Budget 2023: Amendments on Indirect Taxes

  • The CGST Act will be amended to: –

 01.      Raise the minimum threshold of tax amount for launching prosecution under GST from one crore to Rs. 02 crore;

02.       Reduce the compounding amount from the present range of 50 per cent to 150 per cent of tax amount to the range of 25 per cent to 100 per cent;

03.       Restrict filing of returns/statements to a maximum period of three years from the due date of filing of the relevant return/statement;

04.       Enable unregistered suppliers and composition taxpayers to make intra-state supply of goods through E-Commerce Operators (ECOs);

05.       This budget has also decriminalised certain offences under the CGST Act, which will be notified on a later date.

  • This Budget has introduced setting up a single window IT system for registration and approval from IFSCA, SEZ authorities, GSTN, RBI, SEBI and IRDAI.
  • Further, there would not be any mandatory registration under section 23 of GST even for tax payable under Reverse Charge Mechanism (RCM). This will be applied retrospectively from 01st July 2017.
  • If both supplier and recipient are located in India, then place of supply for transportation of goods outside India shall be treated as if it were transported in India.
  • The time limit to file several GST returns such as GSTR-1, GSTR-3B, GSTR-9 and GSTR-8 has been proposed to be up to 3 years.
  • Customs Amendments: –
  • The Custom Duty rates on goods, other than textiles and agriculture has been reduced to 13% from 21%.  The Customs Duty on specified capital goods or machinery for manufacture of lithium-ion cell for use in battery of electrically operated vehicle (EVs) extended to 31st March 2024.
  • Further, when imported by notified testing agencies, vehicles, specified automobile parts/components, sub-systems and tyres will enjoy Customs Duty exemption for the purpose of testing and certification. These exemptions are however subjected to certain conditions.
  • There will be exemption on Basic Customs Duty on raw materials for manufacture of CRGO Steel, ferrous scrap and nickel cathode continued.
  • The Customs Act, 1962 will be amended to specify a time limit of nine months from date of filing application for passing final order by Settlement Commission.
  • The Customs Tariff Act to be amended to clarify the intent and scope of provisions relating to Anti-Dumping Duty (ADD), Countervailing Duty (CVD), and Safeguard Measures.

For any query/registration/advisory related to GST, Company, Taxation laws, and Updates, Kindly visit www.onfiling.com

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