Abstract: Stay informed about the updates from the 50th GST Council Meeting, covering new rules for e-commerce operators, GST registration, physical verification, bank details, and more. These changes will be effective from October 2023.
Introduction: The 50th GST Council Meeting introduced significant updates that affect various aspects of the Goods and Services Tax system. These updates include changes related to e-commerce operators, GST registration, physical verification, and more. It’s essential for businesses and taxpayers to be aware of these changes to ensure compliance with the updated regulations.
The updates from the 50th GST Council Meeting offer various benefits and changes to the taxation system. Notably, composite taxpayers can now join e-commerce operators for intra-state supply without GST registration, simplifying the process for certain businesses. However, e-commerce operators have additional responsibilities, such as collecting TCS and ensuring only intra-state supply is allowed to unregistered persons.
The physical verification for GST registration can be conducted by GST officers to verify the physical address of businesses, and non-compliance may lead to suspension. Additionally, furnishing bank details within 30 days from registration or the first GST return is crucial to avoid suspension of GST registration.
For those supplying goods from duty-free shops, it’s essential to include the value of supply in exempt supply while computing ITC reversal. Moreover, supplying to unregistered persons requires only the state of the recipient to be mentioned in the invoice for e-commerce operators and OIDAR.
In case of any mismatch between GSTR3B and GSTR2B, taxpayers will receive intimation and must respond with justification within 15 days to avoid blocking GSTR 1/IFF.
Detailed analysis of CBIC notifications subsequent to GST 50th Council Meeting is as follows:-
1. NOTIFICATION 36,37 and 34:
– Composite taxpayers are now allowed to join e-commerce operators for intra state supply only without GST Registration.
– This will come into effect from 1/10/2023 and the mandate for GST registration will go away with in joining e-commerce operators.
- Related provisions:
– E- commerce operators are required to collect TCS , and fill in details of such person in GSTR 8.
– it’s duty of E-commerce operators to ensure that only Intra state supply is allowed to such person.
– An enrolment number will be provided to such person who are joining e-commerce operators without GST registration.
– Rule of 20 /10 lakhs as the case may be will be still applicable for them. It means in case their aggregate turnover exceeds the limit, they are required to get registration under GST.
– In case of Multiple e-commerce operators involved for a transaction ,the one releasing payment will be liable to collect TCS before releasing payment.
Rule 9 and Rule 25 : Physical Verification for GST registration
– Now GST officer may visit your place to verify your physical address, may be in presence or absence of applicant and take photos of premise.
– this may happen even Aadhar authentication has been done in case officer is of view that there is risk involved in it.
– Rule 25 requires officer to submit all details including photographs within 15 days from date of verification.
Furnishing of Bank details on registration
– GST registration may be suspended if bank details are not furnished within 30 days from registration date or first GST return whichever is earlier. earlier it was 45 days.
– A person may revoke suspension within 90 days from cancellation date ,may be extended to 180 days.
– This comes into effect from date of notification.
Rule 43: w.e.f October 2023
– value of supply of goods from duty free shops should be included in exempt supply while computing ITC reversal.
Particulars of Invoice for supply to UR
– For supply to unregistered person, it is noe mandate only to furnish state of recipient in invoice/bill of supply
– This provision is applicable for e–commerce operators and OIDAR only.
Important update for mismatch between GSTR3B and GSTR2B (Rule 59 and Rule 88 D)
– An intimation will be sent to the person ,for which reply with justification has to be done within 15 days.
– GSTR 1/IFF will be blocked in case there is difference in between GSTR3B and GSTR2B in case no reply is made for such intimation.
Notification for OIDAR.
Every supply to B2B person has to be reported in GSTR5 by OIDAR.
Rule 138;F ( E-way Bill for supply of Gold or precious stones)
– E-way bill PART A required for intra state supply of gold or precious stones.
– Provision of cancellation of such E-way is also available within 24 hrs.
Conclusion: The updates from the 50th GST Council Meeting bring significant changes to the GST system, particularly for e-commerce operators, GST registration, and compliance requirements. Businesses must adapt to these new regulations, effective from October 2023, to ensure smooth operations and avoid any penalties or disruptions in their GST processes. Staying informed and implementing the necessary changes will lead to a seamless transition and compliance with the updated guidelines.
| Central Goods and Services Tax (Second Amendment) Rules, 2023 | Notification No. 38/2023-Central Tax [G.S.R. 590(E).] | 04/08/2023 |
| GST eCommerce Tax Guidelines for Supplies by Unregistered Persons | Notification No. 37/2023-Central Tax [G.S.R. 589(E).] | 04/08/2023 |
| GST: CBIC notifies New eCommerce Tax Rules for Composition Taxpayers | Notification No. 36/2023-Central Tax [G.S.R. 588(E).] | 04/08/2023 |
| Notification: Exemption from Mandatory GST Registration for ECO Suppliers | Notification No. 34/2023- Central Tax, [G.S.R. 577(E).] | 31/07/2023 |
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