elief for GST Filers: Key Updates in Notification No. 6/2023 and Notification No. 5/2023

Simplified Explanation of Notification No. 6/2023-Central Tax

Purpose: This notification provides a relief mechanism for registered persons who have failed to file their GST returns on time and have received a best judgement assessment order. It outlines the conditions under which such assessment orders will be deemed withdrawn if specific actions are taken.

Key Points:

1. Deemed Withdrawal of Best Judgement Assessment Order:
   • Scope: Applies to registered persons who have received an assessment order on or before February 28, 2023, under section 62 of the Central Goods and Services Tax Act, 2017 (CGST Act), and have failed to file a return within 30 days of receiving the order.
   • Condition for Withdrawal: The assessment order will be considered withdrawn if the registered person:
     • Furnishes the Return: Files the overdue GST return by August 31, 2023.
     • Pays Interest and Late Fee: Pays the required interest under section 50 and the late fee under section 47 of the CGST Act along with the return.

2. Special Procedures to Follow:
   • Return Filing Deadline: The return must be filed by August 31, 2023.
   • Payment of Dues: Must include payment of:
     • Interest due for late payment of tax (as per section 50).
     • Late fee for delayed return filing (as per section 47).

3. Applicability:
   • **Irrelevant

Simplified Explanation of Notification No. 5/2023-Central Tax

Purpose: This notification updates the procedure for GST registration in certain specified states or Union Territories, particularly concerning a specific rule about registration.

Key Points:

1. Amendment Overview:
   • Old Provision: Notification No. 27/2022-Central Tax (dated December 26, 2022) referred to provisions of sub-rule (4A) of rule 8 of the Central Goods and Services Tax (CGST) Rules, 2017.
   • New Provision: The amendment changes the reference from “provisions of” to “proviso to” in the context of rule 8 of the CGST Rules.
2. Impact of the Amendment:
   • Sub-rule (4A) of Rule 8: This rule generally deals with the procedure for obtaining GST registration. The amendment clarifies that the special provision (proviso) within sub-rule (4A) does not apply to certain specified states or Union Territories.
   • Change: Instead of applying the entire provisions of sub-rule (4A), only the specific exception or condition mentioned in the “proviso” will apply.
3. Effective Date:
   • Date of Effect: The amendment is retroactively effective from December 26, 2022.

Example:

Scenario:

• State A and Union Territory B: Previously, they were subject to the full provisions of sub-rule (4A) of rule 8 for GST registration.
• Change in Notification: Now, they will follow only the specific conditions or exceptions mentioned in the “proviso” to sub-rule (4A), rather than the whole sub-rule.

Summary: Notification No. 5/2023 revises Notification No. 27/2022 by.