Late fee waiver for delayed GSTR-4 returns allows excess fees to be waived if filed within the specified filing window.
For registered persons who failed to furnish FORM GSTR-4 for specified earlier periods but file between 1 April 2023 and 30 June 2023, the amendment provides that the late fee payable under section 47 of the CGST Act in excess of two hundred and fifty rupees shall be waived, and the entire late fee shall be waived where the total central tax payable in the return is nil.

Commencement of Section 163 brings the Finance Act provision on compensation cess into force as notified by the Central Government.
Section 163 of the Finance Act, 2023 is brought into force by a Central Government notification under clause (b) of sub-section (2) of section 1 of the Finance Act, 2023, appointing the day on which the provision concerning the compensation cess regime shall come into operation by Notification No. 01/2023-Compensation Cess issued by the Department of Revenue.

Exemption for intra-State supplies amended to include rab except when pre-packaged and labelled, changing GST rate scope.
Amendment inserts rab, other than pre-packaged and labelled, into Column (3) against S. No. 94 of the Schedule to Notification No.2/2017-Central Tax (Rate), altering the scope of intra-State supply treatment under that notification.

Absolute exemption from IGST extended to rab not pre-packaged and labelled by inserting a new schedule entry.
The Schedule to Notification No. 2/2017 Integrated Tax (Rate) is amended to insert item (iii) against S. No. 94, Column (3) to include rab, other than pre packaged and labelled, extending absolute exemption from Integrated Goods and Services Tax on such inter State supplies; the amendment is effected under section 6(1) of the Integrated Goods and Services Tax Act, 2017 and is effective from the notified commencement date.

Exemption to intra-State supplies: 'Rab, other than pre-packaged and labelled' exempted under UTGST rates by notification.
The amendment adds "Rab, other than pre-packaged and labelled" as a new entry against Schedule serial number 94 in the UTGST Rate notification, thereby exempting such non pre-packaged, non labelled rab from the taxable items listed under that Schedule; the change amends Notification No. 2/2017-Union Territory Tax (Rate) and takes effect from 1 March 2023.

CGST rate schedule amendment adds pencil sharpeners to lower-rate list, revises jaggery entries and excludes sharpeners from higher-rate.
Amendment to the Central GST rate schedule substitutes the Schedule I description for jaggery and related pre-packaged sugar products, inserts a new Schedule II tariff line for pencil sharpeners under the relevant commodity code, and adds an exclusion in Schedule III to exclude pencil sharpeners from an existing higher-rate entry; the amendment is effective from the notified commencement date and is issued under the statutory taxing provisions referenced in the notification.

IGST rate changes: pencil sharpeners reclassified into a separate tariff entry and excluded from the higher-rated grouping.
Amendments to the IGST rate schedule under section 5(1) substitute the Schedule I description for jaggery and related pre-packaged sugar products, insert a new Schedule II tariff entry for pencil sharpeners under heading 8214, and amend Schedule III to exclude pencil sharpeners from an existing higher-rated entry; the notification is effective from the 1st day of March, 2023.

Union Territory GST rate changes: jaggery specified and pencil sharpeners reclassified, altering applicable UTGST rates from March.
Amendments to the Union Territory GST rate notification substitute the jaggery entry in Schedule I to expressly include all types of jaggery and related pre-packaged sugars; insert a new Schedule II entry for tariff item 8214 identifying pencil sharpeners; and modify Schedule III to exclude pencil sharpeners from a specified entry. These changes are issued under the Union Territory GST Act on Council recommendation and become effective 1 March 2023.

Reverse charge under IGST: amendment adds courts and tribunals to entities affecting services liable under reverse charge mechanism.
Notification No. 02/2023 amends the Explanation to notification No.10/2017 by substituting the words "and State Legislatures" with ", State Legislatures, Courts and Tribunals", thereby expanding the entities referenced in the Explanation that relate to services liable to integrated tax under the reverse charge mechanism; the amendment follows the GST Council recommendation and takes effect from 1 March 2023.

Reverse charge mechanism expanded to expressly include courts and tribunals alongside state legislatures under GST rate rules.
Amendment revises the Explanation to Notification No.13/2017-Central Tax (Rate) by substituting the words in clause (h) so that references expand to include Courts and Tribunals alongside State Legislatures, thereby clarifying entities on whom tax is payable under the reverse charge mechanism within the Central GST rate notification.

