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Explore the analysis of 8 crucial GST notifications issued on 31st March 2023, covering late fee waivers, revocation of canceled registrations, and amnesty schemes. Stay informed for compliance.

On the evening of 31st March 2023 when the whole nation was relaxing after closing the financial year 2022-23 but taxman was still burning the mid night oil to stand to their commitments made in 49th Council meeting held on 18th Feb 2023. CBIC on late hours of 31st March 2023 released eight central tax notifications unveiling various taxpayer friendly schemes and decisions. This quick exercise of writing this paper is an attempt to make abreast stakeholders about those changes. Below is the tabular presentation of those 8 central tax notifications with their detailing-:

Notification Description Our Analysis
No. 02/2023–CENTRAL TAX dated 31st March 2023

(Making Amendment to Not. No. 73/2017– Central Tax, 29th December, 2017)

In the said notification, after the sixth proviso, the following proviso shall be inserted, namely: —

―Provided also that the amount of late fee payable under section 47 of the said Act shall stand waived which is in excess of two hundred and fifty rupees and shall stand fully waived where the total amount of central tax payable in the said return is nil, for the registered persons who fail to furnish the return in FORM GSTR-4 for the quarters from July, 2017 to March 2019 or for the Financial years from 2019-20 to 2021-22 by the due date but furnish the said return between the period from the 1st day of April, 2023 to the 30th day of June, 2023.

Through this, a waiver of late fee is provided to composition suppliers for late filing of GSTR-4:

  • For the quarters from July, 2017 to March 2019 or
  • For the FYs from 2019-20 to 2021-22

The late fee u/s 47 shall be five hundred rupees (250 CGST + 250 SGST) and no late fee is in cases where tax payable is nil.

Pending GSTR-4 to be furnished between 1st April 23 to 30th June 23.

No. 03/2023 – CENTRAL TAX dated 31st March 2023 hereby notifies that the registered person, whose registration has been cancelled under clause (b) or clause (c) of sub-section (2) of section 29 of the said Act on or before the 31st day of December, 2022, and who has failed to apply for revocation of cancellation of such registration within the time period specified in section 30 of the said Act as the class of registered persons who shall follow the following special procedure in respect of revocation of cancellation of such registration, namely:–

(a) the registered person may apply for revocation of cancellation of such registration upto the 30th day of June, 2023;

(b) the application for revocation shall be filed only after furnishing the returns due upto the effective date of cancellation of registration and after payment of any amount due as tax, in terms of such returns, along with any amount payable towards interest, penalty and late fee in respect of the such returns;

(c) no further extension of time period for filing application for revocation of cancellation of registration shall be available in such cases.

Explanation: For the purposes of this notification, the person who has failed to apply for revocation of cancellation of registration within the time period specified in section 30 of the said Act includes a person whose appeal against the order of cancellation of registration or the order rejecting application for revocation of cancellation of registration under section 107 of the said Act has been rejected on the ground of failure to adhere to the time limit specified under sub section (1) of section 30 of the said Act.

1. Sec 29(2)(b) and Sec 29(2)(c) of the Act lists following two scenarios where registration has been cancelled by the proper officer for the non-compliance.

Extract of Section 29(2): The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where, —

(a)……………; or

(b) a person paying tax under section 10 (composition supplier) has not furnished the return for a financial year beyond three months from the due date of furnishing the said return; or

(c) any registered person (regular supplier), other than a person specified in clause (b), has not furnished returns for such continuous tax period as may be prescribed;

If your registration is cancelled under any of the above clauses then this is for you.

2. Your registration is cancelled before 31st Dec. 2022.

3. You have failed to file revocation of cancellation within time allotted u/s 30 of the Act.

4. Follow the following procedure-:

a) File your all pending returns upto the effective date of cancellation of registration along with due tax, interest, penalty and late fees.

b) Then file revocation of cancellation of registration up to 30th June 2023.

c) Mind it-No further extension for filing this revocation shall be given whatsoever.

Special Note-This amnesty scheme shall apply to person whose appeal against the order of revocation of cancellation or order rejecting application for revocation of cancellation of registration u/s 107 has been rejected on account of failure to adhere the time limit.

No. 04/2023 – Central Tax dated 31st March 2023

It is valid from 26th December 2022.

 

1. Short title and commencement.—

(1) These rules may be called the Central Goods and Services Tax (Amendment) Rules, 2023.

(2) They shall be deemed to have come into force from the 26th day of December, 2022.

In the Central Goods and Services Tax Rules, 2017 in rule 8,-

(i) for sub-rule (4A), the following sub-rule shall be substituted, namely:-

―(4A) Where an applicant, other than a person notified under sub section (6D) of section 25, opts for authentication of Aadhaar number, he shall, while submitting the application under sub-rule (4), undergo authentication of Aadhaar number and the date of submission of the application in such cases shall be the date of authentication of the Aadhaar number, or fifteen days from the submission of the application in Part B of FORM GST REG-01 under sub-rule (4), whichever is earlier.

