The Ministry of Finance, Department of Revenue, Government of India, has issued a significant notification, No. 19/2023-Central Tax (Rate), dated 19th October, 2023. This notification introduces amendments to the Central Goods and Services Tax (CGST) rates based on the recommendations of the Council. The changes primarily affect the definition of entities to which tax rates apply. In this article, we will delve into the details of this notification and its implications.
Detailed Analysis:
1. Amendment Summary: Notification No. 19/2023-Central Tax (Rate) is issued under the powers conferred by sub-section (3) of section 9 of the Central Goods and Services Tax Act, 2017. This notification modifies the existing Notification No. 4/2017-Central Tax (Rate), dated 28th June, 2017. The key focus of this amendment is on the definition of entities to which tax rates apply.
2. Amendments Introduced: The notification revises the existing entry against S. No. 6 in the Table of the original notification. It substitutes the earlier entry with “Central Government [excluding Ministry of Railways (Indian Railways)], State Government, Union territory, or a local authority.” This change broadens the scope of entities included under this tax rate.
3. Effective Date: Notification No. 19/2023-Central Tax (Rate) will be effective from the 20th day of October, 2023. This date marks the beginning of the new tax regulations, and entities falling within the revised definition will need to ensure compliance.
Conclusion:
Notification No. 19/2023-Central Tax (Rate) introduces a noteworthy change to the taxation landscape in India. By redefining the entities to which certain tax rates apply, the government aims to ensure clarity and consistency in tax regulations. The amendment specifies that the Central Government (excluding the Ministry of Railways), State Government, Union territory, or a local authority will be subject to the revised tax rates.
This move aligns with the government’s commitment to simplifying tax procedures and ensuring that the tax system remains transparent and straightforward. It is essential for businesses, government agencies, and local authorities to be aware of these changes and adapt their tax-related practices accordingly. Staying informed about such amendments is crucial for maintaining compliance with evolving tax laws and regulations, ultimately contributing to a more efficient and effective tax system.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 19/2023-Central Tax (Rate) Dated: 19th October, 2023
G.S.R. 780(E).- In exercise of the powers conferred by sub-section (3) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), Notification No. 4/2017- 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. 676(E), dated the 28th June, 2017, namely:-
In the said notification, in the Table, against S. No. 6, in column 4, for the entry, the following entry may be substituted, namely: –
“Central Government [excluding Ministry of Railways (Indian Railways)], State Government, Union territory or a local authority.”
2. This notification shall come into force with effect from the 20th day of October, 2023.
[F. No. CBIC-190354/1 95/2023-TO(TRU-II)-CBEC]
Vikram Wanere
Under Secretary
Note: – The principal notification No. 4/2017-Central Tax (Rate), dated the 28th June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 676(E), dated the 28thJune, 2017 and was last amended by notification No. 14/2022-Central Tax (Rate), dated the 30th December, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 922 (E), dated the 30th December, 2022.
