Dear Professional Colleagues,

Greetings of the Day !

The Indian Union Budget 2023, presented on 1st February 2023 by Hon’ble Finance Minister Nirmala Sitharaman, focuses on boosting infrastructure, agriculture, and healthcare. The budget also aims to support micro, small, and medium enterprises (MSMEs) and start-ups and attract foreign investment. It also emphasized the promotion of electric vehicles, the expansion of digital infrastructure, and the development of technology-driven industries. Overall, the budget aims to balance the need for fiscal consolidation with the need to boost growth and support various economic sectors.

We are pleased to share our "Key Highlights of Budget 2023 in GST, Custom and Direct Taxes", which will provide you with everything you need to know about Budget 2023 in GST, Custom and Direct Tax, as well as insightful analysis from the AMRG Team.

The following is a brief summary of the key highlights of Budget 2023 in terms of GST, Customs, and Direct taxes:

GOODS AND SERVICES TAX:

• Removal of restriction imposed on registered persons engaged in supplying goods through electronic commerce operators from opting to pay tax under the Composition Levy.
• Section 16 is being amended to align with the return filing system
• Further limitations on Input Tax credit
• Amendment in Section 23 to remove ambiguity in Registration provisions
• Limitation period of 3 years for Filing the GST Returns/Statements
• Rationalization of certain refund-related clauses
• Penal provisions for E-commerce operators in case of contravention of provisions related to supplies of goods made through them by unregistered persons or composition taxpayers
• Decriminalization of offences under GST
• Compounding of Offenses
• Insertion of Section 158A in order to prescribe the manner and the condition for furnishing information by the registered person
• Amendment of Schedule III of the CGST Act, 2017, to give it retrospective effect
• Amendment in Clause 8 of Section 12  to resolve the issue pertaining to place of supply of services by way of transportation of goods outside India and ITC thereon
• Amendment in definition of “OIDAR” and “Non-Taxable online recipient”

CUSTOM:

• Section 25(4A) of the Customs Act is being amended to include certain cases where time limit of two years for customs exemptions shall not apply
• Re-instatement of the 9 month statutory deadline for disposal of settlement application
• Changes in Customs Duty rates
• Extension of one year/ 5 year for BCD exemptions prescribed by various notifications in Customs
• Customs duty exemptions /concessions being discontinued
• Exemption from levy of social welfare surcharge (SWS) in case of certain goods
• Revision in Agriculture infrastructure and development cess on certain goods
• Changes in other notifications

DIRECT TAX:

• Tax Rates
• Individual
• Corporates
• Start Ups Incentives
• Withholding Provisions
• Miscellaneous
• Charitable Trusts

If you have any questions or would like to discuss the budget in more detail, please don't hesitate to contact us at amrg@amrg.in.