The 53rd GST Council Meeting introduced significant measures to simplify tax processes, reduce litigation, and provide targeted tax reliefs. Here are the key takeaways:
Waiver of Interest and Penalties:
- Interest and penalties on demand notices issued under Section 73 of the CGST Act for FY 2017-18, 2018-19, and 2019-20 will be waived if the full tax amount is paid by March 31, 2025. This applies to cases not involving fraud, suppression, or willful misstatement.
Extended Deadline for Input Tax Credit:
- The deadline to claim input tax credit (ITC) for invoices or debit notes under Section 16(4) of the CGST Act has been extended. GSTR 3B returns filed up to November 30, 2021, for FY 2017-18, 2018-19, 2019-20, and 2020-21 will be considered within the time limit.
Monetary Limits for Appeals:
- New monetary thresholds for departmental appeals have been set to reduce litigation:
- Rs. 20 lakh for GST Appellate Tribunal.
- Rs. 1 crore for High Court.
- Rs. 2 crore for Supreme Court.
Reduced Pre-Deposit for Appeals:
- The required pre-deposit for filing appeals under GST has been lowered, easing the financial burden on appellants.
Appeal Filing Period Adjustment:
- The three-month period for filing appeals in the GST Appellate Tribunal will commence from a date specified by the Government.
Interest Relief on Delayed Returns:
- No interest under Section 50 of the CGST Act will be charged on amounts available in the Electronic Cash Ledger on the due date, even if the return is filed late.
Anti-Profiteering Sunset Clause:
- A sunset clause effective April 1, 2025, has been introduced for new anti-profiteering applications.
Compensation Cess Exemption for SEZs:
- Imports into SEZs by SEZ units or developers for authorized operations are exempt from Compensation Cess from July 1, 2017.
Revised GST Rates on Specific Goods:
- A 12% GST rate is applicable to:
- Milk cans made of steel, iron, or aluminum.
- Cartons, boxes, and cases of both corrugated and non-corrugated paper or paperboard.
- Solar cookers, whether single or dual energy source.
- Sprinklers, including fire water sprinklers.
Indian Railways Service Exemptions:
- Certain services provided by Indian Railways to the public and intra-railway supplies have been exempted from GST.
Accommodation Services Exemptions:
- Exemptions have been recommended for specific accommodation services, benefiting students and working professionals.
Aadhaar-Based Authentication for GST Registration:
- A phased rollout of biometric-based Aadhaar authentication for GST registration applicants will be implemented across India.
These recommendations from the GST Council aim to streamline tax compliance, reduce the litigation burden, and provide specific tax exemptions to ease the financial load on businesses and individuals.
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