Dear Learned Colleagues/ Friends
Gist of very important recommendations made in GST Council meeting held Yesterday in Delhi are as given below:
Interest and penalty would be waived against notices issued under Section 73 for the FY 2017-18, FY 2018-19 and FY 2019-20 where taxpayer pays full tax demanded in notice till 31-03-2025;
Time limit to avail input tax credit for any invoice or debit note issued during the period from FY 2017-18 to FY 2020-21 shall be deemed to be 30-11-2021 (It would be helpful in closure of many notices issued by the department to disallow the input tax credit on account of late availment of ITC including the period of COVID-19);
Time limit to avail input tax credit given under Section 16(4) would be relaxed where returns for the period from date of cancellation of registration till the date of revocation are filed within 30 days from date of revocation of registration;
Time limit to avail input tax credit for tax paid under RCM on supplies received from unregistered person would be considered in terms of Section 16(4) as per financial year in which invoice has been issued by recipient;
No interest shall be payable on the balance available in cash ledger on the due date of filing GSTR-3B of any period and adjusted with GST liability of the said period;
An optional facility to include or amend any details filed in GSTR-1 would be provided to taxpayer in form GSTR-1A to ensure auto-population of correct GST liability in GSTR-3B return;
E-commerce operator to collect TCS at the rate of 0.5% instead of 1% of net supplies made in any tax period;
Threshold limit for reporting B2C-Large invoices in GSTR-1 recommended to be reduced from 2.5 Lakhs to 1 Lakh.
Import of parts, components, etc. of aircrafts shall attract 5% IGST;
GST rate shall be reduced from 18% to 12% on Carton, boxes and cases of corrugated and non-corrugated paper or paper board;
GST rate shall be 12% on following items:
• All solar cookers;
• All milk cans (steel, iron and aluminium) irrespective of use;
• All type of sprinklers including fire water sprinklers;
General public services provided by Indian railways such as platform tickets, waiting room facility, cloak room service, battery operated car service shall be tax free under GST;
Accommodation services when supplied for a continuous period of at least 90 days shall be exempted under GST when value of supply is up to 20,000 per person per month;
Monetary limit to file appeal by GST department would be as given below:
• Tribunal – 20 lakhs
• High Court – 1 crore
• Supreme Court – 2 crores
Minimum pre-deposit limit to file appeal with GST Tribunal would be reduced to 10% instead from 20% currently;
Time limit to file GSTR-4 return by composition taxpayer shall be 30th June instead of 30th April from FY 2024-25 onwards;
In case of import of service from related party, value of supply declared in the invoice would be treated as open market value. If no invoice issued, then value may be deemed to be declared as NIL (provided that full ITC available to recipient);
Mechanism to be provided for adjustment of tax paid through DRC-03 against pre-deposit to be made for filing appeal;
Common time limit to be provided for issuing SCN and order under Section 73 and 74 both from FY 2024-25 onwards. Further, time limit to avail benefit for reduced penalty would be increased from 30 days to 60 days where tax and interest liability has been paid;
Invoice wise details may be required to be furnished in GSTR-7 form to be filed for TDS. Further, NIL return is also required to be filed.
Regards
CA Jai Prakash
Team GST Podcast
