Amendment proposed in Finance Bill, 2023

S. No.

Amendment

Clause of the Finance Bill, 2023

1.

Clause (d) of sub-section (2) and Clause (c) of sub-section (2A) in section 10 of the CGST Act is being amended so as to remove the restriction imposed on Registered persons engaged in supplying goods through electronic commerce operators from opting to pay tax under the Composition Levy.

[128]

2.

Second and third provisos to sub-section (2) of section 16 of the CGST Act are being amended to align the said sub-section with the return filing system provided in the said Act.

[129]

3.

Explanation to sub-section (3) of section 17 of the CGST Act is being amended so as to restrict availment of input tax credit in respect of certain transactions specified in para 8(a) of Schedule III of the said Act, as may be prescribed, by including the value of such transactions in the value of Exempt supply.
Further, sub-section (5) of said section is also being amended so as to provide that Input tax credit shall not be available in respect of goods or services or both received by a Taxable person, which are used or intended to be used for activities relating to his obligations under corporate social responsibility referred to in section 135 of the Companies Act, 2013.

[130]

4.

Sub-section (1) and sub-section (2) of section 23 of the CGST Act are being amended, with retrospective effect from 01st July, 2017, so as to provide that persons for compulsory registration in terms of sub section (1) of section and section 22 of the Act need not register if exempt under sub section (1) of section 23.

[131]

5.

A new sub-section (5) in section 37 of the CGST Act is being inserted so as to provide a time limit upto which the details of outward supplies under sub-section (1) of the said section for a Tax period can be furnished by a Registered person. Further, it also seeks to provide an enabling provision for extension of the said time limit, subject to certain conditions and restrictions, for a Registered person or a class of Registered persons.

[132]

6.

A new sub-section (11) in section 39 of the CGST Act is being inserted so as to provide a time limit upto which the return for a Tax period can be furnished by a Registered person. Further, it also seeks to provide an enabling provision for extension of the said time limit, subject to certain conditions and restrictions, for a Registered person or a class of Registered persons.

[133]

7.

A new sub-section (2) in section 44 of the CGST Act is being inserted so as to provide a time limit upto which the annual return under sub-section (1) of the said section for a financial year can be furnished by a Registered person. Further, it also seeks to provide an enabling provision for extension of the said time limit, subject to certain conditions and restrictions, for a Registered person or a class of Registered persons.

[134]

8.

A new sub-section (15) in section 52 of the CGST Act is being inserted so as to provide a time limit upto which the statement under sub-section (4) of the said section for a month can be furnished by an Electronic commerce operator. Further, it seeks to provide an enabling provision for extension of the said time limit, subject to certain conditions and restrictions, for an Electronic commerce operator or a class of Electronic commerce operators.

[135]

9.

Sub-section (6) of section 54 of the CGST Act is being amended so as to remove the reference to the provisionally accepted Input tax credit to align the same with the present scheme of availment of self-assessed Input tax credit as per sub-section (1) of section 41 of the said Act.

[136]

10.

Section 56 of the CGST Act is being amended so as to provide for an enabling provision to prescribe manner of computation of period of delay for calculation of interest on delayed refunds.

[137]

11.

A new sub-section (1B) in section 122 of the CGST Act is being inserted so as to provide for penal provisions applicable to Electronic commerce operators in case of contravention of provisions relating to supplies of goods made through them by unregistered persons or composition taxpayers.

[138]

12.

Sub-section (1) of section 132 of the CGST Act is being amended so as to decriminalize offences specified in clause (g), (j) and (k) of the said sub-section and to increase the monetary threshold for launching prosecution for the offences under the said Act from one hundred lakh rupees to two hundred lakh rupees, except for the offences related to issuance of invoices without supply of goods or services or both.

[139]

S. No.

Amendment

Clause of the Finance Bill, 2023

1.

Clause (16) of section 2 of the IGST Act is being amended so as to revise the definition of “Non-taxable online recipient” by removing the condition of receipt of Online information and database access or retrieval services (OIDAR) for purposes other than commerce, industry or any other business or profession so as to provide for taxability of OIDAR service provided by any person located in Non-taxable territory to an unregistered person receiving the said services and located in the taxable territory. Further, it also seeks to clarify that the persons registered solely in terms of clause (vi) of Section 24 of CGST Act shall be treated as unregistered person for the purpose of the said clause.
Also, clause (17) of the said section is being amended to revise the definition of “online information and database access or retrieval services” to remove the condition of rendering of the said supply being essentially automated and involving minimal human intervention.

[143]

2.

Proviso to sub-section (8) of section 12 of the IGST Act is being omitted so as to specify the Place of supply, irrespective of destination of the goods, in cases where the supplier of services and recipient of services are located in India.

[144]