NOTICE NO FOR AMMENDMENT OF SECTION 23(1) IN BUDGET 23

[JUBLEEDEALERS PVTLTD]

Notice for recent amendment in section 22(1) and 24 in gst for exempted supplied dealer in the recent finance bill 23

[KASTURI SETHI]

Dear Querist,

Please elaborate your query. What is the specific issue ?

[GUNASEKARAN K]

Section 23 has been made a non-obstante clause, meaning that if a person is required to get registered under either Section 22 or 24 but is specifically exempt under Section 23, then such person is not required to take registration under GST laws.

Section 23(1) and (2) of the CGST Act has been proposed to be amended retroactively, from 01st July, 2017, to provide that persons required for compulsory registration in terms of Section 22(1) and 24 of the CGST Act do not need to register if exempt under Section 23(1), such as those engaged exclusively in the business of exempt supply of goods or services or agriculturists to the extent of supply of produce out of cultivation of land.

[Shilpi Jain]

This amendment is by way of the Finance Act, 2023

AI Summary

Exemption under Section 23 bars compulsory GST registration for persons exclusively engaged in exempt supplies following retroactive amendment. Amendment clarifies that Section 23 operates as a non obstante clause so persons required for compulsory registration do not need to register if exempt under Section 23, including those exclusively engaged in exempt supplies and agriculturists to the extent of produce from cultivation, with retrospective effect and enacted via the Finance Act.