The Central Board of Indirect Taxes and Customs (CBIC) has officially announced long-awaited amendments to the Goods and Services Tax (GST) framework. These changes, outlined in Notification No. 17/2024-Central Tax dated September 27, 2024, will come into effect on specified dates as discussed in the recent GST Council meeting and the Union Budget 2024-25.

Summary of Important GST Amendments:

Effective from September 27, 2024

1. Input Tax Credit (ITC)
   • Amendments to Section 16(5) of the CGST Act allow ITC claims for supplies received during FYs 2017-18 to 2020-21 until November 30, 2021.
   • ITC can also be availed if returns are filed within 30 days post revocation of registration.
2. Appellate Tribunal Empowerment
   • The Principal Bench of the Appellate Tribunal can now hear specific cases, including anti-profiteering matters, ensuring specialized handling of complex cases.
3. Sunset Clause for Anti-Profiteering
   • A new sunset clause aligns anti-profiteering cases with the GST Appellate Tribunal’s jurisdiction, providing a clear endpoint for such measures.
4. Refund Restrictions
   • No refunds will be granted for taxes paid or ITC reversed that would not have been due under Section 118 where the appeals lie to the Supreme Court.

Effective from November 1, 2024

1. Amensty Scheme – Interest and Penalty Waivers
   • Waivers for interest and penalties on demand notices from FYs 2017-18 to 2019-20 are available if the full tax amount is settled by March 31, 2025.
2. Amendment to Section 7
   • Raw materials for liquor production, specifically undenatured extra neutral alcohol, are excluded from GST.
3. Introduction of Section 74A
   • This section standardizes time limits for demand notices and orders, applicable from FY 2024-25 onward, while earlier periods remain under the previous provisions.
4. Regularization of Tax Practices
   • Insertion of Section 11A aims to protect businesses from penalties for generally accepted but incorrect tax practices.
5. Self-Invoicing Time Limits
   • Clear time limits for self-invoicing related to Reverse Charge Mechanism (RCM) supplies have been established.
6. ITC Restrictions
   • Restrictions on ITC claims for tax paid under Section 74 will now only apply to demands from FY 2023-24 and earlier.
7. Revocation of Registration Cancellations
   • The Central Government is now authorized to set conditions for the revocation of GST registration cancellations.
8. Mandatory GSTR-7 Filing
   • TDS deductors are required to file GSTR-7 monthly, even when no tax has been deducted.
9. IGST Refunds
   • Refunds for IGST on goods subjected to export duty, including exports to SEZs, are restricted.
10. Compliance with Summons
    • Authorized representatives can now represent summoned individuals to comply with summons.
11. Reduced Pre-Deposit for Appeals
    • The pre-deposit amount for filing GST appeals has been lowered, with a new 3-month time limit for appeals set from the notification date.
12. Updated Penalty Provisions
    • Penalties for e-commerce operators have been revised to adapt to the evolving digital commerce landscape.
13. Transitional Credit for Services
    • Transitional credit for service invoices received before the appointed date is now allowed retroactively from July 1, 2017.
14. Inclusion of Co-Insurance Premiums
    • Co-insurance premiums and re-insurance commissions are now included in the CGST Act, simplifying transactions.

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