Central government announces GST Act and Rules Amendments based on GST Council recommendations

A new procedure has been put in place to revoke a cancelled GST registration. The application must be submitted by...

Digital Desk: Under Notification No. 02-07/2023, the Central Government has notified various revisions to the Central Goods and Services Tax Act, 2017 and Central Goods and Services Tax Regulations, 2017, reducing the GST compliance burden on taxpayers.

The significant reliefs and amendments are as follows: 

The maximum late fee for submitting GSTR-4 between April 1 and June 30, 2023, for the time frames July 2017 to March 2019 or FY 2019-20 to FY 2021-22, is Rs. 500.

For fiscal years 2017-18 to 2021-22, the late fee for GSTR-9 forms filed between April 1 and June 30, 2023 will be limited to Rs. 20,000.

Turnover-based late fees for GSTR-9 will be implemented beginning in fiscal year 2022-23:

Up to 5 crores in turnover: Rs. 50 per day, with a maximum of 0.04% of turnover.

Revenue of 5-20 crores: Rs. 100 per day, with a maximum of 0.04% of total turnover.

Above 20 crores: Rs. 200 per day, with a maximum of 0.5% of turnover. 

The late fee for submitting GSTR-10 between April 1 and June 30, 2023, will be Rs. 1,000.

A new method for revoking a cancelled GST registration has been implemented. After completing all returns with tax payments up to the cancellation date, the application must be filed by June 30, 2023.

The biometric-based Aadhaar authentication and taking the applicant's photograph have been added as requirements for sub-rule (4A), and they will apply solely to the state of Gujarat.

A new assessment approach has been implemented for non-filers. If returns are submitted before June 30, 2023, with interest and late fees paid, the assessment will be withdrawn. 

The time limit for orders under section 73(9) has been extended for fiscal years 17-18 through 2023, 18-19 through March 31, 2024, and 19-20 through June 30, 2024.