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TMI BlogRECENT DEVELOPMENTS IN GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... RECENT DEVELOPMENTS IN GST - By: - Dr. Sanjiv Agarwal - Goods and Services Tax - GST - Dated:- 19-7-2024 - The Budget session of Parliament shall commence from July, 22 to 12 August, 2024. Economic survey is likely to be presented on 22 July, 2024 itself and Budget including Finance Bill shall be presented on July, 2023. Union Finance Minister, Mrs. Nirmala Sitharaman shall be presenting her 7 th Budget in a row. The round of meetings with various stakeholders is over including the PM s meet with economists concerning the Indian economy. The suggestions from economists include inter alia, focusing on developing global value chains, increased allocation for R D in agriculture, direct cash transfers an alternative to subsidies, rural sector ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... growth, fiscal defect control, education reforms, tax reforms etc. Target should be to achieve goal of Developed India by 2047. Niti Aayog shall be preparing a vision document for India to become Developed India. The economists also suggested the need for a careful balance between fiscal consolidation and promoting economic growth. The forthcoming Union Budget may be seen as a long term economic policy document of the Government, apart from usual budget announcements, schemes, projections and allocations. It may also look like a blue print of India @ 2047, a 100 year old independent India. MSME credit, inflation control, job creation, labour reforms, focus on domestic industries and exports, energy, infrastructure.....could be some of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... focus areas. Start ups, digital economy and fiscal and tax reforms would be other priorities of the Government. It is expected that Modi 3.0 government shall continue with its broad existing policy framework along with few measures for Bihar, Andhra Pradesh and Other schemes besides facilitating manufacturing, consumption and fiscal consolidation. Finance Ministry celebrated the 7 years of GST in India on 1 st July, 2024. It stated that with reduced tax rates on household goods after GST implementation, GST has brought happiness and relief to every home through lower GST on household appliances and mobile phones. The GST taxpayer base increased to 1.46 crore in April, 2024 from 1.05 crore in April, 2018. There is improved compliance. GST ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s also reduced the compliance burden for the small taxpayers by waiving off of annual return filing requirements with aggregate turnover of upto Rs. 2 crore for FY 2023-24. CBIC is in the process of implementing the decision of CGST Council s 53 rd meeting held on 22 June, 2024. CGST rules have been amended and new Notifications / Circulars issued on 10.07.2024. Form GSTR 3B is amended besides amending rate of tax on corporate guarantee, TCS rate etc. GST collection in India has grown in June, 2024 too but at a slower pace, growth being in single digit only on YoY basis (7.7%). Collection growth was 12.4% and 10% in April, 2024 and May, 2024 respectively. While the MoF has decided to discontinue with official release of monthly GST collecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, as per media reports, for the reasons not known, the MoF has been releasing the GST data on first of every month since last seven years (74 months) and such a decision coincides with 7 th anniversary of GST in India. The gross GST collection for June, 2024 is reported to be Rs. 1.74 lakh crore. The GST taxpayer base has increased to 1.46 crore in April, 2024 against 1.05 crore in April, 2018. Amendments in CGST Rules CBIC has amended CGST Rules, 2017 to implement some of the recommendations of CGST Council 53 rd meeting held on 22.06.2024 . Rules amended / substituted 8(4A) , 21 , 21A , 28 (w.e.f. 26.10.2023), 36 , 37A , 39 (to be date notified), 40 , 48 , 59 (w.e.f. 01.08.2024), 60 , 62 , 78 , 88B , 88C , 89 , 95, 96 , 96A , 110, 111 , ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 113A , 142 , 163 Forms Amended Form GSTR-1A (Amendment of outward supplier of goods or services for current tax period) and Form ENR 03 (Application for enrolment for unregistered person). (Source: Notification No. 12/2024-Central Tax dated 10.07.2024 ) Aadhar based Authentication for Registration According to rule 8(4A) of CGST Rules, 2017 , authentication of Aadhar number was required As per Notification No. 27/2022-CT dated 26.12.2022 , the provisions of Rule 8(4A) were notified to be not applicable to all the States and Union Territories except the State of Gujarat. It has now been notified that Notification No. 27/2022-CT stands rescinded w.e.f. 10.07.2024. Therefore, Rule 8(4A) has become applicable throughout the territory of India. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Source: Notification No. 13/2024-Central Tax dated 10.07.2024 ) Exemption from filing annual return for FY 2023-24 Section 44 of the CGST Act, 2017 provides for furnishing annual return for every financial year other than for certain specified categories. CBIC has notified the exemption to registered persons whose aggregate turnover in the financial year 2023-24, is upto Rs. 2 crores, from filing annual return for the said financial year 2023-24. Thus, registered persons with more than Rs. 2 crore turnover only will be required to file annual return. (Source: Notification No. 14/2024-Central Tax dated 10.07.2024 ) Reduction in rate of TCS by e-commerce operators According to section 52(1) of CGST Act, 2017 , every electronic commerce oper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ator, not being an agent, shall collect an amount calculated at such rate not exceeding one per cent., as may be notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator. CBIC had notified that every electronic commerce operator, not being an agent, shall collect an amount calculated at a rate of 0.25 per cent. of the net value of intra-State taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the said operator vide Notification No. 52/2018-CT dated 20.09.2018 . CBIC has now reduced the rate of TCS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from 0.5% to 0.25% w.e.f. 10.07.2024. Similar changes have also been made in TCS rate under IGST Act, 2017 and UTGST Act, 2017 . (Source: Notification No. 15/2024-Central Tax dated 10.07.2024 ) GST Rates of Goods CBIC has amended Notification No. 1/2017-CT (Rate) dated 28.06.2017 to prescribe / amend rate of GST on the certain goods. In