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There are a series of significant changes that have taken place wef 1st January 2023, such as the changes in the GST rates, banking rules, vehicle rules along with expensive motor insurance, to name a few. All such aspects shall be discussed in detail in the present article.
Significant changes wef. 1st January 2023 is discussed below –
In the event of full receipt of payment before the rate change on the 1st day of January 2023, the supply is subjected to 7% GST. In such cases, the invoice issued after the same may reflect GST charged @ 7%.
If the goods or services have neither been fulfilled nor payment received for the invoice that was issued before 01.01.23, the supply attracts GST @ 8%. A credit note shall be required for cancelling the tax invoice issued before 01.01.23, and a new invoice at 8% GST is to be issued.
In contrast with this, if the invoice has been issued and goods are delivered before 01.01.23, the 7% GST rate shall be applicable to the transaction.
In the event that delivery of goods and services has taken place prior to January 1 2023, businesses can charge 7% GST despite the invoice and payment being received after the rate change.
Apart from understanding the differences applicable during the transitional period, businesses must assess and plan ahead of the existing Point-of-Sales systems and update the accounting software as per the new rates.
For GST-inclusive prices on display, they must be updated to show the revised rates on 1 Jan 2023. Therefore businesses should be prepared to print or update existing prices or promotional materials, such as price tags, price lists, or websites.
Generally, the time of supply rule for GST states that a sale or supply is recognised at the time of receipt of the payment or issuance of invoice for goods sold or service performed, whichever is earlier. It follows that from 1 January 2023, any payment received or invoice issued should be charged at 8% GST.
In many cases, there may be time lapses between
A transaction taking place over a period in which the rate change occurs is subjected to transitional rules.
Almost all the major car and bike companies in the country would be increasing the prices of their products by up to Rs 90,000. Maruti, Kia, Tata Motors, Mercedes, Hyundai, Audi, Renault and MG Motors have already announced a price hike. At the same time, Hero MotoCorp has also announced a price hike making the purchase of vehicles an expensive affair for consumers.
If the account holder has rented a locker or planning to rent one for storing their valuables in a bank locker, then he/she must be aware of the new bank locker rules prescribed by the (RBI) wef 1st day of January 2022. The new guidelines were announced by the RBI via a notification on 08.08.21.
While the operational standards shall be implemented by the banks on January 1, 2023, safe deposit locker holders will be required to execute a new locker agreement with their bank to be eligible for the new pay.
Banks have the liberty to use the IBA-drafted model locker agreement, which must be in compliance with the updated instructions as well as the Supreme Court’s directives in this regard, as per the RBI notification.
According to the RBI’s revised instructions notification, “Banks shall ensure that there aren’t any unfair terms or conditions being incorporated in their locker agreements. Further, the terms of the contract won’t be more onerous than needed in the ordinary course of business for safeguarding the interests of the bank. The locker agreements must be renewed by the Banks with existing locker customers by January 1, 2023.”
The rules related to credit card reward points in many banks are also going to change from January 1, 2023. For instance, HDFC Bank shall change the structure of reward points and the fee of the credit card being 1 per cent on same. Along with this, SBI has also changed some rules for its Simply CLICK cardholders.
The cable TV expenses may come down a bit this new year. As per the new rules of TRAI, companies will now be required to include channels priced below Rs 19 in the bouquet. At the same time, the limit of maximum discount on the bouquet of channels has also been fixed at 45%.
Motor insurance premiums may also become expensive from January 2023 as the IRDAI is considering new rules under which insurance companies can have the liberty of fixing insurance premiums based on the use and maintenance of vehicles. Apart from this, it will be mandatory for you to submit KYC documents.
High-Security Registration Plates were already made mandatory. However, its deadline keeps on moving in between. If the time limit for installing high-security number plates is not extended, one may have to pay a heavy fine of up to Rs 5000/-. Therefore installing a high-security number plate in the vehicle becomes important for the owner.
This change is for the phone manufacturers. From 1st date, registration of the IMEI number of every phone will be mandatory for every phone manufacturer and its import and export company. The government has implemented this system from January 1, 2023, to curb the increasing digital fraud in the country and the world.
If the account holder is planning to withdraw from the NPS account, he/she must note that partial withdrawals online from NPS accounts won’t be possible from 1st January 2023. There shall be a huge change in the rules regarding partial withdrawal from NPS accounts. On or subsequent to January 1, 2023, employees of the Central, State Government or other Government Institutions won’t be able to make online partial withdrawals from their NPS accounts on the basis of self-declaration. In fact, the PFRDA had given this facility to government employees keeping in mind the Covid 19 epidemic, which shall be withdrawn from 2023.
The most crucial change is with respect to the GST rates, among others. Along with this, the consumer must be cautious a purchasing a vehicle; the high-security no. plate and motor insurance, the shift in the bank locker and credit card rules, along with other changes discussed above. Such awareness is important in order to avoid any confusion or penalties owing to lack of information in respect of the same.
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