Overview of Notification No. 3/2024 – Central Tax

Simplified Explanation of Notification No. 3/2024 – Central Tax

Heading: Rescission of Notification No. 30/2023-Central Tax

Purpose of the Notification:

This notification rescinds (cancels) an earlier notification (No. 30/2023-Central Tax) that was issued on July 31, 2023. The rescission means that the rules or procedures outlined in the earlier notification will no longer be in effect from January 1, 2024, unless specific actions were taken before the rescission.

Key Details:

1. Notification Being Rescinded:
   • Previous Notification: Notification No. 30/2023-Central Tax, dated July 31, 2023.
   • Purpose of Previous Notification: The earlier notification introduced special procedures for certain processes under the Central Goods and Services Tax (CGST) Act.
2. Effect of Rescission:
   • Date of Effect: The rescission is effective from January 1, 2024.
   • Impact: The rules or special procedures specified in Notification No. 30/2023 will no longer apply after this date.
   • Grandfather Clause: The cancellation does not affect any actions that were already completed or any processes that were underway before January 1, 2024.

Example:

• Scenario: Suppose Notification No. 30/2023-Central Tax had introduced specific compliance requirements for manufacturers of certain goods. If a manufacturer was following these procedures and had taken specific actions based on the July 31, 2023 notification, those actions will remain valid even after January 1, 2024. However, any new actions or compliance from January 1, 2024 onward will follow the new rules or procedures that replace Notification No. 30/2023.

Summary:

• What: Notification No. 3/2024 cancels the earlier Notification No. 30/2023-Central Tax.
• When: The cancellation is effective from January 1, 2024.
• Why: To update or replace the procedures or rules that were previously set out.
• Impact: The previously outlined rules will no longer apply after January 1, 2024, but actions completed before this date will still be valid.