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Key Updates and Recommendations from the 53rd GST Council Meeting
Under this article we are providing latest updates and significant recommendations from the 53rd GST Council Meeting. These updates include important changes aimed at easing compliance and enhancing the efficiency of the GST system.
Key Updates and Recommendations:
- Monetary Limits for Filing Appeals:
- The monetary threshold for the tax department to file an appeal has been set at:
- Rs. 20 lakh for appeals to the tribunal,
- Rs. 1 crore for appeals to the High Court,
- Rs. 2 crore for appeals to the Supreme Court.
- Uniform GST Rate:
- A uniform GST rate of 12% has been recommended for milk cans and all types of corrugated and non-corrugated boxes.
- Period for Filing GST Appeals:
- The three-month period for filing GST appeals before GSTAT will be notified soon, as per the Finance Minister.
- Pre-Deposit Amount for Appeals:
- The maximum amount of pre-deposit required for filing an appeal before the appellate authority has been reduced from Rs. 25 crore to Rs. 20 crore for both CGST and SGST.
- Pre-Deposit for Tribunal Appeals:
- The pre-deposit required for filing an appeal before the tribunal has been reduced to 20% of the disputed amount, with a cap of Rs. 20 crore each for CGST and SGST.
6. Amendment on Appeal Filing Time Limit:
- The time limit for filing an appeal before the tribunal will commence from the date the government issues a notification.
7. Waiver of Interest and Penalty:
- For demand notices issued under Section 73 for the fiscal years 2017-18, 2018-19, and 2019-20, interest and penalty will be waived if the full tax amount is paid by March 31, 2025. The extension of filing deadlines and waiver of interest and penalties are expected to significantly reduce the compliance burden on taxpayers.
8. Interest on Electronic Cash Ledger:
- Interest will not be charged on the amount available in the Electronic Cash Ledger until the due date, providing relief to taxpayers. Interest will not be charged on amounts available in the cash ledger at the time of filing GSTR-3B.
9. Extended Time Limit for ITC:
- The time limit to avail Input Tax Credit (ITC) under Section 16(4) has been extended to 30th November instead of October for financial years 2017-18, 2018-19, 2019-20, and 2020-21.
10. Introduction of GSTR-1A:
GSTR-1A has been rolled out, allowing businesses to make changes in GSTR-3B. The introduction of GSTR-1A allows for corrections, improving the accuracy of filed returns. A new form, GSTR-1A, will be introduced to allow corrections in GSTR-1 before filing GSTR-3B.​
11. Extension of GSTR-4 Filing Deadline:
- The deadline for filing GSTR-4 has been extended from April 30 to June 30 for small taxpayers, applicable from FY 2025 onwards.
​12. Biometric-Based Aadhaar Verification:
- To combat fraudulent ITC claims via fake invoices, biometric-based Aadhaar verification will be rolled out pan-India, as announced by the Finance Minister. The rollout of biometric-based Aadhaar verification aims to weed out fraudulent activities, ensuring a more transparent GST system.
13. Introduction of Form GSTR-1A: Clarifications on Tax Rates and Exemptions:
- A 12% tax rate is applicable for milk cans of any type or size.
- A uniform GST rate of 12% is applied to all types of paper and corrugated carton boxes.
- All types of sprinklers will attract a 12% GST rate, maintaining past practices.
- A 12% GST rate is applicable to all solar cases.
- Services provided by railways, including platform tickets and other services, are exempted from GST.
Hostel accommodation services outside of educational institutions are made exempt from GST, subject to conditions.
The GST Council recommends waiving interest and penalties for demand notices issued under Section 73 of the CGST Act (i.e., cases not involving fraud, suppression, or deliberate falsehood, etc.) for fiscal years 2017-18, 2018-19, and 2019-20 if the whole amount required is paid by March 31, 2025.
