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:
- 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.
- 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.
- Effective Date:
- The notification will be effective from October 1, 2023.
Example:
- 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.
- 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:
- 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.
- Aggregate Turnover Definition:
- Aggregate turnover includes the total revenue from all supplies (including exports) and other income, but excludes the tax itself.
- Effective Date:
- The exemption applies to the financial year 2022-23, and the notification is effective from July 31, 2023.
Example:
- 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.
- 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
