Key Updates in Notification No. 10/2023-Central Tax (Rate)

Simplified Explanation of Notification No. 10/2023-Central Tax (Rate)

Purpose: This notification amends the existing rules regarding the exemption of tax on intra-state supplies of gold, silver, or platinum under certain conditions. It updates a previous notification to align with the latest Foreign Trade Policy and related procedures.

Key Points:

1. Amendment Details:
   • The notification updates the previous rules regarding tax exemptions for gold, silver, or platinum supplied by nominated agencies under a specific export scheme.
2. Specific Amendments:
   • Correction in Reference:
     • The term “paragraph 4.41” in the earlier notification is corrected to “paragraph 4.40.”
   • Updated Definitions:
     • Foreign Trade Policy:
       • Updated to refer to the Foreign Trade Policy, 2023, which was notified on March 31, 2023.
     • Handbook of Procedures:
       • Updated to refer to the Handbook of Procedure, notified on April 1, 2023.

3. Effective Date:
   • The updated rules are effective from July 27, 2023.

Example:

• Scenario:

• • Before the Amendment: A gold supply under the “Export Against Supply by Nominated Agency” scheme was incorrectly referenced to paragraph 4.41.
  • After the Amendment: The correct reference is paragraph 4.40, aligning with the latest Foreign Trade Policy and Handbook of Procedures.

• Implication:

• • If a business is supplying gold, silver, or platinum under this scheme, they need to follow the updated rules. They are exempt from tax on these supplies if they meet the conditions outlined in the revised Foreign Trade Policy and Handbook of Procedures.