GST Notification 38/2023-Central Tax dt. 04-August-2023
GST Notification – 38/2023:
On August 4, 2023, the Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs released an pivotal notification, numbered 38/2023-Central Tax. This notification marked the introduction of the Central Goods and Services Tax (Second Amendment) Rules, 2023. These amendments, encompassing both new inclusions and alterations to the existing Central Goods and Services Tax (CGST) Rules, 2017, aim to enhance India’s GST framework. The CGST Act, an crucial pillar of the country’s GST legislation, has undergone numerous revisions over time to streamline and fortify the taxation system, reflecting ongoing efforts to refine and strengthen the overall tax structure.
Notable Changes in Central Goods and Services Tax (Second Amendment) Rules, 2023
- New Rule 88D has inserted .
As per Rule 88D, the GST portal will now cross-check the Input Tax Credit (ITC) claimed in GSTR-3B with that available in GSTR-2B. If the ITC claimed in GSTR-3B surpasses GSTR-2B’s ITC by the specified amount and percentage set by the council, the taxpayer will receive an electronic notice through Part A of Form DRC-01C, along with an email copy.
The taxpayer has two options: Pay the Excess Credit – Clear the excess ITC in GSTR-3B by paying the corresponding amount plus interest using FORM GST DRC-03. Provide Explanation – Within 7 days, furnish reasons for the difference in FORM GST DRC-01C’s Part B on the common portal. If the amount mentioned in the notice from sub-rule (1) isn’t paid within the given time or if the explanation provided by the registered person isn’t accepted by the proper officer, the unpaid amount will be asked for based on either section 73 or section 74, as applicable. - In Rule 59, Sub-rule (6), after clause (d) clause ( e) and clause (f) added: Clause (e) Registered persons with an intimation under Rule 88D(1) must clear excess input tax credit or explain non-payment to report subsequent supplies otherwise shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility for an subsequent tax period Clause (f) Registered persons must provide bank account details under Rule 10A otherwise shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility for an subsequent tax period
- Rule 9 Amended, the phrase “in the presence of the said person” has been eliminated from Rule 9 of the CGST Rules.
- Changes made to Rule 10A where bank account details need to submit in thirty days from the date of registration or before furnishing the details of outward supplies of goods or series or both.
- Changes made in Rule 21A where the contravention can lead to cancellation or suspension of the registration. The registration of such person shall be suspended and the said person shall be intimated in FORM GST REG-31, electronically, on the common portal, or by sending an communication to his e-mail address
- The period permitted in Rule 23 is extended from 30 days to 90 days from the date of the service of the order of cancellation of registration
- New Rule 25 introduced to define the process of physical verification of business premises before the grant of registration or after the grant of registration, and an report will be submitted in Form GST-REG -30 on common portal.
- In the said rules, in rule 43, after sub-rule (5), – (an) in Explanation 1, clause (c) shall be omitted;
(b) after Explanation 2, with effect from the 1st day of October, 2023, the following Explanation shall be inserted, namely: – “Explanation 3:- For the purpose of rule 42 and this rule, the value of activities or transactions mentioned in sub-paragraph (an) of paragraph 8 of Schedule III of the Act which is required to be included in the value of exempt supplies under clause (b) of the Explanation to sub-section (3) of section 17 of the Act shall be the value of supply of goods from Duty Free Shops at arrival terminal in international airports to the incoming passengers.”. - In the said rules, in rule 46, in clause (f), in the proviso, for the words “name and address of the recipient along with its PIN code and the name of the State and the said address shall be deemed to be the address on record of the recipient”, the following words “name of the state of the recipient and the same shall be deemed to be the address on record of the recipient” shall be substituted;10. Starting from October 1, 2023, in Rule 64, replace “”person in India other than”” with “”non-taxable online recipient as defined in section 14 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) or to.””
- In Rule 67, Sub-rule (2), starting October 1, 2023, replace the text from “”The details”” to “”suppliers”” with “”The operator’s submission of tax collected under section 52(1) shall electronically provide these details to every registered supplier”” for better compliance and record-keeping.
- In rule 96, sub-rule (2), remove both provisos.
- Apart from above changes were made in Rule 94, Rule 108 109 New Rule inserted 138F, 142B, 163.
