Changes in GST from 1st October 2023



Composition Dealers can now make intra-state supplies of goods through E-Commerce Operators
  • Small taxpayers (having an aggregate turnover of up to INR 1.5 Crores in a year) have an option to pay GST under the Composition Scheme at 1%/6% instead of the normal rates subject to certain conditions.
  • One such condition was the fact that these taxpayers cannot supply goods through E-Commerce Operators.
  • However, now, Composition Dealers are allowed to make intra-state supplyof goods through E-Commerce Operators.


No ITC (Input Tax Credit) on goods purchased or/and services availed in relation to CSR activities
  • ITC is blocked in respect of goods purchased or/and services availed in relation to CSR (Corporate Social Responsibility) activities as provided for under Section 135 of the Companies Act, 2013.
  • However, for any voluntary CSR activities (other than what is mandated by the Companies Act, 2013), ITC shall be available.


Time limit for filing belated GST Returns
  • Provisions have been inserted in the Act to restrict a registered person from filing GSTR 1 (return for outward supplies), GSTR 3B (return for payment of GST), GSTR 9 (annual return) and GSTR 7 (TDS return) after the expiry of a period of 3 years from the due-date of furnishing the return(s) for the said period.


No GST liability on RCM (Reverse Charge Basis) on Ocean Freight Services
  • In respect of services provided or agreed to be provided by a person located in a place outside India to a person in India by way of transportation of goods by a vessel, there will be no IGST leviable on such services on RCM basis.
  • Earlier, the IGST rate on such services was 5%
Zero-Rated Supplies’ to include supplies made to SEZs (Special Economic Zones) if only made for ‘authorized operations’
  • Now, supplies to SEZs would be treated as ‘Zero-Rated Supplies’ if only made for authorized operations.
  • Suppliers in DTAs (Domestic Tariff Areas) are required to obtain an endorsement from the jurisdictional officer of SEZ for the matter of “authorized operations” (for manufacturing or rendering of services) in case of supply of goods and services to SEZ through the SEZ online portal.
  • Though the same was mentioned in the Rules, it was not included within the provisions of the Act.
GST of 28% on Online Gaming and Casinos
  • Registration is now mandatory for a person supplying online money gaming services from outside India to a person in India. Form GSTR-5A is also required to be filed on a monthly basis once registered.
  • Tax @ 28% has been levied for such services and the supplier of such actionable claims has to pay GST on forward charge. In case, advances are received for such services from the players, GST is liable on such advances received

  • The value of such services shall be the total amount paid or payable to or deposited with the supplier (including cryptocurrency) by or on behalf of the player. Further, any amount returned or refunded by the supplier to the player for any reason shall not be deductible from the value of supply of online money gaming.