GST Notification No. 10/2023 – FTP & Handbook Amendment

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Notification No. 10/2023 - Central Tax (Rate): Seeks to amend No. 26/2018- Central Tax (Rate) to implement the decisions of 50th GST Council.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the CGST Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, on being satisfied that it is necessary in public interest so to do, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.26/2018-Central Tax (Rate), dated the 31^st December, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1263 (E), dated the 31^st December, 2018, namely: -

In the said notification, -

(A) in the opening paragraph, for the phrase “paragraph 4.41”, the phrase “paragraph 4.40”, shall be substituted;

(B) in the Explanation, -

i. for clause (a), the following clause shall be substituted, namely: —

“(a) “Foreign Trade Policy” means the Foreign Trade Policy, 2023, notified by the Government of India in the Ministry of Commerce and Industry vide notification No. 1/2023 dated the 31^st March, 2023, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-Section (ii) vide S.O. 1565 (E). dated the 31^st March, 2023;”

ii. for clause (b), the following clause shall be substituted, namely: —

“(b) “Handbook of Procedures” means the Handbook of Procedure, notified by the Government of India in the Ministry of Commerce and Industry vide Public Notice No. 01/2023 dated the 1^st April, 2023, Extraordinary, Part-I, Section 1 vide F. No. 01/75/171/00016/AM-23/FTP Cell dated the 1^st April, 2023;”

2. This notification shall come into force on the 27^th July, 2023.

(Nitish Karnatak)
Under Secretary to the Government of India

Note: - The principal notification No. 26/2018 - Central Tax (Rate), dated the 31^st December, 2018 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1263(E), dated the 31^st December, 2018 and was last amended by notification No. 17/2019 - Central Tax (Rate), dated the 30^th September, 2019 vide published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 718(E), dated the 30^th September, 2019 .

📚 Frequently Asked Questions (FAQs): Notification No. 10/2023 – Central Tax (Rate)

Q1: What is Notification No. 10/2023 – Central Tax (Rate) all about?

Answer:
Notification No. 10/2023 – Central Tax (Rate), issued on 26th July 2023, amends Notification No. 26/2018 to align GST rules with the newly introduced Foreign Trade Policy (FTP) 2023. It updates references to the latest FTP and Handbook of Procedures issued by the Ministry of Commerce and Industry.

Q2: What specific changes have been introduced in Notification 26/2018 via this notification?

Answer:
The amendments include:
The phrase “paragraph 4.41” is replaced by “paragraph 4.40”
“Foreign Trade Policy” now refers to FTP 2023 notified via Notification No. 1/2023 dated 31.03.2023.
“Handbook of Procedures” updated to Public Notice No. 01/2023 dated 01.04.2023.

Q3: When did Notification 10/2023 – Central Tax (Rate) come into force?

Answer:
The notification became effective from 27th July 2023.

Q4: What is the relevance of Foreign Trade Policy (FTP) 2023 in GST context?

Answer:
FTP 2023 defines export and import promotion measures. Aligning GST notifications with FTP ensures that GST exemptions, refunds, and compliance conditions match current trade policies.

Q5: Why is the reference to the Handbook of Procedures updated?

Answer:
The Handbook of Procedures offers operational guidelines for FTP. Updating it in GST context ensures that exemptions and processes align with current trade facilitation rules for exporters and importers.

Q6: Who should be aware of this notification?

Answer:
Exporters and Importers
GST Practitioners
GST Registered Businesses under FTP schemes
Logistics and CHA agents
Tax consultants

Q7: How does this benefit register exporters under GST?

Answer:
It ensures seamless policy integration between GST and FTP 2023, providing clarity on tax applicability, reducing litigation, and enhancing ease of doing business.

Q8: Where can businesses seek help for compliance under FTP and GST?

Answer:
You can consult professional GST experts through Finodha’s compliance services:
👉 Visit: https://finodha.in/gst-compliance/
Or speak to a GST advisor: www.Finodha.in

Q9: What prior notifications are affected by Notification No. 10/2023?

Answer:
It specifically amends Notification No. 26/2018 – Central Tax (Rate), which provided conditions for supply under certain export promotion schemes.