Overview of Notifications issued by CBIC on 31st March 2023

Waiver in late fees for the registered persons who fail to furnish the return in FORM GSTR-4 by the due date

The CBIC has issued Notification No. 02/2023 – Central Tax dated March 31st, 2023 to provide waiver for the registered persons who fail to furnish the return in FORM GSTR-4 for the quarters from July, 2017 to March 2019 or for the Financial years from 2019-20 to 2021-22 by the due date but furnish the said return between the period from the 1st day of April, 2023 to the 30th day of June, 2023.

It is provided in Notification No.73/2017 – Central Tax dated December 29, 2017, which waived the late fee payable for failure to furnish there turn in Form GSTR-4 by the due date, that the late fees shall stand waived which is in excess of Rs. two hundred and fifty rupees and shall stand fully waived where the total amount of central tax payable in the said return is nil.

Extension for filing of revocation of cancellation of registration till 30.06.2023

The CBIC has issued Notification No. 03/2023 – Central Tax dated March 31st,2023and notified that the registered person, whose registration has been cancelled under clause (b) or clause (c) of subsection (2) of section 29 of the said Act on or before the 31st day of December, 2022, and who has failed to apply for revocation of cancellation of such registration within the time period specified in section 30 of the said Act as the class of registered persons who shall follow the following special procedure in respect of revocation of cancellation of such registration, namely:-

It is provided that –

(a) the registered person may apply for revocation of cancellation of such registration upto the 30th day of June, 2023;

(b) the application for revocation shall be filed only after furnishing the returns due upto the effective date of cancellation of registration and after payment of any amount due as tax, in terms of such returns, along with any amount payable towards interest, penalty and late fee in respect of the such returns;

(c) no further extension of time period for filing application for revocation of cancellation of registration shall be available in such cases.

It has been explained that for the purposes of this notification, the person who has failed to apply for revocation of cancellation of registration within the time period specified in section 30 of the said Act includes a person whose appeal against the order of cancellation of registration or the order rejecting application for revocation of cancellation of registration under section 107 of the said Act has been rejected on the ground of failure to adhere to the time limit specified under sub-section (1) of section 30 of the said Act.

Compulsory biometric – based Aadhaar authentication and risk-based physical verification for GST registration in Gujarat

The CBIC has issued Notification No. 04/2023 – Central Tax dated March 31st, 2023 to provide that Where an applicant, other than a person notified under sub-section (6D) of section 25, opts for authentication of Aadhaar number, he shall, while submitting the application under sub-rule (4), undergo authentication of Aadhaar number and the date of submission of the application in such cases shall be the date of authentication of the Aadhaar number, or fifteen days from the submission of the application in Part B of FORM GST REG-01 under sub-rule (4), whichever is earlier.

Provided that every application made under sub-rule (4) by a person, other than a person notified under sub-section (6D) of section 25, who has opted for authentication of Aadhaar number and is identified on the common portal, based on data analysis and risk parameters, shall be followed by biometric-based Aadhaar authentication and taking photograph of the applicant where the applicant is an individual or of such individuals in relation to the applicant as notified under sub-section (6C) of section 25 where the applicant is not an individual, along with the verification of the original copy of the documents uploaded with the application in FORM GST REG-01 at one of the Facilitation Centers notified by the Commissioner for the purpose of this sub-rule and the application shall be deemed to be complete only after completion of the process laid down under this proviso.

The rule provides for Aadhar authentication in case where the applicant opts for such authentication of Aadhaar number and prescribes that the date of submission of registration application in such cases shall be the date of authentication of Aadhar or fifteen days from the submission of the application in Part B of FORM GST REG-01 under sub-rule (4), whichever is earlier..
Further, proviso to Rule 8(4A) has laid down that every application made under sub-rule (4) by a person shall be followed by biometric based Aadhar authentication of Aadhaar number and taking photograph of the applicant where the applicant is an individual or of such individuals in relation to the applicant as notified under sub-section (6C) of section 25 where the applicant is not an individual, along with the verification of the original copy of the documents uploaded with the application in FORM GST REG-01 at one of the Facilitation Centers notified by the Commissioner for the purpose of this sub-rule and the application shall be deemed to be complete only after completion of the process laid down under this proviso.

