The 55th meeting of GST Council was held on 21st December 2024 at Jaisalmer (Rajasthan) in which various recommendations have been made which inter alia, include changes proposed in CGST / IGST law, rules, clarifications and few rate reductions / rates increase, exemptions, compensation cess, ITC / ISD related amendments and so on. While the Council approved the recommendation in relation to IGST settlement, it noted the procedural rules for internal functioning of GST Appellate Tribunal (GSTAT) to be notified after examination by law panel. Also, it extended the time frame for Group of Ministers on the restructuring of GST compensation upto 30th June, 2025. A new Group of Ministers shall be formed to recommend a uniform policy on imposition of levy in case of natural disaster / calamity in the state, as requested by AP State.
In CGST, recently CBIC issued Notification for adjudication of common SCNs issued to various taxpayers. Notification 28/2024-CT dated 27.11.2024 was issued to notify that Joint Commissioner or Additional Commissioner, CGST, Thane holding the charge of Adjudication of DGGI cases shall adjudicate show cause notices issued to 40 noticees. Further, Notification No. 31/2024-CT dated 13.12.2024 was issued to notify that Joint Commissioner or Additional Commissioner, CGST, Chandigarh holding the charge of Adjudication of DGGI cases shall adjudicate show cause notices issued to 12 noticees.
While CBIC has launched new initiatives to enhance taxpayer services, GSTN has issued advisories on E-way Bill / E-invoice systems.
Major takeaways from 55th GST Council meeting
GST Council had its 55th meeting at Jaisalmer on 21 December 2024, wherein, inter alia, following major decisions were taken:
- No GST shall be payable on:
- transaction of vouchers
- gene therapy
- penal charges levied or collected by banks and NBFCs
- Sponsorship services provided by body corporates under forward charge mechanism, presently under reverse charge.
- Taxpayers registered under composition scheme not to be covered under reverse charge mechanism for renting of any commercial / immovable property (other than residential dwelling) by unregistered person to registered persons w.e.f. 10.10.2024 on ‘as is where is’ basis.
- In case of hotels, definition of declared tariff omitted and specified premises amended; restaurant services in hotels to attract GST @ 18% with ITC and @ 5% without ITC w.e.f. 01.04.2025. Option to be chosen for respective financial year.
- GST @18% (presently @ 12%) on sale of old and used vehicles including EVs on the margin of supplier, i.e., difference between purchase price / depreciated value and selling price.
- Exemption to RBI regulated payment aggregators
- Change in law recommended in section 17(5) to nullify impact of Supreme Court decision in Safari case.
- Waiver of late fee for Form GSTR 9 and GSTR 9C for FYs 2017-18 to 2022-23
- To improve tax compliance, track and trace mechanism to be introduced for tax evasion prone specified goods.
- Grant of temporary identification number by tax officers to persons, not liable to be registered otherwise.
- Input Service Distribution (ISD) to include inter-state RCM transactions under the ISD w.e.f. 01.04.2025.
- Amendment in law / Rules to provide legal framework for Invoice Management Systems (IMS)
- Procedural rules for internal functioning of GSTAT to be notified after examination.
- No decision on GST on RCM basis on charges collected by municipalities for grant of FSI.
(Source: PIB Press Release ID 2086873 dated 21.12.2024)
Updated versions of E-way Bill / E-Invoice Systems
- GSTN has issued an advisory to the effect that NIC will be rolling out updated versions of the E-Way Bill and E-Invoice Systems effective from 1st January 2025 which are aimed at enhancing the security of the portals, in line with best practices and government guidelines.
- These are in relation to Multi-Factor Authentication (MFA), restricting the period of E-way Bill generation from the date of base document and restricting the extension of E-way Bill for specific time / period from e-way Bill generation date. Accordingly,
- Starting 1st January 2025, MFA will become mandatory for taxpayers with AATO exceeding Rs 20 Crores, from 1st February 2025 for those with AATO exceeding Rs 5 Crores, and from 1st April 2025 for all other taxpayers and users. Taxpayers should ensure that the registered mobile number is updated with your GSTIN.
- The generation of E-Way Bills will be restricted to documents dated within 180 days from the date of generation. For instance, documents dated earlier than 5th July 2024 will not be eligible for E-Way Bill generation starting 1st January 2025.
- The extension of E-Way Bills will be limited to 360 days from their original date of generation. For example, an E-Way Bill generated on 1st January 2025 can only be extended up to 25th December 2025.
(Source: GSTN Advisory dated 17.12.2024)
GSTN Advisory on E-way Bill System
- GSTN has issued on advisory for Entry of RR No./eT-RRs in E-way Bill (EWB) system Post EWB-FOIS Integration to provide guidance for Accurate Entry of RR No./eT-RRs following the Integration of E-Way Bill (EWB) with Freight Operation Information System (FOIS) system of Indian Railways.
- FOIS of Indian Railways has now been integrated with the E-Way Bill (EWB) system via Application Programming Interfaces (APIs). Thus, taxpayers should follow the correct process for entering RR no (Railway Receipt Number)/eT-RRs. into the EWB system.
- Taxpayers transporting goods via the Indian Railways FOIS must ensure the correct entry of the number or RR No./eT-RRs in the EWB system.
- Suppliers with a pre-existing E-Way Bill (EWB) for goods transported from the factory to the railway station, and who are subsequently transporting goods by rail under the FOIS, must update Part-B of the E-Way Bill using the "Multi-Transport Mode" option on the EWB portal, select Rail as the mode of transport and after selecting this option, the system will prompt to enter the corresponding RR No./eT-RRs.
- For goods transported via the Freight Operations Information System (FOIS) the RR number shall be entered in the Format: F in the EWB system.
- After entering the RR No./eT-RRs into the EWB system, the EWB system will validate the RR No./eT-RRs against the data received from the FOIS. If a mismatch is detected or the RR No./eT-RRs is not found in the database, an alert will be generated. Thus it is strongly advised that taxpayers ensure the correct entry of RR No./eT-RRs to avoid future discrepancies
- Taxpayers should ensure that the RR number/eT-RRs is entered correctly in the EWB system to allow smooth tracking and verification of goods being transported via Indian Railways. Accurate entry will also facilitate the validation process and avoid unnecessary delays or complications.
- If there are any discrepancies in entering RR No./eT-RRs taxpayers are encouraged to raise a ticket with the support team, clearly mentioning the RR No./eT-RRs. The customers who are transporting goods using Railway FOIS system should adhere to the guidelines issued by Indian Railways for e-Demand customers.
(Source: GSTN Advisory dated 18.12.2024)
New initiatives to enhance taxpayer services
- CBIC has taken / announced following four citizen-centric initiatives to enhance taxpayer's services. These are a testament to CBIC’s unwavering commitment to simplifying tax processes and fostering a culture of transparency and trust. By empowering taxpayers and incorporating their suggestions, CBIC is creating a system that is not only efficient but also reflective of citizens needs and aspirations.
- These are:
- Revised Citizen's Charter: A Commitment to Better Service Standards
- ‘Ease of Doing Business’ tab for giving suggestions
- Revamped Citizen's Corner: Knowledge at Your Fingertips
- CBIC Archives: A Digital Window to India’s Tax History
- These initiatives will be spearheaded by the Directorate General of Taxpayer Services (DGTS) as part of the Government's ongoing efforts to streamline tax administration and foster a conducive business environment.
- These have been launched by CBIC Chairman on 17.12.2024.
(Source: MoF PIB Release ID: 2085380 dated 17.12.2024)
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