While Union Budget, 2023 is being analyzed and discussed in various quarters, it is expected that the measures announced in the budget may help sustain the growth momentum that has been in Indian economy in current year, besides addressing the inflation issue. The geo-political scenario remains fraught. According to World Bank President, India may grow @ 8% provided it is able to draw investment and move faster on credit to MSMEs, land and agricultural reforms, robust private sector and so on.
CBIC has issued new Notifications under Central Tax (Rate) to give effect to GST rate changes, exemptions and change in compensation cess as recommended in 49th meeting of GST Council. These shall be effective from March 1, 2023.
GSTN keeps issuing advisories and new functionalities to upgrade the portal and for ease of taxpayers. Recently, it issued advisories on forward charge option for GTAs, geo-coding address and new invoice portal.
Government should make all efforts to ensure early functioning of GST Tribunals which is also hampering the tax recovery. It is close to six years now and India has not a single bench of GST Tribunal (GSTAT).
Rs. 1,49,577 crore of gross GST revenue has been collected in February, 2023 which is 12% higher than GST revenue in same month last year. Monthly GST revenues is more than Rs 1.4 lakh crore for twelve straight months in a row. Of the total tax collected, CGST is Rs.27,662 crore, SGST is Rs.34,915 crore, IGST is Rs.75,069 crore (including Rs.35,689 crore collected on import of goods) and Cess is Rs.11,931 crore (including Rs.792 crore collected on import of goods).
National Testing Agency to be treated as ‘Educational Institution’
- CBIC has issued notification to amend Notification No. 12/2017-CT (Rate) dated 28.06.2017 to provide that any authority, board or body set up by the Central Government or State Government including National Testing Agency for conduct of entrance examination for admission to educational institutions shall be treated as educational institution for the limited purpose of providing services by way of conduct of entrance examination for admission to educational institutions.
- Further, the services by way of conduct of entrance examination for admission to educational institutions by National Testing Agency or any other authority/board by set up by the Central Government or State Government shall be exempt from the levy of GST.
- This shall come into force w.e.f. 01.03.2023.
[Source: Notification No. 01/2023 -Central Tax (Rate) dated 28.02.2023]
Tax to be paid under Reverse Charge Mechanism (RCM) on Services provided by Courts / Tribunals
- This Notification shall come into force with effect from 1st March, 2023.
[Source: Notification No. 02/2023 -Central Tax (Rate) dated 28.02.2023]
GST on Pencil Sharpeners and Rab reduced
- CBIC has amended Notification No. 1/2017-CT(Rate) to provide that pencil sharpeners shall be taxable at 12% (6% CGST; 6% SGST).
- This will cover pencil sharpeners under HSN Code 8214
- The rate on pencil sharpeners has been reduced from 18% to 12%.
- All other items under this HSN Code (except pencil sharpeners) will be taxed at 18%
- Also, “Jaggery of all types including Cane Jaggery (gur), Palmyra Jaggery, pre-packaged and labelled; Khandsari Sugar, pre-packaged and labelled; Rab, pre-packaged and labeled” will be taxed @ 5%
- This Notification shall be effective from 1st March, 2023.
[Source: Notification No. 03/2023 -Central Tax (Rate) dated 28.02.2023]
GST exempt on ‘Rab’, if not pre-packaged and labelled
[Source: Notification No. 04/2023 -Central Tax (Rate) dated 28.02.2023]
No Compensation Cess on ‘Coal Rejects’ supplied to a coal washery
- CBIC has amended Notification No. 1/2017- Compensation Cess (Rate) dated 28.06.2017 to extend the exemption benefit on ‘coal rejects’ supplied to coal washery, arising out of coal on which compensation cess has been paid and no input tax credit thereof has been availed by any person.
- With this amendment, the coal washeries shall be completely out from the ambit of compensation cess liability as far as the supplies of coal rejects are concerned.
- However, burden of compensation cess would remain with the power plants.
- This exemption shall be effective w.e.f. 01.03.2023.
