Simplified Insights on GST Notifications No. 33/2023 and No. 32/2023: Key Changes for Taxpayers

Simplified Explanation of Notification No. 33/2023-Central Tax

Purpose: This notification specifies the “Account Aggregator” as a system with which information provided by taxpayers can be shared on the common GST portal, but only with the taxpayer’s consent.

Key Points:

1. Consent-Based Information Sharing:
   • The notification allows for the sharing of taxpayer information with an “Account Aggregator” through the common GST portal, but this sharing is contingent upon the taxpayer’s consent.
2. Definition of Account Aggregator:
   • An “Account Aggregator” is defined as a non-financial banking company that operates under guidelines issued by the Reserve Bank of India (RBI) and is specifically recognized under the Non-Banking Financial Company – Account Aggregator (RBI) Directions, 2016.
3. Effective Date:
   • The notification will be effective from October 1, 2023.

Example:

1. Scenario: Using Account Aggregator Services
   • Business Name: FinTech Solutions Pvt. Ltd.
   • Business Location: Mumbai
   • Actions Taken:
     • Consent Provided: FinTech Solutions Pvt. Ltd. provides consent to share its GST information via the common GST portal with its chosen Account Aggregator.
     • Account Aggregator: They choose an Account Aggregator registered with the RBI.
     • Information Sharing: The GST portal shares the relevant financial information of FinTech Solutions Pvt. Ltd. with the Account Aggregator based on the provided consent.
   • Outcome: FinTech Solutions Pvt. Ltd. benefits from streamlined financial data management and enhanced access to aggregated financial information through the Account Aggregator.
2. Scenario: Without Account Aggregator Consent
   • Business Name:TechWorld Inc.
   • Business Location: Delhi
   • Actions Taken:
     • No Consent Provided:TechWorld Inc. does not consent to share its GST information with an Account Aggregator.
     • Information Sharing: As no consent is given, no information is shared with Account Aggregators.
   • Outcome:TechWorld Inc. retains control over its GST information without involving the Account Aggregator system.

Simplified Explanation of Notification No. 32/2023-Central Tax

Purpose: This notification provides an exemption for certain registered persons from filing an annual GST return for the financial year 2022-23.

Key Points:

1. Exemption from Annual Return:
   • Registered persons whose aggregate turnover for the financial year 2022-23 does not exceed ₹2 crore are exempt from filing the annual GST return for that year.
2. Aggregate Turnover Definition:
   • Aggregate turnover includes the total revenue from all supplies (including exports) and other income, but excludes the tax itself.
3. Effective Date:
   • The exemption applies to the financial year 2022-23, and the notification is effective from July 31, 2023.

Example:

1. Scenario: Business with Turnover Below ₹2 Crore
   • Business Name: Crafty Creations Pvt. Ltd.
   • Turnover for FY 2022-23:₹8 crore
   • Action:
     • Exemption Applied: Crafty Creations Pvt. Ltd. does not need to file the annual GST return for FY 2022-23.
   • Outcome: The business saves time and effort as it is exempt from the annual return filing requirement.
2. Scenario: Business with Turnover Above ₹2 Crore
   • Business Name:TechGizmos Ltd.
   • Turnover for FY 2022-23:₹5 crore
   • Action:
     • No Exemption:TechGizmos Ltd. is required to file the annual GST return for FY 2022-23 as its turnover exceeds the ₹2 crore threshold.

Outcome:TechGizmos Ltd. must complete and submit the annual return to comply with GST regulations