Finance Minister Nirmala Sitharaman announced several legislative changes in the GST law in her Budget 2023 speech.
In the Union Budget 2023, Finance Minister Nirmala Sitharaman announced nine legislative changes to the GST Law.
Legalization
The compounding amount has been reduced from the existing range of 50 percent to 150 percent of the tax amount to 25 percent to 100 percent. This was done to increase the minimum threshold of tax amount from Rs 1 crore to Rs 2 crore for initiating prosecution under GST. Except for the offense of issuing of invoice without a supply of goods or services or both.
Obstructing or obstructing any officer in the discharge of his duties; deliberate tampering with material evidence; Failure to provide information are some of the offenses that have been reduced.
Return Filing under GST
The amendment has been made to restrict the filing of returns/statements for a maximum period of three years from the due date of filing of the relevant return/statement.
Input tax credit for CSR-related expenditure.
The CGST Act is being amended to provide that input tax credit shall not be available in respect of goods or services or both received by a taxable person for activities related to his obligations under Corporate Social Responsibility. Is or intends to use.
Sharing information
A new section is being inserted in the CGST Act to enable the registered person to share the details of his return or application for registration or details of outward supplies, or details uploaded by him for the generation of electronic invoices or e-way bills. Be enabled to do so. Any other details on the common portal, along with other systems in the prescribed manner.
Amendment in clause (16) of section 2 of the IGST Act, 2017
Clause (16) of section 2 of the IGST Act has been amended to modify the definition of “non-taxablenline recipient”. This would be done by removing the condition of receipt of online information and database access or retrieval services for purposes other than commerce, industry, or any other business or profession so that OIDAR service provided by any person located in a non-taxable territory Taxability may be granted. Area for an unregistered person receiving the said services and located in the taxable territory.
Further, it also wishes to clarify that persons registered in terms of clause (vi) of section 24 of the CGST Act shall be deemed to be unregistered persons for the purpose of the said clause.
Online information and database access or retrieval services
The IGST Act is being amended to amend the definition of “online information and database access or retrieval services” to remove the condition of providing the said supply which is essentially automated and involves minimum human intervention.
Place of supply in certain cases
Under the IGST Act (the provisions of sub-section (8) of section 12 of the IGST Act) are being omitted so as to specify the place of supply, irrespective of the destination of the goods, in cases where the supplier of services and recipient.
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