The Benchmark Consultants’ Post

54th GST Council Meeting Highlights: Updates, Outcome, Press Release and Latest News 📢 Key Highlights from the 54th GST Council Meet: 📄 B2C e-Invoicing: Coming soon for select sectors and states – a significant shift for compliance. ⏰ Important Deadline: Declare opening balances for the Reverse Charge Mechanism (RCM) ledger, Input Tax Credit (ITC) Reclaim ledger, and Invoice Management System (IMS) by 31st October 2024. ⚙ New Compliance Mechanism: Sections 16(5) & 16(6) of CGST to be implemented retrospectively from 1st July 2017 – stay prepared! ♻ GST on Metal Scrap: Sales of metal scrap from unregistered to registered persons will now attract GST under reverse charge, while B2B sales will attract 2% TDS. 🎮 Online Gaming: No changes in GST, as the industry sees an incredible 412% growth in 6 months. 💊 GST Rate Reductions: Cancer drugs reduced from 12% to 5%. Namkeens reduced from 18% to 12%. 🏫 Relief for Education: GST exempted on affiliation charges levied by boards, benefiting schools and colleges. 🚗 Increased GST on Vehicle Seats: GST on car and motorcycle seats raised from 18% to 28%. 🏛 No GST on Funds: Private/public funds received by universities, research centres, and institutions with IT exemptions will remain GST-free. Read more: https://lnkd.in/ddfrmkFw   📈 Stay compliant and make sure your enterprise stays ahead of these crucial changes #GST #GSThighlights #updates #Cleartax #Clear #Indirecttaxation #IDT #funds #exemptions #sections #NewComplianceMechanism #minstryoffinance #54thGSTCouncil 

Key Recommendations made by the 53rd GST Council meeting held today: 1. Waiver of Interest and Penalty Waiver of interest and penalty on demand notices issued under Section 73 for FY 2017-18, 2018-19, and 2019-20, applicable where tax is paid entirely by March 2025. 2. Extended Time Limit for ITC Time limit to avail ITC u/s 16(4) extended to 30th November instead of October for FY 2017-18, 2018-19, 2019-20, and 2020-21. 3. Amendment in Appeal Time Limits Amendment in law to provide that the time limit for filing appeals before the tribunal will start from the date the government notifies it. 4. Extension of GSTR-4 Filing Deadline Extension of time limit to file GSTR-4 till 30th June. 5. No Interest on Cash Ledger Amount Interest will not be charged for the amount available in the cash ledger at the time of filing GSTR-3B. 6. New Form GSTR-1A Insertion of new Form GSTR-1A to allow corrections in GSTR-1, which can be filed before filing GSTR-3B. 7. Biometric Aadhar Authentication Biometric-based Aadhar authentication on a PAN-India basis in a phased manner. 8. Various Clarifications Issued Clarifications issued on various topics, including: - 12% tax rate for milk cans - Uniform GST rate of 12% on all carton boxes - Clarification that all types of sprinklers will attract 12% GST and past practice to be continued - 12% rate on all solar cases - Services by railways, platform tickets, and other services are exempt - Service of hostel accommodation outside educational institutions made exempt with conditions

🚀 Key GST Changes from the 53rd GST Council Meeting 🚀 The 53rd GST Council Meeting brought several important updates aimed at easing compliance and addressing taxpayer grievances. Here are the major takeaways: Major Benefits and Changes: 1️⃣ Trade Facilitation and Compliance Relief: Several decisions were made to simplify compliance and reduce the burden on taxpayers. 2️⃣ GST Exemptions: Railway Services: Platform tickets, retiring rooms, waiting rooms, cloakroom facilities, and battery-operated car services are now GST exempt. Hostel Services: Hostel accommodations outside educational institutions, up to ₹20,000 per person per month, are exempt for stays up to 90 days. 3️⃣ Interest Waivers: Waiver of interest on penalties for tax demand notices for FY 2017-18, 2018-19, and 2019-20 if the full tax amount is paid by March 31, 2025. 4️⃣ Extended Input Tax Credit (ITC): Extension for availing ITC on any invoice or debit note. 5️⃣ Reduced GST Rates: Carton Boxes: GST reduced from 18% to 12%. Solar Cookers: Uniform GST rate of 12%. Milk Cans: Uniform GST rate of 12%. Sprinklers: All types attract a uniform GST rate of 12%. 6️⃣ Extended Deadlines: Deadline for furnishing GST returns extended from April 30 to June 30 for FY 2024-25 and subsequent years. 7️⃣ Anti-Profiteering Measures: The Council reinforced its commitment to curb profiteering by businesses. Mechanisms will be enhanced to ensure that the benefits of tax reductions are passed on to consumers. These changes are designed to make the GST system more user-friendly and responsive to the needs of businesses and individuals. Stay compliant and leverage these updates for smoother operations! #GST #TaxUpdates #Finance #Compliance #BusinessUpdates #GSTCouncil #TaxRelief #IndiaBusiness #AntiProfiteering

