The 53rd GST Council meeting held today brought several crucial updates that will significantly impact individual taxpayers and business owners. Here are the key recommendations made during the meeting:
Waiver of Interest and Penalty
The GST Council has decided to waive interest and penalty on demand notices issued under section 73 for the fiscal years 2017-18, 2018-19, and 2019-20. This waiver applies in cases where the tax is paid in full by March 2025. This move aims to provide relief to taxpayers facing financial challenges and to encourage timely compliance.
Input Tax Credit Time Limit
The time limit for availing input tax credit (ITC) concerning any invoice or debit note under section 16(4) of the CGST Act has been extended. For invoices filed up to November 30, 2021, for the financial years 2017-18, 2018-19, 2019-20, and 2020-21, the time limit is now deemed to be November 30, 2021. This decision aligns with the recent Kerala High Court order and applies to all taxpayers, providing clarity and easing compliance burdens.
Appeal Filing Monetary Limits
The GST Council has revised the monetary limits for filing appeals by the tax department. The new limits are:
- ₹20 lakh for GST Appellate Tribunal (GSTAT)
- ₹1 crore for High Court
- ₹2 crore for Supreme Court
These changes are expected to reduce litigation and streamline the appeals process.
Pre-Deposit for Filing Appeals
The maximum amount of pre-deposit required for filing an appeal before the appellate authority has been reduced from ₹25 crore to ₹20 crore each for CGST and SGST. Additionally, the pre-deposit for filing an appeal before the tribunal has been reduced to 20% and ₹20 crore each for CGST and SGST. This reduction aims to make the appeals process more accessible and less burdensome for taxpayers.
Time Limit for Filing Appeals
An amendment in the law will provide that the time limit for filing an appeal before the tribunal will start from the date the government notifies GSTAT. This amendment ensures clarity and consistency in the appeal filing process.
Extension of GSTR-4 Filing Deadline
The deadline for filing GSTR-4 has been extended until June 30. This extension offers additional time for taxpayers to comply with their filing obligations without incurring penalties.
Interest on Cash Ledger Balances
Interest will not be charged for the amount available in the cash ledger at the time of filing GSTR-3B. This change is designed to alleviate the financial burden on taxpayers and encourage prompt filing.
Introduction of Form GSTR-1A
A new form, GSTR-1A, will be introduced to allow corrections in GSTR-1 before filing GSTR-3B. This form will enable taxpayers to rectify any errors in their returns, enhancing accuracy and compliance.
Biometric-Based Aadhaar Authentication
Biometric-based Aadhaar authentication will be rolled out on a PAN-India basis in a phased manner. This measure aims to curb fraudulent ITC claims and ensure the authenticity of taxpayer registrations.
Clarifications on Tax Rates
Several clarifications were issued regarding GST rates on various goods and services:
- 12% tax rate for milk cans.
- Uniform GST rate of 12% on all carton boxes.
- Clarification that all types of sprinklers will attract 12%, with past practices to continue.
- 12% rate on all solar cookers.
- Exemption of GST on services by railways, platform tickets, and other related services.
- Exemption for hostel accommodation services outside educational institutions, with conditions.
Conclusion
The 53rd GST Council meeting has introduced several significant changes aimed at easing compliance, reducing litigation, and providing clarity on various tax-related matters. These updates are expected to benefit both individual taxpayers and business owners, promoting a more transparent and efficient tax system.
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