Reverse charge mechanism: Courts and tribunals added to entities for Union Territory tax liability under amended rate notification.
The Union Territory Tax (Rate) notification amends the Explanation to clause (h) of Notification No.13/2017 by substituting the words "State Legislatures" with "State Legislatures, Courts and Tribunals", thereby bringing Courts and Tribunals within the entities covered by that Explanation and affecting the application of Union Territory tax where the reverse charge mechanism applies under the principal notification.

Compensation cess on coal rejects: Schedule entry amended to define scope and input tax credit condition, effective March implementation.
Amendment to the Compensation Cess Schedule substitutes the entry at Sl. No. 41A, column (3) to read: "Coal rejects supplied to a coal washery or by a coal washery, arising out of coal on which compensation cess has been paid and input tax credit thereof has not been availed by any person"; made under the powers of section 8(2) of the Goods and Services Tax (Compensation to States) Act, 2017, effective from 1st March, 2023.

Educational institution classification expanded to include government exam agencies, extending IGST exemption to conduct of entrance examination services.
The notification amends the IGST rate notification to clarify that any authority, board or body set up by the Central or State Government, including the National Testing Agency, shall be treated as an educational institution for the limited purpose of providing services by way of conduct of entrance examination for admission to educational institutions.

Educational institution status for exam-conducting bodies clarifies that government exam agencies are treated as institutions for entrance exam services.
Insertion of new clause (iva) clarifies that any authority, board or body set up by Central or State Government, including exam-conducting agencies, shall be treated as an educational institution for the limited purpose of providing services by way of conduct of entrance examinations for admission to educational institutions; amendment made to the Explanation to paragraph 3 of Notification No. 12/2017-Central Tax (Rate).

Treatment of exam authorities as educational institution clarifies GST exemption for services conducting entrance examinations for admissions.
Authorities, boards or bodies set up by the Central or State Government, including the National Testing Agency, that conduct entrance examinations for admission to educational institutions shall be treated as educational institution for the limited purpose of providing services by way of conduct of entrance examination for admission to educational institutions, thereby affecting applicability of exemptions on supply of services under the Union Territory GST Rate notification.

Delegation of powers: expansion of officer designations authorised to exercise GST statutory powers under existing delegation framework.
The amendment adds a new entry to the principal notification's table, authorising officer designations at the Additional Assistant Director level in GST Intelligence, GST, or Audit to exercise powers under the Central GST and Integrated GST statutes, thereby expanding the roster of officers empowered within the existing delegation framework without changing the substantive statutory provisions.

Exemption for renting residential dwelling clarified to cover proprietors renting personally and exclude proprietorship account rentals, other entry omitted.
The exemption for renting of residential dwelling at S. No. 12 is clarified to cover rentals to a registered person who, though proprietor of a proprietorship concern, rents the dwelling in his personal capacity for use as his own residence and rents on his own account and not on account of the proprietorship concern; S. No. 23A is omitted.

Exemption for renting residential dwelling to registered proprietors clarified when rental is personal and not on business account.
Amendment inserts an explanation to the renting-of-residential-dwelling exemption: it covers renting to a registered person who is proprietor of a proprietorship concern where the proprietor rents in his personal capacity for use as his own residence and the renting is on his own account and not on account of the proprietorship concern; additionally, a specified entry in the notification is omitted and the amendment is effective from 1 January 2023.

Exemption for renting residential dwelling to proprietor clarified; personal-capacity rentals treated as separate from proprietorship supply.
The amendment inserts an explanation to the exemption at Serial No.12 to cover renting of residential dwelling to a registered person who is a proprietor renting in his personal capacity for use as his own residence and where such renting is on his own account and not that of the proprietorship concern; Serial No.23A and its entries are omitted.

Reverse charge applies to specified essential oils; registered recipients liable when suppliers are unregistered.
The notification substitutes S. No. 3A in Notification No. 4/2017 to subject specified essential oils (listed by tariff codes and described as certain peppermint and other mint oils) to the reverse charge mechanism under sub-section (3) of section 9 of the CGST Act, allocating tax liability to the registered recipient where the supplier is unregistered; effective from 1 January 2023.