Seeks to amend notification No. 11/2017- Central Tax (Rate) so as to notify change in GST with regards to services as recommended by GST Council in its 50th meeting held on 11.07.2023 vide Notification No. 06/2023- Central Tax (Rate) | Dated: 26th July, 2023
The changes in the Notification No. 06/2023- Central Tax (Rate) provide explanations related to sub-items under certain serial numbers, modify due dates for exercising options by Goods Transport Agencies (GTAs) under reverse charge mechanism, and omit sub-clauses in the Explanation of clause (i). Additionally, Annexure V is revised to reflect new wording for exercising options, and a new Annexure VI form is introduced for GTAs to exercise their option to revert under reverse charge mechanism.
In this Notification, it is clarified that the timelines for filing Annexure-V, which falls between 1st of January to 31st of March, and the selected option of either Reverse Charge Mechanism (RCM) or Forward Charge Mechanism (FCM) shall be continued until the taxpayer discontinues the selected option by filing Annexure-VI.
In simpler terms, if a taxpayer exercises their option for RCM or FCM for a specific financial year by filing Annexure-V between 1st of January to 31st of March, that option will remain in effect until the taxpayer decides to change it. The taxpayer can change the option by filing Annexure-VI before the commencement of any subsequent financial year.
The notification states that GTAs can now exercise the option to pay GST under forward charge until March 31 of the preceding Financial Year, instead of March 15. The option can be exercised starting from January 01 of the preceding Financial Year.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 06/2023- Central Tax (Rate) | Dated: 26th July, 2023
G.S.R. 537(E).—In exercise of the powers conferred by sub-section (1), sub-section (3) and sub-section (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15, sub-section (1) of section 16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 11/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 690(E), dated the 28th June, 2017, namely:-
In the said notification, –
(A) in the Table,
(i) against serial number 3, in column (3), in item (ie), following explanation shall be inserted, namely:-
” Explanation. –This item refers to sub-items of the item (iv), (v) and (vi), against serial number 3 of the Table as they existed in the notification prior to their omission vide notification No. 03/2022-Central Tax (Rate) dated the 13th July,2022.”;
(ii) against serial number 9, in column (3), in item (iii), in sub-item (b), in the entries under column (5), in condition (2), –
(a) for the words, figures and letters ―on or before the 15th March of the preceding Financial Year”, the words, figures and letters “on or after the 1st January of the preceding Financial Year but not later than 31st March of the preceding Financial Year” shall be substituted;
(b)after the fourth proviso, the following proviso shall be inserted, namely:-
” Provided also that the option exercised by GTA to itself pay GST on the services supplied by it during a Financial Year shall be deemed to have been exercised for the next and future financial years unless the GTA files a declaration in Annexure VI to revert under reverse charge mechanism on or after the 1st January of the preceding Financial Year but not later than31st March of the preceding Financial Year.”;
(iii) against serial number 24, in column (3), in item (i), in the Explanation, in clause(i) , sub-clause(h) shall be omitted.
(B) in Annexure V,
(i) in para 2, for the words ―end of the financial year for which it is exercised”, the words and figures ―the start of the financial year for which I exercise option to revert under reverse charge mechanism by filing Annexure VI on or before the due date” shall be substituted;
(ii) in note to the Annexure, for the words, figures and letters “The last date for exercising the above option for any financial year is the 15th March of the preceding financial year”, the words, figures and letters “The above option for any Financial Year shall be exercised on or after 1st January of the preceding Financial Year but not later than 31st March of the preceding Financial Year” shall be substituted;
(C) after Annexure V, the following Annexure shall be inserted, namely:-
[F. No. –CBIC-190354/133/2023-TO(TRU-II)-CBEC]
RAJEEV RANJAN, Under Secy.
“Annexure VI
FORM
Form for exercising option by a Goods Transport Agency intending to revert under reverse charge mechanism to be filed before the commencement of any financial year to be submitted before the jurisdictional GST Authority.
Reference No.–
Date: –
1. I/We______________ (name of Person), authorized representative of M/s………………………………. had exercised
option to pay GST on the services of GTA in relation to transportation of goods supplied by us during, the
financial year………………… under forward charge by filing Annexure V on………………….. ;
2. I hereby declare that I want to revert to reverse charge mechanism for Financial Year……… ;
3. I understand that this option once exercised shall not be allowed to be changed within a period of one year from the date of exercising the option and will remain valid till the end of the financial year for which it is exercised.
Legal Name: –
GSTIN: –
PAN No.
Signature of Authorized representative:
Name Authorized Signatory :
Full Address of GTA:
(Dated Acknowledgment of jurisdictional GST Authority)
Note: The above option for any Financial Year shall be exercised on or after 1st January of the preceding Financial Year but not later than 31st March of the preceding Financial Year”.
2. This notification shall come into force with effect from 27th July, 2023.
Note : The principal notification number 11/2017 -Central Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 690 (E), dated the 28th June, 2017 and last amended vide notification number 05/2023-Central Tax (Rate), dated the 9th May, 2023 published in the official gazette vide number G.S.R. 348(E), dated the 9th May, 2023.
We are billing under RCM since begining and no ITC, never opted FCM, is Annexure VI is required to file to continue RCM