Arjuna (Fictional Character): Krishna, I heard that the taxpayers were showered with numerous welcoming recommendations by the GST Council on Saturday. What was the major discussion in the meeting?
Krishna (Fictional Character): Arjuna, The 53rd GST Council Meeting was held on 22nd June 2024, wherein the focus was on discussing matters concerning Trade Facilitation & Providing Relief to Taxpayers. Key Recommendations made by the council like waiver of interest & penalty for specified period & Introduction of GSTR 1A will surely be music to the ears of the taxpayers.
Arjuna (Fictional Character): Krishna, What were the most popular recommendations made by the council?
Krishna (Fictional Character): Arjuna, Although the council made numerous recommendations during the meeting, the following can be considered as most popular recommendations as they got everyone talking about the upcoming changes in GST regulations:
1. The Council has recommended waiver of interest & penalty relating to demands(excluding for erroneous refund) of period FY 2017-18 to FY 19-20, issued under Section 73 if tax is been paid by 31st March 2025 by insertion of new section 128A.
2. For the period from FY 2017-18 to FY 2020-21, the time limit for availing ITC is recommended to be deemed as 30th November 2021 under section 16(4).
3. The council recommended amendment to rule 88B, for excluding the balance available in electronic cash ledger and used subsequently for filing of GSTR 3B return for calculation of interest on delayed filing of return.
4. Council also recommended introduction of GSTR-1A for amending the GSTR-1 for any period before filing of GSTR 3B.
5. The council has recommended to exempt taxpayers with aggregate annual turnover upto Rs. 2 Crore from filing of GSTR 9/9A for FY 23-24.
6. The council clarified that for calculation of time limit for availing of ITC relating to RCM transactions under Section 16(4), the relevant financial year shall be the financial year in which the invoice has been issued by the recipient.
Arjuna (Fictional Character): Krishna, What should one learn from this?
Krishna (Fictional Character): Arjuna, The Finance Minister and the GST Council has aimed this 53rd Council Meeting at streamlining the GST Tax reform in the country and facilitating the small and large taxpayers. Further, these are mere recommendations as of now and the taxpayers shall wait for the official notification on the recommended changes.
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