The CBIC has issued various GST Rate Notifications dated 26th July, 2023 to give effect to the recommendation as discussed by the GST Council in its 50th GST Council meeting held on 11th July, 2023. These notifications are issued to give effect the decisions taken in the meeting and are applicable with immediate effect.
The Changes made and relevant Notifications are as under:
1. Exercise of option by GTA for payment of tax under FCM
Amendment has been made in the principal notification number 11/2017 -Central Tax (Rate), dated the 28th June, 2017 in regard to exercise of option by GTA for payment of tax under forward charge mechanism. For ready reference the earlier provision and amended provision is discussed as under:
Earlier Provision
The option by GTA to itself pay GST on the services supplied by it during a Financial Year shall be exercised by making a declaration in Annexure V (of notification number 11/2017 -Central Tax (Rate)) on or before the 15th March of the preceding
Financial Year.
Option in Annexure V is required to be submitted every year before the commencement of the Financial Year.
Amended Provision
The last date of exercising option to pay tax on forward charge mechanism extended from 15th
March to 31st March of preceding financial year. 1st January of preceding Financial Year shall be the
start date for exercise of option.
The GTA is not required to file declaration under Annexure V for paying GST under forward charge
every year.
The option to pay tax under forward charge opted for a particular year, then it would be deemed to be exercised for future years unless declaration in ANNEXURE VI has been filed to revert to reverse
charge mechanism on or after 1st January of the preceding financial year but not later than 31st March of
preceding financial year.
(Notification No. 06/2023-Central Tax (Rate) dated 26th July,2023
2. Exemption from GST on Satellite Launch Services
Till now only the Satellite launch services supplied by Indian Space Research Organisation,
Antrix Corporation Limited or New Space India Limited were exempted. Now GST exemption has been extended on satellite launch services to private sector organisations, in order to promote start-ups.
(Notification No. 07/2023-Central Tax (Rate) dated 26th July,2023)
3. Amendment in declaration to be given by GTA with invoice in regard to forward charge
Where a GTA has opted to pay tax on a forward charge basis on the GST portal, then along with the tax invoice issued to the recipient of supplies, they must also issue a declaration as per the format in Annexure III (of notification no. 13/2017 -Central Tax (Rate)) as follows-
Amendment has been made in the Declaration in Annexure III as stated supra and the words “during the Financial year _____under forward charge” has been substituted by “from the Financial Year ____under forward charge and have not reverted to reverse charge mechanism”
(Notification No. 08/2023-Central Tax (Rate) dated 26th July,2023
4. Change in GST Rates
a) Uncooked/unfried snack pellets – from 18% to 5%
b) Imitation Zari thread or yarn – from 12% to 5%
c) LD slag – from 18% to 5%
d) Fish soluble paste – from 18% to 5%
(Notification No. 09/2023-Central Tax (Rate) dated 26th July,2023)
5. Explanation regarding Foriegn Trade Policy and Handbook of Procedures substituted
In the principal notification No. 26/2018 – Central Tax (Rate), dated the 31st December, 2018 in Explanation to clause (a) following has been substituted:
“(a) “Foreign Trade Policy” means the Foreign Trade Policy, 2023, notified by the Government of India in the Ministry of Commerce and Industry vide notification No. 1/2023 dated the 31st March, 2023, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-Section (ii) vide S.O. 1565 (E). dated the 31st March, 2023;”
Further Clause (b) has been substituted as under:
“(b) “Handbook of Procedures” means the Handbook of Procedure, notified by the Government of India in the Ministry of Commerce and Industry vide Public Notice No. 01/2023 dated the 1st April, 2023, Extraordinary, Part-I, Section 1 vide F. No. 01/75/171/00016/AM-23/FTP Cell dated the 1st April, 2023;”
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
