GST Notification No. 12/2023: IGST Amendment

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Notification No. 12/2023 - Integrated Tax (Rate): Seeks to amend notification No. 09/2017- Integrated Tax (Rate) dated 28.06.2017 to implement decisions of the 50th GST Council.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3. SUB- SECTION (10)

G.S.R. (E). In exercise of the powers conferred by sub-section (3) and sub-section (4) of section 5. subsection (1) of section 6 and clause (xxv) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), read with sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council,

Hereby makes the following further amendment in the notification of the Government of India, Ministry of Finance (Department of Revenue) No.9/2017-Integrated Tax (Rate), dated the 28 June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3.Sub-section (1) vide number G.S.R. 684 (E), dated the 28th June, 2017, namely:-

In the said notification, in the Table, against serial number 10, in column (3), for the proviso, the following proviso shall be substituted, namely:

"Provided that the exemption shall not apply to online information and database access or retrieval services received by persons specified in item (a) or item (b).".

2. This notification shall come into force with effect from the 1ª October, 2023

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: The principal notification number 9/2017 Integrated Tax (Rate), dated the 28 June, 2017 was published in the Gazette of India, Extraordinary vide number G.S.R. 684 (E), dated the 28 June, 2017 and last amended vide notification no. 07/2023 Integrated Tax (Rate), dated the 26 July, 2023 published in the official gazette vide number G.S.R. 541 (E), dated the 26th July, 2023.

📚 Frequently Asked Questions (FAQs): Notification No. 12/2023 - Integrated Tax (Rate)

Q1: What is Notification 12/2023 - Integrated Tax (Rate)?

Answer:
Notification No. 12/2023 - Integrated Tax (Rate), dated 26th July 2023, amends Notification No. 09/2017 to incorporate updates from the 50th GST Council Meeting. It outlines changes in IGST applicability and scope on specified services to improve tax compliance and clarity.

Q2: Why was Notification No. 09/2017 amended?

Answer:
The amendment aims to reflect refined interpretations of IGST liability under the reverse charge mechanism (RCM). It ensures legal clarity and proper implementation of tax provisions in accordance with the Council’s latest decisions.

Q3: What are the key changes made under Notification 12/2023?

Answer:
Key updates include:
Revisions to service classifications under RCM
Clarification on GST applicability on intermediary and imported services
Enhancements in scope for certain IGST-covered transactions
Businesses involved in cross-border transactions or receiving services from overseas entities should pay close attention.

Q4: Which sectors or services are most impacted by Notification 12/2023?

Answer:
Sectors involving import/export of services, B2B professional services, and digital commerce may see the most impact. Tax liability under IGST has shifted or clarified in several cross-border supply scenarios.

Q5: How can businesses ensure compliance post-Notification 12/2023?

Answer:
Steps include:
✅ Revisit contracts with overseas vendors or intermediaries
✅ Consult with a GST expert from Finodha: www.Finodha.in
✅ Update accounting practices
✅ File GST Returns accurately
✅ Seek GST Registration or GST Compliance help if newly liable

Q6: How does Notification 12/2023 relate to other 2023 GST changes?

Answer:
This notification complements others such as Notification 13/2023 and 14/2023, all issued to implement decisions from the same 50th GST Council meeting. Collectively, they aim to bring consistency and reduce litigation.

Q7: What kind of help is available for small businesses or startups?

Answer:
Finodha offers MSMEs and startups:
🌟 Business Setup Services
📦 Private Ltd. Registration
📄 DSC for e-Filing
📊 MSME Udyam Registration

Q8: Is this notification applicable from a specific date?

Answer:
Yes. The amendments under Notification No. 12/2023 are effective from the date of publication i.e., 26th July 2023 unless otherwise specified within the updated schedule.