Simplified Explanation of Notification No. 53/2023 – Central Tax

Simplified Explanation of Notification No. 53/2023 – Central Tax

Heading: Special Procedure for Filing GST Appeals After Deadline

Purpose of the Notification:

This notification provides a special procedure for taxpayers who missed the deadline to file an appeal against orders under Sections 73 and 74 of the Central Goods and Services Tax (CGST) Act, 2017. It aims to allow these taxpayers to file appeals with an extended timeline and specific conditions.

Key Details:

1. Eligibility for Special Procedure:
   • Who It Applies To: Taxpayers who:
     • Missed the deadline to appeal an order issued under Sections 73 or 74 by March 31, 2023.
     • Had their appeal rejected solely because it was filed late.

2. New Deadline for Filing Appeals:
   • Extended Deadline: Appeals can be filed in FORM GST APL-01 by January 31, 2024.
3. Conditions for Filing an Appeal:
   • Payment Requirements:
     • Admitted Amount: Pay the full amount of tax, interest, fines, fees, and penalties that the taxpayer admits to.
     • Disputed Amount: Pay 12.5% of the remaining disputed tax amount, up to a maximum of ₹25 crore. At least 20% of this must be paid from the Electronic Cash Ledger.
   • No Refunds: No refund will be granted for any excess amount paid before this notification for filing an appeal until the appeal is resolved.
4. Ineligibility for Certain Appeals:
   • No Appeal for Non-Tax Demands: Appeals cannot be filed for demands that do not involve tax.
5. Procedure Compliance:
   • Rules to Follow: The provisions of Chapter XIII of the CGST Rules, 2017, will apply to appeals filed under this notification, with necessary modifications.

Example:

• Scenario: A business in Tamil Nadu received a tax order under Section 73 in December 2022. The business missed the appeal deadline, and the appeal was rejected because it was filed late.
• Under New Notification:
  • Action: The business can now file a new appeal by January 31, 2024.
  • Payment: They must pay the full amount they admit, plus 12.5% of the remaining disputed tax, with at least 20% of this amount paid from their Electronic Cash Ledger.
  • Limit: They cannot seek a refund for any excess payment made before this notification until the appeal is decided.

Summary:

• What: Provides a special procedure for late appeals on GST orders.
• Why: To allow taxpayers more time and specify the conditions for late filing.
• Impact: Taxpayers must follow new rules for filing appeals and making payments, with a clear deadline and conditions outlined.