The upcoming 54th GST Council meeting, scheduled for June 22, 2024, is highly anticipated, particularly as it precedes the Indian Budget 2024-25, expected in July 2024. This meeting comes after a significant gap, raising hopes for critical decisions that could streamline GST regulations and enhance the ease of doing business in India. Given that any amendments to the GST Act require the Council’s recommendations, this meeting is crucial for addressing long-pending issues of rationalisation of rates, fixation of GST rate on online games, horse racing and casinos will be on priority.
Earlier The Committee of Group of Ministers was finalised under the leadership of State Finance Minister of UP Shri Suresh Khanna, so as to submit plan for rationalisation of GST rates and reducing the slabs. However, Committee has not finalised the recommendations and therefore whether slabs to be reduced or not will be the question mark even though it is most desirable.
There are also the speculations to enhance the scope of GST and include Natural Gas and ATF in the first phase and subsequently add petrol and diesel.
Apart from above, there is a high need to resolve compliances issue and implementation issues at the field formation, which will further simplify in ease of doing business.
Trade and Industries are today entangled with high demand notices on account of mismatches even for the period 2017-18, 2018-19 , 2019-20 and 2020-21 when there was no matching provisions introduced in the law itself. Neither GSTN was providing any information w.r.t. mismatches as envisaged in original scheme of law while introducing GST Act.
Number of high court have already given the number of decisions in the favour of taxpayers but even upto first appeal stage there is no relief granted to taxpayers. In view of the above relaxation / amnesty scheme should be framed, so as to withdraw all the demand notices on account of mismatches except for identified fraudulent cases.
There is high need to have the correction in inverted duty for multiple sectors such as textile, pharmaceuticals and fertilisers etc.
There has to be constant need to review various decisions of judiciary and respecting such views, necessary clarification needs to be issued or wording on account of interpretation needs to be clarified by way of explanation in the act / rules.
On 1st February 2024, Hon Finance Minister presented Interim Budget 2024 and mandated companies claiming credit under Input Service Distributer (ISD) mechanism and provisions of the act was amended accordingly. However, it was expected that effective date of notification will be notified after formation of rules. Therefore, GST Council will have to recommend the new rules for ISD distribution, thereafter only effective date of implementing ISD mechanisms can be notified.
Fortunately, the same finance minister who were presented interim budget will be presenting final budget for the year 2024-25, which will lay down the path for Vikasit Bharat 2047 and roadmap 100 days which Hon Prime Minister Narendrabhai Modi has made and dreamt. Let us expect GST Council will recommend all the actions to simplify the GST Law and make a mandatory provision for training of all officers implementing GST and monitor effectiveness of such training. When GST was introduced, it was envisaged that there will be no interface of GST officers with trade and industry, but as such each taxpayer have the interface with State GST Officer as well as central GST Officers either for getting the refund or visiting offices as per the phone calls received from GST officers. There has to be strict guidelines and monitoring if we sincerely feels necessity of ease of doing business and reducing transactions cost and time.
Conclusion : The 54th GST Council meeting holds the promise of significant reforms and resolutions that could streamline the GST framework in India. By addressing issues such as rate rationalization, inclusion of natural gas and ATF, compliance simplifications, and the ISD mechanism, the Council can pave the way for a more efficient and business-friendly tax environment. As the Finance Minister prepares to present the final budget for 2024-25, the recommendations from this meeting will be crucial in shaping India’s economic future and achieving the vision of “Vikasit Bharat 2047.”
Author Bio