Schedule-II (6%) following goods have been added: 1 4819 10, 4819 20 Cartons, boxes and cases of (a) corrugated paper or paper board; or (b) non-corrugated paper or paper board 2 7310, 7323, 7612, or 7615 Milk cans made of Iron, Steel, or Aluminium 3 7321 or 8516 Solar cookers In Schedule-III (9%) goods have been added / substituted / amended in Entry Nos. 153A, 224, 273, 273A, and 378 The supply of agricult ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ural farm produce in package(s) of commodities containing quantity of more than 25 kilogram or 25 litre shall not be considered as a supply made within the scope of expression pre-packaged and labelled This shall come into force w.e.f. 15 July, 2024 (Source: Notification No. 02/2024-Central Tax (Rate) dated 12.07.2024 ) Supply of pre-packaged and labeled goods CBIC has amended Notification No. 2/2017-CT (Rate) dated 28.06.2017 which provides for exemption to intra-state supply of goods. Accordingly, in the definition of registered brand name a proviso has been inserted to provide that the supply of agricultural farm produce in package(s) of commodities containing quantity of more than 25 kilogram or 25 litre shall not be considered as a sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply made within the scope of expression pre-packaged and labelled . This shall be effective w.e.f. 15 July, 2024. (Source: Notification No. 03/2024-Central Tax (Rate) dated 12.07.2024 ) Exemption to Services CBIC has amended Notification No. 12/2017-CT (Rate) dated 28.06.2017 which provides for exemption to intra state supply of services. The exception provided are as follows: Services provided by Ministry of Railways (Indian Railways) to individuals by way of (a) sale of platform tickets; (b) facility of retiring rooms/waiting rooms; (c) cloak room services; (d) battery operated car services. Services provided by one zone/division under Ministry of Railways (Indian Railways) to another zone(s)/division(s) under Ministry of Railways (Indian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Railways). Services provided by Special Purpose Vehicles (SPVs) to Ministry of Railways (Indian Railways) by way of allowing Ministry of Railways (Indian Railways) to use the infrastructure built and owned by them during the concession period against consideration and services of maintenance supplied by Ministry of Railways (Indian Railways) to SPVs in relation to the said infrastructure built and owned by the SPVs during the concession period against consideration. Under heading No. 9972, it is mentioned that exemption will not apply to: accommodation services for students in student residences; accommodation services provided by Hostels, Camps, Paying Guest accommodations and the like. Exemption under entry No. 9963 to supply of accommod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation services having value of supply less than or equal to twenty thousand rupees per person per month provided that the accommodation service is supplied for a minimum continuous period of ninety days. This shall come into force w.e.f. 15.07.2024. (Source: Notification No. 04/2024-Central Tax (Rate) dated 12.07.2024 ) CBIC Circular Nos. 223 to 229 issued between 10.07.2024 and 17.07.2024 Circular No. Date In relation to 223/17/2024-GST 10.07.2024 Amendment in Circular No. 1/1//2017 in respect of Proper officer for provisions relating to Registration and Composition levy including Superintendent as Proper Officer under the Central Goods and Services Tax Act, 2017 / CGST Rules, 2017 or the rules made thereunder. 224/18/2024-GST 11.07.2024 G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uidelines for recovery of outstanding dues, in cases wherein first appeal has been disposed of, till Appellate Tribunal comes into operation. 225/19/2024-GST 11.07.2024 Clarification on various issues pertaining to taxability and valuation of supply of services of providing corporate guarantee between related persons. 226/20/2024-GST 11.07.2024 Mechanism for refund of additional Integrated Tax (IGST) paid on account of upward revision in price of the goods subsequent to export. 227/21/2024-GST 11.07.2024 Processing of refund applications filed by Canteen Stores Department (CSD). 228/22/2024-GST 15.07.2024 Clarifications regarding applicability of GST on certain services such as Railways, RERA related, incentive in digital payments, re-insur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance, accommodation services etc. 229/23/2024-GST 15.07.2024 Clarification regarding GST rates classification of goods such as solar cookers, fire water sprinklers, poultry machine, pre-packaged agriculture produce etc as recommended by the GST Council in its 53rd meeting Address related fields in GST Registration GSTN has enhanced address related functionalities in GST registration based on feedback and analysis of tickets. These relate to new Registration, Amendment Application (Core Non-Core), and Geocoding Business Addresses. These changes are applicable to normal taxpayers Regular, SEZ Unit, SEZ Developer, Composition, Input Service Distributer and Casual Taxpayers. The field of locality/sub locality is not mandatory now and to continu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e with the registration, taxpayer scan click YES to proceed, and the system will allow you to move forward. For details, taxpayers can refer to be GSTN Portal / Advisory. (Source: GSTN Advisory dated 04.07.2024 ) Documents upload for new GST Registration GSTN has issued an advisory on certain trade facilitation measures for increase in size of documents upload in relation to Principal Place of Business and Additional Place of Business for New Registration and Amendment therein. Changes have been made in size of document upload in Principal Place of Business and Additional Place of Business for New Registration and Amendment in response to the grievances received. Accordingly, taxpayer can now upload following documents up to maximum size of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 500 kb in the Principal Place of Business tab and Additional Places of Business tab. The changes are mentioned in the following table: Document for Document Name / Type Earlier Document Size Document size increased now Type of Document Proof of Principal Place of Business and Additional Place of Business Municipal Khata Copy Electricity Bill Consent Letter Property Tax Receipt 100 KB 500 KB JPEG/PDF (Source: GSTN Advisory dated 09.07.2024 ) ************* - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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