Further more, The CBIC has issued Notification No. 05/2023 – Central Tax dated March 31st, 2023 for an amendment in Notification No.27/2022 -Central Tax, dated the 26th December, 2022 for Rule8(4B)of the CGST Rules to align the rule with the amended Rule8(4A)of the CGST Rules.

Amnesty Scheme for deemed withdrawal of best judgment assessment order against non-filer sof GSTR 3B & GSTR 10

The CBIC has issued Notification No. 06/2023 – Central Tax dated March 31st, 2023and notified that the registered persons who failed to furnish a valid return, within a period of 30 days from the service of the assessment order issued on or before February 28, 2023 under Section 62(1) of the CGST Act i.e. best judgment assessment, shall be deemed to have been withdrawn, if such registered person furnishes the stated return on or before June 30, 2023, accompanied by payment of interest under Section 50(1) and late Fee payable under Section47 of the CGST Act, irrespective of whether or not an appeal had been filed against such assessment order under section 107 of the said Act or whether or not the appeal, if any, filed against the said assessment order has been decided.

Amnesty Scheme to reduce late fees for Annual Returns for any of the financial years 2017-18, 2018-19, 2019-20, 2020-21 or 2021-22 and the financial year 2022-23:

The CBIC has issued Notification No. 07/2023 – Central Tax dated March 31st, 2023 to reduce late fees for filing of annual return for taxpayers having turnover of up to Rs. 20 Crores. This rationalization of the late fee is applicable from the FY 2022-23 onwards.

The late fees shall be Rs. 50 per day (i.e. Rs. 25 in CGST and Rs. 25 in SGST) subject to a maximum of 0.04% (i.e. 0.02% in CGST and 0.02% in SGST) of the turnover for taxpayers having turnover up to 5 crores.
However, the late fees shall be and Rs. 100 per day (i.e. Rs. 50 in CGST and Rs. 50 in SGST) subject to a maximum of 0.04% (i.e. 0.02% in CGST and 0.02% in SGST) of the turnover for taxpayers having turnover up to 20 crores.

It has been provided that for the registered persons who fail to furnish the return under section 44 of the said Act by the due date for any of the financial years 2017-18, 2018-19, 2019-20, 2020-21 or 2021-22, but furnish the said return between the period from the 1st day of April, 2023 to the 30th day of June, 2023, the total amount of late fee under section 47 of the said Act payable in respect of the said return, shall stand waived which is in excess of ten thousand rupees.

Accordingly, there is no reduction in the late fees for delay in filing there turn under section 44 of the CGST Act viz. GSTR 9 – Annual Return which may include the self-certified reconciliation statement – GSTR-9C
for the registered persons with aggregate turnover exceeding INR 20 crores in the relevant financial year.

Amnesty scheme for filing of Final Return in Form GSTR-10 from July, 2017 to March, 2022

The CBIC has issued Notification No. 08/2023 – Central Tax dated March 31st, 2023 and waived the amount of late fee referred to in section 47 of the CGST Act, which is in excess of five hundred rupees for the registered persons who fail to furnish the final return in FORM GSTR-10 by the due date but furnish the said return between the period from the 1st day of April, 2023 to the 30th day of June, 2023.

Time limit extended for issuance of order under sub-section (10) of section 73 for FY 17-18 to FY 19-20.

The CBIC has issued Notification No. 09/2023 – Central Tax dated March 31st, 2023 to extendthe time limit specified under subsection (10) of section 73 for issuance of order under sub-section (9) of section 73 of the said Act, for recovery of tax not paid or short paid or of input tax credit wrongly availed or utilised, relating to the period as specified below, namely:-

(i) for the financial year 2017-18, up to the 31st day of December, 2023;

(ii) for the financial year 2018-19, up to the 31st day of March, 2024;

(iii) for the financial year 2019-20, up to the 30th day of June, 2024