Notifications pursuant to 54th GST Council Meeting

 This is to update you on the notifications issued by the Ministry of Finance, which seeks to give effect to certain recommendations/ amendments proposed in the 54^th GST Council meeting.

 A summary of the relevant notifications is tabulated hereinbelow for your ready reference:

Notification No.	Changes notified
09/2024-Central Tax (Rate), dated 08 October 2024    (effective from 10 October 2024)	Applicability of GST under reverse charge mechanism on renting of any property (other than residential dwelling) by unregistered person to a registered person.
21/2024–Central Tax, dated 08 October 2024    (effective from 01 November 2024)	Dates notified for payment of tax for availing waiver of interest and/ or penalty (under provision of Sec. 128A of the CGST Act)   As a background, Section 128A is being introduced with effect from 01 November 2024, which provides for waiver of interest or penalty or both relating to demands raised under section 73 of the CGST Act, for period July 2017 to March 2020, subject to payment of tax being made on or before the notified date.   In terms of the present notification, such dates have now been notified, upto which, payment of the tax payable (as per the notice, statement or order) can be made by the registered person, to avail the benefit under the scheme:   Scenarios covered Date up to which payment of tax demand should be made Where tax is determined by way of issuance of Notice under Section 73; or Where Order is issued under Section 73 by the Adjudicating Authority; or Where Order is issued under Section 107(11) by the Appellate Authority or Section 108(1) by the Revisional Authority and where no Order is passed under Section 113 by Appellate Tribunal 31 March 2025 In case where a Notice is issued under Section 74, however, an order is passed or required to be passed by the proper officer for determination of the tax payable under 73(1) of the CGST Act - in pursuance of the direction of the Appellate Authority, or Appellate Tribunal, or a court [by virtue of Section 75(2)] Six months from the date of issuance of the order by the proper officer redetermining tax under section 73 of the CGST Act
22/2024–Central Tax, dated 08 October 2024    (effective from 8 October 2024)	Special procedure notified for seeking rectification of orders, considering relaxation of timelines for claiming input tax credit pertaining to period 2017-18 to 2020-21, upto 30 November 2021 As a background, new sub-sections (5) and (6) have been inserted in Section 16 of CGST Act, to provide relaxation in the time limit to avail input tax credit as per section 16(4) of the CGST Act Section 16(5) – provides that for FY 2017-18 to FY 2020-21, registered person shall be entitled to claim ITC in return filed up to 30 November 2021; Section 16(6) – In case where registration of a person was cancelled which is subsequently revoked, date for claiming ITC (which was not restricted on the date of order of cancellation) shall be extended up to date of filing of GSTR-3B, which is filed (i) up to 30 November following the financial year to which such invoice or debit note pertains or annual return, whichever is earlier; or (ii) within 30 days of date of order of revocation, whichever is later. Now, vide the present notification, a procedure has been notified, to permit registered person to file an application (electronically) within six months from the date of this notification, for seeking rectification of following orders confirming demand on account of wrongful availment of ITC as per timelines prescribed under 16(4) of the CGST Act: Order issued under Section 73 or Section 74 by the Adjudicating Authority; or Order issued under Section 107(11) by the Appellate Authority or Section 108(1) by the Revisional Authority Following are some key considerations: Rectification application can be filed for such orders, where input tax credit is now available as per the provisions of sub-section (5) or sub-section (6) of section 16 of CGST Act, which has been newly inserted. The authority who issued the original order shall process this rectification application within three months from the date of the said application. It is important to note that where the registered person opts for rectification, an appeal should not have been filed against the said order.

 

Trust the above update was useful. We have appended herewith the copy of relevant notifications for your reference.