Highlights from the 53rd GST Council Meeting: Key Decisions and Implications The 53rd GST Council meeting, held on June 22, 2024, brought several significant decisions that will impact businesses and consumers alike. Here’s a breakdown of the key outcomes and their implications: Key Decisions: 1. Rate Rationalization:    - The Council discussed simplifying the GST rate structure, including potential changes to the 5%, 12%, and 18% slabs while retaining the 28% slab. This aims to streamline the tax system and reduce compliance burdens for businesses. 2. Correction of Inverted Duty Structure:   - The Council addressed the inverted duty structure for several sectors, including pharmaceuticals, textiles, and leather, which will help reduce costs and improve competitiveness. 3. Online Gaming Tax:   - The 28% GST on online gaming, casinos, and horse racing was reaffirmed, despite industry requests for revision. This aims to standardize taxation across different entertainment sectors. 4. Compensation Cess:   - Discussions included the future of the GST Compensation Cess, which is set to expire in March 2026. The Council considered whether to extend or replace it with a new levy to support states' revenue needs. 5. Clarifications on ITC:   - Clarifications on Input Tax Credit (ITC) for various sectors were provided, including for telecom services and spectrum charges. This will help businesses in better tax planning and compliance. 6. Biometric Authentication:   - The Council approved the nationwide rollout of mandatory biometric Aadhaar-based authentication for GST taxpayers. This measure aims to eliminate shell companies and invalid GST IDs, enhancing the integrity of the tax system. Implications for Businesses and Consumers: - Simplified Compliance: Simplifying the GST rate structure and providing ITC clarifications will reduce the compliance burden on businesses, leading to smoother operations and cost savings. - Economic Growth: Rationalized tax rates and enhanced compliance measures are expected to bolster economic growth and make India a more attractive destination for business. - Sector-Specific Relief: Addressing the inverted duty structure will provide much-needed relief to specific sectors, promoting their growth and competitiveness. - Consumer Impact: Consumers may experience changes in pricing for various goods and services as GST rates are adjusted, potentially leading to better affordability and consumption patterns. #GST #Taxation #Business #Economy #Compliance

🔑 Key Takeaways from the 53rd GST Council Meeting 🔑 1.   Aadhaar-based Biometric Authentication: The GST Council announced the nationwide rollout of biometric-based Aadhaar authentication. This move aims to combat fraudulent input tax credit claims made through fake invoices, enhancing tax compliance. 2.   GST Rate on Milk Cans: A uniform GST rate of 12% was introduced for all milk cans, regardless of their material (steel, iron, or aluminum). This standardization simplifies tax treatment for these products. 3.   Indian Railways Services: The council granted a GST exemption on platform tickets, easing the financial burden on passengers. This decision aligns with broader efforts to make railway services more affordable. 4.   Reduction in GST for Carton Boxes: The GST rate on various types of carton boxes was reduced from 18% to 12%. This change benefits both manufacturers and consumers by lowering the overall cost of essential packaging materials. 5.   Exemption for Hostel Accommodation: Services related to hostel accommodation outside educational institutions are now exempt from GST up to ₹20,000 per person each month. This move makes hostel accommodation more affordable for non-student residents. 6.   Calculation of Interest Net Off Balance in Electronic Cash Ledger: Businesses can now calculate interest on delayed payments by considering the balance available in their electronic cash ledger. This provision ensures a fair assessment of interest liability. 7.   Waiver of Interest under Section 73 of CGST Act: In a significant move, the GST Council announced a waiver of interest for demand notices issued under Section 73 of the CGST Act. This decision provides relief to taxpayers who were facing interest charges due to discrepancies or non-compliance. It underscores the government’s commitment to supporting businesses during challenging times. #gstcouncil