Provided that every application made under sub-rule (4) by a person, other than a person notified under sub-section (6D) of section 25, who has opted for authentication of Aadhaar number and is identified on the common portal, based on data analysis and risk parameters, shall be followed by biometric-based Aadhaar authentication and taking photograph of the applicant where the applicant is an individual or of such individuals in relation to the applicant as notified under sub section (6C) of section 25 where the applicant is not an individual, along with the verification of the original copy of the documents uploaded with the application in FORM GST REG-01 at one of the Facilitation Centres notified by the Commissioner for the purpose of this sub-rule and the application shall be deemed to be complete only after completion of the process laid down under this proviso.

(ii) in sub-rule (4B), for and words,

―provisions of, the words

―proviso to, shall be substituted.

Rule 8 pertains to Application for Registration.

Sub rule 4A has been substituted from back date.

Another amendment is made in Sub rule 4B. This is a correction by way of amendment. Earlier entire provisions of Sub rule 4A was implicated in Sub-rule 4B. After this amendment, only proviso to sub rule 4A is relevant for sub rule 4B.

No. 05/2023- Central Tax dated 31st March 2023

 

It is valid from 26th December 2022.

hereby makes the following amendment in the notification of the Government of India, the Ministry of Finance (Department of Revenue) No. 27/2022-Central Tax, dated the 26th December, 2022 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 903(E), dated the 26th December, 2022, namely:-

In the said notification, for the words,

―provisions of, the words

―proviso to shall be substituted.

They shall be deemed to have come into force from the 26th day of December, 2022.

Amendment in Sub-Rule 4B.
No. 06/2023 – CENTRAL TAX dated 31st March 2023 hereby notifies that the registered persons who failed to furnish a valid return within a period of thirty days from the service of the assessment order issued on or before the 28th day of February, 2023 under sub-section (1) of section 62 of the said Act, as the classes of registered persons, in respect of whom said assessment order shall be deemed to have been withdrawn, if such registered persons follow the special procedures as specified below, namely,-

(i) the registered persons shall furnish the said return on or before the 30th day of June 2023;

(ii) the return shall be accompanied by payment of interest due under sub-section (1) of section 50 of the said Act and the late fee payable under section 47 of the said Act,

irrespective of whether or not an appeal had been filed against such assessment order under section 107 of the said Act or whether or not the appeal, if any, filed against the said assessment order has been decided.

 

Section 62 pertains to Assessment of non-filers of returns.

This notification brings an amnesty scheme for those taxpayers

  • Who has not furnished valid returns within 30 days
  • From the date of service of the best judgement assessment order issued u/s 62(1)
  • For whom notice was issued u/s 46
  • For non-filers of returns u/s 39 {GSTR-1} and 45 {Final return}
  • If such order was passed before 28th Feb. 2023.

This notification entails the procedure to be followed.

1. If RP files such return(s) with due interest and late fees.

2. It should be filed on or before 30th June 2023.

3. If followed this special procedure then assessment order shall be deemed to have been withdrawn.

4. It is immaterial whether or not appeal has been preferred or decided u/s 107 against the said order.

No. 07/2023 – CENTRAL TAX dated 31st March 2023 hereby waives the amount of late fee referred to in section 47 of the said Act in respect of the return to be furnished under section 44 of the said Act for the financial year 2022-23 onwards, which is in excess of amount as specified in Column (3) of the Table below, for the classes of registered persons mentioned in the corresponding entry in Column (2) of the Table below, who fails to furnish the return by the due date, namely: —

S.

No.

Class of registered persons Amount
(1) (2) (3)
1. Registered persons having an aggregate turnover of up to five crore rupees in the relevant financial year. Twenty-five rupees per day, subject to a

maximum of an amount calculated at 0.02 per

cent. of turnover in the State or Union territory.

2. Registered persons having an aggregate

turnover of more than five crores rupees and up

to twenty crore rupees in the relevant financial

year.

Fifty rupees per day, subject to a maximum of

an amount calculated at 0.02 per cent. of

turnover in the State or Union territory.

Provided that for the registered persons who fail to furnish the return under section 44 of the said Act by the due date for any of the financial years 2017-18, 2018-19, 2019-20, 2020-21 or 2021-22, but furnish the said return between the period from the 1st day of April, 2023 to the 30th day of June, 2023, the total amount of late fee under section 47 of the said Act payable in respect of the said return, shall stand waived which is in excess of ten thousand rupees.

This amnesty scheme is relating to filing of old pending Annual Returns (Form GSTR-9 & GSTR-9C), which was waited for long.

However, this notification not only gives relief to old filings but also rationalize for FY 22-23 onwards.

This waiver of late fee u/s 47 shall be for non-compliance of Sec. 44. And Sec. 44 directs to file annual return in Form GSTR-9 along with reconciliation statement in Form GSTR-9C (wherever required). Therefore, late fee as decided in this notification shall be for Form GSTR-9 and Form GSTR-9C both (wherever GSTR-9C is required to be filed).

