GST Rate Amendments include reclassification and tariff changes for molasses, millet flour, and industrial spirits.
Amendments to the Central GST rate schedule insert a new entry for molasses and a pre packaged, labelled millet flour preparation in Schedule I; expand the description for heading 1905 to include that millet preparation and add a tariff line for spirits for industrial use in Schedule III; and omit S. No. 1 and its entries from Schedule IV. The notification amends Notification No.1/2017 Central Tax (Rate) and takes effect from the 20th day of October, 2023.

Reverse charge under IGST: Ministry of Railways added to Department of Posts entry and excluded from Central Government services.
The notification amends the IGST rate schedule by inserting "the Ministry of Railways (Indian Railways)" after "Department of Posts" in the entry at serial number 6, item (2)(i), and by inserting an exclusion "[excluding the Ministry of Railways (Indian Railways)]" after "Services supplied by the Central Government" at serial number 6A, thereby altering the coverage of those entries under the Integrated Tax rate notification.

UTGST rate amendments: tariff entries reclassified to add molasses, millet flour and industrial spirits, altering rate schedules.
Amendment to the UTGST rate schedules: molasses and a specified millet flour preparation are inserted into the 2.5% schedule; the 9% schedule is amended to include the millet flour description and to add spirits for industrial use; the first entry of the 14% schedule is omitted. The changes are made under section 7(1) authority and take effect from the twentieth day of October, 2023.

E-commerce operator liability for intra State passenger transport by omnibus limited where the supplier is a company, amended.
The notification amends GST rate rules to exclude omnibuses from a prior vehicle description and to impose ECO liability for transportation of passengers by omnibus except where the supplier through the ECO is a company; it also inserts a definition of "Company" as per the Companies Act, 2013, and takes effect from the stated commencement date.

IGST exemption for government services expanded to include specified public utilities and inclusion of Indian Railways.
The notification inserts a new Chapter 99 entry exempting from IGST services supplied to a Governmental Authority consisting of water supply, public health, sanitation conservancy, solid waste management and slum improvement and upgradation (Nil IGST). It also amends multiple table entries to add the Ministry of Railways (Indian Railways) alongside the Department of Posts, thereby extending the specified table provisions to the Ministry of Railways.

ECO liability: ECO pays tax on intra-State omnibus passenger transport unless the supplier through ECO is a company.
Clause (i) is amended to exclude omnibus services and a new clause (ia) makes the electronic commerce operator (ECO) liable to pay tax on transportation of passengers by an omnibus supplied through the ECO, except where the supplier through the ECO is a Company; "Company" is defined by reference to clause (20) of section 2 of the Companies Act, 2013.

ITC refund ineligibility for sale of under-construction property clarified; exception where full payment follows completion certificate.
Supplies of construction of a complex, building or part thereof intended for sale, where the amount charged includes the value of land or undivided share of land, are ineligible for refund of unutilised Input Tax Credit, except where the entire consideration is received only after issuance of the completion certificate required by the competent authority or after first occupation, whichever is earlier.

Input tax credit restriction: excess IGST on input services disallowed where outward supply is taxed at a lower rate.
Where an outward supply is taxed at five percent, ITC on input services in the same line of business is limited to the tax amount corresponding to five percent of the input service value; any input tax charged above that amount is not admissible, illustrated by a motor cab hire example where the recipient can claim only the portion of input tax equal to five percent of the supplier's charge.

ITC refund ineligible on construction sold with land value included; exception when full payment received after completion certificate or occupation.
Supplies for construction of a complex, building or part thereof intended for sale are not eligible for refund of unutilised input tax credit where the amount charged includes the value of land or undivided share of land, except where the entire consideration is received after issuance of the completion certificate required by the competent authority or after its first occupation, whichever is earlier.

Reverse charge on services by Central Government amended to include and exclude Ministry of Railways for specified entries.
Amendment to the Central Tax (Rate) notification adjusts application of the reverse charge mechanism by inserting "and the Ministry of Railways (Indian Railways)" after "Department of Posts" in one entry and adding "[excluding the Ministry of Railways (Indian Railways)]" after "Services supplied by the Central Government" in another entry, thereby bringing Ministry of Railways within one specified listing and excluding it from another; changes take effect from the twentieth day of October, 2023.

