Hereinbelow the relevant announcements made in the meeting for your reference. Kindly note that the below proposals/ recommendations shall be given effect by way of issuance of relevant notifications, circulars and/or amendments in the GST law, which will be issued in due course of time.
Changes in relation to GST rates and
exemptions:
►
Applicability
of GST under reverse charge in the hands of recipient to be introduced on below
transactions:
o Supply of metal scrap by unregistered person to
registered person
o Renting of commercial property by unregistered person
to registered person
►
GST
TDS of 2% to be made applicable on supply of metal scrap between registered
persons (ie. B2B supply)
►
Reduction
in GST rate from 18% to 12% on extruded or expanded products, savoury or salted
falling under HSN 1905 90 30 prospectively.
-
The
GST rate of 5% will continue on un-fried or un-cooked snack pellets, by
whatever name called, manufactured through process of extrusion.
►
To
exempt incidental/ ancillary services in relation to the supply of transmission
and distribution of electricity by transmission and distribution utilities to
their consumers, involving supplies such as application fees for providing
connection, meter rentals, testing fee etc. when provided as a composite supply
- GST for past periods to be regularized on 'as is where is' basis.
►
GST
rate on car seats classified under HSN 9401 to be increased from 18% to 28%
prospectively.
► GST Council to constitute a Group of Ministers (GoM)
to look into the issues pertaining to GST on the life insurance and health
insurance and to submit a report by end of October 2024.
- Circulars to be issued to provide clarifications
on following issues:
►
Clarification
regarding availability of input tax credit on demo vehicles by the dealers of
the vehicle manufacturers.
►
Clarification
on Place of Supply of data hosting services provided by service providers
located in India to cloud computing service providers located outside India.
►
Clarification
on the Place of Supply of advertising services provided by Indian advertising
companies to foreign entities
►
To
clarify that preferential location charges (PLC) paid along with the
consideration for construction services before issuance of completion
certificate forms part of composite supply with the main supply being the
construction service.
►
To
clarify that ancillary services provided by GTA in the course of
transportation of goods by road like loading/unloading, packing/unpacking,
transshipment etc., will be treated as a composite supply of transportation of
goods, when supplied along with the main supply of transportation of
goods. If invoiced separately, such services will not be treated as
composite supply of transportation of goods.
- Proposals relating to certain trade facilitation
measures:
► Procedure for waiver of interest or penalty or both, relating to demands
raised under Section 73 of the CGST Act (for FY 2017-18 to FY 2019-20):
o Insertion of a new rule 164 in the CGST Rules along
with relevant forms to be prescribed to notify the procedure and conditions for
availing waiver of interest and penalty in respect of demand notices issued
under Section 73 of the CGST Act for FY 2017-18 to 2019-20, in case where tax
liability is discharged in full up to 31 March 2025
o Issuance of a circular to clarify various issued
relating to availment of waiver of interest of penalty or both in terms of Section
128A of CGST Act (which would be notified w.e.f. 01 November 2024)
► Providing a mechanism for implementation of newly
inserted sub-section (5) and sub-section (6) in Section 16 of the CGST Act:
o Following sections to be notified retrospectively
w.e.f 1 July 2017
-
To
allow availment of ITC for invoices/ debit notes pertaining to FY 2017-18 to FY
2020-21 up to 30 November 2021 (Section 16(5) of CGST Act)
-
Relaxation
of time limit for availment of ITC in cases where returns for the period
(between date of cancellation and date of revocation of cancellation), are filed
within 30 days of the order of revocation (Section 16(6) of CGST Act)
o Special procedure for rectification of orders issued
in relation to wrong availment of ITC for contravening of the timelines for
credit availment prescribed as per Section 16(4), but is covered under the
relaxed time limit prescribed for availment of ITC for the period 2017-18 to
2020-21 and for cases where returns are filed after revocation of registration.
-
The
said orders may be rectified provided an appeal against the said Orders is not
filed.
►
Amendments
in Rule 89 and Rule 96 of the CGST Rules and to provide clarification in
respect of IGST refunds on exports where benefit of concessional/ exemption
notifications specified under rule 96(10) of CGST Rules has been availed on the
inputs
o In cases where EOUs/ AA holders/ EPCG holders
initially procured inputs by availing exemption and without payment of IGST and
cess, but later on, paid the same with interest due to re-assessment of Bill of
Entries, then such taxpayers shall be eligible to claim refund of GST paid on
export of goods and/ or services and restriction enabled under 96(10) shall not
apply in such cases.
o Further, Rules 96(10), 89(4A) and 89(4B) to be omitted
prospectively to simplify and expedite the procedure for refunds in respect of
such exports.
- Other Proposals:
►
B2C
e-invoicing - GST council
has proposed to roll out B2C e-Invoicing on pilot and voluntary basis, in few
selected states and sectors, so as to enable retail customers to verify
reporting of the invoices in GST returns.
► Invoice management system (IMS) and introduction of
e-ledgers:
o
Few
enhancements introduced on GST portal such as RCM ledger, ITC reclaim ledger –
Taxpayers to be given opportunity to declare opening balance for these ledgers
by 31 October 2024.
o
IMS
functionality which was newly introduced and to be effective from 01 October
2024 will be an optional facility for taxpayers to reduce errors in
claiming input tax credit and improve reconciliation. This is expected to
reduce notices due to ITC mismatches in returns.
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