INSUBCONTINENT EXCLUSIVE:
Union Finance Minister Nirmala Sitharaman chairs the 53rd GST Council meeting, in New Delhi, Saturday, June 22, 2024
(PTI Photo/Kamal Singh)5 min read Last Updated : Jun 22 2024 | 8:32 PM IST
The Goods and Services Tax (GST) Council in its Saturday
meeting has approved several compliance measures, aiming at reducing tax litigation and enhancing ease of business across the
sectors.
The all-powerful Council waived interest and penalty for demand notices issued for the financial years 2017-18, 2018-19, and
This is for cases where the taxpayer pays the full amount of tax raised in the notice by March 31, 2025
Council meeting under the NDA-led government
of August, FM Sitharaman said.
Among key decisions, the Council approved the PAN-India implementation of biometric-based registration in
The move would help weed out fake registrations and fake credits.
It has also given the nod to one of the key amendments in the Central
GST Act under Section 11A, which has the potential to overrule retrospective tax demands arising in various sectors.
The amendment will
consistently being followed by the businesses.
The move will have a direct impact on online gaming, foreign airlines, and shipping
companies.
To reduce litigation, the Council has approved a monetary limit of Rs 20 lakh for the GST Appellate Tribunal, Rs
1 crore for the High Court, and Rs 2 crore for the Supreme Court for the filing of appeals by the GST department
Further, it reduced the quantum of pre-deposit required to be paid for filing of appeals under GST.
For small taxpayers, the Council has
recommended extending the time limit to furnish the detail and the returns in the form GSTR 4 from April 30 to June 30, Sitharaman said,
adding that this will apply for returns for the financial year 2024-25 onwards.
The Council also provided clarity on several goods and
services which have been grappling with tax uncertainty.
For instance, it suggested 12 per cent GST on milk cans (steel, iron, aluminium)
irrespective of use; cartons, boxes, and cases of both corrugated and non-corrugated paper or paper-board; solar cookers whether single or
dual energy source; and sprinklers, including fire water sprinklers.
On services, it exempted certain services provided by Indian
Railways and intra-railway supplies
GST relief was also given to students on accommodation services, for up to Rs 20,000 per month per person, if the person stays a maximum of
90 days.
Apart from this, the Council has introduced a sunset clause from April 1, 2025, for filing complaints of anti-profiteering
The union minister said that all such matters under anti-profiteering legislation will be handled by the GST Appellate Tribunal
Earlier, the anti-profiteering authority was subsumed with CCI
However, CCI expressed its inability to deal with GST cases.
The Council clarified that a corporate guarantee of 1 per cent on 18 per
cent is exempt for businesses where full input tax credit is available
The move follows the appeals companies have filed before high courts.
The Council reconstituted the group of ministers (GoM) on rate
rationalisation and asked them to give a status report on the rate rejig in the next Council meeting
This follows the political change in the state government.
On including petrol and diesel under the GST ambit, Sitharaman said that the
intent of the central government when the GST was implemented, was eventually that petrol and diesel could be brought into GST
The provision has already been made that it can be brought into GST
The states have to agree, come into the GST Council, and decide what rates they agree on."
Talking about the ease of business, the union
minister highlighted that only 1.96 per cent of all active tax assessees have been sent tax notices from the Central GST department till
This translates to approximately 114,000 out of the total 5,862,000 assessees, indicating a selective and restrained approach in the
Sunset clause to anti-profiteering provisions, amnesty for initial years, allowing amendment of outward supplies, and corporate guarantee
clarification were the major highlights
Abhishek Jain, Indirect Tax Head - Partner, KPMG.First Published: Jun 22 2024 | 8:32 PMIST
