Highlights for May 2023 GST Notifications and Circulars
The implementation of the Goods and Services Tax (GST) regime has brought about several notifications and clarification circulars to ensure smooth compliance and address various aspects of the tax regime. These GST notifications and circulars play a crucial role in providing guidance, clarifying doubts, and making necessary adjustments to the GST framework.
In this article, we will explore the key highlights of recent GST notifications and clarification circulars, shedding light on significant changes, updates, and important information that businesses and taxpayers need to be aware of. By understanding these highlights, individuals can navigate the complexities of GST more effectively and stay compliant with the latest regulations.
Notification - 10/2023- Central Tax- dated 10 May 2023
The Central Board of Indirect Taxes and Customs (CBIC) has revised the threshold limit for GST e-invoicing applicability under GST. The limit has been reduced from 100 million to 50 million. Therefore, any individual with an aggregate turnover exceeding 50 million in any of the previous financial years from 2017-18 onwards is now required to generate an e-invoice under GST.
11/2023, 12/2023, and 13/2023- Central Tax- dated 24 May 2023
The deadline for filing Form GSTR-1, GSTR-3B, and GSTR-7 for the period of April 2023 has been extended to 31 May 2023 for businesses operating in the state of Manipur as their principal place of business.
05/2023- Central Tax (Rate) - dated 9 May 2023
The time limit for Goods Transport Agencies (GTA) to exercise the option to pay tax under forward charge for the fiscal year 2023-24 has been extended to 31 May 2023.
Instruction Updates 01/2023-GST- dated 4 May 2023
A nationwide operation will be conducted to detect cases of fraudulent GST registrations. The Central Board of Indirect Taxes and Customs (CBIC) has released various instructions in this regard. The GSTN will utilise data analytics and risk parameters to identify fraudulent GSTINs. The identified cases will be communicated to the relevant Central or State administration to initiate a verification drive and take appropriate action.
The special All-India drive will be carried out by the Central and State tax administrations over a two-month period from 16 May 2023 to 15 July 2023. The actions to be taken upon identifying fraudulent registrations include-Suspension and cancellation of the fake GST registrations Blocking input tax credit in the electronic credit ledger Determining recipients who have been granted input tax credit Initiating suitable actions for demand and recovery of unlawfully availed input tax credit Identifying the masterminds or beneficiaries behind such fake GSTINs.
02/2023-GST- dated 26 May 2023
A Standard Operating Procedure (SOP) has been introduced to scrutinise returns filed under Section 61 of the CGST Act, 2017 for the fiscal year 2019-20. The scrutiny will follow the guidelines provided in Instruction No. 02/2022-GST dated 22 March 2022 and CBIC ACES-GST application Advisory No. 22/2023-Returns dated 16 May 2023.
The functionality includes a detailed workflow for communication of discrepancies observed in the returns, receipt of responses, issuance of orders, and taking further actions such as issuing show cause notices, conducting audits, or initiating investigations as required under Section 73 or 74 of the CGST Act, 2017.
Technical Updates Advisory for Timely Filing of GST ReturnsTo alleviate the burden caused by last-minute filing of GSTR-1 and GSTR-3B, it is recommended that taxpayers plan their return filing in advance.
This proactive approach will reduce difficulties faced by fellow taxpayers and ensure a smoother filing process.Advisory: Deferment of Implementation of Time Limit on Reporting Old E-Invoices The CBIC has recently introduced a restriction of seven days for individuals with a threshold limit exceeding 1 billion to generate e-invoices at the Invoice Registration Portal (IRP). However, the implementation of this restriction has been deferred for an additional three months. The new implementation date will be communicated in due course.
