Key takeaways of GST notifications issued on 31st March 2023

(A) Time limit for the issuance of orders for recovery of tax

Notification No. 09/2023, issued by the Central Government on 31st March 2023, pertains to the Central Goods and Services Tax Act, 2017. The notification states that the government, based on the recommendations of the Council, has extended the time limit for the issuance of orders under sub-section (9) of section 73 for the recovery of tax not paid or short-paid or of input tax credit wrongly availed or utilized.

This extension is being provided under section 168A of the CGST Act, 2017 read with section 20 of the Integrated Goods and Services Tax Act, 2017 and section 21 of the Union Territory Goods and Services Tax Act, 2017. This notification partially modifies the previous notifications issued by the Ministry of Finance on 3rd April 2020, 1st May 2021, and 5th July 2022.

The time limit for the issuance of orders for recovery of tax not paid or short-paid or of input tax credit wrongly availed or utilized has been extended as follows:

• For the financial year 2017-18, up to the 31st day of December 2023.
• For the financial year 2018-19, up to the 31st day of March 2024.
• For the financial year 2019-20, up to the 30th day of June 2024.

(B) Special procedure for registered persons who have failed to furnish a valid return

The Notification No. 06/2023 – Central Tax, issued on 31st March 2023, specifies a special procedure for registered persons who have failed to furnish a valid return within 30 days from the service of the assessment order issued on or before 28th February 2023, under sub-section (1) of section 62 of the Central Goods and Services Tax Act, 2017 (CGST Act).

According to the notification, such registered persons will be deemed to have withdrawn the assessment order if they follow the specified special procedures. These registered persons must furnish the said return on or before 30th June 2023 and pay the interest due under sub-section (1) of section 50 of the CGST Act and the late fee payable under section 47 of the CGST Act, regardless of whether or not an appeal had been filed against the assessment order under section 107 of the CGST Act or whether or not the appeal, if any, filed against the assessment order has been decided.

In summary, this notification provides a special procedure for registered persons who have failed to furnish a valid return within 30 days from the service of the assessment order issued on or before 28th February 2023. These registered persons can avoid the consequences of non-filing of the return by furnishing the said return by 30th June 2023 and paying the interest and late fee as specified, irrespective of whether an appeal had been filed against the assessment order or whether or not the appeal has been decided.

(C) Special procedure for Revocation of Cancellation of GST registration

Notification No.03/2023 issued by the Central Government of India on March 31st, 2023, under section 148 of the Central Goods and Services Tax Act, 2017 (hereafter referred to as "the said Act"). The notification lays out a special procedure for registered persons whose registration has been cancelled under clause (b) or (c) of sub-section (2) of section 29 of the said Act on or before December 31st, 2022, and who have failed to apply for revocation of such cancellation within the time period specified in section 30 of the said Act. Such registered persons are required to follow the following procedure for revocation of cancellation of registration:

(a) The registered person may apply for revocation of cancellation of such registration up to June 30th, 2023.

(b) The application for revocation shall be filed only after furnishing the returns due up to 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 such returns.

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

The explanation provided in the notification clarifies that 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 the 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 limits specified under sub-section (1) of section 30 of the said Act.