|
IamSMEofIndia Business Update |
Recommendations of 53rd GST Council Meeting
This is to update you that the 53rd meeting of the GST council was concluded on 22 June 2024 in New Delhi. The key recommendations made by the Council in the meeting are summarized below for your ready reference: 1. Reduction in TCS Rate: TCS Rate to be reduced from current 1% to 0.5% of net taxable supplies for supplies made by ECOs (Electronic Commerce Operators) 2. Waiver of interest and/or penalty for demand raised u/s 73 FY 2017-18, 2018-19, and 2019-20- CGST Act to be amended to provide for waiver of interest or penalties or both in relation to demands raised under Section 73 (non-fraud cases only) for the FY 2017-18, 2018-19, and 2019-20 provided the tax demanded has been paid in full before 31 March, 2025. Please note that such waiver does not cover demands relating to erroneous refunds. 3. Common time limit for issuance of demand notices and orders- CGST Act to be amended to provide for the following:
4. Extension in time limit to avail ITC for FY 2017-18, 2018-19, 2019-20 and 2020-21-
Retrospective amendment to be made in the law to extend the time limit to avail ITC, through any GSTR-3B return filed up to 30 November 2021 for the FY 2017-18, 2018-19, 2019-20 and 2020-21. 5.Time limit for availment of ITC on reverse charge procurements- To provide clarification in cases of reverse charge procurements from unregistered suppliers, the relevant financial year for calculation of time limit for availment of ITC under the provisions of section 16(4) of CGST Act is the financial year in which the self invoice is raised by the recipient. 6. Import of services by a related domestic entity from its foreign affiliate- Clarification to be issued in respect of valuation of import of services by a related domestic entity from its foreign affiliate- In cases where full ITC is available to the related domestic entity, the value declared in the invoice may be deemed as the open market value. Further, in cases where the related domestic entity has not issued any invoice for services provided by the foreign affiliate, the value of such services may be deemed to be declared as Nil and the same shall be deemed to be the open market value (provided full ITC is available to the related domestic entity). 7. Interest on delayed filing of returns- Interest not to be levied in case where the amount is available in the Electronic Cash Ledger on the due date of filing GSTR-3B (and is debited while filing the said return), in case there is a delay in filing of such GSTR-3B. 8. Time for filing appeals in GST Appellate Tribunal- A period of three-months to be allowed for filing appeals before the Appellate Tribunal starting from a date to be notified for any order passed before issuance of the relevant notification. 9. Fixing monetary limits for filing appeals under GST- For filing of appeals by the department before GST Appellate Tribunal, High Court, and Supreme Court, the following monetary limits have been recommended: • Tribunal: INR 20 lakhs • High Court: INR 1 crore • Supreme Court: INR 2 crore 10. Reduction in amount of pre-deposit for appeals under GST-
11. Valuation of corporate guarantee arrangements between related persons-
Rule 28(2) of CGST Rules and circular no. Circular No. 204/16/2023-GST dated 27 October 2023 to be amended retrospectively to provide for non-applicability of valuation rules in case of corporate guarantee arrangements between related persons in the following scenarios: · Exports of services by way of providing corporate guarantees, · In cases where the recipient is eligible for full input tax credit. 12. Biometric based Aadhaar Authentication- Nationwide Rollout of biometric-based Aadhaar authentication for GST registration applications in a phased manner. 13. Other key recommendations-
14. Issues on which clarifications to be issued-
Mechanism for providing evidence by the suppliers for compliance of the conditions of Section 15(3)(b)(ii) of CGST Act, 2017 in respect of post-sale discounts, to the effect that ITC has been reversed by the recipient on the said amount
15. Recommendations relating to GST Rates on Goods/ Services- ·
|
|
Integrated Association
of Micro Small
& Medium Enterprises of
India
(Not-for-Profit
Institution for
Growth
& Development of
MSMEs)
IamSMEofIndia,
Sector 11, Mathura
Road,
Faridabad-
121006, Haryana,
India
Ph: +91-9711101666
(EVP)
; +91-9711123111
(Executive
Secretary)
E-mail: info@iamsmeofindia.com ; Website: www.iamsmeofindia.com
CIN
NO :
U73100HR2009NPL039044
IamSMEofIndia is
India's
first "GOLD
GRADE" National
Level Business
Member
Organisation Accredited by
NABET-QCI
Adjudged No.1 at
the National
Level as "The
Most Responsible
Business Member
Organisation"