GST Council held its 53rd meeting at New Delhi. In the meeting, GST Council has recommended changes related to GST tax rates, exemption from GST , relaxation on certain provision and measures pertaining to law and procedures.

Key recommendation of the GST council are:

Changes in GST rates of goods and services

1. 12% GST rate will be levied on the following items:
   1. Milk cans (of steel, Iron, and aluminium) irrespective of its use.
   2. Carton, Boxes and cases of both corrugated and non-corrugated paper or Paper-Board (existing GST rate @18%).
   3. All solar cookers whether single or dual energy source.
   4. Parts of Poultry keeping machines.
   5. Sprinklers including fire water sprinklers.

1. TCS rates to be collected by the Electronic Commerce Operators for supplies being made through them reduced from 1% to 0.5%.
2. IGST @5% will apply to imports of ‘Parts, components, testing equipment, tools and tool-kits of aircrafts, irrespective of their HS classification subject to specified conditions.

Exemption from GST

1. Non-levying of GST on Extra Neutral Alcohol used for manufacture of alcoholic liquor for home consumption.
2. Exemptions on Compensation cess on the imports in SEZ by SEZ Unit/developers for authorised operations w.e.f. 1st July, 2017.
3. IGST exemption on imports of specified items for defence forces extended for further period of 5 years till 30th June, 2029.
4. Exemptions on Compensation cess on supply of aerated beverages and energy drinks to authorised customers by Unit Run Canteens under Ministry of Defence.
5. IGST exemption on imports of research equipment/buoys imported under the Research Moored Array for African-Asian-Australian Monsoon Analysis and Prediction (RAMA) programme subject to specified conditions.
6. Adhoc IGST exemption on imports of technical documentation for AK-203 rifle kits imported for Indian Defence forces.

Measures pertaining to Law and Procedures

1. Introduction of Form GSTR-1A to facilitate the taxpayers to amend details in Form GSTR-1 for a tax period to declare additional tax, if any before filing return in Form GSTR-3B.
2. Filing of form GSTR9/9A for the FY 2023-24 to be exempted for taxpayers having aggregate turnover upto INR 2 crores.
3. Threshold for reporting under Form GSTR-1 of B2C inter-State supplies invoice wise is reduced from Rs. 2.5 lakh to Rs.1 lakh.
4. NIL GSTR-7 return to be filed; No late-fee for delayed filing of Nil Form GSTR-7 return and furnishing of invoice wise details required in Form GSTR-7.
5. Amend Section 140(7) of CGST Act, 2017 to provide for transitional credit in respect of invoices pertaining to services provided before appointed date, and where invoices were received by Input Service Distributor (ISD) before the appointed date.
6. Roll-out of biometric-based Aadhar authentication of registration applicants on PAN India basis in a phased manner.
7. Introduction of sunset clause from 1st April, 2025 for anti-profiteering under GST.

Relaxation in certain provisions

1. Time limit for availing Input Tax Credit(ITC) in respect of any invoice or debit note for FY 2017-18 to FY 2020-21 through any return in Form GSTR3B deemed to be 30th November 2021.
2. Relaxation in the provisions of ITC in cases where returns for the period from the date of cancellation of registration/effective date of cancellation of registration till the date of revocation of cancellation of the registration, are filed by the registered person within 30 days of the order of revocation.
3. Any amount, which is available in the Electronic Cash Ledger on the due date of filing of return in FORM GSTR-3B, and is debited while filing the said return, shall not be included while calculating interest under section 50 of the CGST Act in respect of delayed filing of the said return.
4. Waive interest and penalties for Section 73 demand notices for FY 2017-18, 2018-19, 2019-20 if full tax is paid by 31.03.2025.
5. Due date for filing return in FORM GSTR-4 for composition taxpayers have been extended from 30^th April to 30^th June from the end of the financial year, applicable for all returns filed from 2024-25 onwards.

Amendment in refund of GST on exports

1. Refund of additional Integrated Tax (IGST) paid on account of upward revision in price of the goods subsequent to export.
2. Restrict refund of IGST in respect of goods in cases where export duty is payable, irrespective of whether the said goods are exported without payment of taxes or with payment of taxes, and shall also be applicable, if such goods are supplied to a SEZ developer or a SEZ unit for authorized operations.

Amendments relating to filing GST appeals

1. Monetary limit for filing of GST appeals to be fixed at –
   1. GST Appellate Tribunal (GSTAT): Rs. 20 Lakhs;
   2. High Court: Rs. 1 Crore;
   3. Supreme Court: Rs. 2 Crore
2. Amount of pre-deposit required to be paid for filing of GST appeals with appellate tribunals has been reduced from 20% with a maximum amount of Rs. 50 crores CGST and Rs. 50 crores SGST to 10 % with a maximum of Rs. 20 crores CGST and Rs. 20 crores SGST.

Clarification to be issued in respect of

1. Availability of ITC in respect of ducts and manhole used in network Optical Fiber Cables.
2. No valuation required in case of valuation of services of providing corporate guarantees between related parties.
3. Time limit for availment of ITC for supplies under Reverse Charge Mechanism(RCM) shall be the financial year in which the invoice has been issued by the recipient.
4. Valuation of supply of service , in cases where the foreign affiliate is providing certain services to the related domestic entity, for which full input tax credit is available to the said related domestic entity.
5. On taxability of loans granted between related person or between group companies.
6. Re-imbursement of securities/shares as ESOP/ESPP/RSU provided by a company to its employees
7. Reversal of input tax credit in respect of amount of premium in Life Insurance services
8. Warranty/ Extended Warranty provided by Manufacturers to the end customers
9. Availability of input tax credit on repair expenses incurred by the insurance companies in case of reimbursement mode of settlement of motor vehicle insurance claims.
10. Place of supply of goods supplied to unregistered persons, where delivery address is different from the billing address.

For further details please refer the attached document for ease of reference.

Source: Press Information of Bureau

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