Key Recommendations made by the 53rd GST Council Meeting

The recent meeting held on June 22, 2024, has resulted in a series of significant amendments and recommendations aimed at providing relief and clarifications to taxpayers under the Goods and Services Tax (GST) regime. Notably, these changes cover a wide array of issues, reflecting the government's commitment to easing compliance burdens and resolving longstanding ambiguities. Key highlights include the waiver of interest and penalties on demand notices for fiscal years 2017-18, 2018-19, and 2019-20, provided the tax is fully paid by March 2025, and the extension of the time limit to avail Input Tax Credit (ITC) under Section 16(4) to November 30th for the same fiscal years plus 2020-21.

Let's discuss them in detail

1. Waiver of Interest and Penalty on demand notices issued under Section 73 for FY 2017-18, 2018-19, and 2019-20, applicable where tax is paid entirely by March 2025.
2. Time limit to avail ITC u/s 16(4) extended to 30th November instead of October for FY 2017-18, 2018-19, 2019-20, and 2020-21.
3. Monetary limit for filing appeals by the department set at ₹20 lakh for the tribunal, ₹1 crore for the High Court, and ₹2 crore for the Supreme Court.
4. Max amount of pre-deposit for filing appeal before the appellate authority reduced from ₹25 crore to ₹20 crore each for CGST and SGST.
5. Pre-deposit for filing an appeal before the tribunal reduced to 20% and ₹20 crore each for CGST and SGST.
6. Amendment in law to provide that the time limit for filing appeals before the tribunal will start from the date the government notifies it.
7. Extension of time limit is done to file GSTR-4 which is filed by filed by taxpayers opting for the composition scheme is extended till 30th June
8. No Interest to be charged for the amount available in the cash ledger at the time of filing GSTR-3B, even many judgements were given by courts on this matter
9. Insertion of new Form GSTR-1A to allow corrections in GSTR-1, which can be filed before filing GSTR-3B.
10. Biometric-based Aadhar authentication on a PAN-India basis in a phased manner.
11. Clarifications issued on various topics, including:

• 12% tax rate for milk cans
• Uniform GST rate of 12% on all carton boxes
• Clarification that all types of sprinklers will attract 12% GST and past practice to be continued
• 12% rate on all solar cases
• Services by railways, platform tickets, and other services are exempt
• Service of hostel accommodation outside educational institutions made exempt with

Most of the proposed amendments and recommendations are in favour of assessee, really amazing discussion have been conducted by the department

You may add more in case I missed something in comments or contact CA Aman Rajput at aman.rajput@mail.ca.in