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The Central Government, on the recommendations of the GST Council, hereby makes the changes in the GST law through the notifications as described below:
Summary
Notification No. 18/2023 – Central Tax (Rate)
Notification No. 18/2023 – Union Territory Tax (Rate)
Notification No. 21/2023 – Integrated Tax (Rate)
GST Exemption on Millet Flour in Powder Form, containing at least 70% millets by weight, other than Pre-Packaged and Labelled
Notification Date: 19th October 2023
Applicable Date: 20th October 2023
Relevant Act / Rule: Goods and Service Tax Act, 2017
Previous Notifications: No. 2/2017-Integrated Tax (Rate), dated the 28th June, 2017
No. 2/2017-Union Territory (Rate), dated the 28th June, 2017
Refund of Input Tax Credit (ITC) on account of Inverted Duty Structure:
Central Government had vide notifications (mentioned above), has exempted certain categories of goods (as mentioned in the respective notifications) from the whole of the Central Tax leviable thereon under section 9 of the Central Good and Services Tax Act, 2017 and whole of the Integrated Tax leviable thereon under section 5 of the Integrated Good and Services Tax Act, 2017 (13 of 2017).
The Central Government on the recommendation of the council has issued a Notification no. 18/2023 – Union Territory Tax (Rate) & 21/2023 – Integrated Tax (Rate), whereby Food preparation of millet flour, in powder form, containing at least 70% millets by weight, other than pre-packaged and labelled”, have also been added in the list, thereby making such goods exempted from GST.
Notification Link:
No. 18.2023: https://taxinformation.cbic.gov.in/view-pdf/1009917/ENG/Notifications
No. 21/2023: https://taxinformation.cbic.gov.in/view-pdf/1009908/ENG/Notifications
Previous Notifications:
No. 2/2017 Central Tax (Rate): https://gstcouncil.gov.in/sites/default/files/All-rate-notification/Notification-for-CGST-exemption.pdf
No. 2/2017 Integrated Tax (Rate): https://www.cbic-gst.gov.in/hindi/pdf/integrated-tax-rate/Notification%20for%20IGST%20exemption-2.pdf
Notification No. 20/2023 – Central Tax (Rate)
Notification No. 20/2023 – Union Territory Tax (Rate)
Notification No. 23/2023 – Integrated Tax (Rate)
No refund of Unutilised Input Tax Credit in case of Imitation Zari Thread or Yarn made out of Metallised Polyester Film /Plastic Film
Notification Date: 19th October 2023
Applicable Date: 20th October 2023
Relevant Act / Rule: Goods and Service Tax Act, 2017
Relevant Section / Rule: Clause (ii) of the proviso to sub-section (3) of section 54 of the Central Goods and Services Tax Act, 2017 read with section 20 of the Integrated Goods and Services Tax Act, 2017.
Refund of Input Tax Credit (ITC) on account of Inverted Duty Structure:
As per clause (ii) of the first proviso of Section 54(3) of CGST Act, 2017, refund of accumulated ITC shall be allowed where the credit accumulation has taken place on account of inverted duty structure i.e. credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on the output supplies of such goods (other than nil rated or fully exempt supplies).
In respect of goods, the central government has issued Notification no. 5/2017- Central Tax (Rate) dated 28.06.2017 as amended by Notification no. 44/2017-Central Tax (Rate) dated 14.11.2017 whereby goods have been specified on which refund cannot be claimed for unutilized ITC on account of inverted duty structure.
The Central Government on the recommendation of the council has issued a Notification no. 20/2023 – Union Territory Tax (Rate) & 23/2023 – Integrated Tax (Rate), whereby Imitation Zari Thread or Yarn made out of Metallised Polyester Film /Plastic Film have also been included in the list of such goods.
The detailed list of such goods as notified vide above mentioned notifications are tabulated below
Notification Link: https://taxinformation.cbic.gov.in/view-pdf/1009910/ENG/Notifications
Notification No. 12/2023 – Central Tax (Rate)
Notification No. 15/2023 – Integrated Tax (Rate)
Notification No. 12/2023 – Union Territory Tax (Rate)
Supplier of input service in the same line of business charges GST at a rate higher than as prescribed below, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the specified rate. shall not be taken. Specified Rates are:
Specified Services:
Illustration:
‘A’ engages ‘B’ for transport from New Delhi to Jaipur in a motor cab for Rs. 1000. ‘B’, for supplying the said service, hires a motor cab with operator from ‘C’ for Rs. 800. ‘C’ charges ‘B’ central tax at the rate of 6%(Rs. 48). If ‘B’ charges ‘A’ central tax at the rate of 2.5%, he shall be entitled to take input tax credit on the input service in the same line of business supplied by ‘C’ only to the extent of Rs. 20 (2.5% of Rs. 800) and not Rs. 48.”
Notification Effective is effective from 20th October 2023.
Notification No. 15/2023 – Central Tax (Rate)
Notification No. 18/2023-IntegratedTax (Rate)
Notification No. 15/2023 – Union Territory Tax (Rate)
No Refund of Unutilized Input Tax Credit is allowed in case of Services of –
Notification Effective is effective from 20th October 2023.
Notification No. 17/2023 – Central Tax (Rate)
Notification No. 20/2023-IntegratedTax (Rate)
Notification No. 17/2023 – Union Territory Tax (Rate)
Notification No. 18/2023 – Central Tax (Rate)
Changes in the GST Rates for Certain Items:
Notification Effective is effective from 20th October 2023
Notification Link: 17/2023 Central Tax (Rate): https://taxinformation.cbic.gov.in/view-pdf/1009898/ENG/Notifications
Notification Link: 20/2023 Integrated Tax (Rate): https://taxinformation.cbic.gov.in/view-pdf/1009907/ENG/Notifications
Notification Link: 17/2023 Union Territory Tax (Rate): https://taxinformation.cbic.gov.in/view-pdf/1009916/ENG/Notifications
Notification Link: 18/2023 Central Tax (Rate): https://taxinformation.cbic.gov.in/view-pdf/1009899/ENG/Notifications
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