Finance Bill 2023 Full Description of Latest GST Changes | Academy Tax4wealth

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Finance Bill 2023 Full Description of Latest GST
Changes
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• Finance Bill 2023 Full Description of Latest GST
  Changes
• The Finance Bill, 2023, as introduced in
  Parliament on February 1, 2023,
• suggested several modifications to CGST/IGST
  rules under clauses 128 to 144 of the Finance
  Bill, 2023.
• Following is a description of the proposed
  changes
• E-commerce Composition Scheme
• The Finance Bill of 2023 proposes to change
  sections 10(2)(d) and 10(2A)(c) of the CGST Act
  of 2023.
• The purpose of this modification is to eliminate
  all references to "goods" from these provisions.
• These adjustments have been suggested to remove
  the constraint that registered people providing
  products through electronic commerce operators
  face in electing to pay tax under the
  Composition Levy.
• Today, dealers who offer items via an E-commerce
  platform can also choose a GST composition plan.
• Changes in the terms of the Input Tax Credit
• Section 16 of the CGST Act, 2017 addresses the
  eligibility and criteria for claiming the input
  tax credit.
• The Finance Bill of 2023 suggested modifications
  to Section 16 provisos (2) and (3). (2).

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• The mentioned adjustments bring these regulations
  in line with the return filing system.
• ITC limitation in the case of exempt suppliers
• Section 17 of the CGST Act of 2017 imposes
  specific limits on the use of input tax credits
  (ITC).
• Section 17(3) limits ITC on the value of
  excluding supplies, which currently does not
  cover the value of activities or transactions as
  defined in Schedule III of the Act, except the
  sale of land and sale of buildings.
• Clause 130 of the Finance Bill, 2023 provides an
  additional exemption, namely the value of such
  activities or transactions as may be regulated
  about the delivery of warehoused products to any
  person before approval for home consumption.
• ITC on such transactions will now be prohibited
  if the transaction is treated as an exempt
• supply.
• No ITC on CSR Spends
• Section 17(5) of the CGST Act, 2017 is proposed
  to be amended in the Finance Bill, 2023, to limit
  input tax credit for Corporate Social
  Responsibility (CSR) expenditure.
• Businesses have CSR duties under Section 135 of
  the Companies Act, 2013.
• The amendment states that input tax credit is not
  eligible for products or services, or both,
  obtained by a taxable person and used or intended
  to be utilized for activities related to
  corporate social responsibility responsibilities
  under Section 135 of the Companies Act, 2013.
• It appears that the proposed revision is the
  result of contradictory judgments issued by the
• Authority for Advance Ruling.
• Registration under GST is not required
• Section 23 of the CGST Act, 2017 allows for
  people who are not required to register for GST
  and authorizes the government to notify
  exemptions in this respect.
• Section 22 addresses those who must register,
  whereas Section 24 mandates registration in
  certain circumstances.
• Section 22 of the Finance Bill, 2023, has been
  proposed to be amended to provide that section
• 23 has precedence over sections 22(1) and 24.
• Any overriding impact shall take effect with
  retroactive effect on July 1, 2017.

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• Section 56 of the Finance Bill, 2023, Clause 137,
  has been amended to give enabling provisions to
  specify the method of calculating the delayed
  time for the calculation of interest on delayed
  refunds.
• Upon legislation, the mode of computation shall
  be established by rules/notifications.
• Penalties for E-commerce Businesses
• Section 122 of the CGST Act of 2017 would be
  amended to include sub-section (1B), according to
  the Finance Bill, 2023.
• It stipulates that if regulations about the
  supply of commodities manufactured through them
  by
• unregistered individuals or composition taxpayers
  are violated, punitive measures will apply to
  electronic commerce operators.
• Any operator of an electronic commerce site will
  be subject to a penalty of Rs. 10,000 or, if
• higher, the amount of tax that would have been
  due had the supply been made by a registered
  person other than one exempt from section 10 in
  the following circumstances
• permits the supply of products or services or
  both through it by a non-person who is not
• registered.
• by a notice made according to this Act to make
  such supply, exempt from registration
• permits a person who is not authorized to make
  such an interstate supply to supply products,
  services, or both via it or
• eliminates to include the proper information in
  the statement required by section 52, subsection
• (4), on any external supply of goods made via it
  by a person who is exempt from obtaining
  registration under the Act.
• Prosecution Law Modifications and
  Decriminalization Under GST
• The following changes have been suggested in the
  Finance Bill of 2023
• It is suggested to enhance the minimum fine for a
  GST prosecution from Rs. 1 crore to Rs. 2
  crores, except for the crime of issuing invoices
  without making a supply of goods, services, or
  both.
• The following suggestions are made to narrow the
  range of compounding amounts

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