The recent 53rd GST Council meeting, held on June 22, 2024, unveiled significant recommendations poised to alleviate burdens for businesses across India. These proposals, aimed at enhancing compliance and easing financial obligations, underscore the upcoming fiscal initiatives under the NDA’s popular budget. Some of the reliefs recommended are highlighted here:
- In a major relief to businesses, GST Council recommended Amnesty scheme by way of waiving interest and penalty for notices issued under section 73 for FY 2017-18, 2018-19 and 2019-20 with the condition that complete tax demand is paid on or before 31st March 2025.
- Another major relief under amnesty scheme is for business facing GST notices for not claiming input Tax Credits within time limit, now for FY 2017-18 to FY 2020-21 time-limit to avail ITC may be deemed to be 30th November 2021.
- Further relief to businesses is provided by recommending that in case of delayed filing of return, interest will be payable only on the GST amount paid in cash after the due date of filing return form GSTR-3B.
- Recommends to insert provisions for common time limit for issuance of GST demand notices and demand order under section 73 and section 74 of GST Act.
- Recommends also to increase time limit to make payment of tax along with interest from 30 days to 60 days to avail benefit of reduced penalty under section 73 and section 74 of GST Act.
- Further recommends to exempt various services provided by Indian railways to common man and accommodation services to students and working professionals
- Recommends uniform GST rates for items like milk can irrespective of use, carton boxes, solar cookers with single or dual energy source.
- Recommends to roll out biometric authentication-based GST registration to strengthen the registration process and ease of business
- Recommends to reduce pre-deposit amount from 20% to 10% for filing the GST appeal.
- Recommends higher monetary limit for filing appeal by GST department. Rs. 20 Lakh for GST Tribunal, Rs. 1 crore for High Court and Rs. 2 Crore for Supreme Court.
- Recommended to provide a new optional facility by way of FORM GSTR-1A to facilitate the taxpayers to amend the details in FORM GSTR-1
- Recommended to prescribe a mechanism for adjustment of an amount paid in respect of a demand through FORM GST DRC-03 against the amount to be paid as pre-deposit for filing appeal.
Conclusion: The recommendations put forth by the 53rd GST Council meeting promise a wave of relief for businesses grappling with tax complexities. From amnesty schemes easing penalties to streamlined procedures for GST registration and appeals, these reforms aim to foster a more conducive environment for economic growth and operational efficiency. Stay tuned for further updates as these proposals evolve into actionable policies shaping India’s fiscal landscape.
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