty of Rs.10,000 or the amount of tax involved, whichever is higher, will be charged to e-commerce operators who-
  • Allow an unregistered person to supply goods or services or both through them except where such person is exempted from GST registration.
  • Allow any registered person from making inter-state supply of goods/services through them where they are ineligible for it. 
  • Do not furnish accurate details in the GSTR-8 of any sale of goods made through them by a person exempted from obtaining GST registration.
  1. Compounding of offences is now limited to 25% of the tax involved up to a maximum of 100%
  2. GST data can now be shared digitally with consent thanks to the addition of section 158A to the CGST Act. In accordance with this provision, information furnished by a registered person on the GST portal may be shared with other systems as notified, as declared in- 
  • Returns filed under GSTR-1/3B/9, or 
  • Application of registration, or
  • Statement of outward supplies, or 
  • Generation of an e-invoice or e-way bill, or
  • Any other details, as may be prescribed.

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