The Government of India has recently issued notifications related to the Central Tax system in India, effective from April 1, 2023. These updates cover a range of topics, from late fees for certain returns to changes in registration and assessment procedures. In this article, we’ll summarize these updates and what they mean for taxpayers in India.
Firstly, for GSTR 4, if filed late between April 1, 2023, and June 30, 2023, for the quarters from July 2017 to March 2019 or FY 2019-20 to FY 2021-22, the late fee will be restricted to Rs. 500. This is a welcome relief for those who may have missed the original deadline, but still need to file their GSTR 4 returns for the specified period.
Another important update relates to the revocation of cancellation of registration. A special procedure has been introduced for those whose registration was cancelled on or before December 31, 2022. The revocation application needs to be filed before June 30, 2023, and only after filing all returns along with payment of tax up to the effective date of cancellation. It’s important to note that there will be no further extension of the time period for filing the application.
The CGST (Amendment) Rules, 2023, which became effective from December 26, 2022, have also made changes to the registration process. Sub-rule (4A) has been amended to explain the authentication of Aadhaar during registration. The biometric-based Aadhaar authentication and taking a photograph of the applicant have been amended as a proviso to the said rule. Sub-rule (4B) has been amended to give effect to the proviso in sub-rule (4A), making it applicable only to the state of Gujarat.
For those who have not filed their returns, a special procedure for the assessment of non-filers has been introduced. The assessment will be withdrawn if the returns are furnished on or before June 30, 2023, along with payment of interest under section 50 and late fees under section 47.
Late fees for certain returns have also been revised. For GSTR 9, if filed late between April 1, 2023, and June 30, 2023, the late fee will be restricted to Rs. 20,000 for the FY 2017-18, 2018-19, 2019-20, 2020-21, or 2021-22. Late fees for GSTR 9 from FY 22-23 onwards will be as follows :
Turnover Late Fees
Upto Rs 5 crore Rs 50 per day, maximum 0.04% of turnover
Above 5 crore and upto Rs 20 crore Rs 100 Per day, maximum 0.04% of turnover
Above Rs 20 crore Rs 200 Per day , maximum 0.5% of turnover
Similarly, for GSTR 10, if filed late between April 1, 2023, and June 30, 2023, the late fee will be restricted to Rs. 1,000.
Finally, the time limit for the issuance of orders under section 73(9) has been extended for FY 17-18 up to December 31, 2023, for FY 18-19 up to March 31, 2024, and for FY 19-20 up to June 30, 2024.