Here are 53rd GST Council meeting key Recommendations from the press release shared by the learned GST council from the council meeting held on 22-06-2024 in New Delhi under the leadership of Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman. This article will help you know major changes that council has recommended under GST.
Table of Contents
Major Changes
1. Waiver of interest and penalties
Waiving interest and penalties on demand notices issued under Section 73 of the CGST Act (pertaining to cases not involving fraud, suppression, or willful misstatement, etc.) for the fiscal years 2017-18, 2018-19, and 2019-20, if the full amount of tax demanded is paid by March 31, 2025.
2. Extended Time Limit for ITC
The deadline to avail input tax credit for any invoice or debit note under Section 16(4) of the CGST Act, through any GSTR 3B return filed up to November 30, 2021, for the fiscal years 2017-18, 2018-19, 2019-20, and 2020-21, shall be considered as November 30, 2021.
3. Change in due date for filing of return in FORM GSTR-4 ( Composition Scheme)
The GST Council has proposed to extend the due date for composition taxpayers to file their return in FORM GSTR-4 from April 30 to June 30, following the end of the financial year. This change will take effect for returns starting from the financial year 2024-25 onwards, providing additional time for taxpayers who choose to pay tax under the composition levy to submit their returns.
4. Less interest on delayed filing of returns ( Form GSTR-3B)
The GST Council has suggested amending Rule 88B of the CGST Rules that any amount present in the Electronic Cash Ledger on the due date of filing FORM GSTR-3B, which is debited during the filing of the return, shall not be considered when calculating interest under Section 50 of the CGST Act for late filing of the return.
5. Reduction of Government Litigation
The GST Council has recommended establishing monetary thresholds, with certain exclusions, for the department to file appeals under GST before the GST Appellate Tribunal, High Court, and Supreme Court, aiming to reduce government litigation. The proposed limits are as follows:
- GSTAT: ₹20 lakhs
- High Court: ₹1 crore
- Supreme Court: ₹2 crores
6. Reduction of Pre-Deposit Amounts for GST Appeals
The Council also suggested amendments to reduce the pre-deposit amounts required for filing appeals under GST.
The maximum pre-deposit amount for filing an appeal with the appellate authority has been reduced from ₹25 crores each for CGST and SGST to ₹20 crores each for CGST and SGST.
The pre-deposit for filing an appeal with the Appellate Tribunal has been reduced from 20% (with a maximum of ₹50 crores each for CGST and SGST) to 10% (with a maximum of ₹20 crores each for CGST and SGST).
7. Amendment return GSTR-1A
The Council has recommended introducing a new optional facility through FORM GSTR-1A, allowing taxpayers to amend details in FORM GSTR-1 for a specific tax period or to declare additional information before filing the return in FORM GSTR-3B for that period.
8. Exemption in filing form GSTR-9
The Council recommended that filing of annual return in FORM GSTR-9/9A for
the FY 2023-24 may be exempted for taxpayers having aggregate annual turnover
up to two crore rupees.
9. Compulsory fining of Form GSTR-7 (TDS return)
The Council recommended that registered persons required to deduct tax at source under Section 51 of the CGST Act must file a return in FORM GSTR-7 every month, regardless of whether any tax was deducted during that month. Additionally, no late fee will be charged for delayed filing of a Nil FORM GSTR-7 return. The Council also suggested that invoice-wise details be included in the FORM GSTR-7 return.
10. Reduction in the rate of TCS to be collected by E-commerce Operators (ECOs) for supplies made through their platforms.
Electronic Commerce Operators (ECOs) are required to collect Tax Collected at Source (TCS) on net taxable supplies under Section 52(1) of the CGST Act. The GST Council has recommended reducing the TCS rate from the current 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), in order to ease the financial burden on suppliers using these platforms.
Major Rate Changes
- A uniform 5% IGST rate will apply to imports of aircraft parts, components, testing equipment, tools, and tool-kits, supporting MRO activities under specified conditions.
- All milk cans made of steel, iron, and aluminum will attract 12% GST, regardless of their use.
- GST on cartons, boxes, and cases made of corrugated or non-corrugated paper or paper-board (HS 4819 10; 4819 20) will be reduced from 18% to 12%.
- All solar cookers, whether single or dual energy source, will attract 12% GST.
- Amend the entry for Poultry keeping Machinery to include “parts of Poultry keeping Machinery,” regularizing past practices based on genuine interpretational issues.
- Clarify that all types of sprinklers, including fire water sprinklers, will attract 12% GST, regularizing past practices based on genuine interpretational issues.
- Extend IGST exemption on imports of specified items for defense forces for another five years until June 30, 2029.
- Extend IGST exemption on imports of research equipment/buoys under the RAMA programme, subject to specified conditions.
- Exempt Compensation Cess on imports into SEZ by SEZ Unit/developers for authorized operations from July 1, 2017 onwards.
- Applicability of Goods and Services Tax on Extra Neutral Alcohol (ENA).
Press release
You can download official Press release of GST Council from here.
FAQ’s
What are 53rd GST Council Meeting Highlights?
During the 53rd GST Council Meeting, the government proposed recommendations regarding changes in GST rates for various goods such as milk cans and aircraft parts. Additionally, there were recommendations related to reduction in litigation Pre-deposit amount.
How will 53rd GST Council Meeting benefit business?
The government has recommended to reduce TCS rate from the current 1% to 0.5% for sellers who sell goods through various E-commerce platforms. This will ease the financial burden on suppliers using these platforms.