CRITICAL GST Amendments In Budget 2023

AMENDMENT IN ITC REVERSAL DISCLOSURE OF 180 DAYS TO ALIGN THE SUB-SECTIONS WITH RETURN FILING STATUS: [ 2ND AND 3RD PROVISO TO SEC 16 (2)] → Second and third provisos to of Sec 16(2) of the CGST Act are being amended to align the said sub-section with the return filing system provided in the said It deals with payment to supplier within 180 days as ITC eligibility condition. → As per the current provisions, if a recipient does not make the payment of the value of supply to the supplier within 180 days, he would be required to add the ITC availed on it to his “Output tax liability”. → However since GSTR 2 and 3 was not introduced, it was important to amend said proviso to remove “addition to output liability” of ITC amount, if payment is not made to supplier within 180 days. → Now said proviso is aligned with the return filing Already corresponding amendment is made in the Rule 37 of CGST Rule 2017 out vide Notification No. 19/2022 – CT dated 28.09.2022 and Notification No. 26/2022 – CT dated 26.12.2022 → Amendment in proviso now will remove the confusion/anomaly on Disclosure of ITC reversal in case of Non-Payment to supplier within 180 days from the date of invoice.