Nirmala Sitharaman Press Conference Key Recommendation Highlights 53rd GST Council Meeting after formation of New Government held on 22nd June 2024 Considering we were meeting for only half a day, we could take up limited topics: FM Sitharaman Another GST meet will be held post budget session Decisions taken related to trade facilitation, relief to tax payers Waving interest and penalties for demand notices issued under sector 73 of GST act To reduce government litigation, a monetary limit has been recommended of Rs 20 lakh for GST appelete tribuanal Rs 1 crore for HCs, Rs 2 crore for SCs for filing of appeals by the department New monetary limits are 20 lakhs for GST appelletes, 1 crore for HC To waive interest & pentalties notices for 3 financial years For small taxpayers time limit extended to 30th June for GSTR-4, FY24-25 onwards Insertion of a new form GSTR 1-A Rolling out bio metric based aadhar authentication The time limit to avail input tax credit in respect of any invoice or debit note under section 16(4) of the CGST Act filed up to the 30-11-2021 for the financial years 17-18, 18-19, 19-20 and 20-21 may be deemed to be 2011 to 2021. So for the same requisite amendment retrospectively with effect from 1 July 2017, the council has made a recommendation GST Council recommends a uniform rate of 12% on all milk cans 12% GST rate recommended on all carton boxes All types of sprinkles will attract 12% GST For solar cookers, 12% GST prescribed Services provided by Indian Railways like platform tickets exempted from GST GST Council exempts services by way of hostel accommodation outside educational institutions to tune of Rs 20,000/person per month Source : The Economic Times https://lnkd.in/dff5gRsy

Key Takeaways from the 53rd GST Council Meeting: 1. Waiver of Interest & Penalties: Demand Notices under section 73 of the CGST Act (non-fraud cases) for FY 2017-18 to FY 2019-20, provided the tax is paid by 31/03/2025. 2. Disputed ITC allowed under section 16(4) availed till 30/11/2021 (for FY 2017-18 to FY 2019-20). 3. No interest on Cash Balance available in the Electronic Cash Ledger, provided it’s utilized in GSTR 3B. 4. Limits for Filing Appeals by the Department: GSTAT: ₹20 Lakhs High Court: ₹1 Crore Supreme Court: ₹2 Crores 5. Introduction of Form GSTR-1A for amending data uploaded in GSTR 1 before filing GSTR 3B. 6. Maximum pre-deposit for filing appeals before the appellate authority reduced to ₹20 Crores each for CGST and SGST. 7. Pre-deposit for filing appeals before the tribunal reduced to 20% and ₹20 Crores each for CGST and SGST. 8. Amendment for the time limit for filing appeals before the tribunal to start from the date of government notification. 9. Time limit for filing GSTR 4 extended to 30th June (from FY 2024-25 onwards). 10. Exemption for Hostels outside Educational Institutions (monthly rent up to ₹20,000). 11. GST Rates: 12% tax rate for milk cans, Uniform 12% GST on all carton boxes, 12% rate on all solar cases. Exemptions for services by railways, platform tickets, and other services. Stay updated and compliant!