[Source: Notification No. 1/ 2023-Compensation Cess (Rate) dated 28.02.2023]
Geo-coding of Address of Principal Place of Business
- GSTN has issued an Advisory on Geo-coding of Address of Principal Place of Business as a new functionality on the GSTN portal to ensure the accuracy of address details in GSTN records and streamline the address location and verification process.
- Geocoading is a process of converting an address or description of a location into geographic coordinates is now available on the GST Portal.
- The system-generated geocoded address will be displayed, and taxpayers can either accept it or update it as per their requirements of their case. In cases where the system-generated geocoded address is unavailable, a blank will be displayed, and taxpayers can directly update the geocoded address.
- This functionality can be accessed under the Services/Registration tab in the FO portal.
- The geocoded address details will be saved separately under the "Principal Geocoded" tab on the portal. They can be viewed under My profile>>Place of Business tab under the heading "Principal Geocoded" after logging into the portal. It will not change the existing addresses.
- This is a one-time activity, and once submitted, revision in the address is not allowed and the functionality will not be visible to the taxpayers who have already geocoded their address through new registration or core amendment. GSTN emphasizes once again that the address appearing on the registration certificate can be changed only through core amendment process.
- This functionality is available for normal, composition, SEZ units, SEZ developers, ISD, and casual taxpayers who are active, cancelled, and suspended.
[Source: GSTN Advisory dated 24.02.2023 (WWW.GST.GOV.IN/NEWSANDUPDATES)]
GSTN Advisory on new e-Invoice Portal
- GSTN has issued an advisory on new e-invoice portal and has on boarded four new IRPs (Invoice Reporting Portals) for reporting e-invoices in addition to NIC-IRP.
- Taxpayers can log in to the new e-invoice portal using their GSTN credentials for select services pertaining to their GSTIN profiles.
- The portal is reference site for all masters (data), news and updates, latest releases etc.
- For registering e-invoices and to access APIs, you still need to go to sites.
- Please note that taxpayers can continue to report e-invoices on the NIC IRP portal as previously.
- The urls of IRPs sites authorised to generate IRNs as on date are as follows:
URL Activation Status
Shall be available soon
[Source: GSTN Advisory dated 24.02.2023 (WWW.GST.GOV.IN/NEWSANDUPDATES)]
Option of Forward Charge for GTA’s
- GSTN has issued an advisory on opting for payment of tax under the forward charge mechanism by a Goods Transport Agency (GTA) which was notified vide Notification No. 3/2022-CT (Rate) dated 13.07.2022,
- GTAs desirous of opting to pay tax under the forward charge mechanism to exercise their option can navigate Services > User Services > Opting Forward Charge Payment by GTA (Annexure V), after login, to submit their option on the portal.
- Option in Annexure V FORM is required to be submitted on the portal by the Goods Transport Agencies every year before the commencement of the Financial Year.
- The Option once filed cannot be withdrawn during the year and the cut-off date for filing the Annexure V FORM is 15th March of the preceding financial year.
- Annexure V has been made available on the portal for GTA’s to exercise their option for the Financial Year 2023-24, which would be available till 15TH March, 2023.
[Source: GSTN Advisory dated 25.02.2023 (WWW.GST.GOV.IN/NEWSANDUPDATES)]
GST Collection in February, 2023
- Rs.1,49,577 crore gross GST revenue has been collected in February 2023 which is 12% higher than GST revenues in same month last year.
- Monthly GST revenues more than Rs 1.4 lakh crore for 12 straight months in a row.
- CGST is Rs.27,662 crore, SGST is Rs.34,915 crore, IGST is Rs.75,069 crore (including Rs.35,689 crore collected on import of goods) and Cess is Rs.11,931 crore (including Rs.792 crore collected on import of goods).
- During February, revenues from import of goods was 6% higher and the revenues from domestic transaction (including import of services) are 15% higher than the revenues from these sources during the same month last year.
- February witnessed the highest cess collection of Rs.11,931 crore since implementation of GST. Normally, February being a 28 day month, witnesses a relatively lower collection of revenue.
(Source: PIB Release ID 1903336 dated 01.03.2023)*