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53rd GST Council Meeting Recommendations & Relief Measures

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53rd GST Council Meeting Recommendations & Relief Measures

We under the blog provide an update on the significant relief measures and recommendations made by the Good and Services Tax Council during the 53rd Good and Services Tax Council Meeting. The 53rd GST Council met in New Delhi today, chaired by Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman. Shri Pankaj Chaudhary, Union Minister of State for Finance, was also present, as were the Chief Ministers of Goa and Meghalaya, the Deputy Chief Ministers of Bihar, Haryana, Madhya Pradesh, and Odisha, as well as the Finance Ministers of States and Union Territories (with the legislature) and senior officers of the Ministry of Finance and States/UTs.

53rd GST Council Meeting

Here are the key highlights of 53rd GST Council Meeting Recommendations & Relief Measures:

  • Relief for FY 2017-18 to 2019-20:

    • Extended Time Limit for ITC Claims: The time limit under Section 16(4) to avail ITC has been relaxed for FY 2017-18 to 2019-20. Taxpayers can now file GSTR 3B returns up to 30th November 2021 to claim ITC.
    • Waiver of Interest and Penalties: Interest and penalty under Section 73 will be waived if the full tax demand is paid by 31st March 2025.

  • Appeals and Litigation:

    • Reduced Pre-deposit for Appeals: The pre-deposit required for filing an appeal before the GST Tribunal has been reduced from 20% to 10%. The period for filing an appeal to the Good and Services Tax Tribunal from the date of the Appellate Authority’s order will be notified by the Government.

Additional Recommendations from the 53rd GST Council Meeting:

    • Waiver of Interest and Penalties: Interest and penalties for demand notices issued under Section 73 (non-fraud cases) for FY 2017-18 to 2019-20 will be waived if the full tax demanded is paid by 31st March 2025.
    • Extension for ITC Claims: The time limit to avail ITC for invoices or debit notes for FY 2017-18, 2018-19, 2019-20, and 2020-21 has been extended to 30th November 2021.
    • Monetary Limits for Appeals: A monetary limit of Rs. 20 lakh for the Good and Services Tax Appellate Tribunal, Rs. 1 crore for the High Court, and Rs. 2 crore for the Supreme Court has been recommended to reduce litigation.
    • Amendments for Appeals Process: The three-month period for filing appeals in the GST Appellate Tribunal will start from a date to be notified by the Government.
    • No Interest on Delayed Returns: No interest will be levied under Section 50 on delayed returns if the amount is available in the Electronic Cash Ledger on the due date of filing the return.
    • Sunset Clause for Anti-Profiteering: A sunset clause effective from 1st April 2025 has been recommended for receiving new applications for Anti-Profiteering.
    • Exemption from Compensation Cess: SEZ units/developers will be exempt from Compensation Cess on imports for authorized operations from 1st July 2017.
    • GST on Various Goods: A 12% Good and Services Tax rate has been recommended for milk cans, carton boxes, solar cookers, and sprinklers, including fire water sprinklers.
    • Service Exemptions: Exemptions have been recommended for certain services provided by Indian Railways and accommodation services, benefiting students and working professionals.
    • The GST Council has recommended that taxpayers with an aggregate annual turnover of up to two crore rupees be exempted from filing the annual return in FORM GSTR-9/9A for the financial year 2023-24. This exemption aims to reduce the compliance burden on small taxpayers and simplify the GST filing process for those with lower turnover. The exemption applies to the filing of annual returns in FORM GSTR-9 (for regular taxpayers) and FORM GSTR-9A (for composition scheme taxpayers).

    • Guidelines for ICPs at International Borders:

      1. The GST Council has recommended comprehensive guidelines for the identification and development of Integrated Check-Posts (ICPs) at international borders. These guidelines aim to streamline and enhance border management and trade facilitation.
      2. Measures for the phased improvement of existing ICPs have been suggested. This approach is expected to gradually enhance the efficiency and effectiveness of border check-posts.
      3. PAN-linked mobile numbers and email addresses are to be used for OTP-based authentication of taxpayers. This measure is intended to improve the security and ease of taxpayer verification processes.
      4. Changes in notification now require non-resident taxable persons to register on the GST portal using their PAN (Permanent Account Number) issued under the Income Tax Act, 1961. This change aims to streamline the registration process and ensure better compliance.
      5. Aadhaar Authentication Roll-out: A phased, pan-India roll-out of biometric-based Aadhaar authentication for registration applicants has been recommended.

      Implementation of National Single Window System (NSWS) for MSME Traders:

      1. One-Stop Platform for MSME Traders:  The GST Council has recommended the implementation of the National Single Window System (NSWS) for MSME traders. This system will serve as a centralized platform where MSME traders can file registration applications for various licenses using a single form.
      2. Enhanced Ease of Doing Business: By providing a streamlined, user-friendly interface for obtaining necessary registrations and licenses, the NSWS will facilitate smoother business operations for MSME traders, fostering an environment conducive to business growth.

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