12 Important Changes in GST | Proposed Changes in GST Law | Key Changes in GST under Budget 2023

1. Supplier making supplies of goods through electronic commerce, like Amazon, Flipkart, etc., can opt for a composition levy.
Seeks to remove the restriction imposed on the registered persons engaged in supplying goods through Electronic Commerce Operators (“ECOs”) from opting to pay tax under the Composition Levy and to enable unregistered suppliers and composition taxpayers to make intra-state supply of goods through ECOs, subject to certain conditions.

2. If the payment is not made to the vendor within 180 days from his bill date, interest will have to be paid on the ITC availed as per the rate specified in section 50 of CGST Act 2017.

3. Supply of warehoused goods to any person before clearance for home consumption will be considered an Exempt Supply to calculate the reversal amount under Rule 42 of CGST Rules 2017.

4. CSR Expenditure incurred in furtherance of business is not eligible for ITC.

5. Any business owner engaged exclusively in supplying goods or services or both, that is not liable to tax or wholly exempt from tax is not liable to register even if he is liable to pay tax under RCM.

6. Any business owner engaged exclusively in supplying goods or services on which GST is not leviable or exempted is not liable for registration even though he is liable to pay tax under RCM.

7. The maximum time limit to file GSTR 1, GSTR 3B, GSTR 8, and GSTR 9 for a tax period shall be (3) three years from the due date of furnishing the return.

8. In the case of an Export Refund (Section 54), the amount of the Provisional Refund shall be 90% of the amount claimed.

9. Rules will provide the manner of computation of the period of delay for calculating interest on delayed refunds under section 56.
Seeks to prescribe such manner and subject to such conditions and restrictions as may be prescribed for computation of period of delay beyond 60 days from the date of receipt of refund application till the date of refund, for the purpose of calculation of interest on delayed refunds.

10. Electronic Commerce Operator is liable to pay the penalty u/s 122 if he allows any person to supply goods through its platform unless he has immunity from registration or inter-state supply.  
Seeks to insert new sub-section (1B) in Section 122 of the CGST Act so as to provide for penal provisions applicable to ECO in case of contravention of provisions relating to supplies of goods made through them by unregistered persons or composition taxpayers.

11. It has often been heard that the officer has initiated prosecution proceedings because the business owner is not allowing the officer to perform his duty, tampered with or destroyed evidence or documents, or is not giving or giving wrong information. Now the business person cannot be arrested on these charges. (Minimum threshold for prosecution 2 crores).

12. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India; and Supply of warehoused goods to any person before clearance for home consumption will be outside the purview of GST w.e.f. 01/07/2017. It is also being clarified that no refund of such transactions/activities shall be available if the tax has already been paid in respect of such transactions/ activities from 01st July 2017 to 31st January 2019.

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