The GST Council met on 22nd June, 2024 which was the first GST Council meeting in the Modi 3.0 regime. The Finance Minister Nirmala Sitharaman in her press conference announced a series of assessee friendly decisions taken by the GST Council. The major decisions announced by the GST council are being elucidated as under:-
GST Council announced GST Amnesty Scheme
The first major decision taken by the GST Council is that they have announced an amnesty scheme for FY 2017-18, 2018-19 and 2019-20 wherein it has been clearly stated that if the assesse deposits the tax due as determined in the said notices by 31.03.2025 the interest and penalty on the same will be waived.
This is a much awaited decision of the GST council since in the inception of the GST regime there were issues pertaining to the GST infrastructure as well as lack of clarity in the actual implementation of the law and certain transitionary challenges which resulted in a barrage of notices getting confirmed wherein the quantum of interest and penalty had become more than the actual tax demand itself. This comes as a major relief for the tax payers and would substantially reduce the load on the appellate authorities.
Extension of time limit for taking ITC
The time limit for claiming ITC as per Section 16 (4) was due date of filing monthly return in Form GSTR 3B for September of the subsequent financial year (effectively 20th October) which was revised vide Finance Act to due date of filing GSTR 3B of for October of the subsequent financial year (effectively 30th November) vide Finance Act 2022. The Council has now retrospectively amended the section to state that that all invoices and debit notes in respect of which ITC has been claimed in GSTR 3B upto 30.11.2021 for FY 2017-18, 2018-19, 2019-20 and 2020-21 shall be permitted.
Extension of time limit for GSTR -4
The time limit for filing returns in Form GSTR 4 has been extended to 30th June from FY 2024-25.
Interest not applicable to the extent amount is available in E-cash ledger
The assesse shall not be liable to pay interest on the amount which was lying in the electronic cash ledger of the assesse. It would be prudent to wait for the final notification in this regard since there may be certain caveats that may be imposed like in the case on interest where the amount is lying in the electronic cash ledger is subject to fulfillment of conditions contained in Section 50 (1) and Rule 88B of the CGST Rules, 2017.
GST Council introduced Form GSTR 1A
The GST Council has approved Form GSTR 1A to add or amend any particulars filed in the GSTR 1 of the current tax period before the filing of GSTR 3B of the current tax period in order to ensure that any incorrect particular can be amended or any data omitted in GSTR 1 can be accommodated.
Biometric based aadhar authentication
The GST Council has recommended that after the successful implementation of bio metric based Aadhar Authentication in states like Gujarat the scheme shall be implemented throughout the country in a phased manner which will reduce the need for the conducting physical verifications by the filed formations. This will reduce the load on the field formations as well as facilitate ease of doing business in the country.
Monetary Limits for filing appeals by GST department
The GST council has also fixed monetary limits for filing appeal by the GST department the details of which are as under-
i. GSTAT- Rs 20 lakhs; ii. High Court- Rs 1 crore ; iii. Rs 2 crore for Supreme Court. This will curtail excessive litigation by the department.
Maximum amount of pre -deposit
The maximum amount of pre deposit for filing appeal before appellate authority reduced from Rs 25 crores to Rs 20 crores each for CGST and SGST. The pre deposit for filing an appeal before GSTAT reduced to 20% subject to a maximum of Rs 20 crores.
Time limit of 3 months for filing appeal before GSTAT
The time limit of 3 months for filing appeal before GSTAT shall commence from the date as shall be notified by the Government. This is being done since the GSTAT is not operational and only the President of the GSTAT Principal Bench has been appointed. This was essential since in the absence of this clarification several appeals were getting time barred for want of formation of GSTAT and several assesses were approaching High Courts to pass orders stating that there appeal be considered as filed within the statutory time limit as and when the GSTAT is formed and becomes operational. This clarification addresses the concerns of such assessees.
GST Fitment committee
- The GST Fitment committee has recommended and the GST Council has accepted that a uniform rate of 12% shall be applicable on all milk cans irrespective of the nature of material used in the said cans.
- Similarly all corrugated and non-corrugated carton boxes whether or not made of cardboard shall have a uniform GST rate of 12%, this was a long standing demand of apple growers.
- The GST Council has also approved that the rate of Solar Cookers and all types of sprinklers including Fire Sprinklers shall attract a GST rate of 12%.
Services Provided by Indian Railways
The waiting rooms, battery operated vehicles provided by Indian Railways and the Intra Railways supplies shall be exempt from the rigour of GST which will lead to reduction in prices of these services being rendered by Indian Railways.
Hostel accommodation services
GST has been exempted on all hostels for the use of students or working professionals provided that the fee being charged is not more than Rs 20,000 per student per month. The person availing the facility shall continuously be using the said facility for a period of not less than 90 days for the exemption to be applicable.
Other Important Issues
- The GST Council has referred the matter of reduction of rates to the GOM on rate rationalization in respect of fertilizers.
- The FM Nirmala Sitharaman also said in response to a query during the press conference that they intend to bring in petrol and diesel under GST.
- The competent authority for adjudicating matters of Anti Profiteering and Reports of DGAP shall be the GSTAT and not the CCI. This transition shall take place immediately after the GSTAT becomes functional.
- Online gaming was not discussed in the GST Council meeting today.