Indeed, GST (Goods and Services Tax) has become an integral part of India’s taxation system since its implementation in 2017. It is a comprehensive indirect tax levied on the supply of goods and services across the country, replacing multiple indirect taxes previously levied by the central and state governments.
The GST Council, headed by the Finance Minister of India and comprising representatives from all states and union territories, plays a pivotal role in administering and making recommendations regarding changes to the GST regime. The Council meets periodically to discuss various aspects of GST, including tax rates, exemptions, compliance measures, and procedural simplifications.
It appears that the 53rd GST Council Meeting held on June 22nd, 2024, in New Delhi, was quite significant. Here’s a summary of the key recommendations made by the council under the leadership of the Finance Minister of India:
Changes in GST Tax Rate: The council recommended adjustments to the GST tax rates applicable to various goods and services. This could involve revising rates to better reflect economic conditions, align with policy objectives, or address industry-specific needs.
Measures for Facilitating Trade: There were discussions and recommendations aimed at making trade operations smoother and more efficient under the GST framework. This includes initiatives to simplify procedures, reduce compliance burdens, and enhance the ease of doing business.
Measures to Streamline Compliance: Simplifying GST compliance processes remains a priority. The council likely proposed measures to streamline reporting, filing, and auditing procedures. These efforts are aimed at reducing the administrative burden on businesses and taxpayers while improving overall compliance rates.
Such recommendations from the GST Council are crucial as they influence the economic environment and affect businesses and consumers across the country. The Finance Minister’s leadership in these discussions underscores the importance of GST as a pivotal component of India’s taxation system.
Below are the Few Major recommendation relating to changes in GST.
- Waiver of Interest and Penalty:
In the 53rd GST Council meeting, it was recommended to waive interest and penalties for demand notices issued under Section 73 of the CGST Act (applicable to cases not involving fraud, suppression, or willful misstatement) for the fiscal years 2017-18, 2018-19, and 2019-20, provided the full tax demanded is paid by March 31, 2025.
- Extended time line of Section-16(4):
GST Council recommends the time limit to avail input tax credit w.r.t. any invoice or debit note under Section 16(4) of CGST Act, through any GSTR 3B return filed upto 30.11.2021 for FY 2017-18, 2018-19, 2019-20 and 2020-21, may be deemed to be 30.11.2021
- Monetary limit of Limit by Department:
GST Council has recommended setting a monetary limit for filing appeals by the Department to reduce litigation. The proposed limits are Rs. 20 lakh for the GST Appellate Tribunal, Rs. 1 crore for the High Court, and Rs. 2 crore for the Supreme Court.
- Reduction in Pre deposit of Appeal:
GST Council recommends reduction of the quantum of pre[1]deposit required to be paid for fillings of appeals under GST. The maximum amount for filing 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 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
- Interest u/s section-50:
To ease the interest burden of the taxpayers, GST Council recommends to not levy interest u/s 50 of CGST Act in case of delayed filing of return, on the amount which is available in Electronic Cash Ledger (ECL) on the due date of filing of the said return.
- GST Rate-12%: GST Council recommends 12% GST on
- Milk cans (steel, iron, aluminum) irrespective of use;
- Carton, Boxes and Cases of both corrugated and non-corrugated paper or paper-board;
- Solar cookers whether single or dual energy source; and
- Sprinklers including fire water sprinklers.
- GST Exemption on following services:
- Sale of platform tickets,
- Facility of retiring rooms/waiting rooms,
- cloak room services and
- Battery-operated car services and to also
- Exempt the Intra-Railway transactions
- Hostel accommodation outside college
- Accommodations up to 20000/- exempt on subject to 90 days
- Biometric Aadhaar authentication:
GST Council recommends to roll-out the biometric-based Aadhaar authentication of registration applicants on pan[1]India basis in a phased manner
This recommendation will be part of GST Act after notification issued by government
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Disclaimer: The information contained in this write up is to provide a general knowledge to the intended user. Hence, we recommend that professional advice is sought before taking any action on specific issues before entering into any investment or financial obligation based on this Content.
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