Key Highlights of GST Notification No. 28/2023: Commencement Dates for Finance Act Provisions

Simplified Explanation of Notification No. 28/2023-Central Tax

Purpose: Notification No. 28/2023 specifies the commencement dates for various sections of the Finance Act, 2023. This notification details when specific provisions of the Finance Act will come into effect.

Key Points:

1. Commencement Dates:
   • Sections 137 to 162 (except sections 149 to 154):
     • These provisions will come into force on October 1, 2023.
   • Sections 149 to 154:
     • These specific provisions will come into force on August 1, 2023.

Examples:

1. Provisions Effective from October 1, 2023:
   • Example: Suppose the Finance Act includes new rules about tax reporting and compliance under sections 137 to 162. These rules will start applying to businesses and individuals from October 1, 2023. For instance, if section 140 introduces new requirements for filing tax returns, those requirements will become mandatory from this date.
2. Provisions Effective from August 1, 2023:
   • Example: If sections 149 to 154 deal with updates to penalty structures or compliance procedures, these changes will be effective starting August 1, 2023. This means any penalties or compliance rules introduced in these sections must be followed from this date.

Simplified Explanation of Notification No. 27/2023-Central Tax

Purpose: Notification No. 27/2023 specifies when a particular provision of the Finance Act, 2021 will come into effect. Specifically, it announces the commencement date for Section 123 of the Finance Act, 2021.

Key Point:

• Section 123 of the Finance Act, 2021 will become effective on October 1, 2023.

Example:

• Provision of Section 123:

• • Suppose Section 123 of the Finance Act, 2021 introduces a new compliance requirement or tax procedure for businesses. This might involve new rules for tax audits, reporting standards, or specific guidelines for tax authorities.

• Implementation Date:

• • For instance, if Section 123 mandates that businesses must follow a new reporting format for their annual tax returns, this new format must be used starting from October 1, 2023. Any tax returns or compliance actions taken before this date will follow the old rules, but from October 1, 2023, the new rules outlined in Section 123 will apply.