53rd #GST council meeting Some of the points of the Press Conference on GST Council meeting addressed by the Finance Minister : Considering we were meeting for only half a day, we could take up limited topics: Another GST meet will be held post budget session: Decisions taken related to trade facilitation, relief to tax payers: Waving interest and penalties for demand notices issued under sector 73 of GST act: To reduce government litigation, a monetary limit has been recommended of Rs 20 lakh for GST appelete tribuanal: Rs 1 crore for HCs, Rs 2 crore for SCs for filing of appeals by the department: New monetary limits are 20 lakhs for GST appelletes, 1 crore for HC: To waive interest & pentalties notices for 3 financial years: For small taxpayers time limit extended to 30th June for GSTR-4, FY24-25 onwards: Insertion of a new form GSTR 1-A: FM Rolling out bio metric based aadhar authentication: The time limit to avail input tax credit in respect of any invoice or debit note under section 16(4) of the CGST Act filed up to the 30-11-2021 for the financial years 17-18, 18-19, 19-20 and 20-21 may be deemed to be 2011 to 2021. So for the same requisite amendment retrospectively with effect from 1 July 2017, the council has made a recommendation: A uniform rate of 12% on milk cans (steel, aluminum) has been recommended: 12% GST rate recommended on all carton boxes: All types of sprinkles will attract 12% GST: For solar cookers, 12% GST prescribed: Services provided by Indian Railways like platform tickets exempted from GST

Why Should We Pay GST on Goods and Services If We Can’t Claim It Back?** If you’re a business owner or work in finance, you know that the GST you pay on most goods and services can be claimed back through Input Tax Credit (ITC). That’s one of the benefits of the GST system—avoiding a tax-on-tax situation. But what happens when certain goods and services are ineligible for this credit? Should we still be paying GST on them? Lately, there’s been a lot of talk on social media, in the news, and even among government ministers about this issue—especially around **insurance premiums**. Insurance is something every business needs to protect itself, but the GST we pay on it can’t be claimed back. This adds extra costs for businesses, and people are starting to ask: Is this fair? **It’s not just insurance either!** There are many other examples of goods and services where businesses can’t claim back the GST they’ve paid, such as: - **Motor vehicles** used for personal or even some business purposes. - **Club memberships** or expenses at health and fitness centers. - **Construction services** for buildings, unless they’re for specific purposes like machinery. - Goods used for **personal consumption**, not business use. All of this means businesses are paying GST but not getting any benefit from it. So, why are we being charged GST on these items if we can't claim it back? **Should GST be charged on goods and services that don’t qualify for a credit?** We could make the tax system fairer and more supportive for businesses by either allowing ITC on these items or not charging GST on them in the first place. This raises an important question: **Are we creating an unnecessary burden for businesses, and if so, should we push for changes that truly reflect a fairer tax system? #GST #taxes #smallbusiness #policychange #insurance #InputTaxCredit #businesssupport #fairtax

*Key Recommendations made by 53rd GST council meeting held today* - _(pls see press release as shared above for details)_ 1. Waiver of interest and penalty on demand notices issued under section 73 for Fy 17-18, 18-19, 19-20. Applicable in cases where tax is paid entirely by March 2025. 2. ⁠Time limit to avail ITC u/s16(4) filed till 30th Nov instead of Oct For FY 17-18, 18-19, 19-20, 20-21 3. ⁠Monetary limit for filing appeal by tax dept. of 20 lakh for tribunal; 1cr for HC and 2 cr for SC. 4. ⁠Max amount of pre deposit for filing appeal before appellate authority reduced from 25 cr to 20 cr each for cgst and sgst. 5. ⁠Per deposit for filing appeal before tribunal reduced to 20% and 20 cr each for cgst and sgst. 6. ⁠Amendment in law for providing that time limit for filing appeal before tribunal will start from the date government notifies. 7. ⁠Extension of time limit to file GSTR 4 till 30 June. 8. ⁠Interest won’t be charged for amount available in cash ledger at time of filing 3B. 9. ⁠Insertion of new Form GSTR 1A to allow correction in GSTR 1. It will be allowed to file it before filing 3B. 10. ⁠Bio metric based Aadhar authentication on PAN India basis in a phased manner. 11. ⁠Clarification issued on various topics. Few of them are - 12% tax rate for milk can; uniform GST rate of 12% on all carton boxes; clarification on all types of sprinklers will attract 12% and past practice to be as is; 12% rate on all solar cases; services by railways, platform ticket, other services are exempt; service of hostal accommodation outside of educational institutions made exempt with conditions.