53rd GST Council Meeting Highlights: Big Changes in GST after 9 months

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The 53rd GST Council meeting, held today, marked a significant event with major changes announced in the GST framework after a nine-month hiatus. Chaired by Union Finance Minister Nirmala Sitharaman, the meeting brought forth key decisions aimed at easing compliance and providing relief to taxpayers.

Key Announcements:

1. Extension of GSTR-4 Submission:

The GST Council has extended the GSTR-4 submission deadline to June 30 for the financial year 2024-25 onwards. This extension aims to provide additional time for taxpayers to comply with the filing requirements.

2. Waiver of Interest and Penalties:

The Council recommended waiving interest and penalties for demand notices issued under Section 73 of the GST Act for the financial years 2017-18, 2018-19, and 2019-20. Taxpayers can avail this relief if the tax is paid by March 31, 2025.

3. Input Tax Credit Amendments:

The time limit to avail input tax credit (ITC) for any invoice or debit note under Section 16(4) of the CGST Act has been extended for the financial years 2017-18, 2018-19, 2019-20, and 2020-21, retrospectively effective from July 1, 2017.

4. Introduction of GSTR-1A Form:

A new functionality in the form of GSTR-1A will be introduced to allow taxpayers to add particulars of the current tax period if they were missed in the initial reporting.

5. Reduction in Government Litigation:

To reduce government litigation, the Council recommended a monetary limit of Rs 20 lakh for appeals to the GST Appellate Tribunal.

6. Uniform Rate on Milk Cans and Carton Boxes:

A uniform GST rate of 12% on milk cans (steel, aluminum) has been recommended. Additionally, all types of carton boxes will attract a 12% GST rate.

7. GST on Sprinklers and Railway Services:

All types of sprinklers, including fire sprinklers, will attract a 12% GST rate. Services provided by Railways, such as battery-operated vehicles and intra-railway services, will be exempt from GST.

8. Hostel Accommodation Exemption:

Hostel accommodation services (non-educational) will be exempt from GST, provided there is a minimum continuity of three months, and the exemption applies up to Rs 20,000 per month per person.

Detailed Agenda and Additional Highlights

Monetary Limits for Appeals: New monetary limits have been set at Rs 20 lakh for GST Appellate Tribunals and Rs 1 crore for High Courts.
Service Exemptions: Exemptions were announced for services provided by Railways and certain hostel accommodations, reducing the tax burden on these services.
Focus on Practical Compliance: The introduction of GSTR-1A and amendments to ITC rules reflect the Council’s intent to make compliance more practical and fair, minimizing undue penalties and simplifying procedures.

Attendees and Participation

The meeting saw participation from key officials, including the Union Finance Minister, Chief Ministers of Goa and Meghalaya, Deputy Chief Ministers of Bihar, Haryana, Madhya Pradesh, and Odisha, as well as Finance Ministers of various States and Union Territories with legislatures. Senior officers from the Union Government and States were also in attendance.

Conclusion

The 53rd GST Council meeting underscored the government’s commitment to refining GST processes and providing relief to taxpayers. The extensions and exemptions announced are expected to significantly ease compliance burdens and foster a more taxpayer-friendly environment. Keep following for more updates and detailed analyses on the outcomes of today’s meeting.

Official Press Release is coming up