The 53rd GST Council Meeting, held recently, introduced several significant amendments and clarifications aimed at streamlining GST compliance and providing relief to taxpayers. Here are the key decisions:
Extension of ITC Availment Time Limit:
- The time limit for Input Tax Credit (ITC) availment under Section 16(4) has been retrospectively extended until 30th November 2021 for FY 2017-18 to FY 2020-21.
Waiver of Interest and Penalty:
- Demand notices issued under Section 73 for FY 2017-18 to FY 2019-20 will not attract interest and penalty if tax is paid by 30th March 2025.
Reduction in Pre-deposit Amount:
- The pre-deposit amount for appeals before appellate authorities and the GST Tribunal has been reduced, easing financial burdens on appellants.
Appeal Filing Time Limit Clarification:
- The time limit for filing appeals before the GST Tribunal will now be counted from the date of notification in the Official Gazette.
Interest Exemption on Electronic Cash Ledger:
- No interest will be applicable on amounts present in the electronic cash ledger on the due date of filing Form GSTR-3B, which are debited at the time of filing.
Introduction of Form GSTR-1A:
- Form GSTR-1A has been introduced to report additional invoices missed while filing Form GSTR-1 for a tax period, enhancing reporting accuracy.
Biometric Aadhar Authentication:
- Aadhar authentication via biometrics will be made effective PAN India, aiming to streamline authentication processes for taxpayers.
Exemptions for Railway Services and Accommodation:
- Services such as sale of railway tickets, renting of rooms, cloak rooms, and sale of battery-operated vehicles will be exempt from GST.
Exemption Limit for Accommodation Services:
- Services of accommodation will be exempt up to INR 20,000 per person per month provided continuous stay does not exceed 90 days.
Monetary Limits for Appeals:
- The monetary limits for appeals by the department have been set at INR 20 lakhs, INR 1 crore, and INR 2 crores before GSTAT, High Court, and Supreme Court respectively.
Reduction in TCS Rate for E-commerce Operators:
- The TCS (Tax Collected at Source) rate for e-commerce operators has been reduced from 1% to 0.5%, aiming to boost compliance and ease financial obligations.
Clarification on Corporate Guarantee:
- Clarifications will be issued to ensure no GST applicability on corporate guarantees where the recipient is eligible for full Input Tax Credit (ITC).
Uniform Time Limits for SCN and Demand Orders:
- A common time limit will be introduced for issuance of Show Cause Notices (SCN) and demand orders under Section 73/74 from FY 2024-25, along with increased time limit for payment of reduced penalties.
Also Read: Issue between China and Tibet: A Detailed Analysis
These decisions reflect the GST Council’s ongoing efforts to simplify GST compliance, reduce litigation, and provide relief to taxpayers across various sectors. Stay informed about these changes to ensure compliance and leverage available benefits effectively.
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