 

It is clarified that for

· Registered persons having an aggregate turnover of up to five crore rupees in the relevant FY, fee shall be fifty rupees (25 CGST + 25 SGST) per day up to a maximum of 0.04% of turnover in the state/UT (0.02 CGST + 0.02 SGST/UTGST) and

· Registered persons having an aggregate turnover of more than five crores rupees and up to twenty crore rupees in the relevant financial year, it would be 100 rupees (50 CGST + 50 SGST) per day, upto a maximum of 0.04% of turnover in the state/UT (0.02 CGST + 0.02 SGST/UTGST).

Also, it may be noted that this waiver from FY 22-23 is only for Taxpayers having aggregate turnover upto a maximum of 20 Crores in the relevant FY. Taxpayers having ATO above 20 Crores shall not have any waiver of late fees whatsoever.

For the earlier Financial years (2017-18, 2018-19, 2019-20, 2020-21, 2021-22), they gave one-time relief if Form GSTR-9/ GSTR-9C is filed within 1st April to 30th June 2023, then maximum late fees shall be 20000/- rupees (10000 CGST + 10000 SGST/UTGST).

Here, no mention of limit of turnover is made, therefore, safely can conclude that this late fee applies to all taxpayers in the economy irrespective of the turnover.

No. 08/2023 – CENTRAL TAX dated 31st March 2023 hereby waives the amount of late fee referred to in section 47 of the Act, which is in excess of five hundred rupees for the registered persons who fail to furnish the final return in FORM GSTR-10 by the due date but furnish the said return between the period from the 1st day of April, 2023 to the 30th day of June, 2023 This amnesty scheme provides waiver of late fee u/s 47 for filing final return in Form GSTR-10 between 1st April, 2023 to 30th June, 2023.

The applicable late fee shall be 1000/- rupees (500 CGST + 500 SGST).

No. 09/2023 – CENTRAL TAX dated 31st March 2023 in partial modification of the notifications of the Government of India, Ministry of Finance (Department of Revenue), No. 35/2020-Central Tax, dated the 3rd April, 2020 and No. 14/2021 Central Tax, dated the 1st May, 2021 and No. 13/2022 Central Tax, dated the 5th July, 2022, the Government, on the recommendations of the Council, hereby, extends the time limit specified under subsection (10) of section 73 for issuance of order under sub-section (9) of section 73 of the said Act, for recovery of tax not paid or short paid or of input tax credit wrongly availed or utilised, relating to the period as specified below, namely:–

(i) for the financial year 2017-18, up to the 31st day of December, 2023;

(ii) for the financial year 2018-19, up to the 31st day of March, 2024;

(iii) for the financial year 2019-20, up to the 30th day of June, 2024.

Section 73 pertains to Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for any reason other than fraud or any willful misstatement or suppression of facts.

Section 73 shall be applicable in non-fraud cases.

Notification No. 35/2020-Central Tax, dated the 3rd April, 2020 {1st Covid Wave, i.e., 20th March, 2020 to 30th August, 2020 – 31st August, 2020}

Notification No. 14/2021-Central Tax, dated the 1st May, 2021 {2nd Covid Wave, i.e., 15th April, 2021 to 29th June, 2021 – 30th June, 2021}

Notification No. 13/2022-Central Tax, dated the 5th July, 2022, {Time limit specified u/s 73(10) for FY 2017-18 was extended to 30th Sep, 2023}

This amendment makes partial modification in above 3 notifications and extends the time limit specified u/s 73(10) for issuance of order u/s 73(9), for recovery of tax not paid or short paid or of input tax credit wrongly availed or utilised, relating to:

  • FY 2017-18 – up to 31st Dec, 2023
  • FY 2018-19 – up to 31st Mar, 2024
  • FY 2019-20 – up to 30th Jun, 2024

The date of issuance of notice shall be at least three months prior to the time limit specified u/s 73(10) for issuance of order.

Note: The above amendment is not applicable in case of erroneous refund. In such a case, the period from the 1st March, 2020 to 28th February, 2022 shall stand excluded for computation of period of limitation u/s 73(10) for issuance of order u/s 73(9) for recovery of erroneous refund (Notification No. 13/2022-Central Tax, dated the 5th July, 2022).

The author can be reached at gstrfbharat@gmail.com His Mobile no. is +91-9891112120.

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DISCLAIMER: This publication is merely a general guide meant for knowledge purposes only. All the references or content are for educational purposes only and do not constitute legal advice. We do not accept any liabilities whatsoever for any losses caused directly or indirectly by the use/reliance of any information or conclusion contained in this publication. Prior to acting upon this publication, you’re suggested to seek advice. This work is entirely in the interest of the profession and to contribute to my beloved subject GST.

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4 Comments

  1. V. K. Verma says:

    Sir, there appears to be typo error in the analysis column against Notification no.8. The amount should be Rs.1000/- (Rs.500/- under each Act) instead of Rs.2000/-.(Rs.1000/- under each Act)

  2. Priyesh Sethi says:

    Dear Sir,

    We are a regular registered person and our GSTR 1 & GSTR 3B is pending for filling from Apr 2021. Are we eligible to get the benefit of a waiver of late fee. We are not in composition scheme.

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