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Other important changes in the Finance Act 2023
(Act has been passed in the Parliament, however the
changes shall be effective from the date notified)

y Composition taxpayers are now allowed to supply
goods through e-commerce.

y ITC of CSR Activities shall not be allowed –
although this keeps the question open as to
whether the ITC for CSR activities may be claimed
in previous financial years.

y A provision brought stating that no returns can be
filed beyond 3 years from the due date – whether it
be annual returns or monthly returns. disputes in a timely manner. The Finance Act 2023

y E-commerce operators shall now be liable for seems to address this issue, and a revised
penalty if their platform is used to supply goods by mechanism and composition of the appellate
an unregistered taxpayer or if interstate supply is tribunal has been prescribed.
made by a person who is not allowed to do so – GSTAT will be constituted to file appeal against
such as composition taxpayers. The penalty shall appellate authority or revisionary authority. The
be Rs. 10,000/- or up to the amount of tax that Principal Bench of GSTAT will be in New Delhi and
would have been levied had such supply been will consist of a President, a Judicial Member, a
made by a regular taxpayer. Technical Member from the State, and a Technical

y Certain offences – mainly obstruction of justice, Member from the Centre. State Benches of GSTAT
and tampering with material evidence – have been will be constituted as notified on request of the
decriminalised, which means there shall be no State and will consist of two Judicial Members, one
provision for imprisonment in such cases. Technical Member from the State, and one Technical
Member from the Centre. Place of Supply (POS)
y Further, the imprisonment category in respect of
cases will be heard in the Principal Bench of GSTAT
offences amounting to evasion between Rs. 1 Crs
only. If the amount involved in the appeal is less than
to Rs. 2 Crs has been discontinued, except in case `50 lakhs, then a single-member bench of GSTAT will
of fake invoicing.
hear the case.
y Place of supply for international couriers outside
Conclusion
India used to be the destination of goods, which
In conclusion, the recent changes and amnesty
was causing confusion, has been removed. The scheme are aimed at simplifying and streamlining
entire clause has been removed, meaning that the
the tax regime, while also ensuring compliance and
place of supply shall be determined as per the reducing litigation. While these changes have been
general provision, i.e., the location of recipient.
introduced with the aim of making GST law more
Constitution of appellate tribunal taxpayer-friendly and efficient, it remains to be seen
The delay in the constitution of the appellate tribunal how effective these changes will be in achieving
in GST has been causing significant problems for their objectives, especially since we've been
taxpayers, as large number of cases are pending burdened with a plethora of amendments and
resolution. This delay is largely due to the changes ever since the advent of GST. Every change,
uncertainties in the composition of the tribunal of course, is brought with a good intent, but as they
benches. This delay has led to a backlog of appeals say – the path to disappointment is often paved with
waiting to be heard. As a result, taxpayers are facing good intentions too. So, we need to be mindful of
extended periods of uncertainty and financial the same.
burden, as they are unable to get a resolution to their

56 If you spend your whole life waiting for the storm, you'll never enjoy the sunshine.