The 53rd GST Council meeting, held on June 22, 2024, introduced significant reforms aimed at simplifying tax procedures and easing compliance burdens for taxpayers across India. These changes address various aspects of GST administration, from penalties and appeals to procedural adjustments affecting businesses of all sizes. This article provides a detailed analysis of the 15 key recommendations put forth during this crucial meeting.
1. One of most important change is insertion of Section 128A for waiving interest and penalties on tax demands for FY 2017-18 to FY 2019-20-
New section 128A is recommended to provide waiver of interest or penalty or both relating to demands raised under Section 73, for FY 2017-18 to FY 2019-20: in cases where the taxpayer pays the full amount of tax demanded in the notice upto March 31, 2025. The waiver does not cover demand of erroneous refunds. Very important change as almost all taxpayers had faced difficulties during initial years of GST implementation.
2. Monetary Limits for GST Appeal filling by GST department-
To minimise unnecesaary appeals and focus of significant appeals –proposed monetary limits for filling appeals by GST department-
– GST Appellate Tribunal (GSTAT): ₹20 lakhs
– High Court: ₹1 crore
– Supreme Court: ₹2 crores
3. Reporting of B2C inter-State supplies to be reduced from Rs 2.5 Lakh to Rs 1 Lakh-
The threshold for reporting of B2C inter-state supplies invoice-wise in Table 5 of FORM GSTR-1 is recommended to be reduced from Rs 2.5 Lakh to Rs 1 Lakh.
4. FORM GSTR-7 be filed every month irrespective of whether TDS is deducted or not
5. Amendment to Exclude Extra Neutral (ENA) Alcohol from GST for Liquor Manufacturing
No GST on Extra Neutral Alcohol used for the manufacture of alcoholic liquor for human consumption.
6. Reduction in Pre-Deposit Amounts for Filing Appeals to Ease Taxpayer Cash Flow–
The maximum amount for filing an appeal with the appellate authority has been reduced from Rs. 25 crores CGST and Rs. 25 crores SGST to Rs. 20 crores CGST and Rs. 20 crores SGST. Further, the amount of pre-deposit for filing an appeal with the Appellate Tribunal has been reduced from 20% with a maximum amount of Rs. 50 crores CGST and Rs. 50 crores SGST to 10 % with a maximum of Rs. 20 crores CGST and Rs. 20 crores SGST.
7. Reduction in TCS Rate for Electronic Commerce Operators to Ease Financial Burden on Suppliers :
The GST Council has recommended reducing the TCS rate from the present 1% (0.5% CGST + 0.5% SGST/ UTGST, or 1% IGST) to 0.5 % (0.25% CGST + 0.25% SGST/UTGST, or 0.5% IGST), to ease the financial burden on the suppliers making supplies through such ECOs.
8. Relaxation in condition of section 16(4) of the CGST Act:
Very important change as recommended by GST Council –
- In respect of initial years of implementation of GST, i.e., financial years 2017-18, 2018-19, 2019-20 and 2020-21: The GST Council recommended that the time limit to avail input tax credit in respect of any invoice or debit note under Section 16(4) of CGST Act through any return in FORM GSTR 3B filed upto 30.11.2021 for the financial years 2017-18, 2018-19, 2019-20 and 2020-21, may be deemed to be 30.11.2021. For the same, requisite amendment in section 16(4) of CGST Act, retrospectively, w.e.f. 01.07.2017 has been recommended by the Council.
- with respect to cases where returns have been filed after revocation: The GST Council recommended retrospective amendment in Section 16(4) of the CGST Act, to be made effective from July 1st, 2017, to conditionally relax the provisions of Section 16(4) of the CGST Act in cases where returns for the period from the date of cancellation of registration/ effective date of cancellation of registration till the date of revocation of cancellation of the registration, are filed by the registered person within thirty days of the order of revocation.
9. Extension of Due Date for Filing FORM GSTR-4 for Composition Taxpayers from 30th April to 30th June following the end of the financial year.
10. Amendment in Rule 88B of CGST Rules for Exclusion of Electronic Cash Ledger Amount from Interest Calculation:
An amendment in Rule 88B of CGST Rules to provide that an amount, which is available in the Electronic Cash Ledger on the due date of filing of return in FORM GSTR-3B, and is debited while filing the said return, shall not be included while calculating interest under section 50 of the CGST Act in respect of delayed filing of the said return.
11. Introduction of Optional Facility in FORM GSTR-1A for Taxpayers to Amend or Add Details Before Filing FORM GSTR-3B to ensure that correct liability is auto populated in FORM GSTR-3B.
12. Exemption from Filing FORM GSTR-9/9A for FY 2023-24 for Taxpayers with Turnover up to Two Crore Rupees
13. Common Time Limit for Issuance of Demand Notices: Common time limit for issuance of demand notices and orders in respect of demands for FY 2024-25 onwards, in cases involving charges of fraud or willful misstatement and not involving the charges of fraud or willful misstatement etc. by inserting new section 74A of the Income Tax Act 1961-Also, the time limit for the taxpayers to avail the benefit of reduced penalty, by paying the tax demanded along with interest, has been recommended to be increased from 30 days to 60 days.
14. Adjustment of Demand Amounts Paid via DRC-03: GST Council Recommended to Adjust demand amount paid through DRC-03 against Pre-Deposit for filling an appeal
15. Rolling Out Aadhaar Authentication: Biometric-based Aadhaar authentication will be phased in nationwide to strengthen the GST registration process, enhancing security and reliability.
That all for today……….any doubt /query related to above mailed at mamta0581@gmail.com
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