Reverse charge mechanism under UTGST now includes railways services while adjusting central services exclusion.
The UTGST rate notification is amended to insert "and the Ministry of Railways (Indian Railways)" after "Department of Posts" in one table entry, thereby including railways services within that taxable category, and to add "[excluding the Ministry of Railways (Indian Railways)]" after "Services supplied by the Central Government" in the adjacent entry, thereby excluding railways services from that broader category; the amendment is effective from the notification's stated commencement date.

Exemption for government-provided essential services: supplies like water and sanitation to governmental authorities now tax-exempt.
A new nil-rated exemption (Chapter 99, serial 3B) covers services supplied to a Governmental Authority consisting of water supply, public health, sanitation conservancy, solid waste management, and slum improvement and upgradation; related amendments also add national rail services alongside postal services in existing entries.

Exemption for specified public utility services to Governmental Authority expanded; nil-rate applied and Indian Railways added.
Amendment inserts a new Chapter 99 entry exempting services to a Governmental Authority-water supply, public health, sanitation conservancy, solid waste management, and slum improvement and upgradation-as nil-rated; it also adds the Ministry of Railways (Indian Railways) alongside the Department of Posts in several existing notification entries.

Input tax credit restriction where supplier charges a higher central tax rate than recipient, limiting credit to recipient's applicable tax rate.
Amendment imposes a restriction on input tax credit where a supplier of input service in the same line of business charges central tax at a rate higher than that charged to the recipient: credit on the input service shall be limited to the tax payable at the recipient's rate, with an illustrative example clarifying that excess tax charged upstream cannot be claimed. The notification also substitutes and omits certain entries in the rate Table and deletes specified serial entries from the Annexure, effective from 20 October 2023.

Input tax credit restriction: credit limited where supplier charges higher UTGST than the reduced rate, affecting service supplies.
The notification inserts provisos limiting input tax credit where a supplier of input service in the same line of business charges Union Territory tax at a rate higher than the reduced rate on the outward supply, permitting credit only to the extent of tax computed at the reduced rate on the input service. It also substitutes wording and omits specified entries at serial number 34 and omits serial numbers 696 and 698 from the Annexure. The amendments amend Notification No. 11/2017 and take effect from 20th October 2023.

Value of supply for online gaming defined as total amounts paid or deposited, including virtual assets, for tax valuation.
Amendments require applicants to declare PAN and State/UT before registration, expand non-taxable online recipient scope to include online money gaming suppliers, and mandate separate registration for Input Service Distributors. Valuation rules treat the value of online gaming and casino actionable claims as the total amounts paid or deposited by or on behalf of players, including virtual digital assets, disallowing deductions for refunds or returns; winnings retained for further play are not new payments. Procedural changes require monthly FORM GSTR-5A returns and revise FORM GST REG-10 to capture supply type, commencement date, platform URLs, and tax collection declarations.

Specified actionable claims exclusion: suppliers of specified actionable claims excluded from composition levy benefits under section 10.
The notification inserts the phrase excluding "the registered person making supply of specified actionable claims as defined in clause (102A) of section 2 of the said Act" after the words "composition levy under section 10 of the said Act" in the principal notification, thereby removing supplies of specified actionable claims from the composition-levy provision, effective from the notified commencement date.

Supply of online gaming and actionable casino claims notified under section 15(5), effective 1 Oct 2023.
Notification under sub section (5) of section 15 CGST Act notifies the supply of online money gaming, supply of online gaming other than online money gaming, and supply of actionable claims in casinos for valuation under that sub section; it also lists certain packaged tobacco and nicotine products for valuation by declared retail sale price, defines "retail sale price" rules and applies Customs Tariff interpretive principles.

Commencement date set for CGST Amendment Act provisions to come into force on 1st October 2023 under statutory appointment.
The Central Government, exercising the power conferred by the specified provision of the Central Goods and Services Tax (Amendment) Act, 2023, appoints the 1st day of October, 2023 as the date on which the provisions of the Act shall come into force by way of notification.

Specified actionable claim classification under IGST rate schedule enacts taxable treatment for betting, gambling and online gaming.
The notification inserts S. No. 227A into Schedule IV to Notification No. 1/2017, treating specified actionable claim-as defined in section 2(102A) of the CGST Act-as including claims from betting, casinos, gambling, horse racing, lottery and online money gaming, and omits S. No. 228 and 229. It further adds that undefined words in the notification have the meanings assigned in the CGST, IGST and UTGST Acts. The amendment is effective from the 1st day of October, 2023.